Limited Liability Partnership Registration No. OC433300 (England and Wales)
FORBES SOLICITORS LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 APRIL 2025
30 April 2025
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
FORBES SOLICITORS LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
Mr Jonathan Holden
Mr Stuart Penswick
Mrs Pauline Wild
LLP registration number
OC433300
Registered office
Gordon House
Sceptre Way
Walton Summit
Preston
PR5 6AW
Auditor
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
FORBES SOLICITORS LLP
CONTENTS
Page
Members' report
5 - 6
Independent auditor's report
1 - 4
Statement of comprehensive income
7
Balance sheet
8
Reconciliation of members' interests
9 - 10
Statement of cash flows
11
Notes to the financial statements
12 - 24
FORBES SOLICITORS LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FORBES SOLICITORS LLP
- 1 -
Opinion

We have audited the financial statements of Forbes Solicitors LLP (the limited liability partnership, the 'LLP') for the year ended 30 April 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).

In our opinion the financial statements:

- give a true and fair view of the state of the LLP'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 LLP's 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 Auditor's 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 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 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The members are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, 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 LLPs 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.

FORBES SOLICITORS LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FORBES SOLICITORS LLP
- 2 -
Responsibilities of members

As explained more fully in the members' r esponsibilities s tatement, 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's 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.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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.

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

FORBES SOLICITORS LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FORBES SOLICITORS LLP
- 3 -

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:

- the nature of the industry and sector, control environment and business performance including the design of the LLP's remuneration policies, key drivers for members’ remuneration, bonus levels and performance targets;

- results of our enquiries of management about their own identification and assessment of the risks of irregularities;

- the matters discussed among the audit engagement team and relevant specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud;

- a ny matters we identified having obtained and reviewed the LLP's documentation of their policies and procedures relating to:

  - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

  - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

  - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income, posting of unusual journals and complex transactions; and manipulating the LLP's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the LLP operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety regulations, pensions legislation and tax legislation.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and

- in addressing the identified risks of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

FORBES SOLICITORS LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FORBES SOLICITORS LLP
- 4 -

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 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 LLP'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 LLP and the LLP's members as a body, for our audit work, for this report, or for the opinions we have formed.

Claire Layton ACA (Senior Statutory Auditor)
For and on behalf of PM+M Solutions for Business LLP, Statutory Auditor
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
23 December 2025
FORBES SOLICITORS LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 30 APRIL 2025
- 5 -

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

Principal activities

The principal activity of the limited liability partnership continued to be that of providing legal services.

Members' drawings, contributions and repayments

The members' drawing policy allows each member to draw a proportion of their profit share, subject to the cash requirements of the business.

A member's capital requirement is linked to their share of profit and the financing requirement of the l imited liability partnership. There is no opportunity for appreciation of the capital subscribed. Just as incoming members introduce their capital at "par", so the retiring members are repaid their capital at "par".

Designated members

The designated members who held office during the year and up to the date of signature of the financial statements were as follows:

Mr Jonathan Holden
Mr Daniel King
(Resigned 1 May 2024)
Mr Stuart Penswick
Mrs Pauline Wild
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the limited liability partnership's continues and that the appropriate training is arranged. It is the policy of the limited liability partnership that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The limited liability partnership's policy is to consult and discuss with employees, through staff councils and at meetings, matters likely to affect employees' interests.

Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the limited liability partnership's performance.

Auditor

The auditor, PM+M Solutions for Business LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

The LLP qualifies as a medium-sized entity under the Companies Act 2006 and is therefore exempt from the requirement to provide detailed carbon and energy reporting in these financial statements.

FORBES SOLICITORS LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2025
- 6 -
Statement of members' responsibilities

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

Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the limited liability partnership will continue in business.

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The members' are responsible for the maintenance and integrity of the limited liability partnership website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of disclosure to auditor

Each of the members in office at the date of approval of this annual report confirms that:

- so far as the members are aware, there is no relevant audit information of which the limited liability partnership's auditor is unaware, and

- the members have taken all the steps that they o ught to have taken as members in order to make themselves aware of any relevant audit information and to establish that the limited liability partnership's auditor is aware of that information.

