McCartneys LLP OC310186 false 2023-01-01 2024-03-31 2024-03-31 The principal activity of the company is that of auctioneers, valuers and estate agents. Digita Accounts Production Advanced 6.30.9574.0 true OC310186 2023-01-01 2024-03-31 OC310186 2024-03-31 OC310186 core:Non-currentFinancialInstruments core:AfterOneYear 2024-03-31 OC310186 core:BetweenOneFiveYears 2024-03-31 OC310186 core:MoreThanFiveYears 2024-03-31 OC310186 core:WithinOneYear 2024-03-31 OC310186 bus:FRS102 2023-01-01 2024-03-31 OC310186 bus:Audited 2023-01-01 2024-03-31 OC310186 bus:FullAccounts 2023-01-01 2024-03-31 OC310186 bus:LimitedLiabilityPartnershipLLP 2023-01-01 2024-03-31 OC310186 1 2023-01-01 2024-03-31 OC310186 countries:AllCountries 2023-01-01 2024-03-31 OC310186 2022-12-31 OC310186 2022-01-01 2022-12-31 OC310186 2022-12-31 OC310186 core:Non-currentFinancialInstruments core:AfterOneYear 2022-12-31 OC310186 core:BetweenOneFiveYears 2022-12-31 OC310186 core:MoreThanFiveYears 2022-12-31 OC310186 core:WithinOneYear 2022-12-31 iso4217:GBP xbrli:pure

Registration number: OC310186

McCartneys LLP

Annual Report and Financial Statements

for the period from 1 January 2023 to 31 March 2024

 

MCCARTNEYS LLP

Contents

Limited liability partnership information

1

Members' Report

2 to 3

Independent Auditor's Report

4 to 6

Profit and Loss Account

7

Balance Sheet

8

Cash Flow Statement

9

Statement of Changes in Members’ Interests

10

Notes to the Financial Statements

11 to 18

 

MCCARTNEYS LLP

Limited liability partnership information

Designated members

J Williams

J Layton-Mills

M Kelly

M Thomas

D Anderson

S Edwards

Z Herbert

K Davies

G Jones

Registered office

The Ox Pasture
Overton Road
Ludlow
Shropshire
SY8 4AA

Auditors

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

MCCARTNEYS LLP

Members' Report for the period from 1 January 2023 to 31 March 2024

The members present their report and the financial statements for the period from 1 January 2023 to 31 March 2024. The comparative reflects the year ended 31 December 2022.

Principal activity

The principal activity of the LLP is that of auctioneers, valuers and estate agents.


Members’ responsibilities

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

The Limited Liability Partnerships (Accounts & Audit) (Application of Companies Act 2006) Regulations 2008 require the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under Company law as applied to LLPs the members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the limited liability partnership and of the profit or loss of the limited liability partnership for that year. In preparing these financial statements, the members are required to:

• select suitable accounting policies and then apply them consistently;
• make judgements and accounting estimates that are reasonable and prudent;
• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Partnership will continue in business.

The members are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006, as applicable to limited liability partnerships, and in accordance with the requirements of the Statement of Recommended Practice Accounting by Limited Liability Partnerships (issued December 2018). 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.

These responsibilities are exercised by the Board on behalf of the members.
 

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

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

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

 

MCCARTNEYS LLP

Members' Report for the period from 1 January 2023 to 31 March 2024

Designated members

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

J Williams

J Layton-Mills

M Kelly

M Thomas

D Anderson

S Edwards

Z Herbert

K Davies

G Jones

G Wall (retired 31 December 2023)

T Carter (retired 31 December 2023)

N Millinchip (retired 1 January 2024)

M Fish (retired 31 December 2023)

J Tulloch (retired 31 December 2023)

Financial instruments

The LLP's financial instruments comprise cash and liquid resources, and various other items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to finance the operations of the LLP. The LLP is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through credit control procedures. The nature of the LLP's other financial instruments means they are not subject to price or liquidity risk. The members constantly monitor the LLP's trading results to ensure that the LLP can meet its future obligations as they fall due and have a reasonable expectation that the LLP has adequate resources to continue in operational existence for the foreseeable future and therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Going concern

The business continues to perform well with revenue in all income streams up considerably on the previous trading year. The bankers of the business continue to be supportive and the management team believe that the business is currently in a position where it has sufficient resources available to enable all parts of the business to continue in operational existence for at least 12 months from the date of this report.

