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Registered number: OC320937
HORIZON CAPITAL LLP
ANNUAL REPORT
FOR THE YEAR ENDED 31 MARCH 2026
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CONTENTS
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Independent Auditors' Report to the Members of Horizon Capital LLP
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Statement of Comprehensive Income
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Reconciliation of Members' Interests
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Notes to the Financial Statements
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Reconciliation of Members' Interests
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REPORT OF THE MEMBERS
FOR THE YEAR ENDED 31 MARCH 2026
The Members have pleasure in presenting their report for the year ended 31 March 2026.
Principal activities
The principal activity of the Partnership is the provision of venture capital portfolio investment management and advice and during the year ended 31 March 2026 acted as the manager for Horizon Capital Fund 2013 A Limited Partnership, Horizon Capital Fund 2013 B Limited Partnership, Horizon Capital 2013 Friends and Family Limited Partnership, LCF III Limited Partnership, Horizon Capital 2018 Limited Partnership, Horizon Capital 2019 Syndication Limited Partnership, Horizon Capital 2019 Syndication (C) Limited Partnership, Horizon Capital DMC Limited Partnership, Horizon Capital (DMC) Co-Invest Limited Partnership, Horizon Capital 2018 Co-Invest Limited Partnership, Horizon Capital II Limited Partnership, Horizon Capital II CIP Limited Partnership, Horizon Capital 2018 SPV Limited Partnership, Horizon Capital III Limited Partnership, Horizon Capital III CIP Limited Partnership, Horizon Capital II Raven Limited Partnership, Horizon Capital Cathedral Limited Partnership, Horizon Capital Cathedral CIP Limited Partnership, Horizon Capital III Streamline LP and Horizon Capital II Crew LP.
The Partnership is authorised and regulated by the Financial Conduct Authority ("FCA").
Detailed information can be found on the Firm’s website (https://www.horizoncapital .co.uk/).
Designated Members
The designated members during the year under review were:
Mr S Hitchcock
Mr L Kingston
Mr A Lewis
Mr M Squier
Mr T Maizels
Horizon Capital (Founders) Limited
Horizon Capital (Holdings) Limited
Horizon Capital Founder Partners LLP
Results for the year and allocation to members
The profit for the year before members' remuneration and profit shares was £7,919,354 (2025 - £5,053,141 profit).
Members' interests
Members are permitted to make drawings in anticipation of profits which will be allocated to them. The amount of such drawings is set at the beginning of each financial year, taking into account the anticipated cash needs of the Partnership.
For as long as the Partnership is authorised by the FCA to conduct regulated activities the Designated Members must ensure that the Partnership has capital at least equal to its Regulatory Capital and all such capital shall be held in a reserve known as the “Regulatory Capital Reserve".
The Management Committee shall ensure that no distributions or other payments shall be made from or by the Partnership to its Members if, as a result of such distributions, the Partnership would no longer have sufficient Regulatory Capital. Capital may only be repaid to Members provided that Regulatory Capital is maintained by transfers into the Regulatory Capital Reserve by Members.
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REPORT OF THE MEMBERS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
Risks and uncertainties
The operational risks faced by the partnership and its subsidiaries and related entities (“group”) are managed from the perspective of the group rather than a statutory entity basis. The group has an established governance framework and organisation structure, with documented responsibilities.
All risks facing the group are assessed regularly by the Members, together with the effectiveness of existing controls. The nature of the discretionary investment managed activities undertaken by the group means that market risks arising from the underlying assets are borne by the beneficial owners of the underlying funds. These risks are actively managed within the investment mandates given to the group and the regulatory environment within which the group operates.
The Partnership is regulated by the Financial Conduct Authority (“FCA”). The standards imposed by the FCA with which the Partnership must demonstrate compliance, are subject to continuous review. New directives may result in a change of reporting requirements, capital requirements or business processes. Failure to comply with the FCA standards could materially affect the Partnership's ability to operate due to the FCA's ability to impose restrictions on trading activity.
The Partnership's revenues are based on profit entitlements that do not have any significant exposure to movements in financial markets or movements in market valuations of assets under management. The majority of the transactions of the group are undertaken in Pounds Sterling and the Partnership had no external borrowings during the year. Therefore, there is no foreign exchange risk or significant exposure to interest rate movement.
