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Registration number: OC435088

Bolt Burdon Kemp LLP

Annual Report and Financial Statements

for the Year Ended 31 March 2024

 

Bolt Burdon Kemp LLP

Contents

Limited liability partnership information

1

Members' Report

2 to 3

Statement of Members' Responsibilities

4

Independent Auditor's Report

5 to 7

Profit and Loss Account

8

Balance Sheet

9

Statement of Changes in Members’ Interests

10

Cash Flow Statement

11

Notes to the Financial Statements

12 to 19

 

Bolt Burdon Kemp LLP

Limited liability partnership information

Designated members

R Kapila

C M Klage

D V J McClenaghan

L Nicholls

J R Wheeler

S A M Hayman
 

Registered office

26 Newbury Street
London
EC1A 7HU

Bankers

HSBC
62 George White Street
Cabot Circus
Bristol
BS13 3BA

Auditors

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

Bolt Burdon Kemp LLP

Members' Report for the Year Ended 31 March 2024

The members present their report and the financial statements for the year ended 31 March 2024.

Firm structure

The LLP is a limited liability partnership registered in England and Wales. A list of designated members’ names is available for inspection at the LLP’s registered office.

Principal activity

The principal activity of the LLP is the provision of legal services.

Review of the business and future developments

The profit for the year before members' remuneration was £3,108,489 (2023: £1,980,979), which the members deem to be reasonable.

Total assets are £10,387,842 (2023: £11,515,993) and net current assets are £208,987 (2023: £3,410,965). The decrease in net current assets is driven by a reduction in cash and short-term deposits and an increase in creditors.

After reviewing the LLP's forecasts and projections, the members have a reasonable expectation that the LLP has adequate resources to continue in operational existence for the foreseeable future. The LLP therefore continues to adopt the going concern basis in preparing its financial statements.

No significant future developments are relevant for disclosure but the members are committed in both improving the practice and investing in their people and stakeholders.

Designated members

The members who held office during the year were as follows:

R Kapila

C M Klage

D V J McClenaghan

L Nicholls

S J Trask (resigned 12 February 2024)

J R Wheeler

S A M Hayman

Members' drawings and the subscription and repayment of members' capital

Members are permitted to make drawings in anticipation of profits which will be allocated to them. The amount of such drawings is set at the beginning of each financial year, taking into account the anticipated cash needs of the LLP.

New members are required to subscribe a minimum level of capital and in subsequent years, members are invited to subscribe for further capital, the amount of which is determined by the performance and seniority of those members. On retirement, capital is repaid to members.

Principal risk and uncertainties

The management of the LLP and the execution of the LLP's strategy are subject to a number of risks. The key business risks and uncertainties affecting the LLP are considered to relate to competition from other legal practices and changes in the legal industry, as well as the ongoing challenges of hybrid working. These are managed through timely board meetings, monthly internal review and reporting and ongoing professional development.

Key performance indicators

Given the straightforward nature of the LLP, the members are of the opinion that analysis using key performance indicators is not necessary for an understanding of the development, performance or position of the practice.

 

Bolt Burdon Kemp LLP

Members' Report for the Year Ended 31 March 2024

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.

Reappointment of auditors

The auditors Hazlewoods LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006, as applied to limited liability partnerships.

Approved by the Board on 25 February 2025 and signed on its behalf by:

.........................................
L Nicholls
Designated member

   
 

Bolt Burdon Kemp LLP

Statement of Members' Responsibilities for the Year Ended 31 March 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 May 2024). 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 designated members on behalf of the members.

 

Bolt Burdon Kemp LLP

Independent Auditor's Report to the Members of Bolt Burdon Kemp LLP for the Year Ended 31 March 2024

Opinion

We have audited the financial statements of Bolt Burdon Kemp LLP (the ‘LLP’) for the year ended 31 March 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 March 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.

Other matter - prior year financial statements unaudited

The company was not required to have a statutory audit for the year ended 31 March 2023 as it was entitled to exemption from the provision of the Companies Act 2006 relating to the audit of the financial statements for the period by virtue of Section 477 and no member or members requesting an audit pursuant to Section 476 of the Act. Accordingly the corresponding figures for the year ended 31 March 2023 are unaudited.

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.

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.

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.

 

Bolt Burdon Kemp LLP

Independent Auditor's Report to the Members of Bolt Burdon Kemp LLP for the Year Ended 31 March 2024

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.

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.

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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the nature of the group’s industry and its control environment and reviewed the group’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified include the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations.

 

Bolt Burdon Kemp LLP

Independent Auditor's Report to the Members of Bolt Burdon Kemp LLP for the Year Ended 31 March 2024

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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.