Disclosure of information to the auditors

Each member has taken steps that they ought to have taken as a member in order to make themselves aware of any relevant audit information and to establish that the limited liability partnership's auditors are aware of that information. The members confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the members on 26 March 2025 and signed on its behalf by:

M Kelly
Designated member

 

MCCARTNEYS LLP

Independent Auditor's Report to the Members of McCartneys LLP for the period from 1 January 2023 to 31 March 2024

Opinion

We have audited the financial statements of McCartneys LLP (the ‘LLP’) for the period from 1 January 2023 to 31 March 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Members’ Interests, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Opinion on the financial statements

In our opinion the financial statements:

give a true and fair view of the state of the LLP's affairs as at 31 March 2024 and of its results for the period then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006, as applied to LLPs.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the LLP in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the members' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of at least twelve months from when the original financial statements are authorised for issue.

Our responsibilities and the responsibilities of the members with respect to going concern are described in the relevant sections of this report.

Other information

The members are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept by the LLP, or returns adequate for our audit have not been received from branches not visited by us; or

the LLP financial statements are not in agreement with the accounting records and returns; or

 

we have not received all the information and explanations we require for our audit.

 

MCCARTNEYS LLP

Independent Auditor's Report to the Members of McCartneys LLP for the period from 1 January 2023 to 31 March 2024

Responsibilities of members

As explained more fully in the statement of members responsibilities on page 2, the members are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the members determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the members are responsible for assessing the LLP's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the members either intend to liquidate the LLP or to cease operations, or have no realistic alternative but to do so.

Auditor’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.

Extent to which the audit was capable of detecting irregularities, including fraud

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

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

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

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

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

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

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

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

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

reading minutes of meetings of those charged with governance.

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

A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

 

MCCARTNEYS LLP

Independent Auditor's Report to the Members of McCartneys LLP for the period from 1 January 2023 to 31 March 2024

Use of our report

This report is made solely to the limited liability partnership’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts & Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the limited liability partnership’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the limited liability partnership, and the limited liability partnership members as a body, for our audit work, for this report, or for the opinions we have formed.





Felicity Sang (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Staverton Court
StavertonCheltenham
GL51 0UX

27 March 2025

 

MCCARTNEYS LLP

Profit and Loss Account for the Period from 1 January 2023 to 31 March 2024

Note

1 January 2023 to 31 March 2024
 £

Year ended 31 December 2022
 £

Turnover

2

9,072,000

7,606,186

Administrative expenses

 

(8,597,629)

(6,877,190)

Other operating income

3

62,676

-

Operating profit

4

537,047

728,996

Interest payable and similar expenses

6

(92,027)

(93,651)

Profit for the period before members' remuneration and profit shares

 

445,020

635,345

Members' remuneration charged as an expense

 

(445,020)

(635,345)

Profit/(loss) for the period available for discretionary division among members

 

-

-

Turnover and operating profit derive wholly from continuing operations.

The limited liability partnership has no other comprehensive income for the period other than the results above.

 

MCCARTNEYS LLP

(Registration number: OC310186)
Balance Sheet as at 31 March 2024

Note

31 March 2024
 £

31 December
2022
£

Fixed assets

 

Tangible assets

8

320,869

500,249

Current assets

 

Debtors

9

8,989,183

6,683,891

Cash and short-term deposits

 

39,100

37,525

 

9,028,283

6,721,416

Creditors: Amounts falling due within one year

10

(9,128,549)

(6,253,320)

Net current (liabilities)/assets

 

(100,266)

468,096

Total assets less current liabilities

 

220,603

968,345

Creditors: Amounts falling due after more than one year

11

(350,000)

(725,000)

Net (liabilities)/assets attributable to members

 

(129,397)

243,345

Represented by:

 

Loans and other debts due to members

 

(106,397)

126,345

Equity: Members' capital

 

(23,000)

117,000

   

(129,397)

243,345

Total members' interests

 

Loans and other debts due to members

 

(106,397)

126,345

Equity

 

(23,000)

117,000

   

(129,397)

243,345

The members acknowledge their responsibilities for complying with the requirements of the Act, as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 with respect to accounting records and the preparation of accounts.

