The members present their annual report and financial statements for the year ended 31 December 2024.
The principal activity of the limited liability partnership continued to be that of property investment.
The profit for the year before members' remuneration and profit shares was £436,183 (2023: loss of £804,492).
Hamilton Alternative Strategy Investment LLP is entitled to make such capital contribution to the LLP at its discretion. HKI Partnership LLP has made a £1 capital contribution to the LLP and is not entitled or required to make further capital contributions.
Hamilton Alternative Strategy Investment LLP is entitled to all profits and distributions of the LLP and is entitled to draw a proportion of their profit share subject to the cash requirements of the business.
The designated members who held office during the year and up to the date of signature of the financial statements were as follows:
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:
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 limited liability partnership will continue in business.
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.
This report has been prepared in accordance with the special provisions relating to small LLPs within Part 15 of the Companies Act 2006.
HAMCAP (Greenock) LLP is a limited liability partnership incorporated in Scotland. The registered office is C/o HKIP LLP, Suite 10, Mercantile Buildings, 53 Bothwell Street, Glasgow, United Kingdom, G2 6TS.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, modified to include the revaluation of investment properties at fair value. The principal accounting policies adopted are set out below.
The designated members have resolved to wind up the company in the near future. After the year end, the investment properties were sold and the loans were redeemed.
The financial statements have not been prepared on a going concern basis. This has resulted in £525,971 being released to the profit and loss for the lease incentives, which has had an effect on the profit for the year.
Turnover represents net invoiced rental income, adjusted for the release of lease incentives, excluding value added tax.
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.
Profits remaining after remuneration for 'Other amounts' are automatically divided as they arise, so the LLP 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 LLP. Furthermore, the members’ agreement stipulates that the LLP cannot demand additional contributions from members unless there is unanimous consent. As a result the LLP 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.
Other amounts are applied to members as follows:
- members are entitled to 8% interest per annum on their loans provided
- members are entitled to remuneration for asset management services under contract
Such amounts are treated in the same way as all other divisions of profits as described above, according to whether the LLP has, in each case, an unconditional right to refuse payment.
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
Lease incentives
The cost of any lease incentives provided are recognised over the lease term, on a straight line basis as a reduction of rental income. The resulting asset is reflected as a receivable in the Balance Sheet. The valuation of investment properties is reduced by the total of the unamortised lease incentive balances. Any remaining lease incentive balances in respect of properties disposed of are included in the calculation of the profit or loss arising at disposal.
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.
The taxation payable on the partnership profits is solely the personal liability of the individual members consequently neither partnership taxation nor related deferred taxation arising in respect of the partnership are accounted for in these financial statements.
The average number of persons (excluding members) employed by the partnership during the year was:
Investment property was valued by the members on 31 December 2024. The valuation above is shown net of lease incentives, which are included in other debtors and are being released over the life of the lease. The gross value of investment property (including lease incentives) is £11.5m (2023 - £10.61m).
If investment property had not been revalued it would have been included at a cost of £17.6m (2023 - £17.6m).
Included within other debtors are lease incentive balances amounting to £525,971 (2023 - £590,252).
The bank facilities are secured by standard security over the investment property and by floating charge granted over the whole assets of the LLP.
Included within amounts owed by members are fair value movements on investment property amounting to a loss of £6.6m (2023: £7.6m).
In the event of a winding up the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.
After the year end, the investment properties were sold and the loans were redeemed.
The LLP has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,' not to disclose related party transactions with wholly owned subsidiaries within the group.
During the year the LLP made £nil (2023 - £4,000) of purchases from The Hamilton Portfolio Partnership LLP in respect of services rendered. Representatives of Hamilton Alternative Strategy Investment LLP are members of The Hamilton Portfolio Partnership LLP.
Transactions with members are detailed in note 4 to the financial statements.
The company's managing agents manage service charge accounts for the LLP's properties. The LLP pays the service charge for any costs which cannot be recovered by the tenants, for example in vacant units.