Approved by the members on 23 December 2025 and signed on behalf by:
23 December 2025
Mr Jonathan Holden
Mrs Pauline Wild
Designated Member
Designated Member
FORBES SOLICITORS LLP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2025
- 7 -
2025
2024
as restated
Notes
£
£
Turnover
3
25,629,322
22,915,921
Other operating income
156,517
46,250
25,785,839
22,962,171
Staff costs
6
(13,715,161)
(12,879,421)
Depreciation
4
(327,425)
(273,903)
Other operating expenses
(5,724,445)
(5,463,451)
Operating profit
4
6,018,808
4,345,396
Interest receivable and similar income
8
389,403
449,613
Interest payable and similar expenses
9
(175,289)
(121,881)
Profit for the financial year before members' remuneration and profit shares
6,232,922
4,673,128
Members' remuneration charged as an expense
7
(6,232,922)
(4,673,128)
Result for the financial year available for discretionary division among members
-
-

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

FORBES SOLICITORS LLP
BALANCE SHEET
AS AT
30 APRIL 2025
30 April 2025
- 8 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,921,349
2,257,258
Current assets
Debtors
11
12,559,252
11,337,412
Cash at bank and in hand
12,502
21,795
12,571,754
11,359,207
Creditors: amounts falling due within one year
13
(6,779,233)
(5,842,730)
Net current assets
5,792,521
5,516,477
Total assets less current liabilities
7,713,870
7,773,735
Creditors: amounts falling due after more than one year
14
(162,483)
(373,063)
Net assets attributable to members
7,551,387
7,400,672
Represented by:
Loans and other debts due to members within one year
Members' capital classified as a liability
2,687,454
2,582,286
Other amounts
4,863,933
4,818,386
7,551,387
7,400,672
The financial statements were approved by the members and authorised for issue on 23 December 2025 and are signed on their behalf by:
23 December 2025
Mr Jonathan Holden
Mrs Pauline Wild
Designated member
Designated Member
Limited Liability Partnership registration number OC433300 (England and Wales)
FORBES SOLICITORS LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 30 APRIL 2025
- 9 -
Current financial year
DEBT
TOTAL
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital
Other amounts
Total
Total
2025
£
£
£
Members' interests at 1 May 2024
2,582,286
4,818,386
7,400,672
7,400,672
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
6,232,922
6,232,922
6,232,922
Result for the financial year available for discretionary division among members
-
-
-
-
Members' interests after loss and remuneration for the year
2,582,286
11,051,308
13,633,594
13,633,594
Introduced by members
305,170
-
305,170
305,170
Repayment of debt (including members' capital classified as a liability)
(200,002)
-
(200,002)
(200,002)
Drawings on account and distributions of profit
-
(5,795,792)
(5,795,792)
(5,795,792)
Reclassification on retirement of former partners
-
(391,583)
(391,583)
(391,583)
Members' interests at 30 April 2025
2,687,454
4,863,933
7,551,387
7,551,387
FORBES SOLICITORS LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2025
- 10 -
Prior financial year
DEBT
TOTAL
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Members' capital
Other amounts
Total
Total
2024
£
£
£
Members' interests at 1 May 2023
2,612,038
4,296,579
6,908,617
6,908,617
Members' remuneration charged as an expense, including employment costs and retirement benefit costs
-
4,673,128
4,673,128
4,673,128
Result for the financial year available for discretionary division among members
-
-
-
-
Members' interests after loss and remuneration for the year
2,612,038
8,969,707
11,581,745
11,581,745
Introduced by members
20,250
-
20,250
20,250
Repayment of debt (including members' capital classified as a liability)
(50,002)
-
(50,002)
(50,002)
Drawings on account and distributions of profit
-
(4,151,321)
(4,151,321)
(4,151,321)
Members' interests at 30 April 2024
2,582,286
4,818,386
7,400,672
7,400,672
FORBES SOLICITORS LLP
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2025
- 11 -
2025
2024
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
5,419,264
4,208,058
Interest paid
(175,289)
(121,881)
Net cash inflow from operating activities
5,243,975
4,086,177
Investing activities
Purchase of tangible fixed assets
(44,993)
(113,570)
Proceeds from disposal of tangible fixed assets
53,477
12,787
Interest received
389,403
449,613
Net cash generated from investing activities
397,887
348,830
Financing activities
Capital introduced by members (classified as debt or equity)
305,170
20,250
Repayment of capital or debt to members
(200,002)
(50,002)
Payments to members
(6,187,375)
(4,151,321)
Proceeds from new bank loans
3,946,935
1,787,727
Repayment of bank loans
(2,712,972)
(2,046,250)
Payment of finance leases obligations
(181,924)
(158,265)
Net cash used in financing activities
(5,030,168)
(4,597,861)
Net increase/(decrease) in cash and cash equivalents
611,694
(162,854)
Cash and cash equivalents at beginning of year
(1,322,882)
(1,160,028)
Cash and cash equivalents at end of year
(711,188)
(1,322,882)
Relating to:
Cash at bank and in hand
12,502
21,795
Bank overdrafts included in creditors payable within one year
(723,690)
(1,344,677)

