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Porter Dodson LLP
Annual Report and Financial Statements
Year Ended 30 April 2025

Registration number: OC372439

Porter Dodson LLP

Contents

Limited liability partnership information | 1
Members' Report | 2 to 3
Statement of Members' Responsibilities | 4
Independent Auditor's Report | 5 to 9
Financial Statements | 10 to 29
Profit and Loss Account | 10
Balance Sheet | 11
Statement of Changes in Members’ Interests | 13
Cash Flow Statement | 15
Notes to the Financial Statements | 16

Porter Dodson LLP

Limited liability partnership information

Designated members | R J Baker B J Hingley C M James E Adfield

Registered office | Telford House The Park Yeovil Somerset BA20 1DY

Auditors | Francis Clark LLP Statutory Auditor Lowin House Tregolls Road Truro Cornwall TR1 2NA

Porter Dodson LLP

Members' Report

Year Ended 30 April 2025

The members present their report and the audited financial statements for the year ended 30 April 2025.

Principal activity

The principal activity of the limited liability partnership is the provision of legal services.

Review of the business and future developments

The limited liability partnership's key financial and other performance indicators during the year were as follows:

| Unit | 2025 | 2024
Fees issued | £ | 17,814,633 | 15,008,202
Fees issued growth | % | 19 | 15
Gross profit margin | % | 53 | 52
Profit before members' remuneration and profit shares | £ | 8,982,504 | 7,162,200

Going concern

The members have considered a period of 12 months from approval of these accounts, including appropriate forecasts and are satisfied that the going concern basis continues to be appropriate.

Designated members

The members who held office during the year were as follows:

R J Baker

B J Hingley

C M James

E Adfield

Financial instruments

Financial risk
Price risk, credit risk, liquidity risk and cash flow risk

The business' principal financial instruments comprise bank balances, bank overdrafts, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the business' cash balances are held in such a way that achieves a competitive rate of interest. The business makes use of money market facilities where funds are available.
Trade debtors and unbilled time are managed in respect of credit and cash flow risk by policies concerning the credit offered to clients and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Porter Dodson LLP

Members' Report

Year Ended 30 April 2025

Members' drawings and the subscription and repayment of members' capital

During the year the members receive monthly drawings and from time to time, additional profit distributions. The policy for the level and timing of the additional profit distributions is determined by the Board and takes into account the cash requirements of the partnership for operating and investment activities. The monthly drawings represent anticipated current period profits that will be allocated to them.
The capital requirements of the LLP are determined by the Board and are reviewed regularly. Each member is required to subscribe a proportion of this capital. The amount of capital subscribed by each member is linked to their status and the earnings allocated to that member. On retirement from the LLP, a member's capital is repaid to members in accordance with the terms of the Members' Agreement.

Employment policy

Dignity in the workplace
We are committed to providing a working environment which promotes equality of opportunity for all. We do not tolerate discrimination or harassment on the grounds of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion and belief or sex and sexual orientation.
Full and fair consideration is given to the employment of disabled persons having regard to their particular aptitudes and abilities. Appropriate provision is made for disabled persons to enable them to fulfil their role and this includes the re-training for alternative work of employees who become disabled.

Disclosure of information to the auditors

Each member has taken steps that they ought to have taken as a member in order to make themselves aware of any relevant audit information and to establish that the limited liability partnership's auditors are aware of that information. The members confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the Members on 30 October 2025 and signed on their behalf by:

.........................................
C M James
Designated member

Porter Dodson LLP

Statement of Members' Responsibilities

Year Ended 30 April 2025

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

The Limited Liability Partnerships (Accounts & Audit) (Application of Companies Act 2006) Regulations 2008 require 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 to LLPs 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 year. 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;

• | state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The members are responsible for keeping adequate accounting records that 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 to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, and in accordance with the requirements of the Statement of Recommended Practice Accounting by Limited Liability Partnerships (issued May 2024). 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.
These responsibilities are exercised by the Board on behalf of the members.

Porter Dodson LLP

Independent Auditor's Report to the Members of Porter Dodson LLP

Opinion

We have audited the financial statements of Porter Dodson LLP (the ‘limited liability partnership’) for the year ended 30 April 2025, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Members’ Interests, Cash Flow Statement, and Notes to the Financial Statements, 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 limited liability partnership's affairs as at 30 April 2025 and of its profit 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.

