Limited Liability Partnership Registration No. OC404673 (England and Wales)
AVERY ROW CAPITAL PARTNERS LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
AVERY ROW CAPITAL PARTNERS LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
Mr P Patel
Avery Row Capital Services (UK) Limited
Limited liability partnership number
OC404673
Registered office
38 Berkeley Square
London
UK
W1J 5AE
Auditor
Lindeyer Francis Ferguson Ltd
North House
198 High Street
Tonbridge
Kent
TN9 1BE
Business address
Octagon Point, St Paul's
5 Cheapside
London
EC2V 6AA
AVERY ROW CAPITAL PARTNERS LLP
CONTENTS
Page
Members' report
1 - 2
Independent auditor's report
3 - 4
Statement of comprehensive income
5
Statement of financial position
6
Reconciliation of members' interests
7
Statement of cash flows
8
Notes to the financial statements
9 - 14
AVERY ROW CAPITAL PARTNERS LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 31 MARCH 2020
- 1 -
The members present their annual report and financial statements for the year ended 31 March 2020.
Principal activities
The
limited liability partnership
's principal activity during the year ended 31 March 2020 related to the provision of financial advisory and asset management services. The LLP currently provides investment advisory services to Avery Row Capital Partners LP.
Financial Conduct Authority
The LLP is regulated by the Financial Conduct Authority and must therefore adhere to the rules set out by the Financial Conduct Authority. The Designated Members of the LLP have undertaken to review the LLP's procedures regularly to ensure that they are fully compliant with the rules of the Financial Conduct Authority.
Financial Instruments
During the period under review, the LLP's financial instruments comprised bank balances and various other financial instruments which have arisen directly from its operations.
Members' drawings, contributions and repayments
The members' drawing policy allows each member to draw a proportion of their profit share, subject to the cash requirements of the business.
A member's capital requirement is linked to their share of profit and the financing requirement of the
l
imited liability partnership
.
There is no opportunity for appreciation of the capital subscribed. Just as incoming members introduce their capital at "par", so the retiring members are repaid their capital at "par".
Designated members
The designated members who held office during the year and up to the date of signature of the financial statements were as follows:
Mr P Patel
Avery Row Capital Services (UK) Limited
Auditor
The auditor, Lindeyer Francis Ferguson Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
AVERY ROW CAPITAL PARTNERS LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 2 -
Statement of members' responsibilities
The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the limited liability partnership will continue in business.
The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
Each of the members in office at the date of approval of this annual report confirms that:
-
so far as the members are aware, there is no relevant audit information of which the limited liability partnership's auditor is unaware, and
-
the members have taken all the steps that they ought to have taken as members in order to make themselves aware of any relevant audit information and to establish that the limited liability partnership's auditor is aware of that information.
On behalf of the members
Mr P Patel
Designated Member
AVERY ROW CAPITAL PARTNERS LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AVERY ROW CAPITAL PARTNERS LLP
- 3 -
Opinion
We have audited the
financial statements of Avery Row Capital Partners LLP (the 'limited liability partnership') for the year ended 31 March 2020 which comprise the statement of comprehensive income, the statement of financial position, the reconciliation of members' interests, the statement of cash flows and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the limited liability partnership's affairs as at 31 March 2020 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006 as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's responsibilities for the audit of the financial statements
section of our report. We are independent of the
limited liability partnership
in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the members' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the members have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the
limited liability partnership
’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The members are responsible for the other information. The other information comprises the information included in the members' report, other than the financial statements and our auditor’s report thereon. Our opinion on the
financial statements
does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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 such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in 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 in this regard.
AVERY ROW CAPITAL PARTNERS LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AVERY ROW CAPITAL PARTNERS LLP
- 4 -
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 as applied to limited liability partnerships requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of members
As explained more fully in the members'
r
esponsibilities
s
tatement
,
the members are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the members
determine is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the members are responsible for assessing the
limited liability partnership'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the members either intend to liquidate the
limited liability partnership
or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
This report is made solely to the limited liability partnership's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the limited liability partnership's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the limited liability partnership and the limited liability partnership's members as a body, for our audit work, for this report, or for the opinions we have formed.
Jonathan Healey FCA (Senior Statutory Auditor)
for and on behalf of Lindeyer Francis Ferguson Ltd
8 July 2020
Chartered Accountants
Statutory Auditor
North House
198 High Street
Tonbridge
Kent
TN9 1BE
AVERY ROW CAPITAL PARTNERS LLP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2020
- 5 -
2020
2019
Notes
£
£
Revenue
3
108,479
113,976
Administrative expenses
(108,483)
(113,980)
Operating loss
4
(4)
(4)
Investment income
4
4
Profit for the financial year before members' remuneration and profit shares
Profit for the financial year before members' remuneration and profit shares
Members' remuneration charged as an expense
5
-
-
Profit for the financial year available for discretionary division among members
-
-
Total comprehensive income for the year
-
-
The Income Statement has been prepared on the basis that all operations are continuing operations.