FORBES SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2025
- 12 -
1
Accounting policies
Limited liability partnership information

Forbes Solicitors LLP is a limited liability partnership incorporated in England and Wales. The registered office is Gordon House, Sceptre Way, Walton Summit, Preston, PR5 6AW.

The limited liability partnership's principal activities are disclosed in the Members' Report.

1.1
Basis of preparation

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 a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the members have a reasonable expectation that the limited liability partnership has adequate resources to continue in operational existence for the foreseeable future. Thus the members continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents the amounts recoverable for the services provided to clients, excluding value added tax, under contractual obligations which are performed gradually over time.

If, at the balance sheet date, completion of contractual obligations is dependent on external factors (and thus outside the control of the Limited Liability Partnership), then revenue is recognised only when the event occurs. In such cases, costs incurred up to the balance sheet date are carried forward as work in progress.

1.4
Members' participating interests

Members' participation rights are the rights of a member against the LLP that arise under the m embers' 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.

FORBES SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2025
1
Accounting policies
(Continued)
- 13 -

Profits are automatically divided as they arise, so the LLP does not have an unconditional right to refuse payment and the amounts arising that are due to members are in the nature of liabilities. They are therefore treated as an expense and presented as members' remuneration charged as an expense in arriving at the result for the relevant year. To the extent that they remain unpaid at the period end, they are shown as liabilities.

The members’ agreement limits the amount of losses that can be allocated to and recovered from members to the pro-rata amount of undrawn profits remaining in the LLP. Losses are therefore only allocated, in the profit sharing ratios, to the extent that they would not create or increase a debtor balance for any member. Where losses are in excess of undrawn profits these are retained in equity until such time as a decision is made to allocate them in accordance with the members agreement.

Other amounts applied to members, for example remuneration paid under an employment contract and interest on capital balances, are treated in the same way as all other divisions of profits, as described above, according to whether the LLP has, in each case, an unconditional right to refuse payment. Amounts payable to members under employment contracts and unavoidable interest on members capital are charged to “members remuneration charged as an expense” in the relevant year.

Distributions of profits to members are disclosed within financing activities, alongside capital introduced and repaid.

1.5
Tangible fixed assets

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:

Freehold property
2% straight line
Leasehold property improvements
Over the term of the lease
Motor vehicles
25% reducing balance
Office & computer equipment
15% reducing balance and 25% straight line

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.

1.6
Impairment of fixed assets

At each reporting period end date, the limited liability partnership reviews the carrying amounts of its tangible 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.

FORBES SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2025
1
Accounting policies
(Continued)
- 14 -

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 is estimated to be less than its carrying amount, the carrying amount of the asset 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 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 (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.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

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

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.

Impairment of financial assets

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.

FORBES SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2025
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial assets

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.

Classification of 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 limited liability partnership after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 paymen ts 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. A m ounts 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

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.

1.10
Retirement benefits and post retirement payments to members

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

FORBES SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2025
1
Accounting policies
(Continued)
- 16 -

The LLP’s policy in respect of post-retirement payments to members is for full repayment within a five year period.

1.11
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 lease d asset are consumed.

2
Judgements and key sources of estimation uncertainty

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 key areas where significant judgements and estimates have been applied are as follows:

Unbilled a mounts owed by clients:

Amounts owed by clients, which have not been invoiced at the balance sheet date, are valued based on unbilled time recorded multiplied by historical recovery rates. The recovery rates are determined by reference to previous experience, analysed by the type of legal service being provided. This valuation involves judgement in estimating the amount likely to be recovered, considering the nature of the work performed and the specific legal services provided.

For matters billed on a contingent fee basis, work in progress is recognised at cost until the contingent event is satisfied. Judgement is required in estimating the cost of work performed up to the reporting date and in assessing the timing at which it becomes probable that the unbilled time will be recoverable.

Provision for bad and doubtful debts due from clients:

The members apply judgement when assessing the recoverability of outstanding receivables. Older debts are reviewed with reference to specific departmental factors. The adequacy of provisions is reassessed regularly based on the latest available facts and circumstances.