The financial statements of McCartneys LLP (registered number OC310186) were approved by the members and authorised for issue on 26 March 2025. They were signed on behalf of the LLP by:


M Kelly
Designated member

 

MCCARTNEYS LLP

Cash Flow Statement for the Period from 1 January 2023 to 31 March 2024

Note

1 January 2024
to 31 March
2024
£

Year ended
31 December
2022
£

Cash flows from operating activities

 

Profit before members' remuneration and profit shares

 

445,020

635,345

Depreciation

4

301,279

231,202

Interest paid

6

92,027

93,651

Profit on sale of tangible fixed assets

4

22,631

(51,852)

(Increase) Decrease in debtors

 

(2,305,292)

1,066,056

(Decrease) Increase in creditors

 

(2,751,422)

494,461

Net cash (outflow)/inflow from operating activities

(4,195,757)

2,468,863

Cash flows from investing activities

 

Purchase of tangible fixed assets

8

(244,382)

(359,564)

Proceeds on disposal of fixed assets

 

99,852

116,524

Net cash flows from investing activities

 

(144,530)

(243,040)

Cash flows from financing activities

 

Repayment of loans

 

(375,000)

(300,000)

Interest paid

 

(92,027)

(93,651)

Members capital repaid

 

-

(68,000)

Payments to members

 

(677,762)

(1,004,152)

Net cash flows from financing activities

 

(1,144,789)

(1,465,803)

Net (decrease)/increase in cash and cash equivalents

 

(5,485,076)

760,020

Cash and cash equivalents at 1 January

 

(2,232,001)

(2,992,021)

Cash and cash equivalents at 31 March

 

(7,717,077)

(2,232,001)

1 January 2023
to 31 March
2024
£

Year ended
31 December 2022
 £

Reconciliation to cash at bank and in hand:

Cash on hand and at bank

39,100

37,525

Bank overdraft

(7,756,177)

(2,269,526)

(7,717,077)

(2,232,001)

Analysis of changes in net debt

At 1 January 2023
£

Financing cash flows
£

At 31 March 2024
£

Cash on hand and at bank

37,525

1,575

39,100

Bank overdraft

(2,269,526)

(5,486,651)

(7,756,177)

Bank Loans

(1,025,000)

375,000

(650,000)

Net debt

(3,257,001)

(5,110,076)

(8,367,077)

 

MCCARTNEYS LLP

Statement of Changes in Members’ Interests
At 31 March 2024

Members capital (classified as equity)

Loans and other debt due to members

31 March 2024 Total

31 December 2022 Total

£

£

£

£

Amounts due to members

126,345

Amounts due from members

-

As at 1 January 2023

117,000

126,345

243,345

680,152

Members remuneration charged as an expense

-

445,020

445,020

635,345

Members' interests after profit for the year

117,000

571,365

688,365

1,315,497

Introduced by members

-

-

-

-

Repayment of capital

(140,000)

-

(140,000)

(68,000)

Drawings

-

(677,762)

(677,762)

(1,004,152)

As at 31 March 2024

(23,000)

(106,397)

(129,397)

243,345

Amounts due to members

-

Amounts due from members

(106,397)

(106,397)

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

 

MCCARTNEYS LLP

Notes to the Financial Statements for the period from 1 January 2023 to 31 March 2024

1

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

General information and basis of accounting

The limited liability partnership is incorporated in England and Wales 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 limited liability partnership’s operations and its principal activities are given in the members’ report.

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The functional currency of McCartneys LLP is considered to be pounds sterling because that is the currency of the primary economic environment in which the limited liability partnership operates.

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.

Disclosure of long or short period

The current period presented is for the 15 month period ended 31 March 2024. Comparative information displayed is for the 12 month period ended 31 December 2022.

The reporting period end has been changed to 31 March due to basis period reform which is applicable to LLPs.

Going concern

In assessing whether the going concern basis is appropriate, the members take into account all available information about the future, which is at least, but not limited to, 12 months from the date of signing these financial statements.

At the date of approval of these financial statements, the members have reviewed detailed forecasts prepared for the period to March 2026 that show that the business will continue to operate successfully for the foreseeable future and the members believe that the business has access to sufficient resources and liquidity to continue to meet its liabilities as and when they fall due.

The financial statements have been prepared on the going concern basis, which the members believe to be appropriate.

Turnover

Turnover represents amounts chargeable, net of value added tax, in respect of the provision of services to customers. Auction related turnover includes only the commissions received by the partnership and does not reflect the gross turnover passing through those auctions. Rental income is recognised on a receivable basis.

 

MCCARTNEYS LLP

Notes to the Financial Statements for the period from 1 January 2023 to 31 March 2024

1

Accounting policies (continued)

Judgements

No significant judgements have been made by management in preparing these financial statements.

Estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies The carrying amount is £- (2022 -£-).

Tangible fixed assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

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

Asset Class

Depreciation method and rate

Plant and machinery

3 years and 20 years

Motor vehicles

25% on cost

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits.

Trade debtors

Trade debtors are amounts due from customers 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. Trade creditors are classified as current liabilities if the LLP does not have an unconditional right, at the end of the reporting period, to defer the settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Borrowings

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

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

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

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

 

MCCARTNEYS LLP

Notes to the Financial Statements for the period from 1 January 2023 to 31 March 2024

1

Accounting policies (continued)

Financial instruments

Classification

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

Recognition and Measurement

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

Impairment of financial assets

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

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

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

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

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

 

MCCARTNEYS LLP

Notes to the Financial Statements for the period from 1 January 2023 to 31 March 2024

1

Accounting policies (continued)

Members' participation rights and remuneration

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. A members’ participation right results in a liability unless the right to any payment is discretionary or part of the LLP.

Amounts subscribed or otherwise contributed by members, for example members’ capital, are classed as equity if the LLP has an unconditional right to refuse payment to members. If the LLP does not have such an unconditional right, such amounts are classified as liabilities.

Where profits are automatically divided as they arise, so the LLP does not have an unconditional right to refuse payment, the amounts arising that are due to members are in the nature of liabilities. They are therefore treated as an expense in the Profit and Loss Account in the relevant year. To the extent that they remain unpaid at the year end, they are shown as liabilities in the Balance Sheet.

Conversely, where profits are divided only after a decision by the LLP or its representative, so that the LLP has an unconditional right to refuse payment, such profits are classed as an appropriation of equity rather than as an expense. They are therefore shown as a residual amount available for discretionary division among members in the Profit and Loss Account and are equity appropriations in the Balance Sheet.

Other amounts applied to members, for example remuneration paid under an employment contract and interest on capital balances, are treated in the same way as all other divisions of profits, as described above, according to where the LLP has, in each case, an unconditional right to refuse payment.

All amounts due to members that are classified as liabilities are presented in the Balance Sheet within ‘Loans and other debts due to members’ and are charged to the Profit and Loss Account within ‘Members’ remuneration charged as an expense’. Amounts due to members that are classified as equity are shown in the Balance Sheet within ‘Members’ other interests.

The LLP divides profits according to the signed LLP Agreement, whereby profits are allocated according to interest on members' accounts and salaries and any remaining profits are allocated in profit sharing ratios prevailing at the time. Each element is discretionary and therefore expensed to the Profit and Loss Account.

Pensions

The LLP operates a defined contribution pension scheme. 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 and prior periods. Contributions to defined contribution plans are recognised as employee benefit expense when they are due.

Taxation

Members are personally liable on their share of the partnership profits. Consequently, no reserve for taxation is made in these financial statements and the profits are shown within Members' interests as "Loans and other debts due to members" without any deduction for tax.

 

MCCARTNEYS LLP

Notes to the Financial Statements for the period from 1 January 2023 to 31 March 2024

2

Turnover

An analysis of the LLP's turnover, all of which derives from the UK, is given below:

1 January 2023 to 31 March 2024
 £

Year ended 31 December 2022
 £

Livestock commission

4,126,303

3,392,603

Property income - fees and charges

4,886,869

4,171,162

Rent receivable

33,505

27,991

Other related income

25,323

14,430

9,072,000

7,606,186

With regard to the sale of livestock, the LLP only recognises commissions receivable as turnover. The value of the gross throughput of livestock markets, which forms no part of statutory turnover, for the year was £115,799,020 (2022 - £94,751,472).

3

Other operating income

1 January 2023 to 31 March 2024
 £

Year ended 31 December 2022
 £

Other income

62,676

-

Included in other income is amounts of £62,676 (2022 - £Nil) which were received in relation to the disposal of unlisted investment shares.

4

Operating profit

Operating profit is stated after charging /(crediting):

1 January 2023 to 31 March 2024
 £

Year ended 31 December 2022
 £

Rent - operating leases

210,426

165,789

Loss (Profit) on sale of tangible assets

22,631

(51,852)

Depreciation of owned assets

301,279

231,202

Auditors remuneration

16,150

15,400

 

MCCARTNEYS LLP

Notes to the Financial Statements for the period from 1 January 2023 to 31 March 2024

5

Particulars of employees

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

1 January 2023 to 31 March 2024
 No.

Year ended 31 December 2022
 No.

