Limited Liability Partnership Registration No. OC345296 (England and Wales)
Ellis Jones Solicitors LLP
Annual report and financial statements
for the year ended 30 June 2024
Ellis Jones Solicitors LLP
Limited liability partnership information
Designated members
Nigel Smith
Lauren Day
William Fox Bregman
Members
Kate Brooks
Carla Brown
Matthew Clake
Paul Kanolik
Deborah Leask
Sean McNally
David McWilliam
Timothy Sharpley
Katie Taft
Richard Tombs
Craig Wells
Christopher Pemberton
Richard Smith
Andrew Kirby
John Bulpit (appointed 21 May 2024)
Limited liability partnership number
OC345296
Registered office
302 Charminster Road
Bournemouth
Dorset
BH8 9RU
Independent auditor
PKF Francis Clark Chartered Accountants
Towngate House
2-8 Parkstone Road
Poole
Dorset
BH15 2PW
Ellis Jones Solicitors LLP
Contents
Page
Members' report
1 - 2
Members' responsibilities statement
3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Statement of financial position
9
Reconciliation of members' interests
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
Ellis Jones Solicitors 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 the provision of legal services.

Business Review and Going Concern Report

In assessing the basis of the preparation of these accounts, as well as considering the LLP’s own performance, the members have taken into account external factors including the uncertain economic outlook and its resilience against a potential recession. The LLP performed well for the year ended 2024 showing an increase in both turn-over and profit despite the inevitable increase in overheads brought about by external economic pressures. The LLP continues to hold cash reserves.

The LLP is not over reliant on any particular client or clients and has a good spread of work over all legal sectors. The members consider that the spread of work makes it resilient against any potential for further economic downturn or recession.

As part of the firm’s ongoing business plan, during the year the firm acquired a small local practice, including access to new premises and staff.

 

The LLP has continued to trade well since June 2024.

 

Given the LLP’s performance to June 2024, its cash reserve position, its ongoing performance since June 2024 and its work spread across all legal sectors, at the time of approving the financial statements, the members have a reasonable expectation that the LLP has adequate resources to continue in operational existence for the foreseeable future. Thus, the members to continue to adopt the ongoing basis of accounting in preparing the financial statements.

 

Members' drawings, contributions and repayments

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 limited liability partnership.

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:

Nigel Smith
Lauren Day
William Fox Bregman
Auditor

PKF Francis Clark Chartered Accountants were appointed as auditor to the limited liability partnership and in accordance with section 485 of the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008), a resolution proposing that they be re-appointed will be put at a general meeting.

Statement of disclosure to auditor

Each of the members in office at the date of approval of this annual report confirms that:

 

Ellis Jones Solicitors LLP
Members' report (continued)
For the year ended 30 June 2024
2
Approved by the members on 14 March 2025 and signed on behalf by:
William Fox Bregman
Designated Member
Ellis Jones Solicitors LLP
Members' responsibilities statement
For the year ended 30 June 2024
3

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).

 

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.

Ellis Jones Solicitors LLP
Independent auditor's report
To the members of Ellis Jones Solicitors LLP
4
Opinion

We have audited the financial statements of Ellis Jones Solicitors 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 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, 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.

Ellis Jones Solicitors LLP
Independent auditor's report (continued)
To the members of Ellis Jones Solicitors LLP
5
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:

During our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the limited liability partnership. We gained an understanding of the entity and the industry in which the entity operates as part of this assessment to identify the key laws and regulations affecting the entity. As part of this, we reviewed the LLP’s website for indication of any regulations and certification in place and discussed these with the relevant individuals responsible for compliance. The key laws and regulations we identified were the SRA Accounts Rules 2019, health and safety standards, employment laws and The General Data Protection Regulation (“GDPR”) and 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 and UK tax legislation.

We discussed with management how the compliance with these laws and regulations in monitored and discussed policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the LLP complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the LLP’s ability to continue trading and the risk of material misstatement to the accounts.

