|
Registered number: OC388189
Trade Union Legal LLP
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
TRADE UNION LEGAL LLP
INFORMATION
Designated Members
M J Cordall
|
|
|
LLP registered number
OC388189
|
Registered office
PM House
250 Shepcote Lane
Sheffield
South Yorkshire
S9 1TP
|
Independent auditors
AAB Audit & Accountancy Limited
Gresham House
5-7 St Pauls Street
Leeds
LS1 2JG
|
|
|
TRADE UNION LEGAL LLP
CONTENTS
|
|
|
|
|
|
Independent Auditors' Report
|
|
Statement of Comprehensive Income
|
|
Statement of Financial Position
|
|
Reconciliation of Members' Interests
|
|
|
|
|
Notes to the Financial Statements
|
|
|
|
TRADE UNION LEGAL LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The members present their annual report together with the audited financial statements of Trade Union Legal LLP (the "LLP") for the ended 31 December 2024.
Principal activities
The principal activity of the LLP during the year was the provision of legal services. Trade Union Legal LLP was licenced by the Solicitors Regulation Authority Limited to undertake specified legal activities and commenced trading on 2 June 2014 as an Alternative Business Structure to provide legal services to the members of GMB and the Communication Workers Union.
The financial statements reflect the results of the year ended 31 December 2024 and disclose a loss of £1,160,872 (2023 - loss of £3,151,982).
At 31 December 2024, the business had 6,112 (2023 - 6,534) live personal injury cases operated on a contingent fee basis. The financial statements do not take account of the future income from these cases under FRS102, save for those cases which meet the criteria set out in the accounting policies, as whilst there is a probability that income will accrue on these cases, it cannot be measured accurately at the balance sheet date.
Designated Members
The designated members who served the LLP during the year were as follows:
M J Cordall
GMB & CWU Legal LLP
Policy regarding members' drawings and the subscription and repayment amounts subscribed or otherwise contributed by members
The LLP's members are not required to contribute any capital to the LLP in accordance with the membership agreement. However, GMB and the Communication Workers Union have agreed to provide working capital and recharged operating costs to the LLP.
In accordance with the LLP agreement, from time to time the Board may determine the amount of profit to be distributed. In doing so the Board takes into account the future anticipated capital requirements of the business and any drawings are limited to the 'free cash" over and above the future anticipated requirements.
Members' responsibilities statement
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 (United Kingdom Accounting Standards and applicable law). 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 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.
Page 1
|
|
TRADE UNION LEGAL LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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 to 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 the 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.
Disclosure of information to auditors
Each of the persons who are members at the time when this Members' Report is approved has confirmed that:
∙so far as that member is aware, there is no relevant audit information of which the LLP's auditors are unaware, and
∙that member has taken all the steps that ought to have been taken as a member in order to be aware of any relevant audit information and to establish that the LLP's auditors are aware of that information.
Auditors
AAB Audit & Accountancy Limited are deemed to be re-appointed under section 487 of the Companies Act 2006.
This report was approved by the members on 30 September 2025 and signed on their behalf by:
Page 2
|
|
TRADE UNION LEGAL LLP
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRADE UNION LEGAL LLP
We have audited the financial statements of Trade Union Legal LLP (the 'LLP') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Reconciliation of Members' Interests and the related notes, including a summary of 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:
∙give a true and fair view of the state of the LLP's affairs as at 31 December 2024 and of its loss for the year then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙have been prepared in accordance with the requirements of the Companies Act 2006, as applied to limited liability partnerships by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the LLP in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 LLP'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.
Page 3
|
|
TRADE UNION LEGAL LLP
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRADE UNION LEGAL LLP (CONTINUED)
The other information comprises the information included in the annual report other than the financial statements and our Auditors' 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 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.
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:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙we have not received all the information and explanations we require for our audit.
Responsibilities of members
|
As explained more fully in the Members' Responsibilities Statement set out on page 1, 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 LLP'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 LLP or to cease operations, or have no realistic alternative but to do so.
