Limited Liability Partnership registration number OC332179 (England and Wales)
DRUCES LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
DRUCES LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
P R Campbell
K E Chapman
E S M Lindsley
C B Axford
A M Footer
LLP registration number
OC332179
Registered office
Salisbury House
London Wall
London
EC2M 5PS
Auditor
TC Group
5th Floor
3 Dorset Rise
London
EC4Y 8EN
DRUCES LLP
CONTENTS
Page
Members' report
1 - 2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Statement of financial position
7
Reconciliation of members' interests
8 - 9
Statement of cash flows
10
Notes to the financial statements
11 - 21
DRUCES LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

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

Principal activities

The principal activity of Druces LLP (the 'partnership') is the provision of legal services to clients.

Business review

The financial statements reflect the results of the year to 30 April 2024 and disclose a profit distributable to members of £5,108,969 (2023: £3,830,322).

Members' drawings, contributions and repayments

Members receive monthly drawings representing payments on account of profits which may 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 partnership and may be reclaimed from members until such time as profits have been allocated to them. The members set their profit sharing ratios and the allocation is reviewed periodically. Profits are allocated in full. Capital requirements are determined by the members and are reviewed at least annually. All members are required to subscribe to a portion of that capital with the amounts being determined by reference to status. On retirement, allocated capital becomes repayable to members.

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:

P R Campbell
K E Chapman
E S M Lindsley
C B Axford
A M Footer
Auditor

The auditor, TC Group, is deemed to be reappointed under section 487(2) of the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008).

Statement of members' responsibilities

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

 

Company law (as applied to limited liability partnerships by regulation 3 of the Limited Liability Partnerships Regulations 2001) 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). The financial statements are required by law to give a true and fair view of the state of affairs of the partnership and of the profit or loss of the partnership for that year. In preparing those financial statements, the members are required to:

 

-select suitable accounting policies and then apply them consistently;

-make judgements and estimates that are reasonable and prudent;

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-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 proper accounting records which disclose with reasonable accuracy at any time the financial position of the partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied to limited liability partnerships). They are also responsible for safeguarding the assets of the partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DRUCES LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Statement of disclosure to auditor

So far as the members are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the partnership's auditors are unaware, and each member has taken all the 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 partnership's auditors are aware of that information.

Approved by the members on 20 February 2025 and signed on behalf by:
20 February 2025
K E Chapman
Designated Member
DRUCES LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DRUCES LLP
- 3 -
Opinion

We have audited the financial statements of Druces LLP (the 'limited liability partnership') for the year ended 30 April 2024 which comprise the statement of comprehensive income, the statement of financial position, the reconciliation of members' interests, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The members are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

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

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

 

Responsibilities of members

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

 

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

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which the audit was considered 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 irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

 

Our approach was as follows:

 

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

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

Use of our report

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

Mark Bailey FCA CTA (Senior Statutory Auditor)
For and on behalf of TC Group
20 February 2025
Statutory Auditor
5th Floor
3 Dorset Rise
London
EC4Y 8EN
DRUCES LLP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 6 -
2024
2023
Notes
£
£
Revenue
3
12,059,753
11,385,579
Administrative expenses
(7,773,987)
(8,015,784)
Other operating income
-
0
110,250
Operating profit
4
4,285,766
3,480,045
Investment income
8
1,039,653
398,520
Finance costs
7
(216,450)
(48,243)
Profit for the financial year before members' remuneration and profit shares
5,108,969
3,830,322
Members' remuneration charged as an expense
6
(5,108,969)
(3,830,322)
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.

