Limited Liability Partnership registration number OC308202 (England and Wales)
VENNER SHIPLEY LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
VENNER SHIPLEY LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
J.F. Walaski
I.M. Grey
S.V. Gill
P. Piotrowicz
P. Derry
A. Elend
A. Hutter
S.E.W. Taor
P. Harrison
A.E. Brown
T. Russell
R.E. Kennedy
V.J. Martin
J.C. Hancox
C.V. Turnbull
J. Chettle
P.C. Thorniley
Limited liability partnership number
OC308202
Registered office
200 Aldersgate Street
London
EC1A 4HD
Auditor
Goodman Jones LLP
1st Floor Arthur Stanley House
40-50 Tottenham Street
London
W1T 4RN
VENNER SHIPLEY LLP
CONTENTS
Page
Members' report
1 - 2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Statement of financial position
7
Reconciliation of members' interests
8
Statement of cash flows
9
Notes to the financial statements
10 - 20
VENNER SHIPLEY LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The members present their annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the limited liability partnership continued to be that of intellectual property attorneys.

Review of the business

The results for the year and the financial position at the year end were considered satisfactory by the members.

 

Results

The profit for the year available for distribution to members was £9,056,881 (2023: £8,831,151 ).

Members' drawings, contributions and repayments

The members' drawing policy allows each member to draw a proportion of their profit share, subject to the cash requirements of the business.

 

A member's capital requirement is linked to their share of profit and the financing requirement of the limited liability partnership. There is no opportunity for appreciation of the capital subscribed. Just as incoming members introduce their capital at "par", so the retiring members are repaid their capital at "par".

 

Financial instruments

The LLP's financial instruments comprise borrowings, cash and liquid resources, and various net working capital items, such as trade receivables and trade payables. The main purpose of these financial instruments is to fund that part of the LLP's operations not financed by way of members' interests.

 

It is the LLP's policy not to trade in financial or derivative instruments.

 

The main risks in providing funds for the LLP relate to interest rates and liquidity.

Designated members

The designated members who held office during the year and up to the date of signature of the financial statements were as follows:

J.F. Walaski
I.M. Grey
S.V. Gill
P. Piotrowicz
P. Derry
A. Elend
A. Hutter
S.E.W. Taor
P. Harrison
A.E. Brown
T. Russell
J.R. Tumbridge
(Resigned 30 April 2024)
R.E. Kennedy
V.J. Martin
J.C. Hancox
C.V. Turnbull
J. Chettle
(Appointed 1 July 2023)
P.C. Thorniley
(Appointed 1 July 2024)
VENNER SHIPLEY LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Post reporting date events

From 1 December 2024, all of the Partners and People of AA Thornton IP LLP joined Venner Shipley LLP to carry on business together under the name Venner Shipley LLP. Venner Shipley LLP is not considered to be a successor practice to AA Thornton IP LLP or its predecessor practices. AA Thornton IP LLP will no longer carry on business. The combined firm consists of 46 partners and a total team of 230 across eight offices in Europe providing a full Intellectual property service to the clients of the firm. No consideration was paid as part of the process.

Auditor

The auditor, Goodman Jones LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of members' responsibilities

The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires 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) including FRS 102. Under company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) 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 limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members are required to:

 

 

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor
So far as the members are aware, there is no relevant audit information of which the limited liability partnership's auditors are unaware. Additionally, the members have taken all the necessary steps that they ought to have taken as members in order to make themselves aware of all relevant audit information and to establish that the limited liability partnership's auditors are aware of that information.
Going concern

The members have a reasonable expectation that the partnership has adequate resources to continue in operational existence for the foreseeable future. The members have prepared cash flow and profit forecasts which show that the partnership can meet its financial obligations as they fall due. Thus the members continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Approved by the members on 12 December 2024 and signed on behalf by:
12 December 2024
S.V. Gill
Designated Member
VENNER SHIPLEY LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VENNER SHIPLEY LLP
- 3 -
Opinion

We have audited the financial statements of Venner Shipley LLP (the 'limited liability partnership') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the statement of financial position, the reconciliation of members' interests, the statement of cash flows 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 our opinion the financial statements:

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 limited liability partnership 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.

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 limited liability partnership’s ability to continue as a going concern for a period of at least twelve months from when the 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The members are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

VENNER SHIPLEY LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VENNER SHIPLEY LLP
- 4 -
Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 as applied to limited liability partnerships requires us to report to you if, in our opinion:

 

Responsibilities of members

As explained more fully in the members' responsibilities statement, 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 limited liability partnership'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 limited liability partnership or to cease operations, or have no realistic alternative but to do so.

Auditor's 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.

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.