Page 4
|
|
TRADE UNION LEGAL LLP
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRADE UNION LEGAL LLP (CONTINUED)
Auditors' 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 Auditors' 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks within which the LLP operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements.
The laws and regulations we considered in this context were the Companies Act 2006, as applied to limited liability partnerships by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:
∙Management override of controls to manipulate the LLP’s key performance indicators to meet targets
∙Timing of revenue recognition
∙Management judgement applied in calculating provisions
∙Compliance with relevant laws and regulations which directly impact the financial statements and those that the LLP needs to comply with for the purpose of trading
Our audit procedures to respond to these risks included:
∙Testing of journal entries and other adjustments for appropriateness
∙Evaluating the business rationale of significant transactions outside the normal course of business
∙Testing a sample of matters and associated recognition of revenue on settled cases during the year to ensure appropriate
∙Reviewing judgements made by management in their calculation of accounting estimates for potential management bias
∙Enquiries of management about litigation and claims and inspection of relevant correspondence
∙Reviewing legal and professional fees to identify indications of actual or potential litigation, claims and any non-compliance with laws and regulations
∙Analytical procedures to identify any unusual or unexpected trends or relationship
∙Reviewing minutes of meetings of those charged with governance to identify any matters indicating actual or potential fraud
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
Page 5
|
|
TRADE UNION LEGAL LLP
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRADE UNION LEGAL LLP (CONTINUED)
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the LLP's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the members.
∙Conclude on the appropriateness of the members' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the LLP's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the LLP to cease to continue as a going concern.
∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 Part 12 of The Limited Liability Partnerships (Accounts and Audit) (Applications of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the LLP's members those matters we are required to state to them in an Auditors' 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 LLP and the LLP's members, as a body, for our audit work, for this report, or for the opinions we have formed.
James Hunt BA (Hons) MA FCA CTA (Senior Statutory Auditor)
for and on behalf of
AAB Audit & Accountancy Limited
Statutory Auditor
Gresham House
5-7 St Pauls Street
Leeds
LS1 2JG
30 September 2025
Page 6
|
|
TRADE UNION LEGAL LLP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest receivable and similar income
|
|
|
|
Interest payable and similar expenses
|
|
|
|
|
|
|
|
|
Loss for the year before members' remuneration and profit shares available for discretionary division among members
|
|
|
|
Other comprehensive income for the year
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year
|
|
|
|
The notes on pages 11 to 20 form part of these financial statements.
|
Page 7
|
|
TRADE UNION LEGAL LLP
REGISTERED NUMBER: OC388189
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets less current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other reserves including the fair value reserve
|
|
|
|
|
|
|
|
|
|
|
|
|
The financial statements were approved and authorised for issue by the members and were signed on their behalf on 30 September 2025.
Page 8
|
|
TRADE UNION LEGAL LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
|
|
|
|
EQUITY
Members' other interests
|
|
|
|
|
|
|
|
|
Balance at 1 January 2023
|
|
|
Loss for the year available for discretionary division among members
|
|
|
Members' interests after profit for the year
|
|
|
Balance at 31 December 2023
|
|
|
Loss for the year available for discretionary division among members
|
|
|
Members' interests after profit for the year
|
|
|
Balance at 31 December 2024
|
|
|
There are no existing restrictions or limitations which impact the ability of the members of the LLP to reduce the amount of Members' other interests.
|
Page 9
|
|
TRADE UNION LEGAL LLP
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
Cash flows from operating activities
|
|
|
Loss for the financial year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase)/decrease in debtors
|
|
|
Increase/(decrease) in creditors
|
|
|
Net cash generated from operating activities before transactions with members
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
Net cash from investing activities
|
|
|
Cash flows from financing activities
|
|
|
Proceeds from loans from members
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
Net increase in cash and cash equivalents
|
|
|
Cash and cash equivalents at beginning of year
|
|
|
Cash and cash equivalents at the end of year
|
|
|
|
|
|
|
Cash and cash equivalents at the end of year comprise:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The notes on pages 11 to 20 form part of these financial statements.
|
Page 10
|
|
TRADE UNION LEGAL LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The LLP is registered in England and Wales, registered number OC388189. The address of the registered office is PM House, 250 Shepcote Lane, Sheffield, South Yorkshire, S9 1TP.
