Company No:
Contents
Note | 2023 | 2022 | ||
£ | £ | |||
Fixed assets | ||||
Intangible assets | 4 |
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Tangible assets | 5 |
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1,384,703 | 228,429 | |||
Current assets | ||||
Debtors | 6 |
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Cash at bank and in hand | 7 |
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1,655,125 | 1,268,616 | |||
Creditors: amounts falling due within one year | 8 | (
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Net current assets | 632,639 | 573,764 | ||
Total assets less current liabilities | 2,017,342 | 802,193 | ||
Creditors: amounts falling due after more than one year | 9 | (
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Provision for liabilities | 10 | (
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Net assets attributable to members |
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Represented by | ||||
Loans and other debts due to members within one year | ||||
Members' capital classified as a liability | 131,246 | 131,246 | ||
Other amounts | 330,264 | 179,081 | ||
461,510 | 310,327 | |||
Members' other interests | ||||
Other reserves | 194,331 | 0 | ||
194,331 | 0 | |||
655,841 | 310,327 | |||
Total members' interests | ||||
Loans and other debts due to members | 14 | 461,510 | 310,327 | |
Members' other interests | 194,331 | 0 | ||
655,841 | 310,327 |
Members' responsibilities:
The financial statements of Curtis Law LLP (registered number:
L C Atwill
Designated member |
EQUITY Members' other interests |
DEBT Loans and other debts due to members less any amounts due from members in debtors |
Total members' interests | |||
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Other reserves | Members' capital (classified as debt) | Other amounts | Total | Total | |
£ | £ | £ | £ | £ | |
Amounts due to members | 131,246 | 307,533 | 438,779 | ||
Balance at 01 May 2021 | 0 | 131,246 | 307,533 | 438,779 | 438,779 |
Members' remuneration charged as an expense, including employment and retirement benefit costs | 0 | 0 | 192,139 | 192,139 | 192,139 |
Members' interest after result for the financial year | 0 | 131,246 | 499,672 | 630,918 | 630,918 |
Drawings | 0 | 0 | (320,591) | (320,591) | (320,591) |
Amounts due to members | 131,246 | 179,081 | 310,327 | ||
Balance at 30 April 2022 | 0 | 131,246 | 179,081 | 310,327 | 310,327 |
Members' remuneration charged as an expense, including employment and retirement benefit costs | 0 | 0 | 455,622 | 455,622 | 455,622 |
Members' interest after result for the financial year | 0 | 131,246 | 634,703 | 765,949 | 765,949 |
Drawings | 0 | 0 | (304,439) | (304,439) | (304,439) |
Capital contribution reserve | 194,331 | 0 | 0 | 0 | 194,331 |
Amounts due to members | 131,246 | 330,264 | 461,510 | ||
Balance at 30 April 2023 | 194,331 | 131,246 | 330,264 | 461,510 | 655,841 |
There are no existing restrictions or limitations which impact the ability of the members of the LLP to reduce the amount of Members' other interests
The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
Curtis Law LLP is a limited liability partnership, incorporated in the United Kingdom under the Limited Liability Partnerships Act 2000 and is registered in England and Wales. The address of the LLP's registered office is 87-89 Mutley Plain, Plymouth, PL4 6JJ, United Kingdom.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Limited Liability Partnerships Act 2000 as applicable to companies subject to the small companies regime and the requirements of the Statement of Recommended Practice "Accounting by Limited Liability Partnerships".
The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.
The members have assessed the Statement of Financial Position and likely future cash flows at the date of approving these financial statements. The members have a reasonable expectation that the LLP has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Services provided to clients during the year, which at the Statement of Financial Position date have not been billed to clients, have been recognised as turnover in accordance with Section 23 of FRS102: Revenue. Turnover recognised in this manner is based on an assessment of the fair value of services provided at the Statement of Financial Position date. Unbilled revenue is included in debtors.
Defined contribution schemes
The LLP operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the LLP pays fixed contributions into a separate entity. Once the contributions have been paid the LLP has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the LLP in independently administered funds.
Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Goodwill |
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Depreciation is provided on the following basis:
Leasehold improvements |
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Fixtures and fittings |
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Office equipment |
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Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.
Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
The Company only enters into basic financial instruments and transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and amounts owed to members.
Financial assets
Basic financial assets, including trade and other debtors, 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.
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) 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.
Financial liabilities
Basic financial liabilities, including trade and other creditors, accruals and amounts owed to members, 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.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial 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.
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.
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Statement of Comprehensive Income at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
Government grants consist of the Coronavirus Job Retention Scheme grants for furloughed staff and the Coronavirus Business Interruption Loan Scheme ("CBILS") grant for bank loan interest. Furlough income is receivable as compensation for salary expenses already incurred and to give immediate financial support to the LLP with no future related costs. This income is recognised in the Statement of Comprehensive Income in the same period as the related expenditure. Interest in respect of the CBILS loan is paid by the government directly to the LLP bankers covering the first 12 months of the loan.