AVERY ROW CAPITAL PARTNERS LLP
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2020
31 March 2020
- 6 -
2020
2019
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
6
3,215
3,294
Current assets
Trade and other receivables
7
591,567
474,918
Cash and cash equivalents
57,002
34,597
648,569
509,515
Current liabilities
8
(551,784)
(412,809)
Net current assets
96,785
96,706
Total assets less current liabilities and net assets attributable to members
100,000
100,000
Represented by:
Members' other interests
Members' capital classified as equity
100,000
100,000
100,000
100,000
Total members' interests
Members' other interests
100,000
100,000
The financial statements were approved by the members and authorised for issue on 7 July 2020 and are signed on their behalf by:
07 July 2020
Mr P Patel
Designated member
Limited Liability Partnership Registration No. OC404673
AVERY ROW CAPITAL PARTNERS LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 MARCH 2020
- 7 -
Current financial year
EQUITY
TOTAL
Members' other interests
MEMBERS'
INTERESTS
Members' capital (classified as equity)
Total
2020
£
£
Members' interests at 1 April 2019
100,000
100,000
Profit for the financial year available for discretionary division among members
-
-
Members' interests after loss for the year
100,000
100,000
Members' interests at 31 March 2020
100,000
100,000
Prior financial year
EQUITY
TOTAL
Members' other interests
MEMBERS'
INTERESTS
Members' capital (classified as equity)
Total
2019
£
£
Members' interests at 1 April 2018
100,000
100,000
Profit for the financial year available for discretionary division among members
-
-
Members' interests after loss for the year
100,000
100,000
Members' interests at 31 March 2019
100,000
100,000
AVERY ROW CAPITAL PARTNERS LLP
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2020
- 8 -
2020
2019
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
12
23,201
(28,942)
Investing activities
Purchase of property, plant and equipment
(800)
(3,275)
Proceeds on disposal of property, plant and equipment
-
1,000
Interest received
4
4
Net cash used in investing activities
(796)
(2,271)
Net increase/(decrease) in cash and cash equivalents
22,405
(31,213)
Cash and cash equivalents at beginning of year
34,597
65,810
Cash and cash equivalents at end of year
57,002
34,597
AVERY ROW CAPITAL PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
- 9 -
1
Accounting policies
Limited liability partnership information
Avery Row Capital Partners LLP is a limited liability partnership incorporated in England and Wales
with registered number
OC404673
. The registered office is
38 Berkeley Square
,
London
, UK,
W1J 5AE
.
The limited liability partnership's principal activities are disclosed in the Members' Report.
1.1
Accounting convention
These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in January 2017, together with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the limited liability partnership.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
As a direct result of COVID19, the members took immediate proactive steps to address their ongoing operational cashflow requirements and to maintain their regulatory capital obligations, by reducing non essential expenditure.
At the time of approving the financial statements, the
members therefore have
a reasonable expectation that the
limited liability partnership
has adequate resources to continue in operational existence for the foreseeable future. Thus the members continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Revenue
represents the value of recharged costs net of value added tax.
1.4
Members' participating interests
Members' participation rights are the rights of a member against the LLP that arise under the
m
embers' agreement (for example, in respect of amounts subscribed or otherwise contributed
remuneration and profits).
Members' participation rights in the earnings or assets of the LLP are analysed between those that
are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of
FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by
members, for example members' capital, are classed as liabilities unless the LLP has an
unconditional right to refuse payment to members, in which case they are classified as equity.
All amounts due to members that are classified as liabilities are presented within 'Loans and other
debts due to members' and, where such an amount relates to current year profits, they are recognised
within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result.
Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts
recoverable from members are presented as debtors and shown as amounts due from members
within members’ interests.
Where there exists an asset and liability component in respect of an individual member’s participation rights, they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the recognised amounts, and it intends either to settle on a net basis or to settle and realise these amounts simultaneously, in which case they are presented net.
AVERY ROW CAPITAL PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 10 -
1.5
Property, plant and equipment
Property, plant and equipment
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:
Fixtures, fittings and equipment
20 - 33% Straight Line
Computers
33% Straight Line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
1.6
Cash and cash equivalents
Cash and cash equivalents include cash in hand,
bank current accounts and
deposits held at call with banks
.
