Registration number:
BPE Solicitors LLP
Annual Report and Unaudited Financial Statements
for the period from 1 October 2022 to 31 March 2024
BPE Solicitors LLP
Contents
Limited liability partnership information |
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Balance Sheet |
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Notes to the Financial Statements |
BPE Solicitors LLP
Limited liability partnership information
Designated members |
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Registered office |
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Principal place of business |
St James House |
Bankers |
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Accountants |
Hazlewoods LLP |
BPE Solicitors LLP
(Registration number: OC349012)
Balance Sheet as at 31 March 2024
Note |
31 March 2024 |
30 September 2022 |
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Fixed assets |
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Tangible assets |
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Investments |
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- |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets attributable to members |
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Represented by: |
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Loans and other debts due to members |
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Other amounts |
451,885 |
1,235,807 |
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451,885 |
1,235,807 |
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Total members' interests |
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Loans and other debts due to members |
451,885 |
1,235,807 |
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451,885 |
1,235,807 |
For the year ending 31 March 2024 the LLP was entitled to exemption from audit under section 477 of the Companies Act 2006, as applied to LLPs, relating to small entities.
These financial statements have been prepared in accordance with the special provisions relating to LLPs subject to the small LLPs regime within Part 15 of the Companies Act 2006, as applied to LLPs.
These financial statements have been delivered in accordance with the provisions applicable to LLPs subject to the small LLPs regime, as applied to LLPs, and the option not to file the Profit and Loss Account has been taken.
The members acknowledge their responsibilities for complying with the requirements of the Companies Act 2006, as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 with respect to accounting records and the preparation of accounts.
The financial statements of BPE Solicitors LLP (registered number OC349012) were approved by the
.........................................
Mr J K Workman
Designated member
BPE Solicitors LLP
Notes to the Financial Statements for the Period Ended 31 March 2024
General information |
The place of registration of the LLP is England and Wales under the Limited Liability Partnership Act 2000.
The address of the registered office is:
St James House
St James Square
Cheltenham
GL50 3PR
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
The LLP is incorporated in the United Kingdom under the Limited Liability Partnership Act 2000. The address of the registered office is given on the limited liability partnership information page. The nature of the LLP’s operations and its principal activities are given in the members’ report.
The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Financial Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council and the requirements of the Statement of Recommended Practice Accounting by Limited Liability Partnerships (issued January 2015).
The functional currency of BPE Solicitors LLP is considered to be pounds sterling because that is the currency of the primary economic environment in which the LLP operates. Foreign operations are included in accordance with the policies set out below.
The presentational currency of the financial statements is pounds sterling, being the functional currency of the primary economic environment in which the LLP operates. Monetary amounts in these financial statements are rounded to the nearest pound.
Going concern
The members have prepared detailed financial forecasts and are satisfied that loans and capital provided by them, together with negotiated bank facilities, are sufficient to fund ongoing operations. The LLP therefore continues to adopt the going concern basis in preparing its financial statements.
Judgements
In the application of the LLP's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
BPE Solicitors LLP
Notes to the Financial Statements for the Period Ended 31 March 2024
Key sources of estimation uncertainty
Bad debt provision - due to the nature of the business, there are high levels of trade receivables at the year end, and therefore a risk that some of these balances may be irrecoverable. A bad debt review is carried out by the fee earners and the LLP's internal accountant where debts are assessed and provided against when the recoverability of these balances is considered to be uncertain. The carrying amount is £67,366 (2022 - £163,820).
Work in progress - work in progress is valued at cost, and relates to matters in the early stages of completion only. This is calculated based on matters opened in March 2024, using a cost equal to 60% of chargeable value. The carrying amount is £46,036 (2022 - £24,808).
Amounts Recoverable on Contracts - the process of assessing amounts recoverable on contracts and work in progress requires various estimates and judgements to be made. Fee earners are required to record time spent on client assignments and this is used as the basis for the amounts recoverable on contracts and work in progress estimates. A year end report of time on all assignments is circulated to fee earners to identify likely irrecoverable amounts. Matters that have been carried out on a contingent basis (where the contingent event is yet to occur) are removed from the amounts recoverable on contracts valuation. A recovery rate is then applied to the remaining balance. The carrying amount is £673,212 (2022 - £684,111).
Client claims - the client claims provision is based on a review of potential claims and an assessment of potential settlements that are considered likely as a result of these. The carrying amount is £- (2022 - £-).
Dilapidations - a provision for dilapidations on the LLP's property leases is included based on the amount expected to be payable at the cessation of the leases. This is considered to give a reasonable estimate of the costs which would be due at the balance sheet date. The carrying amount is £195,000 (2022 - £195,000).
Revenue recognition
Income represents the fair value of services provided during the year on client assignments. Fair value reflects the amounts expected to be recoverable from clients based on time spent, skills provided and expenses incurred, and excludes VAT. Fee income is recognised as contract activity progresses and the right to consideration is secured, except where the final outcome cannot be assessed with reasonable certainty.
Fee income in respect of contingent fee assignments is recognised in the period in which the contingent event occurs and collectability of the fee is assured.
Unbilled fee income on individual assignments is included as amounts recoverable on contracts within debtors.
Disbursements
Disbursements are not included in income and expenses, but are netted against each other.