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.

......................................
Andrew Harris (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Windsor House
Bayshill RoadCheltenham
GL50 3AT

28 February 2025

 

Bolt Burdon Kemp LLP

Profit and Loss Account for the Year Ended 31 March 2024

Note

2024
£

2023
(unaudited)
£

Turnover

3

15,871,171

13,596,040

Administrative expenses

 

(12,446,677)

(11,270,085)

Other operating income

 

21,207

16,877

Operating profit

4

3,445,701

2,342,832

Interest receivable

5

110,440

13,599

Interest payable and similar expenses

6

(447,652)

(375,452)

Profit for the year before members' remuneration and profit shares

 

3,108,489

1,980,979

Members' remuneration charged as an expense

 

(3,108,489)

(1,980,979)

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.

 

Bolt Burdon Kemp LLP

(Registration number: OC435088)
Balance Sheet as at 31 March 2024

Note

2024
 £

2023
(unaudited)
 £

Fixed assets

 

Tangible assets

9

999,654

1,123,253

Current assets

 

Debtors

10

9,388,088

9,053,159

Cash and short-term deposits

 

100

1,339,581

 

9,388,188

10,392,740

Creditors: Amounts falling due within one year

11

(9,179,201)

(6,981,775)

Net current assets

 

208,987

3,410,965

Total assets less current liabilities

 

1,208,641

4,534,218

Creditors: Amounts falling due after more than one year

12

(2,389,330)

(2,911,519)

Provisions for liabilities

 

Other provisions

14

(165,500)

(42,250)

Net (liabilities)/assets attributable to members

 

(1,346,189)

1,580,449

Represented by:

 

Loans and other debts due to members

 

Members' capital classified as a liability

 

(1,346,189)

1,580,449

   

(1,346,189)

1,580,449

Total members' interests

 

Loans and other debts due to members

 

(1,346,189)

1,580,449

   

(1,346,189)

1,580,449

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 Bolt Burdon Kemp LLP (registered number OC435088) were approved by the Board and authorised for issue on 25 February 2025. They were signed on behalf of the limited liability partnership by:

.........................................
L Nicholls
Designated member

   
 

Bolt Burdon Kemp LLP

Statement of Changes in Members’ Interests
At 31 March 2024

 

Loans and other debts due to/(from) members

Members' other amounts
£

Members' interest at 1 April 2023

1,580,449

Members' remuneration charged as an expense

3,108,489

Members' interests after total comprehensive income

4,688,938

Drawings (including tax payments)

(2,919,542)

Transfer of capital to former members’ balances

(3,115,585)

At 31 March 2024

(1,346,189)


 

 

Loans and other debts due to/(from) members (unaudited)

Members' other amounts
£

Members' remuneration charged as an expense

1,980,979

Members’ capital introduced

1,170,000

Other amounts introduced by members

2,801,895

Drawings (including tax payments)

(4,372,425)

At 31 March 2023

1,580,449

Loans and other debts due to members are unsecured and would rank pari passu with other unsecured creditors in the event of a winding up.

 

Bolt Burdon Kemp LLP

Cash Flow Statement for the Year Ended 31 March 2024

Note

2024
 £

2023
(unaudited)
 £

Net cash inflow/(outflow) from operating activities

16

6,482,250

(1,228,455)

Cash flows from investing activities

 

Purchase of tangible fixed assets

 

(123,206)

(1,326,022)

Interest received

 

110,440

13,599

Interest paid

 

(447,652)

(375,452)

Net cash flows from investing activities

 

(460,418)

(1,687,875)

Cash flows from financing activities

 

Repayment of loans and borrowings

 

(2,651,202)

4,656,441

Payments to or on behalf of members

 

(2,919,542)

(4,372,425)

Capital contributions by members

 

-

3,971,895

Repayments to former members

 

(3,115,585)

-

Net cash flows from financing activities

 

(8,686,329)

4,255,911

Net (decrease)/increase in cash and cash equivalents

 

(2,664,497)

1,339,581

Cash and cash equivalents at 1 April

 

1,339,581

-

Cash and cash equivalents at 31 March

 

(1,324,916)

1,339,581



 

2024
 £

2023
 £

Reconciliation to cash at bank and in hand:

Cash on hand

100

100

Cash at bank (overdraft)

(1,325,016)

1,339,481

(1,324,916)

1,339,581

 

Bolt Burdon Kemp LLP

Notes to the Financial Statements for the Year Ended 31 March 2024

1

General information

The place of registration of the limited liability partnership is England and Wales.