Based on our understanding of the limited liability partnership and industry, we identified that the principal risks of non-compliance with laws and regulations related to industry sector regulations and unethical and prohibited business practices, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 and UK Tax Legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Appropriate audit procedures in response to these risks were carried out. These procedures included:

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members; and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in the audit procedures described above. The further removed instances of non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Also, 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 or intentional misrepresentations, or through collusion.

VENNER SHIPLEY LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VENNER SHIPLEY LLP
- 5 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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 by the Limited Liability Partnerships (Accounts and 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's members as a body, for our audit work, for this report, or for the opinions we have formed.

Sarf Malik (Senior Statutory Auditor)
For and on behalf of Goodman Jones LLP, Statutory Auditor
Chartered Accountants
1st Floor Arthur Stanley House
40-50 Tottenham Street
London
W1T 4RN
12 December 2024
VENNER SHIPLEY LLP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -
2024
2023
Notes
£
£
Revenue
3
49,007,856
45,302,819
Cost of sales
(21,480,950)
(19,419,976)
Gross profit
27,526,906
25,882,843
Administrative expenses
(18,497,293)
(17,059,039)
Operating profit
4
9,029,613
8,823,804
Investment income
7
28,789
8,847
Finance costs
8
(1,521)
(1,500)
Profit for the financial year before members' remuneration and profit shares
9,056,881
8,831,151
Profit for the financial year before members' remuneration and profit shares
9,056,881
8,831,151
Members' remuneration charged as an expense
6
(9,056,881)
(8,831,151)
Profit for the financial year available for discretionary division among members
-
-
VENNER SHIPLEY LLP
STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2024
30 June 2024
- 7 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
9
1,166,873
916,776
Investments
10
100
100
1,166,973
916,876
Current assets
Trade and other receivables
12
14,371,747
12,798,196
Cash and cash equivalents
954,062
2,577,199
15,325,809
15,375,395
Current liabilities
13
(6,902,543)
(5,657,991)
Net current assets
8,423,266
9,717,404
Total assets less current liabilities
9,590,239
10,634,280
Provisions for liabilities
Provisions
14
(913,297)
(906,558)
Net assets attributable to members
8,676,942
9,727,722
Represented by:
Loans and other debts due to members within one year
Members' capital classified as a liability
2,604,315
2,820,000
Other amounts
6,072,627
6,907,722
Total members' interests
8,676,942
9,727,722
The financial statements were approved by the members and authorised for issue on 12 December 2024 and are signed on their behalf by:
12 December 2024
S.V. Gill
Designated member
Limited Liability Partnership registration number OC308202 (England and Wales)
VENNER SHIPLEY LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
Current financial year
DEBT
TOTAL
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital (classified as debt)
Other amounts
Total
Total
2024
£
£
£
£
Members' interests at 1 July 2023
2,820,000
6,907,722
9,727,722
9,727,722
Members' remuneration charged as an expense
-
9,056,881
9,056,881
9,056,881
Result for the financial year available for discretionary division among members
-
-
-
-
Members' interests after loss and remuneration for the year
2,820,000
15,964,603
18,784,603
18,784,603
Introduced by members
141,208
-
141,208
141,208
Repayment of debt (including members' capital classified as a liability)
(356,893)
-
(356,893)
(356,893)
Drawings
-
(9,891,976)
(9,891,976)
(9,891,976)
Members' interests at 30 June 2024
2,604,315
6,072,627
8,676,942
8,676,942
Prior financial year
DEBT
TOTAL
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital (classified as debt)
Other amounts
Total
Total
2023
£
£
£
£
Members' interests at 1 July 2022
2,820,000
7,468,527
10,288,527
10,288,527
Members' remuneration charged as an expense
-
8,831,151
8,831,151
8,831,151
Result for the financial year available for discretionary division among members
-
-
-
-
Members' interests after loss and remuneration for the year
2,820,000
16,299,678
19,119,678
19,119,678
Introduced by members
103,476
-
103,476
103,476
Repayment of debt (including members' capital classified as a liability)
(103,476)
-
(103,476)
(103,476)
Drawings
-
(9,391,956)
(9,391,956)
(9,391,956)
Members' interests at 30 June 2023
2,820,000
6,907,722
9,727,722
9,727,722
VENNER SHIPLEY LLP
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
9,093,732
8,494,276
Interest paid
(1,521)
(1,500)
Net cash inflow from operating activities
9,092,211
8,492,776
Investing activities
Purchase of property, plant and equipment
(636,821)
(141,367)
Proceeds from disposal of property, plant and equipment
345
-
Interest received
28,789
8,847
Net cash used in investing activities
(607,687)
(132,520)
Financing activities
Capital introduced by members (classified as debt or equity)
141,208
103,476
Repayment of capital or debt to members
(356,893)
(103,476)
Payments to members
(9,891,976)
(9,391,956)
Net cash used in financing activities
(10,107,661)
(9,391,956)
Net decrease in cash and cash equivalents
(1,623,137)
(1,031,700)
Cash and cash equivalents at beginning of year
2,577,199
3,608,899
Cash and cash equivalents at end of year
954,062
2,577,199
VENNER SHIPLEY LLP
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
1
Accounting policies
Limited liability partnership information

Venner Shipley LLP is a limited liability partnership incorporated in England and Wales. The registered office is 200 Aldersgate Street, London, EC1A 4HD.

 

The limited liability partnership's principal activities are disclosed in the Members' Report.

1.1
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2018, 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.

 

In accordance with this, members' remuneration is charged as an expense. Members' capital is being treated as a liability and the automatic allocation of the majority of profits results in the minimal unallocated profit shown in the profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.

The limited liability partnership has taken advantage of the exemption under section 405 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the limited liability partnership as an individual entity and not about its group.

The principal accounting policies adopted are set out below.

1.2
Going concern

The members have a reasonable expectation that the partnership has adequate resources to continue in operational existence for the foreseeable future. The members have prepared cash flow and profit forecasts which show that the partnership can meet its financial obligations as they fall due. Thus the members continue to adopt the going concern basis of accounting in preparing the annual financial statements.

1.3
Revenue
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.
1.4
Revenue recognition

Fee income represents revenue earned under a wide variety of contracts to provide professional services. Revenue is recognised as earned when, and to the extent that, the firm obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to clients, including expenses and disbursements but excluding value added tax.

 

Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Revenue not billed to clients is included in debtors and payments on account in excess of the relevant amount of revenue are included in creditors.

 

Fee income that is contingent on events outside the control of the firm is recognised when the contingent event occurs.

VENNER SHIPLEY LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 11 -
1.5
Members' participating interests

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).

 

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.

 

All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.

 

 

1.6
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Leasehold improvements
Over the life of the lease
Fixtures, fittings & equipment
5 - 20% Straight line
Computer equipment
10 - 33% Straight line

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

1.7
Non-current investments

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

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

1.8
Impairment of non-current assets

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

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

VENNER SHIPLEY LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -
1.10
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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

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

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

VENNER SHIPLEY LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
Classification of financial liabilities

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

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.

1.11
Equity instruments

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

1.12
Taxation

The taxation payable on the profits of the LLP is a personal obligation of the individual members and as such is not reflected in these financial statements.

1.13
Provisions

Provisions are recognised when the limited liability partnership has a legal or constructive present obligation 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.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

 

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision in measured at present value the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

VENNER SHIPLEY LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the limited liability partnership is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits and post retirement payments to members

The company contributed to a group personal pension plan in the year ended 30 June 2024 for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

1.16
Leases

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.18

Dilapidations

The cost of dilapidations on operating leases has been provided for where appropriate. Where the cost relates to capital expenditure it has been capitalised and depreciated on a straight line basis over the life of the lease.

VENNER SHIPLEY LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
2
Judgements and key sources of estimation uncertainty

In the application of the limited liability partnership’s accounting policies, the members are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

Bad debt provision

A review of the underlying balances is carried out at the end of each month. Whilst every attempt is made to ensure that any provisions are as accurate as possible, there remains a slight risk that the provisions may not match the amounts which ultimately prove to be uncollectable.

 

Amounts recoverable on long term contracts

The statement of financial position includes unbilled revenue of £1,213,499 (2023: £1,244,552 ) at the year end. A review of the underlying balances is carried out each month. Whilst every attempt is made to ensure that any provisions are as accurate as possible, there remains a slight risk that the provisions may not match the amounts which ultimately prove to be uncollectable.

 

Dilapidations provision

A provision for dilapidation works upon expiry of the office leases has been provided at £913,297 (2023: £906,558 ). Significant judgements include the current estimated cost of dilapidations and the date at which the dilapidations will become payable. Management believes that the provision recognised is a true and fair reflection of the cost of future dilapidation expenditure but despite this there remains a risk that the provision does not match the level of cost ultimately required.

3
Revenue
The whole of the turnover is attributable to the firm's principal activity, being the provision of intellectual property advice and services.
Segmental analysis of turnover is not included. The members consider such disclosure to be prejudicial to the business since it would be helpful to competitors who do not generally provide similar information publicly.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(180,949)
(233,137)
Fees payable to the LLP's auditor for the audit of the LLP's financial statements
32,300
32,000
Depreciation of owned property, plant and equipment
386,724
312,891
Loss on disposal of property, plant and equipment
(345)
-
Operating lease charges
1,314,225
1,237,007
VENNER SHIPLEY LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
5
Employees

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

2024
2023
Number
Number
Professional staff
82
80
Support staff
80
77
Total
162
157

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
10,736,078
10,177,126
Social security costs
1,211,486
1,112,138
Pension costs
1,268,765
1,182,228
13,216,329
12,471,492
6
Members' remuneration
2024
2023
Number
Number
Average number of members during the year
17
18
2024
2023
£
£
Profit attributable to the member with the highest entitlement
779,490
797,177
2024
2023
£
£
Members remuneration charged as an expense
9,056,881
8,831,151
7
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
28,789
8,847
VENNER SHIPLEY LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
7
Investment income
(Continued)
- 17 -
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
28,789
8,847
8
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,521
1,500
9
Property, plant and equipment
Leasehold improvements
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 July 2023
1,368,602
1,342,090
1,413,452
4,124,144
Additions
404,160
46,739
185,922
636,821
At 30 June 2024
1,772,762
1,388,829
1,599,374
4,760,965
Depreciation and impairment
At 1 July 2023
909,050
1,148,451
1,149,867
3,207,368
Depreciation charged in the year
161,659
71,194
153,871
386,724
At 30 June 2024
1,070,709
1,219,645
1,303,738
3,594,092
Carrying amount
At 30 June 2024
702,053
169,184
295,636
1,166,873
At 30 June 2023
459,552
193,639
263,585
916,776
10
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
11
100
100
VENNER SHIPLEY LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
11
Subsidiaries

Venner Shipley LLP has chosen to not present consolidated accounts for the year ending 30 June 2024. This is in accordance with the exemption available within Section 9.3, of FRS102 and Section 405 of the Companies Act 2006, given that the inclusion of the Venner Shipley Legal Limited is not material for the purpose of giving a true and fair view in the financial statements.

Details of the limited liability partnership's subsidiaries at 30 June 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Venner Shipley Legal Limited
United Kingdom
Ordinary
100.00
The aggregate capital and reserves and the result for the year of subsidiaries excluded from consolidation was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Venner Shipley Legal Limited
(56,947)
(8,252)

Venner Shipley Legal Limited has a registered address of 200 Aldersgate Street, London, United Kingdom, EC1A 4HD.

12
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
11,062,360
9,597,333
Gross amounts owed by contract customers
1,213,499
1,244,552
Amounts owed by group undertakings
75,411
97,066
Other receivables
706,841
468,610
Prepayments and accrued income
1,313,636
1,390,635
14,371,747
12,798,196
13
Current liabilities
2024
2023
£
£
Trade payables
4,210,387
3,526,781
Other taxation and social security
969,594
831,583
Other payables
275,370
247,603
Accruals and deferred income
1,447,192
1,052,024
6,902,543
5,657,991
VENNER SHIPLEY LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
14
Provisions for liabilities
2024
2023
£
£
Dilapidations provision
913,297
906,558
Movements on provisions:
Dilapidations provision
£
At 1 July 2023
906,558
Additional provisions in the year
6,739
At 30 June 2024
913,297
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,268,765
1,182,228

The limited liability partnership operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the limited liability partnership in an independently administered fund.

16
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
1,295,004
1,183,306
Between two and five years
2,079,820
2,254,108
3,374,824
3,437,414
17
Controlling party

The limited liability partnership is under the control of its members as a body and as such there is no single ultimate controlling party.

VENNER SHIPLEY LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
18
Related party transactions
Remuneration of key management personnel

The members are considered to be the key management personnel. Members remuneration is disclosed in note 6.

19
Events after the reporting date

From 1 December 2024, all of the Partners and People of AA Thornton IP LLP joined Venner Shipley LLP to carry on business together under the name Venner Shipley LLP. Venner Shipley LLP is not considered to be a successor practice to AA Thornton IP LLP or its predecessor practices. AA Thornton IP LLP will no longer carry on business. The combined firm consists of 46 partners and a total team of 230 across eight offices in Europe providing a full Intellectual property service to the clients of the firm. No consideration was paid as part of the process.

20
Cash generated from operations
2024
2023
£
£
Profit after taxation
9,056,881
8,831,151
Adjustments for:
Finance costs recognised in profit or loss
1,521
1,500
Investment income recognised in profit or loss
(28,789)
(8,847)
Gain on disposal of property, plant and equipment
(345)
-
Depreciation and impairment of property, plant and equipment
386,724
312,891
Increase in provisions
6,739
54,297
Movements in working capital:
Increase in trade and other receivables
(1,573,551)
(946,681)
Increase in trade and other payables
1,244,552
249,965
Cash generated from operations
9,093,732
8,494,276
21
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
2,577,199
(1,623,137)
954,062
Loans and other debts due to members:
- Members' capital
(2,820,000)
215,685
(2,604,315)
- Other amounts due to members
(6,907,722)
835,095
(6,072,627)
Balances including members' debt
(7,150,523)
(572,357)
(7,722,880)
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