Members' remuneration and division of profits
Remuneration is paid to certain members under a contract of employment and it is included as an expense in the profit and loss account after arriving at 'profit for the financial year before members' remuneration and profit shares'.
In addition, the LLP Members' agreement provides that fixed amounts, determined for each member each year, be paid to some members irrespective of the profits of the LLP. These amounts are also included within members' remuneration charged to the profit and loss account.
A member's share of the profit or loss for the year is accounted for as an allocation of profits. Unallocated profits and losses are included within 'other reserves'.
Taxation
The taxation payable on the LLP's profits is a personal liability of the members, although payment of such liabilities is administered by the partnership on behalf of its members. Consequently, neither partnership taxation or related deferred taxation are accounted for in these financial statements. Sums set aside in respect of members' tax obligations are included in the balance sheet within loans and other debts due to members, or are set against amounts due from members as appropriate.
Goodwill
Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.
BPE Solicitors LLP
Notes to the Financial Statements for the Period Ended 31 March 2024
Intangible assets
Intangible assets are stated in the balance sheet at cost less accumulated amortisation and impairment. They are amortised on a straight line basis over their estimated useful lives.
Tangible fixed assets
Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Amortisation
Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
20% of cost per annum |
Depreciation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Asset class |
Depreciation method and rate |
Fixtures and fittings |
15% of cost per annum |
Office equipment |
20% of cost per annum |
Computer equipment |
25% - 33.3% of cost per annum |
Leasehold improvements |
Over the term of the lease |
Fixed asset investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Work in progress
Work in progress in connection with early stages work has been included within the accounts at the lower of cost and net recoverable amount. Cost is calculated on the basis of time charged plus attributable overheads.
Trade debtors
Trade debtors are amounts due from clients for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the LLP will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the LLP does not have an unconditional right, at the end of the accounting period, to defer the settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Borrowings
Interest expense is recognised on the basis of effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the LLP has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
BPE Solicitors LLP
Notes to the Financial Statements for the Period Ended 31 March 2024
Provisions
Provisions are recognised when the LLP has an obligation, at the reporting date as a result of a past event, it is probable that the LLP will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Hire purchase and leasing
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Rentals payable under operating leases are charged in the Profit and Loss Account on a straight line basis over the lease term.
Members' interests
A members' interest is repayable on retirement of the member and is therefore classified as a liability. As members may retire with 12 months or less notice and per the LLP Members' Agreement have their balances paid within three months of retirement, members' interests are shown as being due within one year.
Pensions and other post retirement obligations
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the LLP has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current or prior periods.
Contributions to defined contribution plans are recognised as an employee benefit expense when they are due.
Financial instruments
Classification
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a finance transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the balance sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the LLP intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Recognition and Measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Impairment of financial assets
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the LLP transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the LLP, despite having retained some significant risks and rewards of ownership, has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
Particulars of employees |
The average number of persons employed by the LLP during the period was
On 11 March 2024, the staff employed by BPE Services Limited, a service company supplying staff and other services to the LLP, were TUPED across to the LLP. BPE Services Limited ceased trading on the same date.
BPE Solicitors LLP
Notes to the Financial Statements for the Period Ended 31 March 2024
Intangible fixed assets |
Goodwill |
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Cost and amortisation |
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At 1 October 2022 and 31 March 2024 |
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Net book value |
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At 30 September 2022 and 31 March 2024 |
- |
Tangible fixed assets |
Fixtures, fittings and equipment |
Leasehold improvements |
Total |
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Cost |
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At 1 October 2022 |
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Additions |
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At 31 March 2024 |
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Depreciation |
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At 1 October 2022 |
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Charge for the year |
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At 31 March 2024 |
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Net book value |
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At 31 March 2024 |
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At 30 September 2022 |
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Included in the above is depreciation charged on hire purchase assets of £27,523 (2022 - £22,019)
BPE Solicitors LLP
Notes to the Financial Statements for the Period Ended 31 March 2024
Investments held as fixed assets |
Shares in unlisted subsidiaries |
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Cost |
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Additions |
10,001 |
At 31 March 2024 |
10,001 |
Net book value |
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At 31 March 2024 |
10,001 |
Debtors |
31 March 2024 |
30 September 2022 |
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Trade debtors |
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Work in progress |
46,036 |
24,808 |
Amounts recoverable on contracts |
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Other debtors |
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Prepayments and accrued income |
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2,998,736 |
3,902,746 |
Creditors: Amounts falling due within one year |
31 March 2024 |
30 September 2022 |
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Bank loans and overdrafts |
1,042,882 |
1,051,819 |
Trade creditors |
479,340 |
483,054 |
Amounts due to former members |
309,301 |
249,397 |
Other creditors |
234,532 |
850,536 |
Accruals and deferred income |
425,264 |
466,913 |
Taxation and social security |
195,856 |
182,756 |
2,687,175 |
3,284,475 |
Creditors: Amounts falling due after more than one year |
31 March 2024 |
30 September 2022 |
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Bank loans and overdrafts |
120,344 |
275,000 |
Provisions |
Dilapidations provision |
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At 1 October 2022 and 31 March 2024 |
195,000 |
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BPE Solicitors LLP
Notes to the Financial Statements for the Period Ended 31 March 2024
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £