Limited Liability Partnership registration number OC441974 (England and Wales)
MERCER & HOLE LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
MERCER & HOLE LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
G Tallon
M Cassidy
P Maberly
R Lane
L Spearman
H Price
P Fenn
A Turner
H Page
A Palmer
J Upshall
H Lowe
A Lawes
S Robinson
E Cuthbertson
J Bateson
LLP registration number
OC441974
Registered office
Gloucester House
72 London Road
St Albans
Herts
AL1 1NS
Auditor
Duncan & Toplis Audit Limited
Enterprise Way
Pinchbeck
Spalding
Lincolnshire
PE11 3YR
MERCER & HOLE LLP
CONTENTS
Page
Members' report
1
Members' responsibilities statement
2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Balance sheet
7
Statement of cash flows
8
Notes to the financial statements
9 - 19
MERCER & HOLE LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

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

Principal activities

The principal activity of the limited liability partnership is the provision of accountancy, audit, taxation, advisory and other professional services.

Members' drawings, contributions and repayments

The members' drawing policy allows each member to draw a proportion of their profit share, subject to the cash requirements of the business.

 

A member's capital requirement is linked to their share of profit and the financing requirement of the limited liability partnership. There is no opportunity for appreciation of the capital subscribed. Just as incoming members introduce their capital at "par", so the retiring members are repaid their capital at "par".

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:

G Tallon
M Cassidy
P Maberly
R Lane
L Spearman
H Price
P Fenn
A Turner
H Page
(Appointed 1 October 2024)
A Palmer
(Appointed 1 October 2024)
J Upshall
H Lowe
(Appointed 1 October 2024)
A Lawes
S Robinson
E Cuthbertson
J Bateson
(Appointed 4 November 2024)
Auditor

The auditor, Duncan & Toplis Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved by the members on 12 February 2025 and signed on behalf by:
12 February 2025
P Maberly
Designated Member
MERCER & HOLE LLP
MEMBERS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -

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

 

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

 

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

MERCER & HOLE LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MERCER & HOLE LLP
- 3 -
Opinion

We have audited the financial statements of Mercer & Hole LLP (the 'limited liability partnership') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the balance sheet, 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.

MERCER & HOLE LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MERCER & HOLE 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 our procedures are capable of detecting irregularities, including fraud, is detailed below.

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Members and other management obtained as part of the work required by auditing standards. We have also discussed with the Members and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. The LLP is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as the valuation of amounts recoverable on contracts, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome of prior year estimates.

Additionally, the LLP is subject to laws and regulations in the industry in which they operate, including employment law and the regulatory requirements of the ICAEW and the FRC as a member firm. These are areas where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements.

MERCER & HOLE LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MERCER & HOLE LLP
- 5 -

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Members and other management and inspection. This inspection included a review of legal fees for any evidence of non-compliance and discussions around whether any employment issues, regulatory investigations or QAD visits occurred in the year. Where visits or investigations occurred, discussions were held about the ongoing progress and outcomes. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions or the override of internal controls.

We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Sally-Anne Hurn FCA (Senior Statutory Auditor)
For and on behalf of Duncan & Toplis Audit Limited
12 February 2025
Statutory Auditor
Enterprise Way
Pinchbeck
Spalding
Lincolnshire
PE11 3YR
MERCER & HOLE LLP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -
2024
2023
Notes
£
£
Turnover
3
26,026,987
24,408,113
Cost of sales
(11,911,279)
(11,060,995)
Gross profit
14,115,708
13,347,118
Administrative expenses
(6,882,790)
(6,802,812)
Other operating income
172,029
211,345
Exceptional item
4
498,457
-
Operating profit
5
7,903,404
6,755,651
Interest payable and similar expenses
8
(150,967)
(129,563)
Profit for the financial year before members' remuneration and profit shares
7,752,437
6,626,088
Members' remuneration charged as an expense
7
(7,752,437)
(6,626,088)
Result for the financial year available for discretionary division among members
-
-

The profit and loss account has been prepared on the basis that all operations are continuing operations.