We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements. The key incentive identified is to meet the expectations of the members and we determined that the principal risks were related to the overstatement of profit, either through overstating revenue, understating expenditure or management bias in accounting estimates, particularly in relation to the valuation of accrued income.

 

Ellis Jones Solicitors LLP
Independent auditor's report (continued)
To the members of Ellis Jones Solicitors LLP
6

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:

• Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements. As part of these enquiries we also discussed with management whether there have been any known instances of fraud.

• Reviewing the Accountant’s Report to the Solicitors Regulation Authority in relation to the firm’s compliance with the SRA Accounts Rules 2019, together with the schedule of identified breaches.

• Reviewing employee payroll documentation in order to identify any cases of non-compliance with employment laws.

• Reviewing the LLP’s GDPR policy and enquiring with the Data Protection Officer as to the occurrence and outcome of any reportable breaches.

• Undertaking a detailed review of management board meeting minutes and legal and professional costs to identify any possible non-compliance with laws and regulations.

• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

• Reviewing estimates and judgements made in the accounts for any indication of bias and challenging assumptions used by management in making the estimates. In relation to accrued income we compared management’s estimates to the actual income recovered post year end. We looked to understand the process used by management to determine the accrued income balance in order to assess the potential for fraud via manipulation of the balance. As part of this we also reviewed the outcome of prior year estimates to check the accuracy of management’s estimates in this area.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. 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 omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.

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.

Ellis Jones Solicitors LLP
Independent auditor's report (continued)
To the members of Ellis Jones Solicitors LLP
7

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. 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.

Andrew Allen
For and on behalf of PKF Francis Clark Chartered Accountants
17 March 2025
Accountants
Towngate House
Statutory Auditors
2-8 Parkstone Road
Poole
Dorset
BH15 2PW
Ellis Jones Solicitors LLP
Statement of comprehensive income
For the year ended 30 June 2024
8
2024
2023
as restated
Notes
£
£
Turnover
3
13,171,488
11,951,808
Cost of sales
(5,005,348)
(4,508,815)
Gross profit
8,166,140
7,442,993
Administrative expenses
(5,057,053)
(4,745,684)
Operating profit
4
3,109,087
2,697,309
Interest receivable and similar income
7
1,698,178
1,047,734
Interest payable and similar expenses
8
(448,045)
(224,394)
Profit for the financial year before members' remuneration and profit shares
4,359,220
3,520,649
Members' remuneration charged as an expense
6
(4,359,220)
(3,520,649)
Result for the financial year available for discretionary division among members
-
-

The income statement has been prepared on the basis that all operations are continuing operations.