Basis for opinion

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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the limited liability partnership in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 entity's ability to continue as a going concern for a period of at least twelve months from when the original 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.

Other information

The members are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Porter Dodson LLP

Independent Auditor's Report to the Members of Porter Dodson LLP

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 where the Companies Act 2006 requires us to report to you if, in our opinion:

• | adequate accounting records have not been kept by the limited liability partnership, or returns adequate for our audit have not been received from branches not visited by us; or
• | the limited liability partnership 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 Statement of Members' Responsibilities [set out on page 4], 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 limited liability partnership'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 limited liability partnership or to cease operations, or have no realistic alternative but to do so.

Auditor 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 auditor’s 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:

Porter Dodson LLP

Independent Auditor's Report to the Members of Porter Dodson LLP

During our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the LLP. We gained an understanding of the business and the industry in which it operates in order to identify the key laws and regulations affecting the LLP. As part of this, we reviewed the firm’s website for indication of any regulations and certification in place and discussed laws and regulations with the relevant individuals responsible for compliance. The key laws and regulations we identified were the SRA Accounts Rules 2019, health and safety standards, employment laws and The General Data Protection Regulation (“GDPR”) and we also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily the Companies Act 2006.
We identified how compliance with these laws and regulations is monitored by management and discussed the policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the LLP complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the LLP’s ability to continue trading and the risk of material misstatement to the accounts.
We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements. The key incentive identified is to meet the expectations of the members and we determined that the principal risks were related to the overstatement of profit, either through overstating revenue, understating expenditure or management bias in accounting estimates, particularly in relation to the valuation of accrued income.

Porter Dodson LLP

Independent Auditor's Report to the Members of Porter Dodson LLP

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements. As part of these enquiries we also discussed with management whether there have been any known instances of fraud.
• Reviewing the Accountant’s Report to the Solicitors Regulation Authority in relation to the firm’s compliance with the SRA Accounts Rules 2019, together with the schedule of identified breaches.
• Reviewing employee payroll documentation in order to identify any cases of non-compliance with employment laws.
• Reviewing the LLP’s GDPR policy and enquiring with the Data Protection Officer as to the occurrence and outcome of any reportable breaches.
• Undertaking a detailed review of management board meeting minutes and legal and professional costs to identify any possible non-compliance with laws and regulations.
• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
• Reviewing estimates and judgements made in the accounts for any indication of bias and challenging assumptions used by management in making the estimates. In relation to accrued income we compared management’s estimates to the actual income recovered post year end. We looked to understand the process used by management to determine the accrued income balance in order to assess the potential for fraud via manipulation of the balance. As part of this we also reviewed the outcome of prior year estimates to check the accuracy of management’s estimates in this area.
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. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the limited liability partnership’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts & Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the limited liability partnership’s members those matters we are required to state to them in an auditor’s 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 limited liability partnership, and the limited liability partnership members as a body, for our audit work, for this report, or for the opinions we have formed.

Porter Dodson LLP

Independent Auditor's Report to the Members of Porter Dodson LLP

......................................
Andrew Allen BSc FCA (Senior Statutory Auditor)
Francis Clark LLP, Statutory Auditor
Lowin House
Tregolls Road
Truro
Cornwall
TR1 2NA

31 October 2025

Porter Dodson LLP

Profit and Loss Account

Year Ended 30 April 2025

| Note | Total 2025 £ | Total 2024 £
Turnover | 3 | 17,963,101 | 15,566,464
Cost of sales |  | (8,418,003) | (7,480,755)
Gross profit |  | 9,545,098 | 8,085,709
Administrative expenses |  | (2,603,910) | (2,713,817)
Other operating income |  | 20,813 | 31,715
Operating profit | 4 | 6,962,001 | 5,403,607
Other interest receivable and similar income | 5 | 3,032,092 | 2,744,086
Interest payable and similar expenses | 6 | (1,011,589) | (985,493)
Profit for the year before members' remuneration and profit shares |  | 8,982,504 | 7,162,200
Members' remuneration charged as an expense |  | (8,982,504) | (7,162,200)
Profit/(loss) for the year available for discretionary division among members |  | - | -

Turnover and operating profit derive wholly from continuing operations.

The limited liability partnership has no recognised gains or losses for the year other than the results above.