MERCER & HOLE LLP
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 7 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
1,640,834
1,845,993
Tangible assets
11
2,266,069
1,663,191
3,906,903
3,509,184
Current assets
Debtors
12
10,109,835
9,596,536
Cash at bank and in hand
573,246
161,661
10,683,081
9,758,197
Creditors: amounts falling due within one year
13
(4,705,959)
(5,908,715)
Net current assets
5,977,122
3,849,482
Total assets less current liabilities
9,884,025
7,358,666
Creditors: amounts falling due after more than one year
14
(90,724)
(9,785)
Net assets attributable to members
9,793,301
7,348,881
Represented by:
Loans and other debts due to members within one year
17
Members' capital classified as a liability
6,214,899
5,984,900
Other amounts
3,578,402
1,363,981
9,793,301
7,348,881
The financial statements were approved by the members and authorised for issue on 12 February 2025 and are signed on their behalf by:
12 February 2025
P Maberly
Designated member
Limited Liability Partnership registration number OC441974 (England and Wales)
MERCER & HOLE LLP
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
6,877,842
6,382,489
Interest paid
(150,967)
(129,563)
Net cash inflow from operating activities
6,726,875
6,252,926
Investing activities
Cash acquired on acquisition of business
-
206,634
Purchase of tangible fixed assets
(1,039,674)
(116,437)
Proceeds from disposal of tangible fixed assets
71,801
60,847
Net cash (used in)/generated from investing activities
(967,873)
151,044
Financing activities
Capital introduced by members (classified as debt or equity)
350,000
499,994
Repayment of capital or debt to members
(120,000)
(10,000)
Payments to members
(5,538,016)
(5,033,476)
Repayment of borrowings
-
(1,500,000)
Payment of finance leases obligations
(39,401)
(198,827)
Net cash used in financing activities
(5,347,417)
(6,242,309)
Net increase in cash and cash equivalents
411,585
161,661
Cash and cash equivalents at beginning of year
161,661
-
Cash and cash equivalents at end of year
573,246
161,661
MERCER & HOLE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
1
Accounting policies
Limited liability partnership information

Mercer & Hole LLP is a limited liability partnership incorporated in England and Wales. The registered office is Gloucester House, 72 London Road, St Albans, Herts, AL1 1NS.

 

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

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

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

1.3
Turnover

Turnover represents the amounts recoverable for the services provided to clients, excluding value added tax, under contractual obligations which are performed gradually over time.

If, at the balance sheet date, completion of contractual obligations is dependent on external factors (and thus outside the control of the Limited Liability Partnership), then revenue is recognised only when the event occurs. In such cases, costs incurred up to the balance sheet date are carried forward as work in progress.

 

At the balance sheet date, services provided to clients which have not yet been billed are recognised within debtors as amounts recoverable on contracts. Revenue is recognised based on the stage of completion of services rendered.

1.4
Members' participating interests

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

 

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

MERCER & HOLE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 10 -

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

 

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

Distributions of profits paid as members' drawings are classified under financing activities within the cash flow statement.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Tangible fixed assets

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

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

Leasehold improvements
Over the term of the lease
Fixtures and fittings
10 years, straight line
Computers
3 years, straight line
Motor vehicles
5 years, straight line

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.

1.7
Impairment of fixed assets

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

MERCER & HOLE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 11 -

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.

1.8
Cash and cash equivalents

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

1.9
Retirement benefits and post retirement payments to members

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

1.10
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

1.11
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

MERCER & HOLE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
2
Judgements and key sources of estimation uncertainty

In the application of the limited liability partnership’s accounting policies, the members are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

The accounting areas subject to judgement and estimation are goodwill and revenue recognition connected with amounts recoverable on contracts, the policies for which are detailed within the accounting policies section.

 

3
Turnover

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

2024
2023
£
£
Turnover analysed by class of business
Fee income
25,384,262
23,774,804
Other income
642,725
633,309
26,026,987
24,408,113
2024
2023
£
£
Other significant revenue
Grants received
172,029
211,345

All income arose within the United Kingdom.

4
Exceptional item
2024
2023
£
£
Income
Compensation received
498,457
-

Exceptional income represents the value of a compensation payment received from a landlord in respect of the early termination of a lease.

MERCER & HOLE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(172,029)
(211,345)
Fees payable to the LLP's auditor for the audit of the LLP's financial statements
17,500
17,500
Depreciation of owned tangible fixed assets
477,436
506,743
Depreciation of tangible fixed assets held under finance leases
56,754
39,138
Profit on disposal of tangible fixed assets
(10,654)
(53,722)
Amortisation of intangible assets
97,159
97,159
Impairment of intangible assets
108,000
-
Operating lease charges
937,624
869,072
6
Employees

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

2024
2023
Number
Number
Fee earners
182
172
Support staff
57
65
Total
239
237

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
10,980,244
10,167,028
Social security costs
952,609
905,643
Pension costs
552,660
502,025
12,485,513
11,574,696
7
Members' remuneration
2024
2023
Number
Number
Average number of members during the year
22
22
2024
2023
£
£
Profit attributable to the member with the highest entitlement
611,299
478,480
MERCER & HOLE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
3,026
59,835
Other interest
141,193
50,589
144,219
110,424
Other finance costs:
Interest on finance leases and hire purchase contracts
6,748
19,139
Total finance costs
150,967
129,563
9
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2024
2023
Notes
£
£
In respect of:
Goodwill
10
108,000
-
Recognised in:
Administrative expenses
108,000
-
10
Intangible fixed assets
Goodwill
£
Cost
At 1 October 2023 and 30 September 2024
1,943,152
Amortisation and impairment
At 1 October 2023
97,159
Amortisation charged for the year
97,159
Impairment losses
108,000
At 30 September 2024
302,318
Carrying amount
At 30 September 2024
1,640,834
At 30 September 2023
1,845,993

More information on impairment movements in the year is given in note 9.