2.Accounting policies
|
|
|
Basis of preparation of financial statements
|
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006 and the requirements of the Statement of Recommended Practice "Accounting by Limited Liability Partnerships".
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the LLP's accounting policies (see note 3).
The following principal accounting policies have been applied:
Whilst noting the loss for the year the members have adopted the going concern basis in preparing these accounts after consideration of forecasts and funding of the year ahead together with the Memorandum of Understanding for future funding of the business, assessing the principal risks and having considered the impact of severe but plausible downside scenarios.
Whilst the wider global and national situation evolves regularly, making scenario planning difficult, we have considered a number of impacts on income, profits and cash flows. We have assumed that our operations remain open and that we will continue to be able to service our clients.
Recent years have seen significant inflationary pressures in the wider economy. We anticipate this price pressure to continue with the current global uncertainties and resulting UK and global inflation albeit less so than in the last two years. As the majority of the cost base of the LLP is made up of staff salaries and profit shares/recharges to members and partners, the LLP will continue to work with these stakeholders to navigate the inflationary pressures in the going concern forecast period.
Forecast scenarios have been projected in relation to possible outcomes for timing/drop off of income and other inflationary pressures. The impact of this is that there is a realistic possibility that the business will require funding from its members in the short term in order to meet its liabilities as they fall due. The business is dependent upon the support of its members both in terms of the liabilities due to them and the short-term funding requirements. Letters of support have been received which set out confirmation of continued support in respect of liabilities due and future funding requirements.
Revenue recognition represents the amounts recoverable for the services provided to clients under contractual obligations which are performed gradually over time. Amounts due in relation to cases not settled at the balance sheet date and are contingent upon the success of the claim are not recognised until settled. Refer to significant judgements and estimates heading for further clarification on income recognition in relation to current case load.
Accrued income represents work done at the year end where a continuing right to receive income exists (by reference to the settlement of cases noted above) and is valued at the estimated amount recoverable in excess of fees already rendered on account.
Page 11
|
|
TRADE UNION LEGAL LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Interest income is recognised in profit or loss using the effective interest method.
Defined contribution pension plan
The LLP operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the LLP pays fixed contributions into a separate entity. Once the contributions have been paid the LLP has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the LLP in independently administered funds.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
|
|
|
Cash and cash equivalents
|
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the LLP's cash management.
The LLP has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The LLP has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the LLP's Statement of Financial Position when the LLP
Page 12
|
|
TRADE UNION LEGAL LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
|
|
|
Financial instruments (continued)
|
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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The LLP's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic 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 LLP after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the
Page 13
|
|
TRADE UNION LEGAL LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
|
|
|
Financial instruments (continued)
|
present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the LLP transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the LLP will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the LLP's contractual obligations expire or are discharged or cancelled.
Members remuneration charged as an expense in the profit and loss account relates to amounts payable under contractual arrangements. The balance of the profit or loss for the year available for discretionary division amongst members is treated as members' equity in the balance sheet until it is formerly allocated to the members when the financial statements are approved after the year end.
Any amount of profit or loss not allocated to members is carried forward in other reserves and classified as equity.
Page 14
|
|
TRADE UNION LEGAL LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
Judgements in applying accounting policies and key sources of estimation uncertainty
|
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements have had the most significant effect on amounts recognised in the financial statements:
- Recognition of income from cases
Income from cases is recognised when the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; the stage of completion of the transaction at the end of the reporting period can be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
FRS 102 paragraph 23.15 states that when a specific act is much more significant than any other act, the entity postpones recognition of revenue until the significant act is executed. Therefore amounts due in relation to cases not settled at the balance sheet date and are contingent upon the success of the claim are not recognised until settled.