DRUCES LLP
STATEMENT OF FINANCIAL POSITION
AS AT
30 APRIL 2024
30 April 2024
- 7 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
9
19,905
70,910
Current assets
Trade and other receivables
11
7,125,955
5,780,976
Cash and cash equivalents
572,064
625,466
7,698,019
6,406,442
Current liabilities
12
(1,801,959)
(1,528,560)
Net current assets
5,896,060
4,877,882
Total assets less current liabilities
5,915,965
4,948,792
Non-current liabilities
13
(253,582)
(412,676)
Provisions for liabilities
Provisions
15
(980,616)
(530,000)
Net assets attributable to members
4,681,767
4,006,116
Represented by:
Loans and other debts due to members within one year
Amounts due in respect of profits
2,449,501
1,886,851
Members' other interests
Members' capital classified as equity
2,232,266
2,119,265
4,681,767
4,006,116
The financial statements were approved by the members and authorised for issue on 20 February 2025 and are signed on their behalf by:
20 February 2025
K E Chapman
Designated member
Limited Liability Partnership registration number OC332179 (England and Wales)
DRUCES LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
Current financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital
Other amounts
Total
Total
2024
£
£
£
£
Members' interests at 1 May 2023
2,119,266
1,886,851
1,886,851
4,006,117
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
5,108,969
5,108,969
5,108,969
Result for the financial year available for discretionary division among members
-
-
-
-
Members' interests after profit and remuneration for the year
2,119,266
6,995,820
6,995,820
9,115,086
Introduced by members
124,500
-
-
124,500
Repayments of capital
(11,500)
-
-
(11,500)
Drawings on account and distributions of profit
-
(4,546,319)
(4,546,319)
(4,546,319)
Members' interests at 30 April 2024
2,232,266
2,449,501
2,449,501
4,681,767
DRUCES LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
Prior financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital
Other amounts
Total
Total
2023
£
£
£
£
Members' interests at 1 May 2022
2,169,765
1,917,823
1,917,823
4,087,588
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
3,830,322
3,830,322
3,830,322
Result for the financial year available for discretionary division among members
-
-
-
-
Members' interests after profit and remuneration for the year
2,169,765
5,748,145
5,748,145
7,917,910
Introduced by members
62,500
-
-
62,500
Repayments of capital
(113,000)
-
-
(113,000)
Drawings on account and distributions of profit
-
(3,861,294)
(3,861,294)
(3,861,294)
Members' interests at 30 April 2023
2,119,265
1,886,851
1,886,851
4,006,116
DRUCES LLP
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
3,685,762
3,451,716
Interest paid
(216,450)
(48,243)
Net cash inflow from operating activities
3,469,312
3,403,473
Investing activities
Purchase of property, plant and equipment
(18,313)
-
Interest received
1,039,654
398,520
Net cash generated from investing activities
1,021,341
398,520
Financing activities
Capital introduced by members (classified as debt or equity)
124,500
62,500
Repayment of capital or debt to members
(11,500)
(113,000)
Payments to members
(4,546,319)
(3,861,294)
Repayment of bank loans
(110,736)
(546,830)
Net cash used in financing activities
(4,544,055)
(4,458,624)
Net decrease in cash and cash equivalents
(53,402)
(656,631)
Cash and cash equivalents at beginning of year
625,466
1,282,097
Cash and cash equivalents at end of year
572,064
625,466
DRUCES LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
1
Accounting policies
Limited liability partnership information

Druces LLP ("the partnership") is a limited liability partnership incorporated in England and Wales. The registered office is Salisbury House, London Wall, London, EC2M 5PS.

1.1
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2018, together with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared on 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.true

1.3
Revenue

Fee income represents revenue earned from services performed entirely from the partnership's principal activity. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the partnership and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

 

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

 

- the amount of revenue can be measured reliably;

- it is probable that the partnership will receive the consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably.

1.4
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.

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
3 years on a straight line basis
1.5
Property, plant and equipment

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

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

Land and buildings - Leasehold
10 years on a straight line basis
Fixtures, fittings & equipment
3 to 8 years on a straight line basis
DRUCES LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 12 -
1.6
Impairment of non-current assets

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

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.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the income statement.

 

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

1.8
Financial instruments

The partnership has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ to all of its financial instruments. The partnership only has basic financial assets and liabilities in the current and prior periods.

 

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

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are measured at transaction price including transaction costs.

Impairment of financial assets

Financial assets, other than those held at fair value through the income statement, 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 the income statement.

 

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.

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 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.

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

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

Basic financial liabilities

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

Other financial liabilities

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

Derecognition of financial liabilities

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

1.9
Taxation

The taxation payable on the profits is the personal liability of the members during the year and accordingly no reserve for taxation or national insurance has been included in the financial statements.