The Partnership is exposed to credit risk in respect of profits due from investment funds and from cash held at bank. The latter is managed by minimising cash balances and holding such balances with banks with a high credit rating.
Future prospects and going concern
The Members are confident about the Partnership's long-term prospects and consider that the activities of both the Partnership and the group will remain unchanged for the foreseeable future.
Statement of members' responsibilities in respect of the financial statements
The members are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation.
Company law, as applied to limited liability partnerships by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 (the "Regulations") requires the members to prepare financial statements for each financial year. Under that law the members have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law).
Under company law, as applied to limited liability partnerships, members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the LLP and of the profit or loss of the LLP for that period. In preparing the financial statements, the members are required to:
∙select suitable accounting policies and then apply them consistently;
∙state whether applicable United Kingdom Accounting Standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements;
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REPORT OF THE MEMBERS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
∙make judgments 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 LLP will continue in business.
The members are responsible for safeguarding the assets of the LLP and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The members are also responsible for keeping adequate accounting records that are sufficient to show and explain the LLP's transactions and disclose with reasonable accuracy at any time the financial position of the LLP and to enable them to ensure that the financial statements comply with the Companies Act 2006.
Statement as to disclosure of information to auditors
In so far as the Members are aware:
−there is no relevant audit information of which the Partnership's auditors are unaware, and
−the Members have taken all necessary steps to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
Independent Auditors
PricewaterhouseCoopers LLP are deemed to be re-appointed under section 487(2) of the Companies Act 2006 as modified by the Limited Liability Partnerships Regulations 2008.
On behalf of the members:
The financial statements on pages 8 to 31 were approved by the members on 27 July 2026 and signed on its behalf by Martin Squier.
Martin Squier
Designated member
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
HORIZON CAPITAL LLP
Report on the audit of the financial statements
Opinion
In our opinion, Horizon Capital LLP’s financial statements:
∙give a true and fair view of the state of the LLP’s affairs as at 31 March 2026 and of its profit and cash flows for the year then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", and applicable law); and
∙have been prepared in accordance with the requirements of the Companies Act 2006 as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.
We have audited the financial statements, included within the Annual Report, which comprise:
∙the Balance Sheet as at 31 March 2026;
∙the Statement of Comprehensive Income, Reconciliation of Members' Interests and Statement of Cash Flows for the year then ended; and
∙the notes to the financial statements which include a description of the significant accounting policies.
We conducted our audit in accordance with International Standards on Auditing (UK) ("ISAs (UK)") and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the LLP in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Conclusions relating to going concern
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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.
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.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the LLP's ability to continue as a going concern.
Our responsibilities and the responsibilities of the members with respect to going concern are described in the relevant sections of this report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HORIZON CAPITAL LLP (CONTINUED)
Reporting on other information
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The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The members are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.
Responsibilities for the financial statements and the audit
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Responsibilities of the members for the financial statements
As explained more fully in the Statement of members' responsibilities in respect of the financial statements, the members are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The members are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the members are responsible for assessing the LLP's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the members either intend to liquidate the LLP or to cease operations, or have no realistic alternative but to do so.
Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the LLP and industry, we identified that the principal risks of non-compliance with laws and regulations related to UK regulatory principles as governed by the FCA, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as 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. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of journals with unusual account combinations relating to revenue and the potential for manipulation of financial data or management bias in accounting estimates in the financial statements such as valuation of the investments. Audit procedures performed by the engagement team included:
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HORIZON CAPITAL LLP (CONTINUED)
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HORIZON CAPITAL LLP (CONTINUED)
∙Obtaining management information to validate the members' inputs into the calculation of the fair value of investments and challenging assumptions made, where appropriate;
∙Reviewing correspondence with the Financial Conduct Authority in relation to compliance with laws and regulations;
∙Reviewing relevant meeting minutes;
∙Enquiring with management as to any actual or suspected instances of fraud or non-compliance with laws and regulations;
∙Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing and;
∙Testing journal entries, with a focus on journals with unusual account combinations to revenue based on our understanding of the business.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the members of the partnership as a body in accordance with the Companies Act 2006 as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 as applicable to limited liability partnerships we are required to report to you if, in our opinion:
∙we have not obtained all the information and explanations we require for our audit; or
∙adequate accounting records have not been kept by the LLP or returns adequate for our audit have not been received from branches not visited by us; or
∙the LLP's financial statements are not in agreement with the accounting records and returns.