MERCER & HOLE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
11
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2023
1,209,649
238,896
435,635
306,969
2,191,149
Additions
953,159
-
245,056
-
1,198,215
Disposals
(10,049)
(4,259)
-
(78,808)
(93,116)
At 30 September 2024
2,152,759
234,637
680,691
228,161
3,296,248
Depreciation and impairment
At 1 October 2023
224,606
27,657
194,965
80,730
527,958
Depreciation charged in the year
255,647
26,654
186,501
65,388
534,190
Eliminated in respect of disposals
(1,542)
(1,342)
-
(29,085)
(31,969)
At 30 September 2024
478,711
52,969
381,466
117,033
1,030,179
Carrying amount
At 30 September 2024
1,674,048
181,668
299,225
111,128
2,266,069
At 30 September 2023
985,043
211,239
240,670
226,239
1,663,191

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts. The depreciation charge in respect of such assets amounted to £56,754 (2023 - £39,138) for the year.

2024
2023
£
£
Motor vehicles
88,925
128,073
Computers
140,926
-
229,851
128,073
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
5,955,737
6,146,941
Other debtors
582,653
135,414
Prepayments and accrued income
3,571,445
3,314,181
10,109,835
9,596,536

Prepayments and accrued income includes amounts recoverable on contracts of £2,469,369 (2023: £2,258,316).

MERCER & HOLE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
15
67,032
28,830
Trade creditors
607,159
701,257
Other taxation and social security
1,033,510
1,062,595
Other creditors
605,793
580,927
Accruals and deferred income
2,392,465
3,535,106
4,705,959
5,908,715
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
15
90,724
9,785
15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
74,083
30,746
Within two and five years
102,656
10,604
176,739
41,350
Less: future finance charges
(18,983)
(2,735)
157,756
38,615

Finance lease payments represent rentals payable by the limited liability partnership for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
552,660
502,025

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

MERCER & HOLE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
17
Reconciliation of Members' Interests
DEBT
TOTAL
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 October 2023
5,984,899
1,363,981
7,348,880
7,348,880
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
7,752,437
7,752,437
7,752,437
Profit for the financial year available for discretionary division among members
-
-
-
-
Members' interests after loss and remuneration for the year
5,984,899
9,116,418
15,101,317
15,101,317
Introduced by members
350,000
-
350,000
350,000
Repayment of debt (including members' capital classified as a liability)
(120,000)
-
(120,000)
(120,000)
Drawings on account and distributions of profit
-
(5,538,016)
(5,538,016)
(5,538,016)
Members' interests at 30 September 2024
6,214,899
3,578,402
9,793,301
9,793,301
18
Loans and other debts due to members
2024
2023
£
£
Analysis of loans
Amounts falling due within one year
9,793,301
7,348,881

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

19
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
989,647
988,723
Between two and five years
2,256,008
2,427,227
In over five years
1,458,796
974,800
4,704,451
4,390,750
MERCER & HOLE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
20
Related party transactions
Transactions with related parties

During the year the limited liability partnership entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Entities over which the LLP has control, joint control or significant influence
597,960
633,312
153,499
162,787
Costs recharged to
2024
2023
£
£
Entities over which the LLP has control, joint control or significant influence
139,606
124,039

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Entities over which the LLP has control, joint control or significant influence
554,915
104,018
21
Cash generated from operations
2024
2023
£
£
Profit after taxation
7,752,437
6,626,088
Adjustments for:
Finance costs recognised in profit or loss
150,967
129,563
Gain on disposal of tangible fixed assets
(10,654)
(53,722)
Amortisation and impairment of intangible assets
205,159
97,159
Depreciation and impairment of tangible fixed assets
534,190
545,881
Movements in working capital:
Increase in debtors
(513,299)
(1,376,426)
(Decrease)/increase in creditors
(1,240,958)
413,946
Cash generated from operations
6,877,842
6,382,489
MERCER & HOLE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
22
Analysis of changes in net funds
1 October 2023
Cash flows
New finance leases
30 September 2024
£
£
£
£
Cash at bank and in hand
161,661
411,585
-
573,246
Obligations under finance leases
(38,615)
39,401
(158,542)
(157,756)
Balances before members' debt
123,046
450,986
(158,542)
415,490
Loans and other debts due to members:
- Members' capital
(5,984,900)
(229,999)
-
(6,214,899)
- Other amounts due to members
(1,363,981)
(2,214,421)
-
(3,578,402)
Balances including members' debt
(7,225,835)
(1,993,434)
(158,542)
(9,377,811)
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