Provision for professional negligence claims:

The LLP provi des for potential professional indemnity claims, which have arisen but have not been settled by the balance sheet date. These are estimated based on the expected costs of resolving or settling the claims. The valuation incorporates judgement regarding the likely outcome of claims and the associated legal or settlement costs.

FORBES SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2025
- 17 -
3
Turnover

An analysis of the limited liability partnership's turnover is as follows:

2025
2024
£
£
Turnover analysed by class of business
Fees
25,521,056
22,789,361
Commission
108,266
126,560
25,629,322
22,915,921
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
25,629,322
22,915,921
2025
2024
£
£
as restated
Other significant revenue
Interest income
389,403
449,613

The comparative figures have been amended to reclassify £541,264 of interest paid to clients against interest received. This presentation is considered more appropriate because the two amounts are closely linked: interest paid to clients arises from interest earned on client balances, and presenting them in this way provides a clearer reflection of the underlying activity.

As a result of this reclassification, interest received for the prior year has been restated from £990,877 to £449,613, and interest paid has been restated from £663,145 to £121,881. The reclassification affects only how the amounts are presented in the statement of comprehensive income. It does not change the reported profit for the year, the net assets, or the company’s cash flows.

4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
157,936
169,183
Depreciation of tangible fixed assets held under finance leases
180,444
104,720
Profit on disposal of tangible fixed assets
(10,955)
-
Operating lease charges
473,094
444,392
FORBES SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2025
- 18 -
5
Auditor's remuneration
2025
2024
Fees payable to the LLP's auditor and associates:
£
£
For audit services
Audit of the financial statements of the LLP
27,550
26,250
SRA Accounts rules compliance and reporting
12,600
12,000
40,150
38,250
6
Employees

The average number of persons (excluding members) employed by the partnership during the year was:

2025
2024
Number
Number
Fee earners
198
232
Support staff
148
118
Total
346
350

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
12,249,150
11,510,574
Social security costs
1,194,847
1,113,242
Pension costs
271,164
255,605
13,715,161
12,879,421

Key management personnel are defined as the senior management team of the LLP, excluding members. The total emoluments of key management personnel, comprising salaries and pension costs, was £399,782 (period ended 30 April 2024 - £374,985).

7
Members' remuneration
2025
2024
Number
Number
Average number of members during the year
38
36
2025
2024
£
£
Profit attributable to the member with the highest entitlement
299,577
185,311
FORBES SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2025
- 19 -
8
Interest receivable and similar income
2025
2024
£
£
as restated
Interest income
Interest on bank deposits
389,403
449,613
2025
2024
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
389,403
449,613
9
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
127,133
106,642
Interest paid to former partners
28,767
5,994
155,900
112,636
Other finance costs:
Interest on finance leases and hire purchase contracts
19,389
9,245
Total finance costs
175,289
121,881
10
Tangible fixed assets
Freehold property
Leasehold property improvements
Motor vehicles
Office & computer equipment
Total
£
£
£
£
£
Cost
At 1 May 2024
1,150,000
308,956
875,988
3,632,649
5,967,593
Additions
-
16,025
-
28,968
44,993
Disposals
-
-
(207,780)
-
(207,780)
At 30 April 2025
1,150,000
324,981
668,208
3,661,617
5,804,806
Depreciation and impairment
At 1 May 2024
45,540
250,801
678,960
2,735,034
3,710,335
Depreciation charged in the year
22,540
11,802
42,450
261,588
338,380
Eliminated in respect of disposals
-
-
(165,258)
-
(165,258)
At 30 April 2025
68,080
262,603
556,152
2,996,622
3,883,457
Carrying amount
At 30 April 2025
1,081,920
62,378
112,056
664,995
1,921,349
At 30 April 2024
1,104,460
58,155
197,028
897,615
2,257,258
FORBES SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2025
10
Tangible fixed assets
(Continued)
- 20 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts:

2025
2024
£
£
Motor vehicles
15,071
20,095
Office & computer equipment
365,477
540,897
380,548
560,992
11
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
3,650,107
3,285,225
Gross amounts owed by contract customers
7,558,577
6,782,422
Other debtors
270,503
261,045
Prepayments and accrued income
1,080,065
1,008,720
12,559,252
11,337,412
12
Loans and overdrafts
2025
2024
£
£
Bank loans
2,213,315
979,352
Bank overdrafts
723,690
1,344,677
2,937,005
2,324,029
Payable within one year
2,937,005
2,324,029

FORBES SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2025
12
Loans and overdrafts
(Continued)
- 21 -

Unsecured bank loans, amounting to £2,213,315 (2024 - £920,094) are due for repayment within twelve months, and carry a fixed rate of interest of 2.8%-4%.