We have no exceptions to report arising from this responsibility
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HORIZON CAPITAL LLP (CONTINUED)
Entitlement to exemptions
Under the Companies Act 2006 as applicable to limited liability partnerships we are required to report to you if, in our opinion, the members were not entitled to: prepare financial statements in accordance with the small limited liability partnerships regime. We have no exceptions to report arising from this responsibility.
Robert Hawkins (Senior Statutory Auditor)
for and on behalf of
PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
27 July 2026
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STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2026
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Realised and unrealised gain on investments
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Profit for the financial year before members' remuneration and profit shares
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Profit for the year before members' remuneration and profit shares
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Members' remuneration charged as an expense
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Profit for the financial year available for discretionary division among members
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Other comprehensive income for the year
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Other comprehensive income
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Total tax on components of other comprehensive income
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Other comprehensive income for the year, net of tax
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Total comprehensive income for the year
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The Partnership’s turnover and expenses all relate to continuing operations.
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BALANCE SHEET
AS AT 31 MARCH 2026
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Amounts falling due within one year
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Provisions for liabilities
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Net assets attributable to members
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HORIZON CAPITAL LLP
REGISTERED NUMBER:OC320937
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BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2026
Loans and other debts due to members
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Loans and other debts due to members
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The financial statements have been prepared in accordance with the provisions applicable to LLPs subject to the small LLPs regime.
The financial statements on pages 8 to 31 were approved by the members of the LLP and authorised for issue on 27 July 2026 and were signed by:
The notes form part of these financial statements.
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RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 MARCH 2026
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EQUITY
Members' other interests
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DEBT
Loans and other debts due to members less any amounts due from members in debtors
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Members' remuneration charged as an expense
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Profit for the year available for discretionary division among members
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Members' interests after profit for the year
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Members' remuneration charged as an expense
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Profit for the year available for discretionary division among members
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Members' interests after profit for the year
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Amounts introduced by members
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The notes form part of these financial statements.
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STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2026
Cash flows from operating activities
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Profit for the financial year available for discretionary division among members
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Members' remuneration charged as an expense
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Depreciation of tangible assets
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Realised and unrealised gain on investments
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Decrease in amounts due from executives
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Increase in trade and other debtors
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Decrease in trade and other creditors
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Dilapidation provision unwinding
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Purchase of fixed asset investments
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Diposal of fixed assets investments
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Distribution from investments
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Net cash flows (used in)/generated from investing activities
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Cash flows from financing activities
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Amounts introduced by members
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Net cash (used in)/generated from financing activities
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Net increase/(decrease) in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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The notes form part of these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
Horizon Capital LLP ('the Partnership') is a limited liability partnership and is incorporated in United Kingdom. The address of its registered office is Horizon Capital, 2nd Floor 1-3 College Hill, London, United Kingdom, EC4R 2RA.
The principal activity of the Partnership is the provision of private equity portfolio investment management and advice.
The financial statements of Horizon Capital LLP have been prepared in compliance with the applicable United Kingdom Accounting Standards, including Financial Reporting Standard 102, ''The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland'' (''FRS 102'') and the Companies Act 2006 as applied to Limited Liability Partnerships and in compliance with Statement of Recommended Practice 'Accounting by Limited Liability Partnerships' (SORP) along with Limited Liability Partnership Act, 2000 and Limited Liability Partnership (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. The company has chosen to early adopt the Amendments to FRS 102 - Periodic Review 2024 (issued in March 2024) in their entirety for the financial year ended 31 March 2026.
3.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention, except for investments in Limited Partnerships, which have been measured at fair value. The financial statements have been prepared in accordance with the Companies Act 2006 as applied to Limited Liability Partnerships, applicable UK Accounting Standards, and the requirements of the Statement of Recommended Practice: Accounting by Limited Liability Partnerships, issued in May 2024.
The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Partnerships' accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3.5 (Critical accounting judgements and key sources of estimation uncertainty).
Adoption of FRS 102 Periodic Review 2024 Amendments
The Partnership has early adopted the amendments arising from the FRS 102 Periodic Review 2024 (the "2024 Amendments") in these financial statements, ahead of their mandatory effective date of 1 January 2026. The adoption includes the updated revenue recognition requirements in Section 23 and the revised lease accounting model in Section 20.
