REGISTERED NUMBER: SO306011 (Scotland)

Report of the Members and

Financial Statements for the Year Ended 31 December 2024

for

Hamcap HYIF No3 LLP

Page

General Information

1

Report of the Members

2

Balance Sheet

4

Reconciliation of Members' Interests

6

Notes to the Financial Statements

8

DESIGNATED MEMBERS:

HCP High Yield No3 Limited

Kh Iv Estates 806 Limited

REGISTERED OFFICE:

C/o Hkip LLP

Mercantile Buildings, Suite 10

53 Bothwell Street

GLASGOW

G2 6TS

REGISTERED NUMBER:

SO306011 (Scotland)

AUDITORS:

The Kelvin Partnership Ltd

Statutory Auditor

Chartered Accountants

The Cooper Building

505 Great Western Road

Glasgow

G12 8HN

The members present their report with the financial statements of the LLP for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principle activity of the limited liability partnership continued to be that of holding investments.

DESIGNATED MEMBERS

The designated members during the year under review were:

HCP High Yield No3 Limited

Kh Iv Estates 806 Limited

RESULTS FOR THE YEAR AND ALLOCATION TO MEMBERS

The profit for the year before members' remuneration and profit shares was £313,124 (2023 - £56,317 profit).

MEMBERS' INTERESTS

STATEMENT OF MEMBERS' RESPONSIBILITIES

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

Legislation applicable to limited liability partnerships 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). Under legislation applicable to limited liability partnerships 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 LLP and of the profit or loss of the LLP for that period. In preparing these financial statements, the members are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the LLP will continue in business.

The 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 to LLPs 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 LLP and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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 LLP's auditors are unaware, and each member has taken all the steps that he ought to have taken as a member in order to make himself aware of any relevant audit information and to establish that the LLP's auditors are aware of that information.

AUDITORS

The auditors, The Kelvin Partnership Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE MEMBERS:

HCP High Yield No3 Limited - Designated member

1 September 2025

CURRENT ASSETS

Debtors

4

6,239,505

6,007,503

Cash at bank

3,595

5,952

6,243,100

6,013,455

CREDITORS

Amounts falling due within one year

5

885,516

912,678

NET CURRENT ASSETS

5,357,584

5,100,777

TOTAL ASSETS LESS CURRENT LIABILITIES

and

NET ASSETS ATTRIBUTABLE TO MEMBERS

5,357,584

5,100,777

LOANS AND OTHER DEBTS DUE TO MEMBERS

313,124

56,317

MEMBERS' OTHER INTERESTS

Other reserves

5,044,460

5,044,460

5,357,584

5,100,777

TOTAL MEMBERS' INTERESTS

Loans and other debts due to members

313,124

56,317

Members' other interests

5,044,460

5,044,460

Amounts due from members

4

(4,246,260

)

(3,344,710

)

1,111,324

1,756,067

The financial statements have been prepared and delivered in accordance with the provisions applicable to LLPs subject to the small LLPs regime.

In accordance with Section 444 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, the Income Statement has not been delivered.

The financial statements were approved by the members of the LLP and authorised for issue on 1 September 2025 and were signed by:

HCP High Yield No3 Limited - Designated member

EQUITY

DEBT

TOTAL

Members'

Loans and other debts due to

MEMBERS'

other

members less any amounts due

INTERESTS

interests

from members in debtors

Other

Other

reserves

amounts

Total

£

£

£

Amount due to members

-

Amount due from members

(3,198,964

)

Balance at 1 January 2024

5,044,460

(3,198,964

)

1,845,496

Members' remuneration charged as an expense, including employment and retirement benefit costs

-

313,124

313,124

Profit for the financial year available for discretionary division among members

-

-

-

Members' interests after profit for the year

5,044,460

(2,885,840

)

2,158,620

Introduced by members

-

(1,047,296

)

(1,047,296

)

Amount due to members

313,124

Amount due from members

(4,246,260

)

Balance at 31 December 2024

5,044,460

(3,933,136

)

1,111,324

EQUITY

DEBT

TOTAL

Members'

Loans and other debts due to

MEMBERS'

other

members less any amounts due

INTERESTS

interests

from members in debtors

Other

Other

reserves

amounts

Total

£

£

£

Amount due to members

-

Amount due from members

(3,249,811

)

Balance at 1 January 2023

5,044,460

(3,249,811

)

1,794,649

Profit for the financial year available for discretionary division among members

56,317

-

56,317

Members' interests after profit for the year

5,100,777

(3,249,811

)

1,850,966

Other divisions of profit

(56,317

)

56,317

-

Introduced by members

-

(94,899

)

(94,899

)

Amount due to members

56,317

Amount due from members

(3,344,710

)

Balance at 31 December 2023

5,044,460

(3,288,393

)

1,756,067

1.	STATUTORY INFORMATION

Hamcap HYIF No3 LLP is registered in Scotland. The LLP's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" 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 convention.

