The members present their annual report and financial statements for the year ended 31 March 2025.
The principal activity of the Blackadders LLP is the conduct of a solicitors' practice in Scotland.
The 2024/25 financial year represents a period of strong, consistent performance for Blackadders LLP, characterised by sustained growth across core services, particularly Private Client, and strong progress in embedding the firm’s brand values through the continued rollout of our Client Charter and Service Pledge.
Operational consistency has been a recent feature of activity following major strategic changes in previous years. The firm concentrated on consolidating workflows, strengthening financial controls and enhancing the economics of the business.
The year represented the penultimate stage of Blackadders’ ambitious 5 by 25 strategy, which set out five core objectives to achieve by the end of the 2025/26 financial year: achieving £25 million turnover; reaching a 35% margin; being recognised as a Destination Lawyer; becoming an Employer of Choice; and being regarded alongside the top five Scottish law firms in terms of service delivery and quality of advice.
Our progress has been mirrored in external recognition with awards success across the period and a debut entry in The Times Best Law Firm Special Report, one of only 20 firms in Scotland.
Financial Performance
The firm delivered a significant increase in turnover, rising from £14,953,634 to £18,159,221 in 2024/25, an increase of more than 21%. This growth reflects strong activity across the firm, with the Private Client division again contributing materially to overall performance. Demand for asset protection and succession and tax planning services continued to rise throughout the period, reinforcing the unit’s importance to the wider business.
The firm continued to invest in recruiting key people and upgrading systems, all of which helped to grow operating profit to £5,805,505, a year-on-year increase of more than 64%.
After accounting for interest, profit before members’ remuneration reached £6,177,738, up from £4,005,171 the previous year.
Private Client
The Private Client team continued to perform strongly, benefiting both from increased demand and from more efficient internal processes developed over recent years. Cross referrals and co-ordination between Private Client, Residential Property and Dispute Resolution improved client service and contributed to an uplift in fee income.
The team has built one of the strongest executry and private wealth practices in Scotland, with more than 700 new wills prepared, including more than 400 for new clients. The firm received several hundred new executry instructions, many involving complex or cross-border considerations.
The Private Client team now acts for around 650 private and charitable trusts with more than £250 million in assets under trust management. Other key drivers of performance included consistent growth in wills, estates and tax planning instructions, and positive client retention.
Private Client remains a cornerstone of Blackadders LLP’s profitability.
Business Services Group
The Business Services Group comprises Commercial Real Estate, Corporate and Commercial, Employment, Rural Land and Business, and Dispute Resolution.
The Corporate and Commercial team has also continued its growth path through focused sector development. The team is a leader in the Scottish M&A market and has maintained its reputation as Scotland’s leading advisers in employee ownership transactions. The team has also maintained its strong performance in the healthcare sector and working with high-growth entrepreneurial clients. It has also further enhanced its standing as the country’s leading video games sector specialists, having been involved in several high-profile publishing and licensing deals.
The Rural Land and Business team has grown in both fee earners and turnover year-on-year. It received recognition in the sector for the quality of the team’s advice in relation to agricultural tenancies and clean-energy matters.
The Commercial Real Estate team has had another strong performance with a considerable uplift in turnover from the previous year. The team continues to service their quality clients across a wide range of sectors with particular focus in Health Care, House Building, Retail & Leisure, Third Sector and Energy (both Renewables and Oil & Gas).
Consolidation of Business Activity
This year saw continued consolidation across the firm, with refinement of operations to support growth. The focus on shared systems, cross-departmental workflows and unified service standards has improved efficiency. Investments in legal and administrative technology and case-management processes has enabled growth without compromising service delivery.
Brand Values, Client Charter and Service Pledge
A major achievement during the period has been the continued embedding of the Blackadders’ Client Charter and Service Pledge, which underpin the firm’s culture and client service. These frameworks have provided a clear articulation of the firm’s values of People, Purpose, Pledge, and have contributed directly to improved service and client satisfaction. Staff have been encouraged to ensure the principles are reflected in day-to-day practice.
Brand investment beyond service commitments has included the introduction of new brand music and a sonic logo, reinforcing the firm's modern identity and unified client experience.
Conclusion
The 2024/25 financial year reflects a period of strong, sustainable progress for Blackadders LLP.
Turnover and profit growth, strong Private Client performance and a greater alignment of internal activity with the firm’s brand values all illustrate a firm that is successfully consolidating its position while preparing for further strategic development.
The continued rollout of the Client Charter and Service Pledge has strengthened the firm’s culture and reputation, supported client loyalty and contributed to long-term value creation.