The revised lease accounting requirements introduce a Right-of-Use (ROU) asset and lease liability model for lessees, replacing the previous distinction between operating and finance leases for lessee accounting. Under this approach, the Partnership recognises a right-of-use asset representing its right to use the leased asset and a corresponding lease liability representing its obligation to make lease payments, subject to the recognition exemptions provided by the standard.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
3.Accounting policies (continued)
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Basis of preparation of financial statements (continued)
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The revised revenue recognition requirements introduce a five-step model under which revenue is recognised based on the transfer of control of goods or services to customers. The model requires entities to:
(i) Identify the contract with a customer,
(ii) Identify the performance obligations within the contract,
(iii) Determine the transaction price,
(iv) Allocate the transaction price to the performance obligations
(v) Recognise revenue when, or as, each performance obligation is satisfied. This replaces the previous risks-and-rewards approach with a single principles-based framework for revenue recognition.
The Partnership has adopted the 2024 Amendments using the modified retrospective approach permitted by the transition provisions of FRS 102. Accordingly, comparative information has not been restated and the cumulative effect of initially applying the amendments has been recognised at the date of initial application, where applicable.
Management has assessed the impact of adopting the revised revenue recognition requirements and concluded that there is no impact on revenue recognised in prior periods or on opening retained earnings, as the Partnership's existing revenue recognition policies were consistent with the principles of the new five-step model.
In adopting the revised lease accounting requirements, the Partnership has applied the practical transition expedients available under the standard and recognised right-of-use assets and corresponding lease liabilities at the date of initial application, without restating comparative information.
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Preparation of consolidated financial statements
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In the opinion of the Members, the Partnership and its subsidiary undertakings comprise a small group. The Partnership has therefore taken advantage of the exemption provided by Section 398 of the Companies Act 2006 as modified by the Limited Liability Partnerships Regulations 2001 not to prepare group financial statements.
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Related party transactions
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The Partnership has taken advantage of the exemption, as provided by paragraph 33.1A of FRS 102 and does not disclose transactions with members of the same group that are wholly owned. The Partnership discloses transactions with related parties which are not wholly owned with the same group.
The Partnership meets its day-to-day working capital requirements through its net current asset position. The Partnerships' forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Partnership should be able to operate within the level of its current facilities. After making enquiries, the Members have a reasonable expectation that the Partnership has adequate resources to continue in operational existence for the foreseeable future. The Partnership therefore continues to adopt the going concern basis in preparing its financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
3.Accounting policies (continued)
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Critical accounting judgements and key sources of estimation uncertainty
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The preparation of the financial statements requires management to make judgement, estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets and liabilities, revenue and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are reasonable under the circumstances. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.
(i) Investment valuations
The process of valuing the investments is inevitably based on inherent uncertainties and the resulting values will differ, perhaps materially, from the amounts ultimately realised. The Members uses judgement in selecting an appropriate valuation technique for financial instruments that are not quoted in an active market.
(ii) Dilapidation provisions
Provision is made for dilapidations. This requires management’s best estimate of the expenditure that will be incurred based on contractual requirements. In addition, the timing of the cash flow used to establish net present value of the obligations require management’s judgement. For further details and range of potential provision values, see note 17.
(iii) Revenue recognition
The recognition of revenue requires management to make judgements in applying the requirements of the relevant revenue recognition standard. In particular, management assesses the performance obligations arising from customer contracts and determines the appropriate timing of revenue recognition based on when control of the underlying services is transferred to customers.
Where contracts contain multiple services, management applies judgement in determining whether those services represent separate performance obligations or should be accounted for as a combined performance obligation. Management also assesses whether revenue should be recognised over time or at a point in time based on the nature of the services provided.
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Impairment of non-financial assets
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At each balance sheet date non-financial assets not carried at fair value are assessed to determine whether there is an indication that the asset may be impaired. If there is such an indication the recoverable amount of the asset is compared to the carrying amount of the asset.
The recoverable amount of the asset is the higher of the fair value less costs to sell and value in use. Value in use is defined as the present value of the future pre-tax and interest cash flows obtainable as a result of the asset's continued use. The pre-tax and interest cash flows are discounted using a pre-tax discount rate that represents the current market risk-free rate and the risks inherent in the asset.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
3.Accounting policies (continued)
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Impairment of non-financial assets (continued)
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If the recoverable amount of the asset is estimated to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in the statement of comprehensive income, unless the asset has been revalued when the amount is recognised in other comprehensive income to the extent of any previously recognised revaluation. Thereafter any excess is recognised in the statement of comprehensive income.