Porter Dodson LLP

Balance Sheet

30 April 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Intangible assets | 9 | 16,077 | 64,029
Tangible assets | 10 | 4,281,972 | 4,297,330
Investments | 11 | 100,001 | 100,000
|  | 4,398,050 | 4,461,359
Current assets |  |  |
Debtors | 13 | 6,060,042 | 6,094,806
Cash and short-term deposits |  | 4,146,397 | 3,322,026
|  | 10,206,439 | 9,416,832
Creditors: Amounts falling due within one year | 14 | (2,695,883) | (2,136,561)
Net current assets |  | 7,510,556 | 7,280,271
Total assets less current liabilities |  | 11,908,606 | 11,741,630
Creditors: Amounts falling due after more than one year | 15 | (2,747,672) | (2,470,000)
Provisions | 17 | (228,693) | (454,000)
Net assets attributable to members |  | 8,932,241 | 8,817,630
Represented by: |  |  |
Loans and other debts due to members |  |  |
Members' capital classified as a liability |  | 3,782,195 | 3,913,000
Other amounts |  | 5,150,046 | 4,904,630
|  | 8,932,241 | 8,817,630
|  | 8,932,241 | 8,817,630
Total members' interests |  |  |
Loans and other debts due to members |  | 8,932,241 | 8,817,630
|  | 8,932,241 | 8,817,630

The members acknowledge their responsibilities for complying with the requirements of the Act, as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 with respect to accounting records and the preparation of accounts.

Porter Dodson LLP

Balance Sheet

30 April 2025

The financial statements of Porter Dodson LLP (registered number OC372439) were approved by the Members and authorised for issue on 30 October 2025. They were signed on behalf of the limited liability partnership by:

.........................................
C M James
Designated member

Registration number: OC372439

Porter Dodson LLP

Statement of Changes in Members’ Interests

30 April 2025

| Loans and other debts due to/(from) members |
| Members' capital classified as a liability £ | Members' other amounts £ | Total 2025 £
Members' interest at 1 May 2024 | 3,913,000 | 4,904,630 | 8,817,630
Members' remuneration charged as an expense | - | 8,982,504 | 8,982,504
Members' interests after profit for the year | 3,913,000 | 13,887,134 | 17,800,134
Members’ capital introduced | 279,500 | - | 279,500
Drawings (including tax payments) | (130,805) | (8,382,053) | (8,512,858)
Transfer of capital to former members’ balances | (279,500) | (355,035) | (634,535)
At 30 April 2025 | 3,782,195 | 5,150,046 | 8,932,241

Porter Dodson LLP

Statement of Changes in Members’ Interests

30 April 2025

| Loans and other debts due to/(from) members |
| Members' capital classified as a liability £ | Members' other amounts £ | Total 2024 £
Members' interest at 1 May 2023 | 3,913,000 | 2,423,282 | 6,336,282
Members' remuneration charged as an expense | - | 7,162,200 | 7,162,200
Members' interests after profit for the year | 3,913,000 | 9,585,482 | 13,498,482
Members’ capital introduced | 279,500 | - | 279,500
Drawings (including tax payments) | - | (4,465,163) | (4,465,163)
Transfer of capital to former members’ balances | (279,500) | (215,689) | (495,189)
At 30 April 2024 | 3,913,000 | 4,904,630 | 8,817,630

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.
There are no restrictions or limitations on the ability of members to reduce the amount of members other interests.

Porter Dodson LLP

Cash Flow Statement

Year Ended 30 April 2025

| Note | 2025 £ | 2024 £
Net cash inflow from operating activities | 19 | 7,329,534 | 5,545,460
Cash flows from investing activities |  |  |
Purchase of tangible fixed assets |  | (176,745) | (207,609)
Sale of tangible fixed assets |  | - | 555,000
Interest received |  | 3,032,092 | 2,744,086
Interest paid |  | (1,011,589) | (985,493)
Purchase of trading investments |  | (1) | -
Net cash flows from investing activities |  | 1,843,757 | 2,105,984
Cash flows from financing activities |  |  |
Repayment of loans and borrowings |  | (2,606,952) | (909,735)
Value of new loans obtained during the period |  | 3,190,000 | 368,200
Payments to or on behalf of members |  | (8,512,857) | (4,458,913)
Capital contributions by members |  | 279,500 | 279,500
Repayments to former members |  | (698,611) | (733,880)
Net cash flows from financing activities |  | (8,348,920) | (5,454,828)
Net increase in cash and cash equivalents |  | 824,371 | 2,196,616
Cash and cash equivalents at 1 May |  | 3,322,026 | 1,125,410
Cash and cash equivalents at 30 April |  | 4,146,397 | 3,322,026

Porter Dodson LLP

Notes to the Financial Statements

Year Ended 30 April 2025

1 | Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006 and in accordance with the Statement of Recommended Practice ‘Accounting for Limited Liability Partnerships’ issued in May 2024.