The firm’s drawings policy allows each member to draw a proportion of their profit share in twelve monthly instalments with the balance of their profits, net of a tax retention, paid in instalments in the subsequent year. All payments are made subject to the cash requirements of the business. Tax retentions are paid to the HM Revenue & Customs on behalf of members with any excess being released to members as appropriate.
Each member, other than those with a defined profit share, is required to subscribe to a capital proportion linked to his or her share of profit and the financing requirements of the firm. Capital is repaid to members on retirement.
During the year ended 31 March 2025 £475,034 (2024 - £674,912) was transferred from members’ interests to creditors for former members’ balances.
The designated members who held office during the year and up to the date of signature of the financial statements were as follows:
The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
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.
We have audited the financial statements of Blackadders LLP (the 'limited liability partnership') for the year ended 31 March 2025 which comprise the statement of comprehensive income, the balance sheet, the reconciliation of members' interests, the statement of cash flows and notes to the financial statements, including 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).
Basis for 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 limited liability partnership’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.
Other information
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.
As part of our planning process:
We enquired of management the systems and controls the limited liability partnership has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. Management informed us that there were no instances of known, suspected or alleged fraud;
We obtained an understanding of the legal and regulatory frameworks applicable to the limited liability partnership. We determined that the following were most relevant: Law Society of Scotland regulations and Solicitors Accounts Rules; Data Protection Act 2018; employment law (including payroll and pension regulations), and compliance with the UK Companies Act as applied to LLPs;
We considered the incentives and opportunities that exist in the limited liability partnership, including the extent of management bias, which present a potential for irregularities and fraud to be perpetrated, and tailored our risk assessment accordingly; and
Using our knowledge of the limited liability partnership, together with the discussions held with management at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
Inquiry of members about any known or suspected instances of non-compliance with laws and regulations and fraud;
Reviewing minutes of meetings of members;
Reviewing certificates and correspondence in relation to compliance with the Solicitors Accounts Rules and the Law Society of Scotland regulations;
Challenging assumptions and judgements made by management in their significant accounting estimates, in particular the valuation of fixed assets and work in progress, the application of potential bad debt provisions, and the application of accruals including potential claims provisions; and
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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 by the Limited Liability Partnerships (Accounts and 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's members as a body, for our audit work, for this report, or for the opinions we have formed.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Blackadders LLP profits are divided based on the profit sharing ratio applying for the year to members. For the year ended 31 March 2025, profit sharing ratios were allocated prospectively and profits were divided automatically among the members. As a result, undrawn profits were reflected in loans and other debts due to members as at 31 March 2025.
Members’ capital ranks after unsecured creditors and loans and other debts due to members rank pari passu with unsecured creditors in the event of a winding up. The amount of capital each member is required to subscribe is determined by Blackadders LLP’s Management Board. Under the LLP Agreement of Blackadders LLP, a member can withdraw capital when he or she either ceases to be a member or with the agreement of the Management Board.
Blackadders LLP is a limited liability partnership incorporated in Scotland. The registered office is 10 Euclid Crescent, Dundee, DD1 1AG.
The limited liability partnership's principal activities are disclosed in the Members' Report.
These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The financial statements have been prepared on a going concern basis. The members have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. The members have performed a robust analysis of forecast future cash flows taking into account the potential impact on the business of possible future scenarios arising from inflation levels and general economic conditions, along with available measures to assist in mitigating the impact of such challenges. This analysis also has regard for the ongoing strong relationship with the entity's bankers.
Based on these assessments and having regard to the resources available to the entity, the members have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.
Services provided during the year to clients, which at the balance sheet date have not yet been billed, are recognised as turnover. Turnover is recognised by reference to an assessment of the fair value of the services provided at the balance sheet date as a proportion of the total value of the engagement and is net of value added tax. No revenue is recognised for unbilled amounts on client engagements where the right to receive consideration is contingent on factors outside the partnership’s control. Work in progress on such client engagements is valued at the lower of cost and net realisable value. Amounts to be billed to clients are included in debtors.
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.
All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.
Where there exists an asset and liability component in respect of an individual member’s participation rights, they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the recognised amounts, and it intends either to settle on a net basis or to settle and realise these amounts simultaneously, in which case they are presented net.
The LLPs classifies distributions of profit under financing activities within the cash flow statement.
Goodwill arising on business combinations is capitalised, classified as an asset in the balance sheet and amortised on a straight line basis over its useful life, which is deemed to be 2 years. Provision is made for any impairment.
Negative goodwill is the excess of their fair value of the attributable net identifiable assets at the date of acquisition over the purchase consideration in a business combination.
Negative goodwill that can be attributed to monetary assets is recognised as income when the assets are realised.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
At each reporting period end date, the limited liability partnership reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the limited liability partnership estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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.
Financial instruments are recognised in the limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
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 impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
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.