If an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the revised carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss is recognised in the statement of comprehensive income.
Turnover is stated net of Value Added Tax and accounted for on an accruals basis.
Management has assessed the Partnership's revenue streams, comprising management fees, monitoring fees, arrangement fees and recharged expenses, under the revised Section 23 of FRS 102. Management fees are earned for providing investment management and advisory services under management agreements. Monitoring fees are charged for providing ongoing oversight and support to portfolio companies. Arrangement fees arise from services provided in relation to investment transactions. Recharged expenses represent costs incurred by the Partnership on behalf of portfolio companies which are contractually recoverable.
The assessment considered the identification of contracts and performance obligations, the determination and allocation of the transaction price, and the timing of revenue recognition under the five-step revenue recognition model.
Management concluded that:
∙Management fees received from the general partners of limited partnership continue to be recognised over the period in which the related services are provided.
∙Monitoring fees earned from portfolio companies represent a single, uniform performance obligation to provide continuous oversight and governance support. This obligation is satisfied over time because the portfolio company simultaneously receives and consumes the benefits of the monitoring services as they are rendered. Revenue is recognised on a straight-line basis over the 12-month period covered by the fee.
∙Arrangement fees continue to be recognised when the associated performance obligation is satisfied.
∙Recharged expenses are recognised as revenue at the point in time when the underlying expense is incurred and the contractually reimbursable service or good is delivered to the portfolio company, provided the Partnership acts as a principal in the transaction.
Accordingly, management concluded that the Partnership's existing revenue recognition policies remain consistent with the revised requirements of Section 23 and that the adoption of the revised standard has not resulted in any material changes to the recognition, measurement or presentation of revenue.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
3.Accounting policies (continued)
Other operating income consists of rental income from sublet agreements and other income which consists of amounts drawn down from an escrow account under the Authorised Guarantee Agreement (refer to note 16) and is accounted for on the accruals basis.
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the statement of comprehensive income on a straight-line basis over the period of the lease.
During the year, the Partnership terminated a lease agreement, effective 31 July 2025.
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Right-of-use (ROU) assets
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Contracts that convey the right to control the use of an identified asset for a period of time in exchange for consideration are classified as leases. The Partnership entered into a lease agreement with an effective date of 24 October 2025 and has elected to early adopt the amended lease accounting framework. In accordance with Section 1 (Scope and Effective Date) of FRS 102, the Partnership has early applied the 2024 Periodic Review Amendments in their entirety for the accounting period beginning 1 April 2025. Consequently, the new lease has been recognised and measured on the balance sheet in full compliance with the updated provisions of Section 20 (Leases).
As permitted by the transitional provisions of Section 1, the Partnership has adopted the modified retrospective approach; prior period comparative information has not been restated. The Partnership has utilised the practical expedient permitting historical operating leases with a remaining term of less than 12 months on 1 April 2025 to be accounted for as short-term leases and recognised as expense in the amount of £653,154. Rental payments associated with the legacy lease contract terminating on 31 July 2025 have therefore been recognised as an expense in the statement of comprehensive income on a straight-line basis over its remaining term.
At the commencement date, the company recognises a ROU asset and a lease liability.
The lease liability is measured at the present value of remaining lease payments, discounted using the lessee’s incremental borrowing rate of 5.75%. The lease liability is subsequently increased by the interest accrued on the liability and reduced by lease payment made.
ROU assets are initially measured at cost, which includes the lease liability, prepayments, direct costs, and restoration provisions. Subsequently, these assets are depreciated on a straight-line basis over the shorter of the lease term or the useful life of the underlying asset.
All fixed assets are initially recorded at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, cost directly attributable to bringing the asset to its working condition for its intended use.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
3.Accounting policies (continued)
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Repair, maintenance and minor inspection costs are expensed as incurred.
Fixed assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in statement of comprehensive income.
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Cash and cash equivalents
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Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short- term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, if any are shown within creditors in current liabilities.