General information and basis of accounting

The limited liability partnership is incorporated in England and Wales under the Limited Liability Partnership Act 2000. The address of the registered office is given on the limited liability partnership information page. The nature of the limited liability partnership’s operations and its principal activities are given in the members’ report.
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The functional currency of Porter Dodson LLP is considered to be pounds sterling because that is the currency of the primary economic environment in which the limited liability partnership operates. Foreign operations are included in accordance with the policies set out below.

Going concern

The members have considered a period of 12 months from approval of these accounts, including appropriate forecasts and are satisfied that the going concern basis continues to be appropriate.

Revenue recognition

Turnover in respect of client service contracts represents the right to consideration earned for the provision of legal services excluding VAT. All turnover derives from activities in the UK.
Services provided to clients during the period which, at the balance sheet date, have not been invoiced to clients, have been recognised in turnover as accrued income.
Turnover is based on an assessment of the fair value of the services provided by the balance sheet date as a proportion of the total value of the engagement. Revenue is not recognised on those engagements where the right to receive payment is contingent on factors outside the control of the LLP. Unbilled revenue is included within debtors.

Members' remuneration and division of profits

Profits at the balance sheet date are only recognised as a liability at that date to the extent that they are appropriately allocated and are no longer at the discretion of the Limited Liability Partnership. Unallocated profits that do not meet these criteria are disclosed in the notes to the financial statements and are included in other reserves.

Porter Dodson LLP

Notes to the Financial Statements

Year Ended 30 April 2025

Taxation

The taxation payable on the partnership's profits is the personal liability of the members, although payment of such liabilities is administered by the partnership on behalf of its members. Consequently, neither partnership taxation nor related deferred taxation is accounted for in these financial statements. Sums set aside in respect of members' tax obligations are included in the balance sheet within loans and other debts due to members, or are set against amounts due from members as appropriate.

Goodwill

Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Intangible assets

Intangible assets are stated in the balance sheet at cost less accumulated amortisation and impairment. They are amortised on a straight line basis over their estimated useful lives.

Tangible fixed assets

Tangible fixed assets are stated as cost or valuation, net of depreciation and any provision for impairment.

Amortisation

Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:

Asset class | Amortisation method and rate
Goodwill | Over 5 years straight line based on estimated useful economic life
Software costs | Over 7 years straight line based on estimated useful economic life

Depreciation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class | Depreciation method and rate
Fixtures and fittings | 25% reducing balance
Computer equipment | 4 / 7 years straight line
Motor vehicles | 25% reducing balance
Leasehold Properties | 10 years straight line or over the life of the lease

Depreciation is provided on freehold land and buildings at 0% per annum on the basis that the properties are maintained in a good state of repair, hence the useful economic life cannot be reasonably estimated. Additionally the members' opinion is that the residual value of the properties are so high that any depreciation charge would be negligible and immaterial. This is in accordance with accounting standard FRS 102. The members have considered the value of the property, in light of the recent valuation, and do not believe any impairment to the value included in the financial statements is necessary.

Porter Dodson LLP

Notes to the Financial Statements

Year Ended 30 April 2025

Fixed asset investments

Fixed asset investments are stated at historical cost less provision for any diminution in value.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Members' interests

Members' capital balances are repayable to the members after cessation of membership and hence are shown as liabilities of the LLP. Members' capital balances are classified as "Loans and other debts due to members".

Pensions and other post retirement obligations

The partnership operates a defined contribution pension scheme. Contributions are recognised in the profit and loss account in the period in which they become payable in accordance with the rules of the scheme.

Insurance arrangements

Substantial insurance cover in respect of professional negligence claims is carried. Cover is principally written through the commercial market. Where appropriate, provision is made for the expected outcome of the claims.

