The designated members present their annual report and financial statements for the year ended 31 December 2024.
The LLP's financial statements have been prepared in accordance with Financial Reporting Standard 102 ("FRS 102") and in accordance with the provisions of the Companies Act 2006. Individual income statement and relates notes have not been presented for the LLP as permitted by section 408 (4) of the Companies Act 2006.
The financial statements have been prepared on the historical cost basis, modified to include items at fair value, and in accordance with FRS 102 issued by the Financial Reporting Council. The financial statements are presented in Pounds Sterling, which is the LLP's functional currency.
The principal activity of the LLP is finance brokering and loan asset management on behalf of its corporate member.
Each designated member's subscription to the capital of the LLP is determined by their share of the profit and is repayable following retirement from the LLP.
Details of the changes in designated member's capital in the period ended 31 December 2024 are set out in the financial statements.
1. Designated Members interests
Designated member's capital is repayable on a designated member ceasing to be a member of the LLP and is therefore classified as a liability.
2. Divisible profits and Designated Members remuneration.
Designated members fixed shares of profits are automatically allocated and are treated as designated member remuneration charged as an expense to the profit and loss account in arriving at profit available for discretionary division among designated members.
The designated members' drawing policy allows each designated member to draw their profit share, subject to the cash requirements of the business. A designated member's capital requirement is linked to their share of profit and the financing requirement of the LLP. There is no opportunity for appreciation of the capital subscribed.
The designated members who held office during the year and up to the date of signature of the financial statements were as follows:
Each of the persons who is a designated member at date of approval of this annual report confirms that:
So far as that designated member is aware, there is no relevant audit information of which the LLP's auditor is unaware; and
the designated member has taken all the steps that they should have been taken as a designated member in order to be aware of any relevant audit information and to establish that the LLP's auditor is aware of that information.
UHY Hacker Young (East) Limited were appointed as auditor to the LLP and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
During the period under review the directors have continued to focus their outlook on writing quality transactions over quantity and driving strong outcomes in the recovery of earlier defaulted agreements.
Whilst the period to 31st December 2024 has seen deterioration in the area of bad debt provision this is almost entirely attributed to a single customer that is believed to have acted fraudulently leading management to take an exceptionally prudent position. Continued robust arrears collection and asset recovery values have continued to contribute to stronger than expected cash inflows for one company in the Group enabling to pay down its largest senior debt facility ahead of schedule contributing to a saving in debt financing costs.
The Directors continue to assess the going concern of the Company and the Group and in so doing they routinely consider market conditions and trends, the state of the balance sheet, access to secure funding and projections relating to both profitability and cash flows.
Subsequent to the balance sheet date the Directors have also agreed terms with the Group’s junior and senior debt providers in relation to borrowing durations to the extent that the Directors continue to project that the Company and Group can maintain positive cash balances and satisfy liabilities as they fall due. The Directors remain in contact with potential senior debt providers in order explore new facilities and new stand alone investors to deliver a longer term sustainable capital structure. Most notably the Group has renegotiated the terms of run off with one of its senior debt providers committing funds up to June 2027 (subject to run off performance) at a significantly reduced interest rate
Taking all things into consideration the Directors are able to continue to take a positive view of the prospects for the business.
The Directors believe that there continue to be viable and reasonable management actions that allow the Group to continue for the foreseeable future.
On the basis of the above, the Directors have adopted the going concern basis of accounting in preparing the financial statements.
The designated members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the designated members to prepare financial statements for each financial year. Under that law the designated members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the designated 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 LLP and of the profit or loss of the LLP for that period. In preparing these financial statements, the designated members are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the LLP will continue in business.
The designated members are responsible for keeping adequate accounting records that are sufficient to show and explain the LLP's transactions and disclose with reasonable accuracy at any time the financial position of the LLP and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Amicus Capital Consulting LLP (the 'LLP') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the reconciliation of members' interests 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for 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 extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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.
Irregularities including Fraud
Based on our understanding of the LLP and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the LLP, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to inflated revenue and profit.
Audit procedures performed included: review of the financial statement disclosures to underlying supporting documentation, review of correspondence with and reports to the regulators, enquiries of management, and testing of journals and evaluating whether there was evidence of bias by the designated members that represented a risk of material misstatement due to fraud.
There are inherent limitations in the audit procedures described above 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 would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Use of our report
This report is made solely to the LLP'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.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Amicus Capital Consulting LLP is a limited liability partnership incorporated in England and Wales. The registered office is 30 Crown Place, London, EC2A 4EB.
The limited liability partnership's principal activities are disclosed in the Members' Report.
These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the LLP. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
This LLP is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this LLP, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The LLP has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the LLP are consolidated in the financial statements of Amicus Asset Finance Group Limited. These consolidated financial statements are available from its registered office, 30 Crown Place, London, England, EC2A 4EB.
During the period under review the directors have continued to focus their outlook on writing quality transactions over quantity and driving strong outcomes in the recovery of earlier defaulted agreements.
