The members present their annual report and financial statements for the year ended 30 April 2025.
The principal activity of the limited liability partnership was previously the provision of legal services in the United Kingdom. However, in December 2015, the trade and assets of the limited liability partnership and its subsidiaries were acquired by Irwin Mitchell LLP and this trade ceased. Since the cessation of the trade the members have sought to realise the remaining assets of the limited liability partnership and its subsidiaries and settle the remaining liabilities in an orderly fashion.
Given the cessation of the LLP's trade, no new members are expected to join the LLP. Members' capital has been repaid and the level of drawings has been agreed collectively by the remaining members and is made according to each member's interests.
The members have undertaken to leave sufficient reserves in the LLP to allow it to meet the obligations recorded, including those relating to the contingent liabilities.
The designated members who held office during the year and up to the date of signature of the financial statements were as follows:
This report has been prepared in accordance with the special provisions relating to small LLPs within Part 15 of the Companies Act 2006.
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.
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Rhealisation LLP for the year ended 30 April 2025 which comprise the profit and loss account, 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 Rhealisation LLP, as a body, in accordance with the terms of our engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Rhealisation LLP and state those matters that we have agreed to state to the limited liability partnership's members of Rhealisation 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 Rhealisation LLP and its members as a body, for our work or for this report.
It is your duty to ensure that Rhealisation 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 Rhealisation LLP. You consider that Rhealisation LLP is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Rhealisation 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.
The transactions and charges shown within the profit and loss account relate exclusively to discontinued operations. As disclosed within the Members' Report and note 1.2 the LLP has ceased trading.
Rhealisation LLP is a limited liability partnership incorporated in England and Wales. The registered office is Churchill Court, 3 Manor Royal, Crawley, West Sussex, RH10 9LU.
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 2018, 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 £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The LLP has ceased trading and no longer meets the going concern criteria. Accordingly, the financial statements have been prepared on a basis other than that of a going concern. The members are however seeking to realise the assets and settle the liabilities of the group in an orderly fashion and consider that the value of the assets and liabilities, as disclosed within these financial statements, represents the realisable values of each.
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.
Once an unavoidable obligation has been created in favour of members through allocation of profits or other means, any undrawn profits remaining at the reporting date are shown as ‘Loans and other debts due to members’ to the extent they exceed debts due from a specific member.
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The limited liability partnership has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
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.
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.
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 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.
Basic financial liabilities, including creditors 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.
Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.
Equity instruments issued by the limited liability partnership are recorded at the proceeds received, net of direct issue costs.
Profit allocations
Profit allocations are recognised in the year in which they are declared and become a present obligation of the LLP. Salaried members were remunerated through employment contracts with Rhealisation LLP and fixed share members were entitled to a pre-determined share of the profits plus a potential performance-related bonus element. All other members participate fully in the firm’s profits, sharing the risks and rewards according to profit sharing ratios that are determined annually by an elected committee after careful consideration of a range of performance measures.
Drawings
Drawings represent payments on account of profits which may be allocated to members. The amount of such drawings is set at the beginning of each financial year, taking into account the anticipated cash needs of the limited liability partnership and may be reclaimed from members until profits have been allocated to them. Unallocated profits are included within members' other interests, classified as equity, advanced drawings in excess of allocated profits are included within 'Amount due from members' in debtors, and allocated profits in excess of drawings are included within 'Amounts due to members' as a liability.
Members' capital
Initial capital contributions ('principal capital') of each of the members are amounts as set out in the limited liability partnership agreement. Further members shall contribute upon admission to the limited liability partnership such capital as determined by the Board.
No member can withdraw or receive back any part of their principal capital contribution account except for in specific circumstances as detailed in the limited liability partnership deed and approved by the Board. Members' principal capital is therefore classified as equity.
The average number of persons (excluding members) employed by the partnership during the year was nil (2024 - nil).
Total members' interest, including loans and other debts due to members, are unsecured and would rank pari passu with other unsecured creditors in the event of a winding up.
Loans and other debts due to members are due within one year. Members' capital is repaid to retiring members at the same value at which they contributed it.
The limited liability partnership has identified a contingent liability in relation to a pension scheme operated by Cheviot Trust. Actuaries retained by the limited liability partnership have assessed the value of that contingent liability at between zero and £400,000.The members of the limited liability partnership have resolved to retain £400,000 in cash deposits as reserve against this contingent liability. The limited liability partnership will review this reserve from year to year.
The previous partnership (Thomas Eggar) provided a pension scheme to staff through the Cheviot Pension Scheme, a defined contribution scheme that is closed to new members, and which includes certain guaranteed rates of return on one section of the scheme which the limited liability partnership guaranteed.