2 | Critical accounting judgements and key sources of estimation uncertainty

In applying the LLP's accounting policies, which are described above, the designated members are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. These estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. The following are the critical judgements, estimates and assumptions that the designated members have made in the process of applying the LLP's accounting policies:

Revenue recognition
Revenue in relation to unbilled time, excluding contingent fee matters, is recognised in the accounts based upon the judgement of the designated members in respect of expected ultimate recoverability. In undertaking this assessment the designated members consider a range of factors including historical recovery rate, cost of collection and contractual terms.
In total the carrying value of accrued income at the balance sheet date was £3,870,799 (2024: £3,769,964).

Porter Dodson LLP

Notes to the Financial Statements

Year Ended 30 April 2025

Negligence claims provision
Judgement is exercised in determining whether a provision for negligence claims is required. In making this judgement, the designated members have considered the level of specific claims notified to them and the firm's professional indemnity insurer at the balance sheet date.
If it is determined that a provision is required, an estimate is made of the eventual value up to the level of the un-utilised insurance excesses, as well as the historic level of minor claims settled outside of insurance. The carrying value of the negligence claims provision at the balance sheet date is £228,693 (2024: £254,000).

Bad or doubtful debts provision
A provision for bad or doubtful debts in respect of fees issued and disbursement debts is established by the designated members.
In making this judgement, the designated member have considered the historic occurrence of bad debts against the LLP and the circumstances of specific debtors which are doubtful at the balance sheet date. A provision is made to reduce the debt based on the ultimate expected recovery that the LLP may receive.
The carrying value of the bad or doubtful debt provision at the balance sheet date is £253,684 (2024: £204,737).

3 | Turnover

An analysis of the LLP's turnover for the year by class of business is as follows:

| 2025 £ | 2024 £
Fee income (including movements in unbilled income) | 17,915,468 | 15,534,799
Other income | 47,633 | 31,665
| 17,963,101 | 15,566,464

An analysis of the LLP's turnover for the year by geographical market is as follows:

| 2025 £ | 2024 £
UK | 17,963,101 | 15,566,464

The analysis of the LLP's revenue for the year is as follows:

| 2025 £ | 2024 £
Rendering of services | 17,915,468 | 15,534,799
Commissions received | 47,633 | 31,665
| 17,963,101 | 15,566,464

Porter Dodson LLP

Notes to the Financial Statements

Year Ended 30 April 2025

4 | Operating profit

Operating profit is stated after charging /(crediting):

| 2025 £ | 2024 £
Operating leases - other assets | 209,001 | 217,182
Profit on sale of tangible fixed assets | 8,366 | (57,500)
Depreciation of owned assets | 161,219 | 158,376
Depreciation of assets held under finance lease and hire purchase contracts | 22,518 | 19,373
Amortisation | 47,952 | 75,263
Auditor's remuneration | 16,200 | 14,700

5 | Other interest receivable and similar income

| 2025 £ | 2024 £
Other interest receivable and similar income | 3,032,092 | 2,744,086
| 3,032,092 | 2,744,086

6 | Interest payable and similar charges

| 2025 £ | 2024 £
Interest on bank borrowings and overdrafts | 301,669 | 243,547
Other interest payable | 709,920 | 741,946
| 1,011,589 | 985,493

7 | Particulars of employees

| 2025 No. | 2024 No.
Legal advisors | 99 | 97
Support Staff | 88 | 73
| 187 | 170

Porter Dodson LLP

Notes to the Financial Statements

Year Ended 30 April 2025

The aggregate payroll costs were as follows:

| 2025 £ | 2024 £
Wages and salaries | 6,180,203 | 5,369,445
Social security costs | 636,113 | 546,741
Other pension schemes | 272,734 | 153,016
| 7,089,050 | 6,069,202

8 | Members' remuneration

| 2025 | 2024
Average number of members during the year | 14 | 14

The profit attributable to the member with the largest entitlement was £573,617 (2024: £447,206).

Allocated profits take in to account capital profits.