These financial statements are presented in Great British Pounds (GBP), which is the Company's functional

and presentation currency. All amounts have been rounded to the nearest pound, unless otherwise stated.

Critical accounting 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.

Estimates and judgements

The following estimates and judgements have had the most significant effect on amounts recognised in the

financial statements.

Accrued expenses

Accrued expenses are liabilities that represent costs or expenses incurred by the organization during the

reporting period but not yet paid or invoiced. These expenses are recorded as liabilities until payment is made.

Investment impairment

At the end of each financial year an assessment is made on whether there are indicators that the limited

liability partnership's investments and loans are impaired. Where necessary the limited liability partnership's

assessment is based on an estimation of the recoverable amount of each asset. This is based on underlying

fair values of the investment properties held within those investments. The fair values are derived from

external third party valuations carried out by professional surveyors

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.

Going concern

The limited liability partnership's going concern status is predicated on the financial position of its subsidiary

investment entities.

The current and future financial position of the limited liability partnership, and its subsidiary investment

entities, has been reviewed by the designated members. Such a review includes the examination of future

cash flows, the liquidity position, and the impact of financial covenants and rising interest rates.

At the date of signing the financial statements, Hamcap HYIF No3 LLP has three active subsidiaries.

The designated members have a reasonable expectation that the subsidiary entities, and therefore

the limited liability partnership, have adequate resources to continue in operational existence for the

foreseeable future. Thus, the designated members continue to adopt the going concern basis of accounting in preparing the financial statements.

Members' participating interests

Members' participation rights are the rights of a member against the limited liability partnership 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 limited liability partnership are analysed between

those that are, from the limited liability partnership'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 limited

liability partnership has an unconditional right to refuse payment to members, in which case they are classified as equity.

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 limited liability partnership 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.

Profits are automatically divided as they arise, so the limited liability partnership does not have an

unconditional right to refuse payment and the amounts arising that are due to members are in the nature of

liabilities. They are therefore treated as an expense and presented as members remuneration charged as an

expense in arriving at the result for the relevant year. To the extent that they remain unpaid at the period end, they are shown as liabilities.

The members’ agreement limits the amount of losses that can be allocated to and recovered from members to the pro-rata amount of their capital investment in the limited liability partnership. Furthermore, the members’

agreement stipulates that the limited liability partnership cannot demand additional contributions from

members unless there is unanimous consent. As a result the limited liability partnership does not have an

unconditional right to demand payment from members for losses. Losses are therefore allocated in the profit

sharing ratios. To the extent that losses exceed the balance on capital accounts, they are not recognised as a recoverable asset and remain within equity until such time as profits are generated to set them against.

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.

Taxation

The taxation payable on the limited liability partnership profits is solely the personal liability of the individual

members consequently neither partnership taxation nor related deferred taxation arising in respect of the

limited liability partnership are accounted for in these financial statements.

Financial instruments

‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to

the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when

there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at

transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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.

Impairment of financial assets

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.

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 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.

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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference

shares that are classified as debt, 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 creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are

discharged or cancelled.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion

of the company.

3.	EMPLOYEE INFORMATION

The average number of employees during the year was NIL (2023 - NIL).

4.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.12.23

£

£

Trade debtors

91,930

37,640

Amounts owed by group undertakings

1,901,140

2,624,798

Amounts due from members

4,246,260

3,344,710

VAT

175

355

6,239,505

6,007,503

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.12.23

£

£

Trade creditors

96,915

38,641

Amounts owed to group undertakings

626,272

731,958

Accruals and deferred income

162,329

142,079

885,516

912,678

6.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Raymond Henry FCA (Senior Statutory Auditor)

for and on behalf of The Kelvin Partnership Ltd

7.	RELATED PARTY DISCLOSURES

Transactions with related parties

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

Sales

Purchases

2024

2023

2024

2023

Entities over which the LLP has control, jointcontrol or significant influence

117,530

93,334

Balances with related parties

Amounts owed by related parties

Amounts owed to related parties

2024

2023

2024

2023

Entities over which the LLP has control, joint control or significant influence

772,200

650,927

638,201

731,885

8.	CONTROLLING PARTY

Hamcap HYIF No3 LLP is a joint venture entity between HCP High Yield No3 Limited and KH IV Estates 806 Limited. Each member entity has two representatives which form the board of the limited liability partnership . Each representative is entitled to one vote. There is no casting vote and in the event of a deadlock, an auction procedure is commenced.