1.10
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. Any amounts recoverable through insurance are recognised as a recoverable in debtors.

1.11
Retirement benefits and post retirement payments to members

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

1.12
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.

1.13

Amounts recoverable under contracts

Amounts recoverable under contracts represents work done at the year end where a continuing right to receive income exists and is valued at the estimated amount recoverable in excess of fees already rendered on account.

DRUCES LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
1.14

Members' remuneration and interest

Members' rights to participate in the profits and losses, or assets of the partnership are analysed between those that give rise to, from the partnership's perspective, either a financial liability or equity, in accordance with applicable accounting standards, 'Members' Shares in Co-operative Entities and Similar Instruments'. Members' different participation rights are analysed separately into liability and equity elements.

1.15

Members' capital

Members' capital is accounted for in accordance with applicable accounting standards. Where the obligation to deliver cash or another financial asset to the member, the capital is treated as debt. Where the partnership has unconditional right to avoid delivering cash or other financial assets to a member in respect of such amounts (i.e. repayment of the member's capital is discretionary) it is treated as equity.

2
Judgements and key sources of estimation uncertainty

In the application of the 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.

The members consider the following to be key areas of judgement for the partnership;

Revenue recognition

In making their judgment, the members considered the detailed criteria under FRS 102 for the recognition of revenue on services rendered by the partnership. In particular, in order to recognise the revenue regard was given for ensuring that the outcome of a transaction could be estimated reliably at the end of the reporting period.

 

The members therefore applied their judgement to transactions around the year end to ensure that the stage of completion of any transactions, and the amount of revenue, could be measured reliably. In the event that the completion of the transaction was dependent on external factors after the end of the reporting period, such that the members could not determine that the outcome of the transaction reliably at the year end, no revenue was recognised in the financial statements.

Provision against trade debtors and work in progress

In making their judgment and providing an estimate at the year end, the members considered the likelihood that trade debtors and work in progress would be recovered.

 

The members applied their judgement to those balances standing at the year end to ensure that a provision was made against any uncertain balances. In arriving at a suitable provision, regard was given to the age profile of the debt and/or work in progress and an assessment was made by the members based on the particular circumstances of each matter.

DRUCES LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
3
Revenue

An analysis of the partnership's revenue is as follows:

2024
2023
£
£
Revenue analysed by class of business
Provision of legal services
12,059,753
11,385,579
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the partnership's auditor for the audit of the partnership's financial statements
16,000
12,810
Depreciation of owned property, plant and equipment
69,318
73,788
Amortisation of intangible assets
-
7,373
Operating lease charges
425,000
425,000
5
Employees

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

2024
2023
Number
Number
Administration and management
56
60

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,386,359
3,584,662
Social security costs
372,863
400,541
Pension costs
125,409
90,112
3,884,631
4,075,315
DRUCES LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
6
Members' remuneration
2024
2023
Number
Number
Average number of members during the year
20
17
2024
2023
£
£
Profit attributable to the member with the highest entitlement
668,223
489,582
7
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest
216,450
48,243
8
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
1,039,653
398,520
9
Property, plant and equipment
Land and buildings - Leasehold
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 May 2023
577,070
305,220
882,290
Additions
-
18,313
18,313
Disposals
-
(35,605)
(35,605)
At 30 April 2024
577,070
287,928
864,998
Depreciation and impairment
At 1 May 2023
514,024
297,356
811,380
Depreciation charged in the year
55,350
13,968
69,318
Eliminated in respect of disposals
-
0
(35,605)
(35,605)
At 30 April 2024
569,374
275,719
845,093
Carrying amount
At 30 April 2024
7,696
12,209
19,905
At 30 April 2023
63,046
7,864
70,910
DRUCES LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
10
Intangible fixed assets
Software
£
Cost
At 1 May 2023 and 30 April 2024
46,300
Amortisation
At 1 May 2023 and 30 April 2024
46,300
Carrying amount
At 30 April 2024
-
0
At 30 April 2023
-
0
11
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
4,126,997
3,358,800
Other receivables
490,964
16,267
Prepayments
865,436
684,685
Amounts recoverable under contracts
1,642,558
1,721,224
7,125,955
5,780,976
12
Current liabilities
2024
2023
Notes
£
£
Bank loans
14
116,667
116,667
Trade payables
348,303
376,974
Other taxation and social security
383,614
324,465
Other payables
544,613
401,206
Accruals
408,762
309,248
1,801,959
1,528,560

Included within accruals last year was £150,000 in relation to provisions for legal claims. These have been reclassified to provisions in note 15.

