Gilbert Stephens LLP

Balance Sheet

30 June 2025

For the year ending 30 June 2025 the LLP was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to Limited Liability Partnerships. The designated members acknowledge their responsibilities for complying 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), with respect to accounting records and the preparation of accounts.

The members acknowledge their responsibilities for

(a) ensuring that the LLP keeps accounting records which comply with Section 386 and 387 of the Companies Act 2006 as applied by the Limited Liability Partnerships Regulations 2008 as modified by
the Limited Liability Partnerships, Partnerships and Groups Regulations 2021.

(b) preparing financial statements which give a true and fair view of the state of affairs of the LLP as at the end of each financial period and of its profit or loss for the financial period in accordance with the requirements of section 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 as applied by the Limited Liability Partnerships Regulations 2008 as modified by the Limited Liability Partnerships, Partnerships and Groups Regulations 2016 relating to financial statement, so far applicable to the LLP.

These financial statements have been prepared and delivered in accordance with the special provisions within Part 15 of the Companies Act 2006, as applied to small limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, and the option not to file a profit and loss account has been taken.

The financial statements of Gilbert Stephens LLP (registered number OC352723) were approved by the members and authorised for issue on 12 December 2025. They were signed on behalf of the limited liability partnership by:

......................................... R S Walford Designated member

Gilbert Stephens LLP

Notes to the Financial Statements

Year Ended 30 June 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 have been prepared in accordance with Financial Reporting Standard 102 incorporating Section 1A - '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 December 2021. There are no material departures from FRS 102.

General information and basis of accounting

The limited liability partnership is incorporated in England & 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 Gilbert Stephens 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.

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

Remuneration is paid to certain members under a contract of employment and is included as an
expense in the profit and loss account after arriving at 'profit for the financial year before members'
remuneration and profit shares'.

In addition, the LLP agreement provides that fixed amounts, determined for each member each year,
be paid to members, irrespective of the profits of the LLP. These amounts are also included within
members’ remuneration charged to the profit and loss account.

A member's share of the profit or loss for the year is accounted for as an allocation of profits.
Unallocated profits and losses are included within 'other reserves'.

Gilbert Stephens LLP

Notes to the Financial Statements

Year Ended 30 June 2025

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.

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
Computer software	10% straight line basis
Goodwill	20% straight line basis

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
Land and buildings	16.67% straight line basis
Computer equipment	20% straight line basis
Motor vehicles	25% reducing balance basis
Office equipment	25% reducing balance basis

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.

Provisions

Provisions are recognised when the limited liability partnership has an obligation at the reporting date as a result of a past event, it is probable that the limited liability partnership will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Members' interests

Amounts due to members after more than one year comprise provisions for annuities to current members and certain loans from members which are not repayable within twelve months of the balance sheet date.

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.

Gilbert Stephens LLP

Notes to the Financial Statements

Year Ended 30 June 2025

Financial instruments

Classification

The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities,when the company's obligations are discharged, expire or are cancelled.

The LLP holds the following financial instruments:

- Basic financial assets comprise short term trade and other debtors and cash and bank balances.
- Basic financial liabilities comprise short term trade and other creditors and bank loans.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

2	Critical accounting judgements and key sources of estimation uncertainty

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 rates and contractual terms. In undertaking this process, an adjustment is made to reduce the unbilled time to average recovery rates. In respect of contingent work judgement is exercised in determining whether revenue should be recognised. In making this judgement, the designated members have considered the nature of the work undertaken, the historic success rate for that type of work, as well as the specific circumstances of the matters up to the point of signing the accounts. Where the liability has been agreed, the unbilled time for the matters is accrued but where the outcome is still uncertain, no revenue is recognised in the accounts.

In total, the carrying value of accrued income at the balance sheet date was £2,148,611 (2024 - £1,959,491).

Claims provision
Judgement is exercised in determining whether a provision for claims is required. In making this judgement, the designated members have considered the historic occurrence of claims against the LLP and the level of specific claims notified to them at the balance sheet date. If it is determined that a provision is required, an estimate is made of the eventual value of any uninsured claims. In making this estimate, the designated members have considered the specific circumstances of reported claims, the historic level of un-utilised insurance excesses, as well as the historic level of minor claims settled outside of insurance. The carrying value of the claims provision at the balance sheet date was £125,000 (2024 - £100,000).

Gilbert Stephens LLP

Notes to the Financial Statements

Year Ended 30 June 2025

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 members have considered the historic occurrence of bad debts against the LLP and the circumstances of debtors at the balance sheet date. The carrying value of the bad or doubtful debt provision at the balance sheet date was £296,900 (2024 - £265,068).

3	Particulars of employees

The average number of persons employed by the limited liability partnership during the year was 70 (2024 - 103).

4	Intangible fixed assets

	Goodwill £	Computer Software £	Total £
Cost
At 1 July 2024	50,000	13,808	63,808
At 30 June 2025	50,000	13,808	63,808
Amortisation
At 1 July 2024	27,985	4,602	32,587
Charge for the year	10,000	1,534	11,534
At 30 June 2025	37,985	6,136	44,121
Net book value
At 30 June 2025	12,015	7,672	19,687
At 30 June 2024	22,015	9,206	31,221

Gilbert Stephens LLP

Notes to the Financial Statements

Year Ended 30 June 2025

6	Investments held as fixed assets

Shares in group undertakings and participating interests

	Unlisted investments £	Total £
Cost
At 1 July 2024	10,000	10,000
At 30 June 2025	10,000	10,000
Net book value
At 30 June 2025	10,000	10,000
At 30 June 2024	10,000	10,000