The address of the registered office is:
26 Newbury Street
London
EC1A 7HU

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

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

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

The year ended 31 March 2024 is the first year that the limited liability partnership has been audited.

Going concern

We note that the business has a net liability position at 31 March 2024. This is due to debt recorded under fixed repayments terms where sufficient headroom is expected to be maintained facilitating payment of the corresponding liabilities as they fall due.

As a result, after reviewing the LLP's forecasts and projections, the members have a reasonable expectation that the LLP has adequate resources to continue in operational existence for the foreseeable future. The practice remains profitable and is cash generative both in the year and post year end. 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

Amounts recoverable on contracts - The process of assessing amounts recoverable on contracts requires various estimates and judgements to be made. Fee earners are required to record time spent on client assignments and this is used as the basis for the amounts recoverable on contracts estimate. A year end report of time on all assignments is circulated to fee earners to identify likely recoverable amounts. The carrying amount is £3,653,264 (2023 - £3,253,581).

Bad debt provision - due to the nature of the business, there are high levels of trade debtors at the year end, and therefore a risk that some of these balances may be irrecoverable. A bad debt review is carried out, where debts are assessed and provided against when the recoverability of these balances is considered to be uncertain. The carrying amount is £123,393 (2023 - £18,604).

 

Bolt Burdon Kemp LLP

Notes to the Financial Statements for the Year Ended 31 March 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 excludes VAT. Income is recognised as milestones are reached 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(s) occurs and collectability of the fee is assured.

Unbilled income on individual client assignments, on both contingent and non-contingent matters, is included as amounts recoverable on contracts within debtors. The corresponding policy is disclosed in more detail below.

Disbursements

Disbursements are not included in income or expenses, but are netted against each other.

Members' remuneration and division of profits

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

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

Taxation

The taxation payable on the LLP's profits is the personal liability of the members, although payment of such liabilities is administered by the LLP on behalf of its members. Consequently, neither LLP taxation nor related deferred taxation is accounted for in these financial statements. Sums set aside in respect of members' tax obligations are included in the balance sheet within loans and other debts due to members, or are set against amounts due from members as appropriate.

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

Asset class

Depreciation method and rate

Leasehold improvements

Over the period of the lease

Office equipment

33% of cost per annum

Fixtures and fittings

25% of cost per annum

Amounts recoverable on contracts

Amounts recoverable on contracts, or 'work in progress', reflects chargeable time recorded on individual matters by fee earners at their charge out rates less an expected recovery rate being applied based on historic out-turn. Amounts recoverable on contracts are recognised as milestones are reached and the right to consideration is secured, except where the final outcome cannot be assessed with reasonable certainty. These matters are then individually reviewed as part of year end reporting to ensure they are accurately stated.

Trade debtors

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

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted 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.

 

Bolt Burdon Kemp LLP

Notes to the Financial Statements for the Year Ended 31 March 2024

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the LLP does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the LLP has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Borrowing costs which are directly attributable to the construction of tangible fixed assets are capitalised as part of the cost of those assets. The commencement of capitalisation begins when both finance costs and expenditures for the asset are being incurred and activities that are necessary to get the asset ready for use are in progress. Capitalisation ceases when substantially all the activities that are necessary to get the asset ready for use are complete.

Provisions

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

Members' interests

Amounts due to members after more than one year comprise provisions for annuities to current members and certain loans from members which are not repayable within twelve months of the balance sheet date.

Pensions and other post retirement obligations

The LLP operates a defined pension contribution pension scheme. Contributions are charged in the profit and loss account as they become payable in accordance with the rules of the scheme.

Financial instruments

Classification

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

Recognition and Measurement

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

 

Bolt Burdon Kemp LLP

Notes to the Financial Statements for the Year Ended 31 March 2024

Impairment of financial assets

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

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

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

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

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

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

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

3

Turnover

The analysis of the LLP's revenue for the year is as follows:

2024
£

2023
£

Rendering of services

15,871,171

13,596,040

4

Operating profit

Operating profit is stated after charging /(crediting):

2024
£

2023
£

Depreciation of owned assets

246,805

202,769

Auditors remuneration

51,315

23,810

5

Interest receivable

2024
£

2023
£

Interest receivable

110,440

13,599

 

110,440

13,599

 

Bolt Burdon Kemp LLP

Notes to the Financial Statements for the Year Ended 31 March 2024

6

Interest payable and similar charges

2024
£

2023
£

Interest on bank borrowings and overdrafts

342,412

279,441

Interest on other loans

105,240

96,011

447,652

375,452

7

Particulars of employees

The average number of persons employed by the LLP (including members) during the year, analysed by category was as follows:

2024
 No.

2023
 No.

Fee earners

107

97

Administration and support

19

18

126

115

The aggregate payroll costs were as follows:

2024
 £

2023
 £

Wages and salaries

6,364,143

5,787,585

Social security costs

675,252

640,074

Pension costs, defined contribution scheme

319,945

310,825

7,359,340

6,738,484

8

Members' remuneration

2024

2023

Average number of members during the year

9

8

The profit attributable to the member with the largest entitlement was £4,155,450 (2023: £690,037).