DRUCES LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
13
Non-current liabilities
2024
2023
Notes
£
£
Bank loans and overdrafts
14
233,332
344,068
Other payables
20,250
68,608
253,582
412,676
14
Borrowings
2024
2023
£
£
Bank loans
349,999
460,735
Payable within one year
116,667
116,667
Payable after one year
233,332
344,068

During the year-end 2021, the partnership applied for, and received a £1,000,000 loan under the UK Government's Coronavirus Business Interruption Loan Scheme. The loan is repayable in full by February 2026, with a capital repayment holiday of 12 months from the date of draw down. Interest is charged on the loan at base rate plus 2.8%, with the UK Government paying the first 12 months of interest. The loan is secured by a limited guarantee given by the UK Government for £800,000, with the remaining balance secured by a fixed and floating charge over the partnership's assets.

15
Provisions for liabilities
2024
2023
£
£
Other provisions
260,000
380,000
Legal claims
720,616
150,000
980,616
530,000
Movements on provisions:
Other provisions
Legal claims
Total
£
£
£
At 1 May 2023
380,000
150,000
530,000
Additional provisions in the year
-
140,000
140,000
Reversal of provision
(120,000)
(54,384)
(174,384)
Other movements
-
485,000
485,000
At 30 April 2024
260,000
720,616
980,616
DRUCES LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
15
Provisions for liabilities
(Continued)
- 19 -

Other provisions

The provision is for obligations to return the leased premises back to the original configuration and hand back the leased premises in good repair and condition.

 

Legal claims

The claims provision is the estimated liability of defending and concluding claims, gross of any related recoverable amounts from professional indemnity insurance held by the firm. The other movements relates to the amounts at the balance sheet date that are recoverable, the corresponding entry is shown within other debtors.

 

16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
125,409
90,112

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

 

17
Loans and other debts due to members
2024
2023
£
£
Amounts falling due within one year
2,449,501
1,886,851

In the event of a winding up the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.

18
Financial commitments, guarantees and contingent liabilities

The partnership maintains professional indemnity insurance and, where appropriate, provision is made for the estimated costs of settling claims. Any amounts recoverable from insurers are recognised as debtors on a grossed up basis. Claims notified are not expected to give rise to any material unprovided liability.

 

The partnership has granted fixed and floating charges over certain of its assets in favour of its bankers as detailed in note 14.

 

DRUCES LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
19
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
142,466
500,000
Between two and five years
-
142,466
142,466
642,466
20
Ultimate controlling party

In the opinion of the members there is no ultimate controlling party.

21
Key management personnel

Key management personnel consists of the members of the partnership only. Members' remuneration charges as an expense in the year was £5,108,969 (2023: £3,830,322).

22
Analysis of changes in net debt
2024
£
Opening net funds/(debt)
Cash and cash equivalents
625,466
Loans
(460,735)
164,731
Changes in net debt arising from:
Cash flows of the entity
57,334
Closing net funds/(debt) as analysed below
222,065
Closing net funds/(debt)
Cash and cash equivalents
572,064
Loans
(349,999)
222,065
DRUCES LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
23
Cash generated from operations
2024
2023
£
£
Profit for the year
5,108,969
3,830,322
Adjustments for:
Finance costs recognised in profit or loss
216,450
48,243
Investment income recognised in profit or loss
(1,039,653)
(398,520)
Amortisation of intangible assets
-
7,373
Depreciation of property, plant and equipment
69,318
73,788
Increase in provisions
450,616
430,000
Movements in working capital:
Increase in trade and other receivables
(1,344,979)
(203,424)
Increase/(decrease) in trade and other payables
225,041
(421,151)
Cash generated from operations
3,685,762
3,366,631
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