Hanne & Co Solicitors LLP is a limited liability partnership domiciled and incorporated in England and Wales. The registered office is The Candle Factory, 112 York Road, Battersea, London, United Kingdom, SW11 3RS.
The limited liability partnership's principal activities are disclosed in the Members' Report.
These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
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.
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.
The members agree that one tranche of the profit is to be split equally amongst them. The remaining tranche of profit shall be agreed after the year end and will be split according to the agreed criteria noted in the LLP agreement.
Drawings are treated as payments on account of profit allocation and will not be repayable unless a member has insufficient amounts held to the credit of individual partners. Any drawings in excess of total amounts held would be included within other debtors.
The capital requirements of the partnership are determined by the members and are reviewed regularly. Each member is required to subscribe a proportion of this capital. The amount of capital subscribed by each member is determined by the partnership from time to time. On leaving the partnership, a members’ capital classified as debt is usually repaid over 5 years.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
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.
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.
Basic financial instruments are measured at amortised cost. The limited liability partnership has no other financial instruments or basic financial instruments measured at fair value.
Provisions are recognised when the limited liability partnership has a legal or constructive present obligation as a result of a past event, it is probable that the limited liability partnership will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
The provision made for dilapidations is in respect of property leases which contain requirements for the premises to be returned to their original state prior to conclusion of the lease term. The provision for claims represents the estimated cost to the firm of defending and settling claims where a liability is considered by the members to be probable, after allowing for recoveries under insurance policies.
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the limited liability partnership is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
In the application of the limited liability partnership’s accounting policies, the members are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:
Some elements of work in progress in these financial statements are estimated. This estimate is necessary as it is not possible to determine the remaining work in progress amount directly from the accounting system. The estimate is calculated and reviewed by management each year before the financial statements are prepared. A combination of factors is considered, including the age of the WIP, the overall value of the case and the previous payment on account that has been received. These estimates may differ from the actual results due to a variety of factors such as efficiency of working, accuracy of assessment of progress to date and client decision making.
The average number of persons (excluding members) employed by the partnership during the year was
Included within other creditors is the LLP's bank overdraft. This overdraft is secured by a debenture and floating charge over the assets of the LLP. The designated members have provided personal guarantees to the firm's banker in respect of the overdrafts, such guarantee being limited to £200,000, being £100,000 per member. As at 31 March 2026, the bank overdraft was £210,649 (2025: £18,408).
Also included within other creditors is an amount due to the Legal Aid Agency ("LAA") in the sum of £422,266 (2025: £nil). The non-current portion of this amount is shown within creditors amounts falling due after more than one year. The amount is unsecured and interest free.
In the event of a winding up the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.
At the reporting end date the limited liability partnership had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
During the year, a member drew amounts in excess of their profit entitlement. At the year‑end, a balance of £37,486 (2025: £nil) was due from a member. This amount is shown within other debtors. The balance is unsecured, interest‑free and will be repaid through future profit allocations.