Dilapidation cost consists of expected cost of returning a leasehold property to its original state and condition prior to commencement of the lease. The timing and amounts of future cash flows related to lease dilapidations are subject to uncertainty. The provision recognised is based on management’s experience and understanding of the commercial retail property market and third party surveyors reports commissioned for specific properties in order to best estimate the future outflow of funds, requiring the exercise of judgement applied to existing facts and circumstances, which can be subject to change.
Provisions are recognised when the Partnership has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount of the obligation can be estimated reliably. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost.
The Partnership reports cash flows from operating activities using the indirect method. Interest received is presented within cash flows from investing activities. The purchase and disposal of investments are disclosed in the cash flows within investing activities because this most appropriately reflects the Partnership’s business activities.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
3.Accounting policies (continued)
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Other financial instruments
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The Partnership has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.
(i) Financial assets
Basic financial assets, including debtors, cash and bank balances are initially recognised at transaction price, 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.
Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the statement of comprehensive income.
If there is 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 the statement of comprehensive income.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
(ii) Financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow Group companies, 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 receipts discounted at a market rate of interest.
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. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
The Partnership does not hold any derivative financial instruments.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
(iii) Offsetting
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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
3.Accounting policies (continued)
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Foreign currency translation
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(i) Functional and presentation currency
The Partnership's functional and presentation currency is the pound sterling.
(ii) Transaction and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non- monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.
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Members' participation rights
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Members' participation rights are the rights of a member against the Partnership 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 Partnership are analysed between those that are, from the Partnership's perspective, either a financial liability or equity, in accordance with section 11 of FRS 102. A Member's participation right results in a liability unless the right to any payment is discretionary on the part of the Partnership.
Where profits are automatically divided as they arise, so the Partnership does not have an unconditional right to refuse payment, the amounts arising that are due to Members are in the nature of liabilities. They are therefore treated as an expense in the statement of comprehensive income in the relevant year. To the extent that they remain unpaid at the year end, they are shown as Loans and other debts due to members in the Balance Sheet. Losses arising in the financial year are assigned to Members’ other interest with the remaining balance being equally attributed to Members.
Conversely, where profits are divided only after a decision by the Partnership or its representative, so that the Partnership has an unconditional right to refuse payment, such profits are classed as an appropriation of equity rather than as an expense. They are therefore shown as a residual amount available for discretionary division among Members in the statement of comprehensive income and are equity appropriations in the Balance Sheet.
Other amounts applied to Members and interest on capital balances, are treated in the same way as all other divisions of profits, as described above, according to whether the Partnership has, in each case, an unconditional right to refuse payment.
All amounts due to Members that are classified as liabilities are presented in the Balance Sheet within 'Loans and other debts due to Members', are payable on demand and rank below unsecured creditors i.e member’s debt are subordinated to other creditors. Amounts due to Members that are classified as equity are shown in the Balance Sheet within 'Members' other interests'. In the Cash flow statement, transactions with members are classified as cash flow from financing activities.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
3.Accounting policies (continued)
The Partnership provides a range of benefits to employees, including annual bonus arrangements and paid holiday arrangements. Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as expense in the period in which the service is received.
As Members are responsible for their own taxation in respect of profits and losses no provision for taxation has been made in the financial statements.
(i) Investment in subsidiaries
Investment in subsidiary is held at historical cost less accumulated impairment losses.
The Partnership has taken advantage of the transition exemption under paragraph 35.10(f) of FRS 102 in respect of measurement of investments in subsidiaries on the date of transition to FRS 102 (1 April 2014) and continues to measure investments at cost.
(ii) Investment in Limited Partnerships
The investment is in private equity limited partnerships for which no public market exists and is held at fair value.
The Limited Partnerships are valued by the General Partner, as required by the Limited Partnership Agreement, based upon the latest investee information available, including financial statements and other similar information, and the nature and marketability of such investments and re-assessed by the Members of the LLP. The value of holdings in unquoted private equity limited partnerships are determined on a net asset basis; the General Partners having valued the underlying net assets in accordance with International Private Equity and Venture Capital Valuation Guidelines.
Unrealised losses and gains on valuation of investments are reflected through the Statement of Comprehensive Income.