9 | Intangible fixed assets

| Goodwill £ | Software costs £ | Total £
Cost |  |  |
At 1 May 2024 | 150,500 | 561,454 | 711,954
At 30 April 2025 | 150,500 | 561,454 | 711,954
Amortisation |  |  |
At 1 May 2024 | 150,500 | 497,425 | 647,925
Charge for the year | - | 47,952 | 47,952
At 30 April 2025 | 150,500 | 545,377 | 695,877
Net book value |  |  |
At 30 April 2025 | - | 16,077 | 16,077
At 30 April 2024 | - | 64,029 | 64,029

Intangible assets held under finance leases

Included within intangible assets are the following assets held under finance lease:
Computer software
The gross value of this asset is £177,645 (2024 - £177,645). Accumulated amortisation and impairment is £177,645 (2024 - £158,613) and it has a net carrying value of £nil (2024 - £19,032).

Porter Dodson LLP

Notes to the Financial Statements

Year Ended 30 April 2025

10 | Tangible fixed assets

| Freehold land and buildings £ | Short leasehold land and buildings £ | Fixtures and fittings £ | Computer equipment £ | Total £
Cost |  |  |  |  |
At 1 May 2024 | 3,833,304 | 193,730 | 785,047 | 3,749,385 | 8,561,466
Additions | - | 31,453 | 92,362 | 52,930 | 176,745
Disposals | - | - | (21,886) | (2,808,478) | (2,830,364)
At 30 April 2025 | 3,833,304 | 225,183 | 855,523 | 993,837 | 5,907,847
Depreciation |  |  |  |  |
At 1 May 2024 | - | 58,119 | 592,245 | 3,613,772 | 4,264,136
Charge for the year | - | 22,518 | 71,034 | 90,185 | 183,737
Eliminated on disposals | - | - | (20,943) | (2,801,055) | (2,821,998)
At 30 April 2025 | - | 80,637 | 642,336 | 902,902 | 1,625,875
Net book value |  |  |  |  |
At 30 April 2025 | 3,833,304 | 144,546 | 213,187 | 90,935 | 4,281,972
At 30 April 2024 | 3,833,304 | 135,611 | 192,802 | 135,613 | 4,297,330

Porter Dodson LLP

Notes to the Financial Statements

Year Ended 30 April 2025

Assets pledged as security

Freehold land and buildings with a carrying amount of £3,833,304 (2024 - £3,833,304) are pledged as security against borrowings from the bank, as reported within the notes for current and long term liabilities.

Porter Dodson LLP

Notes to the Financial Statements

Year Ended 30 April 2025

11 | Investments held as fixed assets

| 2025 £ | 2024 £
Other investments | 100,001 | 100,000

Other investments

| Unlisted investments £ | Total £
Cost |  |
At 1 May 2024 | 100,000 | 100,000
Additions | 1 | 1
At 30 April 2025 | 100,001 | 100,001
Net book value |  |
At 30 April 2025 | 100,001 | 100,001
At 30 April 2024 | 100,000 | 100,000

Details of undertakings

Details of the investments in which the limited liability partnership holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking | Country of incorporation | Holding | Proportion of voting rights and shares held | Principal activity

Subsidiary undertakings
Porter Dodson Trust Corporation Limited Telford House, The Park, Yeovil, Somerset, BA20 1DY | England and Wales | Ordinary | 100% | Dormant
Porter Dodson Secretarial Services Limited The Quad, Blackbrook Park Avenue, Taunton, TA1 2PX | England and Wales | Ordinary | 100% | Dormant

Porter Dodson LLP

Notes to the Financial Statements

Year Ended 30 April 2025

12 | Binding sale agreements

There is a binding sale agreement of the Sherborne property as at 30 April 2025. As at 30 April 2025 exchange of the property has occured and sale completion is expected post year end. The carrying amount of the assets is £317,500.

13 | Debtors

| 2025 £ | 2024 £
Trade debtors | 1,487,311 | 1,705,587
Other debtors | 93,483 | 86,731
Prepayments and accrued income | 4,479,248 | 4,302,488
| 6,060,042 | 6,094,806

14 | Creditors: Amounts falling due within one year

| 2025 £ | 2024 £
Bank loans and overdrafts | 415,836 | 110,460
Trade creditors | 81,721 | 66,508
Amounts due to former members | 2,528 | 66,603
Other taxes and social security | 805,532 | 687,326
Other creditors and accruals | 1,390,266 | 1,205,664
| 2,695,883 | 2,136,561