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 limited liability partnership after deducting all of its liabilities.
Basic financial liabilities, including creditors, and bank loans, 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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the limited liability partnership is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Blackadders LLP operates a defined contribution pension scheme for staff, the Blackadders LLP Retirement & Death Benefit Scheme.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Professional indemnity insurance and claims
The partnership maintains substantial cover through the insurance market. Provision is made on a case-by-case basis for the estimated costs of defending claims or the uninsured excess of such claims if greater, where it is probable that costs will be incurred.
Tax provisions
Taxation on the LLP's profits is solely the personal liability of individual members and is not dealt with in these financial statements.
In the application of the limited liability partnership’s accounting policies, the members are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. 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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Tangible fixed assets are depreciated over a period to reflect their estimated useful lives. The applicability of the assumed lives is reviewed annually, taking into account factors such as physical condition, maintenance and obsolescence. Fixed assets are also assessed as to whether there are indicators of impairment. As part of this impairment review the properties held under tangible fixed assets are often subject to a professional valuation by a qualified independent surveyor. One of the properties was marketed for sale which resulted in the impairment in the carrying value at 31 March 2025.
Credit control is an important function which requires assessment, on an ongoing basis, of the recoverability of amounts due from trade debtors. Where recovery is in doubt, the members will adequately provide against this specific debt and will arrive at such conclusions based on the knowledge of the debtor and their “ability to pay”. The members adopt a prudent approach to credit control.
As part of the year end process members are required to assess the ongoing performance of work in progress. This assessment results in the recognition of income and provisions against ongoing recovery depending on the degree of completion and the likelihood of a fee being raised. These judgements are made using the members' experience as well as a detailed working knowledge of the work being provided to clients.
Members estimate the requirements for accruals using post year end information and information available from detailed budgets. This includes provisions for dilapidations and claims. This identifies costs and income that are expected to be incurred or received for services provided by and to other parties. This includes the estimation of potential claims provisions which are based upon post year end information and members knowledge of the current status of live claims. Accruals are only released when there is a reasonable expectation that these costs will not be invoiced in the future.
An analysis of the limited liability partnership's turnover, all of which was carried out in the UK, is as follows:
The average number of persons (excluding members) employed by the partnership during the year was:
Their aggregate remuneration comprised:
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
More information on impairment movements in the year is given in note 9.
Included within heritable property are three properties, one of which is being used as an investment property. A valuation was carried out on each of the properties in March and April 2024 on an open market basis by an independent professional surveying firm, which resulted in one of the properties being impaired down to its valuation amount in the prior year.
No formal valuations have been carried out during the current year, however one of the properties was sold after the year end at a value lower than its carrying amount. This resulted in an impairment of £139,092 being recorded in the year.
The overdraft and loans are secured by a standard security over the properties and a floating charge over the assets.
The bank loans are repayable as follows:
£250,000 loan - repayable monthly over 20 years at base rate + 1.00%.
£600,000 loan - repayable monthly over 15 years at a variable rate of interest for the remaining 5 years.
£700,000 loan - repayable monthly over 5 years at base rate + 1.89%.
£700,000 loan - repayable monthly over 12 months at a fixed rate of interest of 6.51%.
£330,000 loan - repayable monthly over 5 years at base rate + 1.58%.
£640,000 loan - repayable monthly over 3 years at base rate + 3.15%.
£1,000,000 loan - repayable monthly over 6 months at a fixed rate of interest of 6.13%.
Blackadders LLP operates a defined contribution pension scheme for staff, the Blackadders LLP Retirement & Death Benefit Scheme. The Money Purchase Scheme covers all eligible employees. The assets of the scheme are held separately from those of Blackadders LLP in funds administered by trustees. Contributions to the scheme are charged to the profit and loss account when they become payable.
At the reporting end date the limited liability partnership had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The total remuneration of employees and members who are considered key management personnel was £2,198,891 (2024 - £1,711,765).
During the year, Blackadders LLP received rent income of £12,000 (2024 - £12,000) from Blackadders Wealth Management LLP, a limited liability partnership with common members. Due to a number of advances and repayments in the period, the closing balance due to Blackadders Wealth Management LLP was £77,593 (2024 - £92,848).
During the year, Blackadders LLP received fee income at normal market rates of £44,000 (2024 - £30,184) from The Insights Group Limited, a company in which a member of the LLP is director.
In the normal course of business, Blackadders LLP may receive claims for alleged negligence. Substantial insurance cover is carried in respect of professional negligence, and cover is written through the commercial market. Where appropriate, provision is made for the costs arising from such claims. Taking account of expected insurance recoveries, claims notified are not expected to give rise to any material unprovided liability.