Fair value estimation
The fair value of the financial instruments that are not traded in an active market has been determined using valuation techniques. The Partnership uses a variety of methods and makes assumptions that are based on market conditions existing at each balance sheet date. Valuation techniques used include use of earnings multiple, comparable recent arm’s length transactions and discounted cash flow analysis in accordance with the International Private Equity and Venture Capital Valuation Guidelines (“IPEVCG”) which became effective from 1 January 2019.
The valuation policies are set out below:
∙Primary valuation methods are normally used in determining fair value, namely earnings multiples and the price of a recent investment.
∙Fair values determined by earnings multiples are calculated using the following approach:
−apply a multiple that is appropriate and reasonable to maintainable earnings of the company to derive Enterprise Value incorporating within this multiple an adjustment relating to the liquidity of the investment;
−adjust the Enterprise Value derived above for surplus assets or excess liabilities and other relevant factors to derive a revised Enterprise Value;
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
3.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
3.Accounting policies (continued)
−deduct from the Enterprise Value all amounts relating to financial instruments ranking ahead of the highest ranking instrument of the Partnership in a liquidation in order to derive the Attributable Enterprise Value;
−apportion the Attributable Enterprise Value appropriately between the relevant financial instruments.
∙Earnings multiples that are used include price earnings (“P/E”), earnings before interest and tax (“EBIT”) and depreciation and amortisation (“EBITDA”).
∙Maintainable earnings are defined as earnings figures that can be relied upon. This can mean the use of historical figures but, where reliable, forecast earnings figures can be used.
∙In circumstances where the valuation of an investment by earnings is deemed inappropriate, the use of a net asset basis may be considered. Under this method, the net asset value before net debt will be computed and will be taken as the Enterprise Value.
Where a recent investment or transaction has been made in an investee company by an independent third party, then the cost of this transaction may be used as an indication of value although only for a limited period following the date of the transaction.athough only for a limited period following the date of the transaction.
∙Where the realisation of an investment is imminent and the price of the transaction has been substantially agreed, the most likely valuation will involve the use of a simple discount to the expected realisation proceeds as this is therefore deemed to be the most accurate reflection of the investment's fair value.
∙Where the Partnership is holding an instrument for which there is an available market price, such instruments would be valued at their bid prices on the reporting date.
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An analysis of turnover by class of business is as follows:
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All of the fees income and recharged expenses are revenue recognised from contracts with customers.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
4.Turnover (continued)
An analysis of turnover by geographical market is given below:
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See details of rental and other income in related party disclosures note 16.
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Social security costs, and
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The average number of employees, including members with contracts of employment, during the year was as follows:
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Number of administrative and support staff
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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The operating profit is stated after charging:
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Depreciation of tangible assets
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Expenses relating to short-term leases
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Fees payable to Partnership's auditors and their associates in respect of Client Assets ("CASS") audit work
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Fees payable to Partnership's auditors and their associates for the audit of the Partnership financial statements
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Members' remuneration charged as an expense
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Amounts arising from participation rights that give rise to a liability
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The amount of profit attributable to the member with the largest entitlement was
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The average Members’ remuneration during the year was
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The average number of members during the year was
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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Other net changes in fair value on investments at fair value through profit or loss:
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Horizon Capital LLP owns 100% of the issued Ordinary share capital of Horizon Capital (Holdings) Limited and Horizon Capital MemberCo Limited, both of which are incorporated and operate in the UK, with registered office at 2nd Floor 1-3 College Hill, London, United Kingdom, EC4R 2RA. Their principal activity is that of intermediate holding companies.
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Amounts owed by group undertakings
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Amounts owed by group undertakings are unsecured, interest free and payable on demand.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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Creditors: Amounts falling due within one year
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Provision for liabilities
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Amounts owed to undertakings in which the entity has a participating interest
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Amounts due to non-members
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Amounts owed to undertakings in which the entity has a participating interest are unsecured, interest free and payable on demand.
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Creditors: Amounts falling due after more than one year
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Provision for liabilities
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Minimum lease payments under non-cancellable leases fall due as follows:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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Leasing Agreements (continued)
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Lease liability reconciliation
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Initial recognition of new lease
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Interest expense on lease liability
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Lease liability reclassified to accruals
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The partnership has the following financial instruments:
Financial assets that are debt instruments measured at amortised cost, total of £8,206,928 (2025: £6,639,126) as follows: amount owed by group undertaking £7,816,657 (2025: £6,262,958) and other debtors £390,271 (2025: £376,168)
Financial liabilities measured at amortised cost, total of £1,615,065 (2025: £1,707,020) as follows: trade creditors £371,213 (2025: £455,764), amounts owed to group undertakings £192,855 (2025: £364,550), other creditors £534,857 (2025: £874,191), amounts due to non-member executives £Nil (2025: £12,515) and lease liability £516,140 (2025: £Nil).