 

Bolt Burdon Kemp LLP

Notes to the Financial Statements for the Year Ended 31 March 2024

9

Tangible fixed assets

Leasehold improvements
 £

Fixtures and fittings
 £

Office equipment
 £

Total
£

Cost

At 1 April 2023

760,194

359,674

206,154

1,326,022

Additions

-

-

123,206

123,206

At 31 March 2024

760,194

359,674

329,360

1,449,228

Depreciation

At 1 April 2023

61,580

78,736

62,453

202,769

Charge for the year

76,019

89,638

81,148

246,805

At 31 March 2024

137,599

168,374

143,601

449,574

Net book value

At 31 March 2024

622,595

191,300

185,759

999,654

At 31 March 2023

698,614

280,938

143,701

1,123,253

10

Debtors

2024
£

2023
£

Trade debtors

4,838,730

4,985,423

Amounts recoverable on contracts

3,653,264

3,253,581

Other debtors

8,116

66,177

Prepayments and accrued income

887,978

747,978

9,388,088

9,053,159

11

Creditors: Amounts falling due within one year

2024
£

2023
£

Bank loans and overdrafts

2,182,773

2,774,922

Trade creditors

1,746,614

1,817,119

Amounts due to former members

2,827,432

515,000

Other taxes and social security

769,790

1,158,462

Accruals and deferred income

1,652,592

716,272

9,179,201

6,981,775

 

Bolt Burdon Kemp LLP

Notes to the Financial Statements for the Year Ended 31 March 2024

12

Creditors: Amounts falling due after more than one year

2024
£

2023
£

Bank loans and overdrafts

1,147,482

1,881,519

Amounts due to former members

1,241,848

1,030,000

2,389,330

2,911,519

13

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

875,272

875,272

Later than one year and not later than five years

3,404,748

3,465,020

Later than five years

2,411,042

3,226,042

6,691,062

7,566,334

The amount of non-cancellable operating lease payments recognised as an expense during the year was £719,576 (2023 - £723,736).

14

Provisions

Legal proceedings
£

Client claims provision
£

Dilapidations provision
£

Total
£

At 1 April 2023

-

11,000

31,250

42,250

Increase in provisions

92,000

-

31,250

123,250

At 31 March 2024

92,000

11,000

62,500

165,500

The provisions represent claims against the LLP, and for potential dilapidations on the current premises, which are payable under the terms of the lease on the premises.

15

Pension and other schemes

The LLP operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the LLP to the scheme and amounted to £319,945 (2023 - £310,825).

Contributions totalling £92,000 (2023 - £nil) were payable to the scheme at the year end and are included in creditors.

 

 

Bolt Burdon Kemp LLP

Notes to the Financial Statements for the Year Ended 31 March 2024

16

Cash flow statement

2024
 £

2023
 £

Operating profit

3,445,701

2,342,832

Depreciation charges

246,805

202,769

Increase in debtors

(334,929)

(9,053,159)

Increase in creditors

3,001,423

5,236,853

Increase in provisions

123,250

42,250

Cash generated by operations

6,482,250

(1,228,455)

Net cash inflow/(outflow) from operating activities

6,482,250

(1,228,455)

17

Analysis of changes in net debt

At 1 April 2023
£

Financing cash flows
£

At 31 March 2024
£

Cash at bank

1,339,581

(1,339,481)

100

Overdrafts

-

(1,325,016)

(1,325,016)

Bank borrowings (less than one year)

(2,774,922)

1,917,165

(857,757)

Bank borrowings (more than one year)

(1,881,519)

734,037

(1,147,482)

Net debt (before members’ debt)

(3,316,860)

(13,295)

(3,330,155)

Loans and other debts due to members

Other amounts due to members

(1,580,449)

2,926,638

1,346,189

Net debt

(4,897,309)

2,913,343

(1,983,966)

18

Control

The members are the controlling party by virtue of their controlling interest in the limited liability partnership. No individual member is deemed to control the limited liability partnership. The ultimate controlling party is the same as the controlling party.