Secured bank loans, amounting to £nil (2024 - £59,259) were due for repayment within the next year and bear a fixed interest rate of 7.26%.

Interest at a rate of 3.7% per annum above the Bank of England base rate is applicable to the bank overdraft facility, which is repayable upon demand.

As of the reporting date, the LLP held bank overdrafts totaling £723,690 (202 4: £1,344,677) and bank loans of £nil (202 4: £59,259), both secured by a debenture from Forbes Solicitors and a floating charge over all other assets and undertakings of the LLP, along with a negative pledge in favor of Barclays Bank PLC. This debenture includes a legal charge over properties at 2, 4, 6, and 8 Wellington Street; 3-7 (odd numbers) Strawberry Bank, St Johns, Blackburn; 73, 75, and 77 Northgate, Blackburn; and 2 Duke Street, Blackburn, all of which serve as security for the bank facilities and secured loans. Additionally, the equity members of the LLP have provided a personal guarantee to Barclays Bank totalling £500,006, which is equally split among the equity members.

13
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Bank loans and overdrafts
12
2,937,005
2,324,029
Obligations under finance leases
15
210,580
181,924
Trade creditors
1,012,671
1,096,310
Other taxation and social security
1,111,638
911,740
Other creditors
660,763
404,940
Accruals and deferred income
846,576
923,787
6,779,233
5,842,730

Amounts payable under finance leases and hire purchase contracts are secured on the assets to which they relate.

Included within other creditors are amounts totalling £352,994 (2024: £25,001) relating t o loans owed to former partners of the LLP.

14
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Obligations under finance leases
15
162,483
373,063

Amounts payable under finance leases and hire purchase contracts are secured on the assets to which they relate.

FORBES SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2025
- 22 -
15
Finance lease obligations
2025
2024
Future minimum lease payments due under finance leases:
£
£
Within one year
228,066
199,445
Within two and five years
176,442
406,475
404,508
605,920
Less: future finance charges
(31,445)
(50,933)
373,063
554,987

Finance lease payments represent rentals payable by the limited liability partnership for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 45 months. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

16
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
271,164
255,605

The limited liability partnership operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the limited liability partnership in an independently administered fund.

At balance sheet date, these contributions outstanding totalled £53,067 (2024: £50,704).

17
Loans and other debts due to members
2025
2024
£
£
Analysis of loans
Amounts falling due within one year
7,551,387
7,400,672

In the event of a winding up the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.

FORBES SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2025
- 23 -
18
Operating lease commitments
Lessee

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:

2025
2024
£
£
Within one year
601,967
432,163
Between two and five years
1,723,099
1,541,706
In over five years
1,218,333
1,473,333
3,543,399
3,447,202
19
Analysis of changes in net debt
1 May 2024
Cash flows
30 April 2025
£
£
£
Cash at bank and in hand
21,795
(9,293)
12,502
Bank overdrafts
(1,344,677)
620,987
(723,690)
(1,322,882)
611,694
(711,188)
Borrowings excluding overdrafts
(979,352)
(1,233,963)
(2,213,315)
Obligations under finance leases
(554,987)
181,924
(373,063)
Balances before members' debt
(2,857,221)
(440,345)
(3,297,566)
Loans and other debts due to members:
- Members' capital
(2,582,286)
(105,168)
(2,687,454)
- Other amounts due to members
(4,818,386)
(45,547)
(4,863,933)
Balances including members' debt
(10,257,893)
(591,060)
(10,848,953)
FORBES SOLICITORS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2025
- 24 -
20
Cash generated from operations
2025
2024
£
£
as restated
Profit after taxation
6,232,922
4,673,128
Adjustments for:
Finance costs recognised in profit or loss
175,289
121,881
Investment income recognised in profit or loss
(389,403)
(449,613)
Gain on disposal of tangible fixed assets
(10,955)
-
Depreciation and impairment of tangible fixed assets
338,380
273,903
Movements in working capital:
Increase in debtors
(1,221,840)
(246,399)
Increase/(decrease) in creditors
294,871
(164,842)
Cash generated from operations
5,419,264
4,208,058
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