Livestock markets

55

48

Property shops

25

20

Admin and support

50

64

130

132

The aggregate payroll costs were as follows:

1 January 2023 to 31 March 2024
 £

Year ended 31 December 2022
 £

Wages and salaries

3,132,930

2,574,268

Social security costs

207,987

183,654

Other pension schemes

54,702

43,628

3,395,619

2,801,550

6

Interest payable and similar charges

1 January 2023 to 31 March
2024
£

Year ended
31 December
2022
£

Interest on bank borrowings and overdrafts

92,027

93,651

7

Information in relation to members

1 January 2023 to 31 March 2024

Year ended 31 December 2022

Average number of members during the period

13

14

The profit attributable to the member with the largest entitlement was £35,525 (2022: £36,500).

 

MCCARTNEYS LLP

Notes to the Financial Statements for the period from 1 January 2023 to 31 March 2024

8

Tangible fixed assets

Plant and machinery
£

Motor vehicles
£

Total
£

Cost

At 1 January 2023

582,465

640,257

1,222,722

Additions

69,175

175,207

244,382

Disposals

(49,495)

(306,462)

(355,957)

At 31 March 2024

602,145

509,002

1,111,147

Depreciation

At 1 January 2023

426,004

296,469

722,473

Charge for the period

123,789

177,490

301,279

Eliminated on disposals

(49,495)

(183,979)

(233,474)

At 31 March 2024

500,298

289,980

790,278

Net book value

At 31 March 2024

101,847

219,022

320,869

At 31 December 2022

156,461

343,788

500,249

9

Debtors

31 March 2024
 £

31 December 2022
 £

Trade debtors

8,638,304

6,424,797

Other debtors

350,879

259,094

8,989,183

6,683,891

10

Creditors: Amounts falling due within one year

31 March 2024
 £

31 December 2022
 £

Bank overdrafts

7,756,177

2,269,526

Bank loans

300,000

300,000

Trade creditors

498,052

415,976

Other taxes and social security

328,204

307,959

Other creditors

246,116

2,959,859

9,128,549

6,253,320

The bank overdrafts are secured by way of a fixed and floating charge over the assets of the LLP, dated 14 September 2015.

The LLP holds client monies which are not reflected in the financial statements. At 31 March 2024 client account balances totalled £1,153,714 (2022 - £994,464).

 

MCCARTNEYS LLP

Notes to the Financial Statements for the period from 1 January 2023 to 31 March 2024

11

Creditors: Amounts falling due after more than one year

31 March 2024
 £

31 December
2022 £

Bank loans

350,000

725,000

Bank loans and overdrafts includes a Coronavirus Business Interruption Loan of £650,000 (2022 - £1,025,000). The loan is repayable in monthly instalments of £25,000 plus interest at 3.99% above the Bank of England Base Rate and the final instalment is due in April 2026.

12

Operating lease commitments

The total of future minimum lease payments is as follows:

2024
£

2022
£

Not later than one year

70,101

103,890

Later than one year and not later than five years

217,404

217,436

Later than five years

119,753

169,875

407,258

491,201

The amount of non-cancellable operating lease payments recognised as an expense during the period was £210,426 (2022 - £165,789).

13

Defined contribution pension scheme

The limited liability partnership operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the limited liability partnership to the scheme and amounted to £54,702 (2022 - £43,628).

Contributions totalling £8,736 (2022 - £8,043) were payable to the scheme at the end of the period and are included in creditors.

14

Related party transactions

During the current period and prior year the McCartneys Equity Partnership and McCartneys LLP had the same partners/members. In any given year, the Equity Partnership and the LLP can be considered to be under common control.

During the period McCartneys LLP was invoiced by the McCartneys Equity Partnership for license fees to use the McCartneys brand totalling £187,500 (2022 - £591,405). At 31 March 2024 McCartneys LLP owed £Nil (2022 - £2,829,621) to the McCartneys Equity Partnership.

The McCartneys Equity Partnership provides part of the security for the consolidated bank account.

The McCartneys Equity Partnership owes McCartneys LLP £39,710 in respect of retiring partners' accounts. There are further balances owed to retiring partners of £130,869 (2022 - £nil).

15

Controlling entity

The LLP is controlled by its members as delegated to the management team and as such there is no one controlling party.