Ellis Jones Solicitors LLP
Statement of financial position
As at 30 June 2024
9
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
9
156,886
209,181
Tangible assets
10
178,303
210,770
335,189
419,951
Current assets
Debtors
11
6,872,501
5,899,363
Cash at bank and in hand
801,868
229,670
7,674,369
6,129,033
Creditors: amounts falling due within one year
12
(2,840,616)
(2,683,011)
Net current assets
4,833,753
3,446,022
Total assets less current liabilities
5,168,942
3,865,973
Creditors: amounts falling due after more than one year
13
(106,176)
(297,851)
Provisions for liabilities
Provisions
15
(150,000)
(150,000)
Net assets attributable to members
4,912,766
3,418,122
Represented by:
Loans and other debts due to members within one year
Members' capital classified as a liability
1,961,501
1,696,501
Other amounts
2,951,265
1,721,621
4,912,766
3,418,122
The financial statements were approved by the members and authorised for issue on 14 March 2025 and are signed on their behalf by:
William Fox Bregman
Designated member
Limited Liability Partnership registration number OC345296 (England and Wales)
Ellis Jones Solicitors LLP
Reconciliation of members' interests
For the year ended 30 June 2024
10
Current financial year
Debt
Loans and other debts due to members less any amounts due from members in debtors
Members' capital
Other amounts
Total
£
£
Members' interests at 1 July 2023
1,696,501
1,721,621
3,418,122
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
4,359,220
4,359,220
Result for the financial year available for discretionary division among members
-
-
-
Members' interests after loss and remuneration for the year
1,696,501
6,080,841
7,777,342
Introduced by members
265,000
-
265,000
Drawings on account and distributions of profit
-
(3,129,576)
(3,129,576)
Members' interests at 30 June 2024
1,961,501
2,951,265
4,912,766
Prior financial year
Debt
Loans and other debts due to members less any amounts due from members in debtors
Members' capital
Other amounts
Total
£
£
Members' interests at 1 July 2022
1,576,500
1,947,717
3,524,217
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
3,520,649
3,520,649
Result for the financial year available for discretionary division among members
-
-
-
Members' interests after loss and remuneration for the year
1,576,500
5,468,366
7,044,866
Introduced by members
120,001
-
120,001
Drawings on account and distributions of profit
-
(3,746,745)
(3,746,745)
Members' interests at 30 June 2023
1,696,501
1,721,621
3,418,122
Ellis Jones Solicitors LLP
Statement of cash flows
For the year ended 30 June 2024
11
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
2,357,639
2,170,418
Interest paid
(448,045)
(224,394)
Net cash inflow from operating activities
1,909,594
1,946,024
Investing activities
Purchase of intangible assets
-
(183,033)
Purchase of tangible fixed assets
(43,920)
(79,800)
Interest received
1,698,178
1,047,734
Net cash generated from investing activities
1,654,258
784,901
Financing activities
Capital introduced by members
265,000
120,001
Drawings
(3,129,576)
(3,746,745)
Net introduction/repayment of other borrowings
-
(368,456)
Net introduction/repayment of bank loans
(289,524)
790,945
Net cash used in financing activities
(3,154,100)
(3,204,255)
Net increase/(decrease) in cash and cash equivalents
409,752
(473,330)
Cash and cash equivalents at beginning of year
(208,045)
265,285
Cash and cash equivalents at end of year
201,707
(208,045)
Relating to:
Cash at bank and in hand
801,868
229,670
Bank overdrafts included in creditors payable within one year
(600,161)
(437,715)
Ellis Jones Solicitors LLP
Notes to the financial statements
For the year ended 30 June 2024
12
1
Accounting policies
Limited liability partnership information

Ellis Jones Solicitors LLP is a limited liability partnership incorporated in England and Wales. The registered office is 302 Charminster Road, Bournemouth, Dorset, BH8 9RU.

 

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

1.1
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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 principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the members have a reasonable expectation that the limited liability partnership has adequate resources to continue in operational existence for the foreseeable future. Thus the members continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents the amounts chargeable to clients for professional services provided during the year excluding value added tax. Turnover is recognised when a right to consideration has been obtained through performance under each contract. Consideration accrues as contract activity progresses by reference to the value of work performance. Turnover is not recognised where a right to receive payment remains contingent upon events outside of the control of the partnership at the date these financial statements are approved. Unbilled turnover is included in debtors as "Amounts recoverable on contracts."

 

Ellis Jones Solicitors LLP
Notes to the financial statements (continued)
For the year ended 30 June 2024
1
Accounting policies (continued)
13
1.4
Members' participating interests

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

 

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

 

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

 

Where there exists an asset and liability component in respect of an individual member’s participation rights, they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the recognised amounts, and it intends either to settle on a net basis or to settle and realise these amounts simultaneously, in which case they are presented net.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software
20% straight line basis from the live date
1.6
Tangible fixed assets

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

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

Leasehold land and buildings
20% straight line basis
Fixtures and fittings
20% reducing balance basis
Computers
20% straight line basis

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.

Ellis Jones Solicitors LLP
Notes to the financial statements (continued)
For the year ended 30 June 2024
1
Accounting policies (continued)
14
1.7
Impairment of fixed assets

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

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

1.8
Cash at bank and in hand

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

1.9
Financial instruments

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 debtors, 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.

