Caseware UK (AP4) 2024.0.164 2024.0.164 2025-03-31769774176402025-03-31falsefalseThe principal activity is to provide investment management and advisory services to active value and private clients.2024-04-0144truefalse OC304213 2024-04-01 2025-03-31 OC304213 2023-04-01 2024-03-31 OC304213 2025-03-31 OC304213 2024-03-31 OC304213 c:CurrentFinancialInstruments 2025-03-31 OC304213 c:CurrentFinancialInstruments 2024-03-31 OC304213 c:CurrentFinancialInstruments 2 2025-03-31 OC304213 c:CurrentFinancialInstruments 2 2024-03-31 OC304213 c:CurrentFinancialInstruments c:WithinOneYear 2025-03-31 OC304213 c:CurrentFinancialInstruments c:WithinOneYear 2024-03-31 OC304213 c:ReportableOperatingSegment1 2024-04-01 2025-03-31 OC304213 c:ReportableOperatingSegment1 2023-04-01 2024-03-31 OC304213 e:FRS102 2024-04-01 2025-03-31 OC304213 e:Audited 2024-04-01 2025-03-31 OC304213 e:FullAccounts 2024-04-01 2025-03-31 OC304213 e:LimitedLiabilityPartnershipLLP 2024-04-01 2025-03-31 OC304213 c:Subsidiary1 2024-04-01 2025-03-31 OC304213 c:Subsidiary1 1 2024-04-01 2025-03-31 OC304213 c:Subsidiary2 2024-04-01 2025-03-31 OC304213 c:Subsidiary2 1 2024-04-01 2025-03-31 OC304213 2 2024-04-01 2025-03-31 OC304213 6 2024-04-01 2025-03-31 OC304213 e:PartnerLLP1 2024-04-01 2025-03-31 OC304213 e:PartnerLLP2 2024-04-01 2025-03-31 OC304213 e:PartnerLLP3 2024-04-01 2025-03-31 OC304213 e:PartnerLLP4 2024-04-01 2025-03-31 OC304213 e:PartnerLLP5 2024-04-01 2025-03-31 OC304213 c:OtherCapitalInstrumentsClassifiedAsEquity 2025-03-31 OC304213 c:OtherCapitalInstrumentsClassifiedAsEquity 2024-03-31 OC304213 c:FurtherSpecificReserve3ComponentTotalEquity 2025-03-31 OC304213 c:FurtherSpecificReserve3ComponentTotalEquity 2024-03-31 OC304213 f:PoundSterling 2024-04-01 2025-03-31 iso4217:GBP xbrli:pure

Registered number: OC304213










HARWOOD CAPITAL LLP










FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

 
HARWOOD CAPITAL LLP
 

INFORMATION




Designated Members

Harwood Capital Management Limited
C J Hart

Members

A H Illingworth
S Jones
R A Staveley (resigned 31 March 2025)

LLP registered number

OC304213

Registered office

6 Stratton StreetMayfairLondonW1J 8LD

Independent auditors

Sumer Auditco Limited14th Floor33 Cavendish SquareLondonW1G 0PW


 
HARWOOD CAPITAL LLP
 

CONTENTS



Page
Members' report
1 - 2
Independent auditors' report
3 - 7
Profit and loss account
8
Balance sheet
9 - 10
Reconciliation of members' interests
11
Notes to the financial statements
12 - 20


 
HARWOOD CAPITAL LLP
 
  
MEMBERS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025

The members present their annual report together with the audited financial statements of Harwood Capital LLP (the "LLP") for the year ended 31 March 2025
 

Principal activities
 
 
The principal objective of the LLP is to provide investment management and advisory services to active value Investment Trusts and Private Clients. The LLP is regulated by the Financial Conduct Authority.
The LLP has an Administration  Services Agreement with James Hambro & Partners LLP (JH&P) whereby JH&P will provide administration services to private clients of the LLP. 
Profit available for discretionary division for the year amounts to £769,774 (2024: £17,640)
 
 
Designated Members
 
 
Harwood Capital Management Limited and C J Hart were designated members of the LLP throughout the period. 
 
 

Members


S Jones and A H Illingworth were members throughout the year. R A Staveley resigned 31/03/2025.
 
 
Members' capital and interests
 
 
Any profits are shared among the members as set out in the Limited Liability Partnership Agreement dated 13 June 2023.
The policies for members' drawings, subscriptions and repayment of members' capital are governed by the Limited Liability Partnership Agreement. 
Information on the Group's Regulatory Capital disclosure can be found on the LLP's website at www.harwoodcapital.co.uk
 
 
Going Concern
 
 
The financial position of the LLP, its cash balance and liquidity position are reflected on the balance sheet. 
The LLP has considerable financial resources and ongoing investment management contracts in relation to the funds it manages. As a consequence, the Designated Members believe that the LLP is well placed to manage its business risk successfully. The Designated Members have a reasonable expectation that LLP has adequate resources to continue in operational existence for the forseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements. 
 