Post retirement payments to former partners of the LLP are provided for in full. The amount provided is recognised as the best estimate of the expenditure required to settle that obligation and is discounted to present value. The post retirement payment to former partners is at a fixed amount per annum for a period of 10 years. The post retirement payment is accounted for as a financial liability in accordance with section 11 of FRS102 and is measured at amortised cost using the effective interest method. The increase of the discounted amount in the period is charged to the Statement of Comprehensive Income as interest payable. Any changes due to changes in assumptions are charged to the Statement of Comprehensive Income as administrative expenses.
A division of profits is the mechanism by which the profits of an LLP become a debt due to members. A division may be automatic or discretionary, may relate to some or all of the profits for a financial period and may take place during or after the end of a financial period.
An automatic division of profits is one where the LLP does not have an unconditional right to avoid making a division of an amount of profits based on the members' agreement in force at the time, whereas a discretionary division of profits requires a decision to be made by the LLP, which it has the unconditional right to avoid making.
The LLP divides profits automatically. Automatic divisions of profits are recognised as 'Members' remuneration charged as an expense' in the Statement of Comprehensive Income.
2023 | 2022 | ||
Number | Number | ||
Monthly average number of persons employed by the LLP during the year |
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Profits are shared among the members in accordance with agreed profit sharing arrangements. Members are required to make their own provision for pensions from their profit shares.
2023 | 2022 | ||
Number | Number | ||
Average number of members during the financial year | 4 | 4 |
Amounts paid under employment contract was £Nil (2022: £9,205) and amounts paid under the terms of the LLP agreement was £455,622 (2022: £192,139).
Goodwill | Total | ||
£ | £ | ||
Cost | |||
At 01 May 2022 |
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Additions |
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At 30 April 2023 |
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Accumulated amortisation | |||
At 01 May 2022 |
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Charge for the financial year |
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At 30 April 2023 |
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Net book value | |||
At 30 April 2023 |
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At 30 April 2022 |
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Leasehold improve- ments |
Fixtures and fittings | Office equipment | Total | ||||
£ | £ | £ | £ | ||||
Cost | |||||||
At 01 May 2022 |
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Additions |
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Disposals |
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At 30 April 2023 |
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Accumulated depreciation | |||||||
At 01 May 2022 |
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Charge for the financial year |
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Disposals |
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At 30 April 2023 |
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Net book value | |||||||
At 30 April 2023 |
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At 30 April 2022 |
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2023 | 2022 | ||
£ | £ | ||
Trade debtors |
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Other debtors |
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2023 | 2022 | ||
£ | £ | ||
Cash at bank and in hand |
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Less: Bank overdrafts | (
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(127,797) | (399,543) |
2023 | 2022 | ||
£ | £ | ||
Bank loans and overdrafts |
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Trade creditors |
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Accruals |
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Other taxation and social security |
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Other creditors |
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Bank loans and overdrafts are secured by a debenture containing fixed and floating charges over the assets of the LLP.
2023 | 2022 | ||
£ | £ | ||
Bank loans |
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Other loans |
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Other creditors |
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Bank loans are secured by a debenture containing fixed and floating charges over the assets of the LLP.
Amounts repayable after more than 5 years are included in creditors falling due over one year:
2023 | 2022 | ||
£ | £ | ||
Other creditors (repayable by instalments) |
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2023 | 2022 | ||
£ | £ | ||
Legal provision |
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Other provisions |
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The legal provision above is in relation to potential dilapidation provisions for the LLP's various properties at the end of the respective lease (suitably discounted). This provision is expected to reverse when the works are carried out.
The other provision represents the present value of the purchase of the personal goodwill from two retiring members discounted at the rate of 5% per annum. This provision reversed post year-end on 1 October 2023 when the Partners retired.
Commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
2023 | 2022 | ||
£ | £ | ||
within one year |
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between one and five years |
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The designated members of the LLP are considered to be key management responsible for planning, directing and controlling the activities of the LLP. Transactions with the designated members are shown in the reconciliation of members interests.
Analysis of the maturity of bank loans is given below:
2023 | 2022 | ||
£ | £ | ||
Amounts falling due within one year | 41,031 | 45,527 | |
Amounts falling due 1-2 years | 37,316 | 41,931 | |
Amounts falling due 2-5 years | 0 | 36,258 | |
78,347 | 123,716 |
Analysis of the maturity of other loans is given below:
2023 | 2022 | ||
£ | £ | ||
Amounts falling due within one year | 50,000 | 50,000 | |
Amounts falling due 1-2 years | 50,000 | 50,000 | |
Amounts falling due 2-5 years | 62,500 | 112,500 | |
Amounts falling due after more than 5 years | 0 | 0 | |
162,500 | 212,500 |
2023 | 2022 | ||
£ | £ | ||
Members' capital treated as debt | 131,246 | 131,246 | |
Other amounts due to members | 330,264 | 179,081 | |
461,510 | 310,327 |
Loans and other debts due to members may be further analysed as follows:
2023 | 2022 | ||
£ | £ | ||
Falling due within one year | 461,510 | 310,327 |
Loans and other debts due to members rank equally with debts due to ordinary creditors in the event of a winding up.
The amount of capital each member is required to subscribe is in accordance with the Members Agreement. Capital is repayable on retirement. Liabilities to former members are shown within other creditors.