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Related party transactions
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The principal activity of the Partnership is to act as the Manager of the Funds. In its capacity as Manager the Partnership has transactions with the Funds. These transactions are in the normal course of the business and have been fully disclosed below
Managed Funds
The Partnership earned management fee income from the limited partnerships it manages of £8,282,556 (2025: £4,217,891).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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Related party transactions (continued)
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At the year end, the Partnership was owed £7,829,694 (2025: £6,262,959) from the limited partnerships it manages, the breakdown of which is as follows:
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Horizon Capital Fund 2013 A Limited Partnership
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Horizon Capital Fund 2013 B Limited Partnership
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Horizon Capital Fund 2013 Friends and Family Limited Partnership
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Horizon Capital 2018 Limited Partnership
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Horizon Capital 2019 Syndication LP
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Horizon Capital 2019 Syndication (C) LP
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Horizon Capital II Limited Partnership
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Horizon Capital DMC Limited Partnership
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Horizon Capital II Raven LP
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Horizon Capital Cathedral Limited Partnership
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Horizon Capital III Limited Partnership
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Horizon Capital III Streamline Limited Partnership
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At the year end, the Partnership owed £205,892 (2025: £364,550) to the limited partnerships it manages, the breakdown of which is as follows:
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Horizon Capital Fund 2013 A Limited Partnership
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Horizon Capital 2018 SPV Limited Partnership
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In the ordinary course of the business that Partnership has transactions with Funds. These transactions are all undertaken with reference to the management agreements in place between the parties. The balances included above reflect (i) management fees owed to the Partnership; (ii) amounts owed to the Partnership for reimbursement of costs; and (iii) rebates owed by the Partnership in respect of surplus income.
Portfolio companies
The Partnership earned fee income from portfolio companies of £2,639,939 (2025: £2,357,748), recharged expense income of £325,679 (2025: £289,791) and incurred rebate fees of £315,611 (2025: £442,909). The amounts owed from portfolio companies in respect of monitoring fees was £390,271 (2025: £376,168).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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Related party transactions (continued)
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During the year the Partnership shared office space with a number of portfolio companies under a licence to occupy and recharged rent for the amount of £135,693 (2025: £246,514).
In November 2023, the Partnership became the guarantor, under an authorised guarantee arrangement, of a rental lease agreement held by Sapphire Systems Limited with Teighmore Limited and bears the liabilities under this lease. The Partnership is entitled to reclaim a portion of the expenses associated with the cost of the lease from an escrow account held by a third party, once the Partnership makes its payment obligations under the lease. The amount earned from the escrow account in the year was £604,103 (2025: £2,266,381) and is contained within other income (refer to note 5). The operating lease charges have been disclosed in note 7 and the arrangement was terminated on 31 July 2025.
Transactions with employees
During the year a total amount of £Nil (2025: £51,467) of investments was purchased by the Partnership from employees.
Transactions with members
For members’ remuneration please refer to note 8. For loans and repayments please refer to Reconciliation of Members’ Interest on page 11.
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Net funds (before members' debt)
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Loans and other debts due to members
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Other amounts due to members
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
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Provisions for liabilities
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As part of the Partnership’s property leasing arrangements there is an obligation to repair damages which incur during the life of the lease, such as wear and tear.
The provision for 2025 was utilised in August 2025 as the lease terminated on 31 July 2025. The provision for 2026 is measured at present value of remaining dilapidation provision , discounted using the lessee’s incremental borrowing rate of 5.75% increased by the interest accrued. The cost is charged to profit and losses as depreciation of ROU asset.
Due to the difficulties in predicting expenditure that will be required on return of a property to the landlord, the dilapidations provision is considered a source of significant estimation uncertainty. The provision has been calculated using historical experience of actual expenditure incurred on dilapidations and estimated lease termination date.
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In the opinion of the Members the Partnership has no ultimate controlling party.
No events have occurred between the reporting date and the date of approval of these financial statements which require disclosure.
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