 
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 
Page 1

 
HARWOOD CAPITAL LLP
 
 
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
 
 
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;
 
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
 
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the LLP will continue in business.
 

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the LLP's transactions and disclose with reasonable accuracy at any time the financial position of the LLP and 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
 
 
The auditors, Sumer Auditco Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
 

This report was approved by the members on 22 July 2025 and signed on their behalf by:
 
 



C H B Mills on behalf of Harwood Capital Management Limited
Designated member

Page 2

 
HARWOOD CAPITAL LLP
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HARWOOD CAPITAL LLP
 

Opinion
 

We have audited the financial statements of Harwood Capital LLP (the 'LLP') for the year ended 31 March 2025, which comprise the Profit and loss account, the Balance sheet, the Reconciliation of members' interests and the related notes, including a summary of significant accounting policiesThe 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 March 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 by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.


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 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

 
HARWOOD CAPITAL LLP
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HARWOOD CAPITAL LLP (CONTINUED)


Other information
 

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 ReportOur 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 commencing 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

 
HARWOOD CAPITAL LLP
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HARWOOD CAPITAL 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:
 
In order to identify and assess the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements, we have considered:

the results of our enquiries of management and those charged with governance of their assessment of the risks of fraud and irregularities;
the nature of the LLP including its management structure and control systems (including the opportunity for management to override such controls);
management’s incentives and opportunities for fraudulent manipulation of the financial statements including the LLP’s remuneration and bonus policies and performance targets; 
requirements of the regulations of the Financial Conduct Authority (FCA); and
the industry and environment in which it operates.

We also considered UK tax and pension legislation and laws and regulations relating to employment and the preparation and presentation of the financial statements such as the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.
Based on this understanding we identified the following matters as being of significance to the entity:
 
laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, Company Law, tax and pension legislation;
the timing of the recognition of commercial income;
management bias in selecting accounting policies and determining estimates;
inappropriate journal entries;
compliance with the regulations of the Financial Conduct Authority (FCA);
recoverability of debtors; and
going concern of the LLP.

We communicated the outcomes of these discussions and enquiries, as well as consideration as to where and how fraud may occur in the entity, to all engagement team members.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised:
 
inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations;
enquiries with the same concerning any actual or potential litigation or claims;
discussion with the same regarding any known or suspected instances of non-compliance with laws and regulation and fraud; 
Page 5

 
HARWOOD CAPITAL LLP
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HARWOOD CAPITAL LLP (CONTINUED)


assessment of matters reported to management and the result of the subsequent investigation;
obtaining an understanding of the relevant controls in operation during the period;
obtain details of any correspondence with the FCA during the period;
review documentation relating to compliance with the FCA regulations;
obtaining an understanding of the policies and controls over the recognition of income and testing their implementation during the year;
challenging assumptions made by management in their specific accounting policies and estimates;
identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or crediting revenue or cash;
assessing the recovery of debtors in the period since the balance sheet date and challenging assumptions made by management regarding the recovery of balances which remain outstanding;
reviewing the financial statements for compliance with the relevant disclosure requirements;
performing analytical procedures to identify any unusual or unexpected relationships or unexpected movements in account balances which may be indicative of fraud;
review of post period end management records for any indications that the LLP may not be a going concern; and
evaluating the underlying business reasons for any unusual transactions.
 
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Page 6

 
HARWOOD CAPITAL LLP
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HARWOOD CAPITAL LLP (CONTINUED)


Use of our report
 

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 2008Our 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.





Atulya Mehta, FCCA (Senior statutory auditor)
  
for and on behalf of
Sumer Auditco Limited
 
Statutory Auditors
  
14th Floor
33 Cavendish Square
London
W1G 0PW

22 July 2025
Page 7

 
HARWOOD CAPITAL LLP
 
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2025

2025
2024
Note
£
£

  

Turnover
 4 
1,602,689
1,310,547

Gross profit
  
1,602,689
1,310,547

Administrative expenses
  
(922,654)
(1,047,741)

Other operating income
 5 
397,849
254,411

Operating profit
 6 
1,077,884
517,217

Interest receivable and similar income
 9 
254,491
164,866

Profit before tax
  
1,332,375
682,083

Profit for the year before members' remuneration and profit shares
  
1,332,375
682,083

  

Profit for the year before members' remuneration and profit shares
  
1,332,375
682,083

Members' remuneration charged as an expense
  
(562,601)
(664,443)

Profit for the financial year available for discretionary division among members
  
769,774
17,640

The notes on pages 12 to 20 form part of these financial statements.