Whilst the period to 31st December 2024 has seen deterioration in the area of bad debt provision this is almost entirely attributed to a single customer that is believed to have acted fraudulently leading management to take an exceptionally prudent position. Continued robust arrears collection and asset recovery values have continued to contribute to stronger than expected cash inflows for one company in the Group enabling to pay down its largest senior debt facility ahead of schedule contributing to a saving in debt financing costs.
The Directors continue to assess the going concern of the Company and the Group and in so doing they routinely consider market conditions and trends, the state of the balance sheet, access to secure funding and projections relating to both profitability and cash flows.
Subsequent to the balance sheet date the Directors have also agreed terms with the Group’s junior and senior debt providers in relation to borrowing durations to the extent that the Directors continue to project that the Company and Group can maintain positive cash balances and satisfy liabilities as they fall due. The Directors remain in contact with potential senior debt providers in order explore new facilities and new stand alone investors to deliver a longer term sustainable capital structure. Most notably the Group has renegotiated the terms of run off with one of its senior debt providers committing funds up to June 2027 (subject to run off performance) at a significantly reduced interest rate
Taking all things into consideration the Directors are able to continue to take a positive view of the prospects for the business.
The Directors believe that there continue to be viable and reasonable management actions that allow the Group to continue for the foreseeable future.
On the basis of the above, the Directors have adopted the going concern basis of accounting in preparing the financial statements.
The LLP's revenue primarily consists of management fees and commission income. Management fees are recognised when the right to consideration or payment accrues through performance of services.
Commission fees are earned on execution of a significant act such as negotiating or arranging a transaction for a third party. They are recognised as revenue when that act has been completed.
The regulations require disclosure on the face of the statement of comprehensive income of a subtotal 'Profit or loss for the period before designated members' remuneration charged as an expense' should be deducted as an additional expense. This includes any related employment costs.
The profit attributable to the designated member with the largest entitlement, consisting of profits allocated and remunerated during the period, was £0.3m (2023: £0.3m).
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
At each reporting period end date, the LLP 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 LLP 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 profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Recognition
Financial assets and financial liabilities are recognised in the LLP’s balance sheet when the LLP becomes a party to the contractual provisions of the instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the LLP 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.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Assessment
At each reporting date the LLP assesses its financial assets, not at fair value through profit or loss, as to whether there is objective evidence that the assets are impaired. Objective evidence that a financial asset or group of financial assets are impaired includes observable data that comes to the attention of the group about the following loss events:
significant financial difficulty of the borrower;
a breach of contract such as default or delinquency in interest or principal repayments;
the granting of a concession for economic or legal reasons relating to the borrower’s financial difficulty that the LLP would not otherwise consider;
indications that a borrower will enter bankruptcy or other financial reorganisation; or
observable data indicating that there is a measurable decrease in the estimated future cash flows from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the group, including:
- adverse changes in the payment status of borrowers in the group; or
- national or local economic conditions that correlate with defaults on the assets in the group (e.g. a decrease in property prices for loans in the relevant area).
Measurement
Impairment provisions on financial assets individually identified as impaired are calculated as the difference between the carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate. Impairment losses are recognised immediately in the income statement and a corresponding reduction in the value of the financial asset is recognised through the use of an allowance account. If, in a subsequent period, the amount of the impairment provision decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised provision is reversed by adjusting the allowance account. The reversal is recognised in the income statement.
A write-off is made when all or part of a financial asset is deemed uncollectible or forgiven after all collection procedures have been completed and the amount of the loss has been determined. Write-offs are charged against amounts previously provided for and any additional amounts recovered after a financial asset has been previously written off are recorded in other income in the income statement once they are received.
Financial lease and hire purchase commitments
Leases of assets to customers are finance leases, if it transfers substantially all the risks and rewards incident to ownership. Amounts due from lessees under finance leases are recognised as receivables at the amount of the LLP’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the LLP’s net investment outstanding in respect of the leases.
Financial liabilities are derecognised when the LLP's obligations expire or are discharged or cancelled.
Equity instruments issued by the LLP are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the LLP.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the LLP is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
In the application of the limited liability partnership’s accounting policies, the designated 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.
In the view of the designated members there are no material judgements or estimates in the preparation of these financial statements.
An analysis of the limited liability partnership's fee income is as follows:
The average number of persons (excluding members) employed by the LLP during the year was:
Their aggregate remuneration comprised:
As a finance brokering and loan asset management business, financial instruments are central to the LLP's activities. The risks associated with financial instruments represents a significant component of those faced by the LLP and is analysed in more detail below.
The fair values of the LLP's financial assets and liabilities are not materially different to their carrying values. The LLP holds no financial instruments that are measured at fair value subsequent to initial recognition.
Credit risk is the risk that the counterparty fails to repay its obligation in respect of the amounts owed.
During the period the LLP earned £1,710,822 (2023: £1,764,835) as management fees for services rendered to its immediate parent company and the amount outstanding and receivable as at 31 December 2024 is £nil (2023: £nil).
The LLP also had a payable balance of £45,086 (2023: £35,294) with its immediate parent company.