Ellis Jones Solicitors LLP
Notes to the financial statements (continued)
For the year ended 30 June 2024
1
Accounting policies (continued)
15
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.

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

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

Ellis Jones Solicitors LLP
Notes to the financial statements (continued)
For the year ended 30 June 2024
1
Accounting policies (continued)
16
Derecognition of financial liabilities

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

1.10
Taxation
The taxation payable on the profits of the limited liability partnership is solely the personal liability of the members during the period.  Consequently neither partnership taxation nor related deferred taxation arising in respect of the partnership are accounted for in these financial statements.
1.11
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 is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.12
Employee benefits

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

 

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

 

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

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Critical accounting 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.

Ellis Jones Solicitors LLP
Notes to the financial statements (continued)
For the year ended 30 June 2024
17
3
Turnover

An analysis of the limited liability partnership's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Legal fees
13,171,488
11,951,808

All turnover arose within the United Kingdom.

2024
2023
£
£
Other significant revenue
Interest income
1,698,178
1,047,734
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the LLP's auditor for the audit of the LLP's financial statements
16,050
15,000
Depreciation of owned tangible fixed assets
76,387
94,430
Amortisation of intangible assets
52,295
52,295
Operating lease charges
320,990
296,660
5
Employees

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

2024
2023
Number
Number
167
163

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
5,610,607
5,125,551
Social security costs
534,886
484,894
Pension costs
216,975
201,691
6,362,468
5,812,136
Ellis Jones Solicitors LLP
Notes to the financial statements (continued)
For the year ended 30 June 2024
18
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
861,448
587,322

Key management personnel

Members are also considered to be the the key management personnel of the LLP.

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
1,684,541
1,041,113
Other interest income
13,637
6,621
Total income
1,698,178
1,047,734
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
1,684,541
1,041,113
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
165,738
140,600
Interest payable to clients
282,307
83,794
448,045
224,394
Ellis Jones Solicitors LLP
Notes to the financial statements (continued)
For the year ended 30 June 2024
19
9
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 July 2023 and 30 June 2024
77,500
261,476
338,976
Amortisation and impairment
At 1 July 2023
77,500
52,295
129,795
Amortisation charged for the year
-
52,295
52,295
At 30 June 2024
77,500
104,590
182,090
Carrying amount
At 30 June 2024
-
156,886
156,886
At 30 June 2023
-
209,181
209,181
10
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 July 2023
198,812
948,691
697,107
1,844,610
Additions
-
11,577
32,343
43,920
At 30 June 2024
198,812
960,268
729,450
1,888,530
Depreciation and impairment
At 1 July 2023
198,812
846,269
588,759
1,633,840
Depreciation charged in the year
-
22,800
53,587
76,387
At 30 June 2024
198,812
869,069
642,346
1,710,227
Carrying amount
At 30 June 2024
-
91,199
87,104
178,303
At 30 June 2023
-
102,422
108,348
210,770
Ellis Jones Solicitors LLP
Notes to the financial statements (continued)
For the year ended 30 June 2024
20
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,590,752
1,958,485
Gross amounts owed by contract customers
3,675,675
3,370,978
Other debtors
12,206
1,159
Prepayments and accrued income
593,868
568,741
6,872,501
5,899,363
12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
1,715,609
1,651,012
Trade creditors
169,308
132,277
Other taxation and social security
712,563
630,196
Other creditors
2,114
2,205
Accruals and deferred income
241,022
267,321
2,840,616
2,683,011

Creditors amounts falling due within one year includes £1,715,609 (2023: £1,651,012) relating to bank and other loans and overdrafts, on which security has been given by the limited liability partnership.

13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
106,176
297,851

Creditors amounts falling due after more than one year includes £106,176 (2023: £297,851) relating to bank loans and overdrafts, on which security has been given by the limited liability partnership.

 

A Coronavirus Business Interruption Loan (CBIL) was received in the 2022 year end on a floating interest rate basis and is repayable in 42 monthly instalments. The balance outstanding at the year end is £171,428 of which this was fully repaid post year end and therefore £171,428 is included as payable within one year.