- Recoverability of disbursements
Disbursements incurred in the pursuit of cases on behalf of clients are recoverable from clients underwritten by third parties (GMB and the Communication Workers Union) and are carried as an asset until recovered from the at fault party or the claimant.
A provision amounting to £979,643 (2023: £1,013,478) is held in the financial statements for future write offs of disbursements, based upon historical evidence of write offs occurring in each period. This is based on an estimated fail rate of 24%.
- Discounting of medical fees
The medical fees financial asset, and associated financial liability, is measured on an amortised cost basis in line with the requirements of basic financial instruments under FRS102. The time between a medical expense being incurred by the LLP and settlement can often span several years. As such the LLP discounts the asset and liability at a market rate of interest based on the expected timing of settlement. The key inputs in this calculation are the expected timing of settlement of asset and the discount rate applied. The LLP has used an expected settlement period of 5 years (2023 - 5 years) and a discount rate of 3.35% (2023 - 3.35%) to value the medical asset and liability. Increasing or decreasing the discount rate by 1% would have the impact of adjusting the asset and liability by £98,260 (2023 - £82,334). There is no impact on the loss for the period other than the grossing up or down of interest income and expense.
Page 15
|
|
TRADE UNION LEGAL LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
|
|
|
An analysis of turnover by class of business is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision of legal services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During the year, the LLP obtained the following services from the LLP's auditors:
|
|
|
|
|
|
Staff costs were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of defined contribution scheme
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The average monthly number of persons (including members with contracts of employment) employed during the year was as follows:
|
|
|
There are 4 (2023 - 4) members of key management personnel. All of these individuals are directly employed by PM Law Limited.
The management recharge paid by the LLP to PM Law contributes towards the cost of these individuals providing managerial services.
|
Page 16
|
|
TRADE UNION LEGAL LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
Information in relation to members
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The average number of members during the year was
|
|
|
|
|
|
|
|
|
|
Other interest receivable
|
|
|
|
|
|
|
|
|
|
Interest payable and similar expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 17
|
|
TRADE UNION LEGAL LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
An adjustment has been made to the comparative figures to correctly account for VAT due on outstanding disbursements. The effect was to increase trade creditors by £495,006 and increase trade debtors by £495,006. There was no effect on profit and loss.
|
|
|
|
|
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 18
|
|
TRADE UNION LEGAL LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
Creditors: Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to related parties
|
|
|
|
|
Other taxation and social security
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt (before members' debt)
|
|
|
|
|
|
|
|
|
|
The LLP provides defined contribution payments to qualifying individual pension schemes which are administered independently from the LLP. These are charged to the profit and loss in the period to which they relate. Contributions charged to profit or loss during the year amounted to £63,091 (2023: 66,237). No contributions were outstanding at the year end (2023: £Nil).
Page 19
|
|
TRADE UNION LEGAL LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
|
Related party transactions
|
|
|
M J Cordall, a member of the LLP, is also a shareholder in Proddow Mackay Legal Limited, a company which provided support costs valued at £1,916,785 (2023: £1,822,558) for the LLP's benefit and the creditor balance in relation to these costs at the year-end was £444,484 (2023: £86,401).
During the year M J Cordall incurred out of pocket expenses totalling £24,004 (2023: £26,959), which were reimbursed by Trade Union Legal LLP.
The trade unions, GMB and the Communication Workers Union, have control over the LLP through their control over GMB & CWU Legal LLP.
The LLP owed GMB £20,231,471 (2023: £18,325,403) at the year end. Interest charged during the year was £Nil (2023: £Nil) and no interest is charged on the loan balance. During the year, GMB loaned the LLP an additional £1,906,067 (2023: £2,294,477). No management charges were made during the year (2023: £Nil).
The LLP owed the Communication Workers Union £5,051,354 (2023: £5,601,354) at the year end. Interest charged during the year was £Nil (2023: £13,366). Interest was previously charged at a rate of 6% per annum but is no longer charged on the loan balance. The remainder of the balance relates to management charges. No management charges were made during the year (2023: £Nil).
The loans and management charge payables are not secured nor are there any set repayment terms.
|
Page 20
|