In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Maxima Litigation Funding LLP for the period ended 31 March 2025 which comprise, the balance sheet and the related notes from the limited liability partnership’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made solely to the limited liability partnership's members of Maxima Litigation Funding LLP, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Maxima Litigation Funding LLP and state those matters that we have agreed to state to the limited liability partnership's members of Maxima Litigation Funding LLP, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Maxima Litigation Funding LLP and its members as a body, for our work or for this report.
It is your duty to ensure that Maxima Litigation Funding LLP has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Maxima Litigation Funding LLP. You consider that Maxima Litigation Funding LLP is exempt from the statutory audit requirement for the period.
The members have not required the company to obtain an audit or a review of the financial statements of Maxima Litigation Funding LLP. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Maxima Litigation Funding LLP is a limited liability partnership incorporated in England and Wales. The LLP's registered number and registered office address can be found on the General Information Page.
The presentation currency of the financial statements is the Pound Sterling (£).
The company is preparing financial statements for a 18 month period to 31 March 2025. The financial statements are therefore not entirely comparable with the financial statements prepared for the comparative twelve month period. The reason for the change is to bring the year end in line with the tax year.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) including the provisions of Section 1A "Small Entities" and the requirements of the Statement of Recommended Practice, Accounting by Limited Liability Partnerships. The financial statements have been prepared under the historical cost conversion.
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sale taxes.
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:
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 limited liability 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.
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.
Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.
Allocation of profit and drawings
The allocation of profits to members occurs only upon approval of the annual financial statements.
During the year members are permitted to make drawings, and from time to time, additional payments in anticipation of profits which will be allocated to them. The level and timing of the drawings is decided by the members, taking into account the partnership's cash requirements for operating and investing activities. Both the monthly and other drawings represent payments on account of current year profits. Any over-distribution of profits during the year is recoverable from members.
The average number of persons (excluding members) employed by the partnership during the period was:
In the event of a winding up the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.
Maxima litigation Solutions Limited
A company of which Mrs V M Andrews is a director and shareholder.
The amount owed by Maxima Litigation Solutions Limited at 31 March 2025 and included within other debtors amounts to £8,428 (30 September 2023 - £8,428) is unsecured and has no specific terms regarding payment of interest. The amount owed is repayable on demand.
Maxima Litigation Finance Limited
A company of which M J Andrews and Mrs V M Andrews are both directors and shareholders.
During the period Maxima Litigation Funding LLP received management charges of £5,525 (30 September 2023 - £1,800). During the year Maxima Litigation Finance Limited made payments on behalf of Maxima Litigation Funding LLP of £NIL (2023 - £Nil). The amount owed by Maxima Litigation Finance Limited at 31 March 2025 and included within other debtors amounts to £3,333 (amounts owed to Maxima Litigation Finance Limited at 30 September 2023 - £2,430) is unsecured and has no specific terms regarding payment of interest. The amount owed is repayable on demand.