Page 8

 
HARWOOD CAPITAL LLP
REGISTERED NUMBER: OC304213

BALANCE SHEET
AS AT 31 MARCH 2025

2025
2024
Note
£
£

Fixed assets
  

Investments
 10 
101
101

  
101
101

Current assets
  

Debtors: amounts falling due within one year
 11 
967,295
1,528,656

Cash at bank and in hand
 12 
847,747
1,455,153

  
1,815,042
2,983,809

Creditors: Amounts Falling Due Within One Year
 13 
(367,058)
(389,416)

Net current assets
  
 
 
1,447,984
 
 
2,594,393

Total assets less current liabilities
  
1,448,085
2,594,494

  

Net assets
  
1,448,085
2,594,494


Represented by:
  

Loans and other debts due to members within one year
  

Other amounts
 14 
873,085
2,019,494

  
873,085
2,019,494

Members' other interests
  

Members' capital classified as equity

  

575,000
575,000

  
 
575,000
 
575,000

  
1,448,085
2,594,494


Total members' interests
  

Amounts due from members (included in debtors)
 11 
(103,887)
-

Loans and other debts due to members
 14 
873,085
2,019,494

Members' other interests
  
575,000
575,000

  
1,344,198
2,594,494


Page 9

 
HARWOOD CAPITAL LLP
REGISTERED NUMBER: OC304213
    
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2025

The financial statements were approved and authorised for issue by the members and were signed on their behalf on 22 July 2025.




C H B Mills on behalf of Harwood Capital Management Limited
Designated member

The notes on pages 12 to 20 form part of these financial statements.

Harwood Capital LLP has no equity and, in accordance with the provisions contained within the Statement of Recommended Practice "Accounting by Limited Liability Partnerships", has not presented a Statement of changes in equity.

Page 10

 
HARWOOD CAPITAL LLP
 

RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 MARCH 2025







EQUITY
Members' other interests
DEBT
Loans and other debts due to members less any amounts due from members in debtors
Total members' interests
Members' capital (classified as equity)
Other reserves
Total
Other amounts
Total
Total

£
£
£
£
£
£

Amounts due to members 
2,577,424
2,577,424


Balance at 1 April 2023 
303,000
-
303,000
2,108,795
2,108,795
2,411,795

Members' remuneration charged as an expense
-
-
-
664,443
664,443
664,443

Profit for the year available for discretionary division among members
 
-
17,640
17,640
-
-
17,640

Members' interests after profit for the year
303,000
17,640
320,640
3,241,867
3,241,867
3,562,507

Other division of profits
-
(17,640)
(17,640)
17,640
17,640
-

Amounts introduced by members
275,000
-
275,000
-
-
275,000

Repayment of capital
 
(3,000)
-
(3,000)
-
-
(3,000)

Drawings on account and distribution of profit
-
-
-
(1,646,002)
(1,646,002)
(1,646,002)

Amounts due to members
2,019,494
2,019,494

Amounts due from members
 



(405,989)
(405,989)


Balance at 31 March 2024
575,000
-
575,000
1,613,505
1,613,505
2,188,505

Members' remuneration charged as an expense
-
-
-
562,601
562,601
562,601

Profit for the year available for discretionary division among members
 
-
769,774
769,774
-
-
769,774

Members' interests after profit for the year
575,000
769,774
1,344,774
2,176,106
2,176,106
3,520,880

Other division of profits
-
(769,774)
(769,774)
769,774
769,774
-

Drawings on account and distribution of profit
 
-
-
-
(2,176,682)
(2,176,682)
(2,176,682)

Amounts due to members
873,085
873,085

Amounts due from members
 



(103,887)
(103,887)


Balance at 31 March 2025 
575,000
-
575,000
769,198
769,198
1,344,198

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 11

 
HARWOOD CAPITAL LLP
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

1.


General information

The entity is a limited liability partnership and is incorporated in England and Wales. The address of its registered office is 6 Stratton Street, Mayfair, London, W1J 8LD.

2.Accounting policies

 
2.1

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 LLP is itself a subsidiary entity and is exempt from the requirement to prepare group accounts by virtue of section 400 of the Companies Act 2006, as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. These financial statements therefore present information about the LLP as an individual undertaking and not about its group. 
The individual accounts of Harwood Capital LLP have also adopted the following disclosure exemptions: 
The requirement to present a statement of cash flows and related notes.
The total amount of key management compensation.
Financial instrument disclosures, including categories of financial instruments, items of income, expenses, gains and losses relating to financial instruments, and exposure to and management of financial risks.
 