1.7
Financial instruments
The company only has financial instruments which are classified as basic financial instruments.
Short-term debtors and creditors are measured at the settlement value. Any losses from impairment are recognised in profit and loss.
1.8
Equity instruments
Each member is required to make a capital contribution on admission to the LLP up to the amount of his or her Capital Commitment under the LLP agreement. A member is only entitled to a repayment of capital at the absolute discretion of the LLP's Management Committee provided an equal amount of capital is contributed by another member or the LLP has received prior written approval from the Financial Conduct Authority that it may return capital without an equal amount of capital being contributed by another member. Capital contributions are therefore recognised as equity in accordance with the relevant accounting standards.
1.9
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss
so as to produce a constant periodic rate of interest on the remaining balance of the liability.
AVERY ROW CAPITAL PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 11 -
2
Judgements and key sources of estimation uncertainty
In the application of the limited liability partnership’s accounting policies, the members are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Revenue
An analysis of the
limited liability partnership's
revenue is as follows:
2020
2019
£
£
Turnover
Recharged expenses
108,479
113,976
4
Operating loss
2020
2019
Operating loss for the year is stated after charging/(crediting):
£
£
Fees payable to the LLP's auditor for the audit of the LLP's financial statements
5,450
5,450
Depreciation of owned property, plant and equipment
879
1,304
Profit on disposal of property, plant and equipment
-
(488)
5
Information in relation to members
2020
2019
Number
Number
Average number of members during the year
2
2
AVERY ROW CAPITAL PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 12 -
6
Property, plant and equipment
Fixtures, fittings and equipment
Computers
Total
£
£
£
Cost
At 1 April 2019
770
5,328
6,098
Additions
-
800
800
At 31 March 2020
770
6,128
6,898
Depreciation and impairment
At 1 April 2019
730
2,074
2,804
Depreciation charged in the year
40
839
879
At 31 March 2020
770
2,913
3,683
Carrying amount
At 31 March 2020
-
3,215
3,215
At 31 March 2019
40
3,254
3,294
7
Trade and other receivables
2020
2019
Amounts falling due within one year:
£
£
Amounts due from group undertakings
568,860
447,152
Other receivables
4,218
5,078
Prepayments
5,629
9,828
578,707
462,058
2020
2019
Amounts falling due after more than one year:
£
£
Other receivables
12,860
12,860
Total debtors
591,567
474,918
The debtor balance due after one year relates to a rent deposit for the use of the Argyll Club. The rent relates to the use of Octagon Point, St Pauls, London, EC2V 6AA.
AVERY ROW CAPITAL PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 13 -
8
Current liabilities
2020
2019
£
£
Trade payables
18,667
9,388
Amounts owed to group undertakings
527,166
397,019
Accruals and deferred income
5,951
6,402
551,784
412,809
9
Operating lease commitments
At the reporting end date the limited liability partnership had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2020
2019
£
£
Within one year
5,626
-
10
Related party transactions
During the year the LLP
recharged costs
of £108,479 (2019 - £113,976
) to
Avery Row Capital Partners LP,
a Limited Partnership incorporated in the Cayman Islands and controlled by Mr P Patel. The LP owed the LLP a total of £555,484 (2019 - £447,152) at the year end. The LLP is also owed £13,229 (2019 - £nil) by NK CTG Ventures LP, a Limited Partnership incorporated in Guernsey and controlled by Mr P Patel.
At the year end, the LLP owed £455,000 (2019 - £325,000) to Avery Row Capital GP Limited, a company incorporated in the Cayman Islands and controlled by Mr P Patel, and owed £72,166 (2019 - £72,019
) to Avery Row Capital Services (UK) Limited, its immediate parent company.
11
Ultimate controlling party
The controlling member is Avery Row Capital Services (UK) Limited, a company incorporated in the United Kingdom and controlled by Mr P Patel. The financial statements of Avery Row Capital Services (UK) Limited can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.
AVERY ROW CAPITAL PARTNERS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 14 -
12
Cash generated from/(absorbed by) operations
2020
2019
£
£
Loss for the year
-
-
Adjustments for:
Investment income recognised in profit or loss
(4)
(4)
Gain on disposal of property, plant and equipment
-
(489)
Depreciation and impairment of property, plant and equipment
879
1,304
Movements in working capital:
Increase in trade and other receivables
(116,649)
(100,142)
Increase in trade and other payables
138,975
70,389
Cash generated from/(absorbed by) operations
23,201
(28,942)
13
Analysis of changes in net funds
1 April 2019
Cash flows
31 March 2020
£
£
£
Cash at bank and in hand
34,597
22,405
57,002
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