Ellis Jones Solicitors LLP
Notes to the financial statements (continued)
For the year ended 30 June 2024
21
14
Loans and overdrafts
2024
2023
£
£
Bank loans
1,221,624
1,511,148
Bank overdrafts
600,161
437,715
1,821,785
1,948,863
Payable within one year
1,715,609
1,651,012
Payable after one year
106,176
297,851
15
Provisions for liabilities
2024
2023
£
£
Provision for negligence claims
150,000
150,000
Movements on provisions:
Provision for negligence claims
£
At 1 July 2023 and 30 June 2024
150,000
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
216,975
201,691

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.

17
Loans and other debts due to members
2024
2023
£
£
Analysis of loans
Amounts falling due within one year
4,912,766
3,418,122

Capital loans and other debts due to members rank behind creditors, in accordance with the members' agreement. There are no restrictions on the members' ability to reduce the amount of members' other interests.

Ellis Jones Solicitors LLP
Notes to the financial statements (continued)
For the year ended 30 June 2024
22
18
Operating lease commitments
Lessee

At the reporting end date the limited liability partnership had contracted with tenants for the following minimum lease payments:

2024
2023
£
£
Within one year
298,973
254,838
Between two and five years
627,712
377,261
In over five years
-
14,625
926,685
646,724
19
Related party transactions
Transactions with related parties

During the year, the limited liability partnership occupied office space leased from a related party. £9,000 (2023: £9,000) rent was charged for this service during the year. The members are satisfied that the transaction is at arm's length.

20
Ultimate controlling party

The limited liability is controlled by its members. There is not one member that has ultimate control of the entity.

21
Cash generated from operations
2024
2023
£
£
Profit for the year
4,359,220
3,520,649
Adjustments for:
Finance costs recognised in profit or loss
448,045
224,394
Investment income recognised in profit or loss
(1,698,178)
(1,047,734)
Amortisation and impairment of intangible assets
52,295
52,295
Depreciation and impairment of tangible fixed assets
76,387
94,430
Increase in provisions
-
150,000
Movements in working capital:
Increase in debtors
(973,138)
(849,730)
Increase in creditors
93,008
26,114
Cash generated from operations
2,357,639
2,170,418
Ellis Jones Solicitors LLP
Notes to the financial statements (continued)
For the year ended 30 June 2024
23
22
Analysis of changes in net debt
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
229,670
572,198
801,868
Bank overdrafts
(437,715)
(162,446)
(600,161)
(208,045)
409,752
201,707
Borrowings excluding overdrafts
(1,511,148)
289,524
(1,221,624)
Balances before members' debt
(1,719,193)
699,276
(1,019,917)
Loans and other debts due to members:
- Members' capital
(1,696,501)
(265,000)
(1,961,501)
- Other amounts due to members
(1,721,621)
(1,229,644)
(2,951,265)
Balances including members' debt
(5,137,315)
(795,368)
(5,932,683)
Ellis Jones Solicitors LLP
Notes to the financial statements (continued)
For the year ended 30 June 2024
24
23
Prior period adjustment
Changes to the statement of financial position
As previously reported
Adjustment at 1 Jul 2022
Adjustment at 30 Jun 2023
As restated at 30 Jun 2023
£
£
£
£
Creditors due within one year
Other creditors
(551,803)
-
150,000
(401,803)
Provisions for liabilities
Other provisions
-
-
(150,000)
(150,000)
Net assets
3,418,122
-
-
3,418,122
Loans and other debts due to members
Members' capital classified as a liability
-
-
(1,696,501)
1,696,501
Other amounts
3,418,122
-
(1,696,501)
1,721,621
Total members' interests
3,418,122
-
-
3,418,122
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
Analysis of the effect upon equity
Members' capital classified as a liability
-
1,696,501
Other amounts
-
(1,696,501)
-
-
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