The following principal accounting policies have been applied:

Page 12

 
HARWOOD CAPITAL LLP
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.2

Foreign currency translation

Functional and presentation currency

The LLP's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Profit and loss account within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.3

Revenue

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the value of assets under management or as per the contractual agreement when all of the following conditions are satisfied:

the amount of revenue can be measured reliably
it is probable that the LLP will receive the consideration due under the contract; and
the assets under management at the end of the reporting period can be measured reliably.

 
2.4

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.5

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.6

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 13

 
HARWOOD CAPITAL LLP
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.7

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.

 
2.8

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.9

Financial instruments

The LLP has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the LLP's Balance sheet when the LLP 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
Page 14

 
HARWOOD CAPITAL LLP
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)


2.9
Financial instruments (continued)

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.

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 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
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HARWOOD CAPITAL LLP
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)


2.9
Financial instruments (continued)

retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the LLP's contractual obligations expire or are discharged or cancelled.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The entity makes estimates and assumptions concerning the future. Actual results may differ from these estimates. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The members consider there to be no significant areas of judgements or key sources of estimation uncertainty.


4.


Turnover

An analysis of turnover by class of business is as follows:


2025
2024
£
£

Fees receivable from the rendering of services
1,602,689
1,310,547


All turnover arose within the United Kingdom.


5.


Other operating income

2025
2024
£
£

Service fees
397,849
254,411


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HARWOOD CAPITAL LLP
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

6.


Operating profit

The operating profit is stated after charging:

2025
2024
£
£

Exchange differences
10,371
8,331


7.


Auditors' remuneration

During the year, the LLP obtained the following services from the LLP's auditors and their associates:


2025
2024
£
£

Fees payable to the LLP's auditors and their associates for the audit of the LLP's financial statements
12,500
13,100

Fees payable to the LLP's auditors and their associates in respect of:

Taxation compliance services
3,000
2,850

Other (FCA)
12,250
11,900


8.


Information in relation to members

2025
2024
Number
Number


The average number of members during the year was
5
5

2025
2024
£
£


The average members remuneration during the year was
266,415
136,417






The amount of profit attributable to the member with the largest entitlement was
416,666
325,094



9.


Interest receivable

2025
2024
£
£


Other interest receivable
254,491
164,866

Page 17

 
HARWOOD CAPITAL LLP
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

10.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 April 2024
101



At 31 March 2025
101





Subsidiary undertakings


The following were subsidiary undertakings of the LLP:

Name

Registered office

Principal activity

Class of shares

Holding

Harwood Capital Nominees Ltd
England and Wales
Dormant
Ordinary
100%
North Atlantic Value GP III Limited
England and Wales
Financial intermediation
Ordinary
100%


11.


Debtors

2025
2024
£
£


Trade debtors
299,774
362,491

Amounts owed by group undertakings
27,040
604,477

Other debtors
357,514
114,769

Prepayments and accrued income
179,080
40,930

Amounts due from members
103,887
405,989

967,295
1,528,656



12.


Cash and cash equivalents

2025
2024
£
£

Cash at bank and in hand
847,747
1,455,153


Page 18

 
HARWOOD CAPITAL LLP
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

13.


Creditors: Amounts falling due within one year

2025
2024
£
£

Trade creditors
45,917
40,543

Amounts owed to group undertakings
100,100
89,739

Other taxation and social security
-
10,761

Accruals and deferred income
221,041
248,373

367,058
389,416



14.


Loans and other debts due to members


2025
2024
£
£



Other amounts due to members
(873,085)
(2,019,494)

Loans and other debts due to members may be further analysed as follows:

2025
2024
£
£



Falling due within one year
(873,085)
(2,019,494)

Loans and other debts due to members rank equally with debts due to ordinary creditors in the event of a winding up.


15.


Related party transactions

As at the balance sheet date, the LLP was owed £27,040 (2024: £604,477) from fellow group companies. This balance is unsecured, interest free and payable on demand.
At the balance sheet date, the LLP owed £100,000 (2024: £86,639) to fellow subsidiaries.This balance is unsecured, interest free and payable on demand. 
At the balance sheet date, the LLP was owed £189,804 (2024: £190,761) from funds managed by its subsidiary undertakings, these balances are unsecured, interest free and payable on demand. 
A designated member of the LLP, is also a director and one of the key management personnel of the immediate parent undertaking.
Members of the LLP, are directors of certain investee companies of funds managed or advised by the LLP and in the course of performing their responsibilities may receive fees for services or hold shares or options in those companies.

Page 19

 
HARWOOD CAPITAL LLP
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

16.


Controlling party

The immediate and ultimate parent undertaking is Harwood Capital Management Limited which is registered in England and Wales. The consolidated financial statements of Harwood Capital Management Limited are held and are available at 6 Stratton Street, Mayfair, London W1J 8LD.
CHB Mills is the ultimate controlling party in both this and the preceding year by virtue of his shareholding in Harwood Capital Management Limited.
 
Page 20