Creditors amounts falling due within one year includes the following liabilities, on which security has been given by the limited liability partnership:

| 2025 £ | 2024 £
Bank loans and overdrafts | 80,413 | 110,460

Porter Dodson LLP

Notes to the Financial Statements

Year Ended 30 April 2025

15 | Creditors: Amounts falling due after more than one year

| 2025 £ | 2024 £
Bank loans and overdrafts | 2,747,672 | 2,470,000

Creditors amounts falling due after more than one year includes the following liabilities, on which security has been given by the limited liability partnership:

| 2025 £ | 2024 £
Bank loans and overdrafts | 2,441,547 | 2,470,000

The loan is secured by a legal charge and a debenture in favour of the bank over all freehold property owned by the Limited Liability Partnership.

Porter Dodson LLP

Notes to the Financial Statements

Year Ended 30 April 2025

16 | Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 164,269 | 125,736
Later than one year and not later than five years | 346,666 | 219,987
Later than five years | 154,768 | 7,917
| 665,703 | 353,640

The amount of non-cancellable operating lease payments recognised as an expense during the year was £194,458 (2024 - £184,211).

17 | Provisions

| Negligence claims £ | Other provisions £ | Total £
At 1 May 2024 | 254,000 | 200,000 | 454,000
Increase (decrease) in existing provisions | (25,307) | - | (25,307)
Unused provision reversed | - | (200,000) | (200,000)
At 30 April 2025 | 228,693 | - | 228,693

A provision for professional indemnity claims is evaluated at each period end, based on the likely outcome of potential claims against the LLP. The values provided for are the excess amounts not covered under the LLP insurance policy.
The LLP has confirmed that the conditions of the separate legal matter that was previously provided, have now been sufficiently mitigated to the extent that management consider that such a provision is no longer required. The full £200k provision has been released to the profit and loss account and included within administrative expenses on the statutory profit and loss account.

18 | Pension and other schemes

Defined contribution pension scheme

The limited liability partnership operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the limited liability partnership to the scheme and amounted to £182,066 (2024 - £193,175).

Porter Dodson LLP

Notes to the Financial Statements

Year Ended 30 April 2025

19 | Cash flow statement

| 2025 £ | 2024 £
Operating profit | 6,962,001 | 5,403,607
Depreciation, amortisation and impairment charges | 231,689 | 253,012
Loss/(profit) on disposal of fixed assets | 8,366 | (57,500)
Decrease/(increase) in debtors | 34,764 | (673,575)
Increase in creditors | 318,021 | 521,538
(Decrease)/increase in provisions | (225,307) | 98,378
Cash generated by operations | 7,329,534 | 5,545,460
Net cash inflow from operating activities | 7,329,534 | 5,545,460

20 | Analysis of changes in net debt

| At 1 May 2024 £ | Financing cash flows £ | At 30 April 2025 £
Cash at bank | 3,322,026 | 824,371 | 4,146,397
Bank borrowings (less than one year) | (110,460) | (305,376) | (415,836)
Bank and other borrowings | (2,470,000) | (277,672) | (2,747,672)
Net debt (before members’ debt) | 741,566 | 241,323 | 982,889
Loans and other debts due to members |  |  |
Members’ capital | (3,913,000) | 130,805 | (3,782,195)
Other amounts due to members | (4,904,630) | (245,416) | (5,150,046)
Net debt | (8,076,064) | 126,712 | (7,949,352)

21 | Contingent liabilities

The LLP has an interest in a dormant wholly owned subsidiary investment company Porter Dodson Trust Corporation Limited. The share capital of Porter Dodson Trust Corporation consists of £250,000 of £1 ordinary shares in which Porter Dodson LLP has paid up £100,000. The remaining amount of share capital of £150,000 remains unpaid and uncalled. The unpaid amounts will only be called upon in the event the company becomes insolvent or from future circumstances which may result in the requirement for the unpaid share capital to be called upon.

22 | Related party transactions

Key management personnel

The designated members consider that the members of the LLP who represent the Executive Board are the key management personnel. The members are remunerated through the profit sharing arrangements and recevied £3,384,556 (2024: £1,788,824) in respect of the financial year.

Porter Dodson LLP

Notes to the Financial Statements

Year Ended 30 April 2025

23 | Control

The members are the controlling party by virtue of their controlling interest in the limited liability partnership. The ultimate controlling party is the same as the controlling party.