Clear Law LLP - LLP accounts 18.2

REGISTERED NUMBER: OC308339 (England and Wales)

REPORT OF THE MEMBERS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018

FOR

CLEAR LAW LLP

Page

General Information

1

Report of the Members

2

Report of the Independent Auditors

4

Income Statement

6

Other Comprehensive Income

7

Balance Sheet

8

Reconciliation of Members' Interests

9

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DESIGNATED MEMBERS:

M Corbett

Clear Legal Limited

REGISTERED OFFICE:

Units 115-119 Timber Wharf

42-50 Worsley Street

Castlefield

Manchester

M15 4LD

REGISTERED NUMBER:

OC308339 (England and Wales)

AUDITORS:

D.R.E. & Co. (Audit) Limited

Chartered Accountants & Statutory Auditors

6 Claremont Buildings

Claremont Bank

Shrewsbury

Shropshire

SY1 1RJ

The members present their report with the financial statements of the LLP for the year ended 30 September 2018.

PRINCIPAL ACTIVITY

The principal activity of the LLP in the year under review was that of the provision of legal services.

DESIGNATED MEMBERS

The designated members during the year under review were:

M Corbett

Clear Legal Limited

RESULTS FOR THE YEAR AND ALLOCATION TO MEMBERS

The profit for the year before members' remuneration and profit shares was £452,875 (2017 - £214,270 profit).

MEMBERS' INTERESTS

Each of the members holds an interest in the LLP in accordance with the amount or value of any contribution made or to

be made by him.

Members are permitted to make drawings in anticipation of profits which will be allocated to them. The amount of such

drawings is set at a level which takes into account the anticipated cash needs of the LLP.

Members' capital accounts are repayable on demand.

STATEMENT OF MEMBERS' RESPONSIBILITIES

The members are responsible for preparing the Report of the Members and the financial statements in accordance with

applicable law and regulations.

Legislation applicable to limited liability partnerships 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 (United Kingdom Accounting Standards and applicable law). Under

legislation applicable to limited liability partnerships 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 LLP and of the profit or loss of the LLP for

that period. In preparing these financial statements, the members are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

The members are 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 enable them to

ensure that the financial statements comply with the Companies Act 2006 as applied to LLPs 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 LLP and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the members are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the LLP's auditors are unaware, and each member has taken all the steps that he ought to have taken as a

member in order to make himself aware of any relevant audit information and to establish that the LLP's auditors are

aware of that information.

AUDITORS

The auditors, D.R.E. & Co. (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE MEMBERS:

M Corbett - Designated member

17 July 2019

Opinion

We have audited the financial statements of Clear Law LLP (the 'LLP') for the year ended 30 September 2018 which

comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Reconciliation of Members' Interests,

Cash Flow Statement and Notes to the Cash Flow Statement, 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 Financial Reporting Standard 102 'The Financial

Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting

Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the LLP's affairs as at 30 September 2018 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 LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the

financial statements section of our report. We are independent of the LLP in accordance with the ethical requirements

that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have

fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we

have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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 LLP'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.

Other information

The members are responsible for the other information. The other information comprises the information in the Report

of the Members, but does not include the financial statements and our Report of the Auditors 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.

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 LLPs

requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of members

As explained more fully in the Statement of Members' Responsibilities set out on page two, 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 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 a Report of the Auditors that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs

(UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the LLP's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies

Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act

2006) Regulations 2008. Our audit work has been undertaken so that we might state to the LLP's members those matters

we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by

law, we do not accept or assume responsibility to anyone other than the LLP and the LLP's members as a body, for our

audit work, for this report, or for the opinions we have formed.

Francis Nock F.C.C.A. (Senior Statutory Auditor)

for and on behalf of D.R.E. & Co. (Audit) Limited

Chartered Accountants & Statutory Auditors

6 Claremont Buildings

Claremont Bank

Shrewsbury

Shropshire

SY1 1RJ

17 July 2019

TURNOVER

4,602,599

4,521,324

Cost of sales

(715,222

)

(497,535

)

GROSS PROFIT

3,887,377

4,023,789

Administrative expenses

(3,323,150

)

(3,717,767

)

OPERATING PROFIT

5

564,227

306,022

Interest receivable and similar income

174

740

564,401

306,762

Interest payable and similar expenses

7

(111,526

)

(92,492

)

PROFIT FOR THE FINANCIAL YEAR BEFORE MEMBERS' REMUNERATION AND PROFIT SHARES AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS

452,875

214,270

PROFIT FOR THE FINANCIAL YEAR BEFORE MEMBERS' REMUNERATION AND PROFIT SHARES AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS

452,875

214,270

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

452,875

214,270

FIXED ASSETS

Tangible assets

9

1,916,076

1,988,591

CURRENT ASSETS

Debtors

10

10,317,967

7,360,174

Cash in hand

3,809

3,809

10,321,776

7,363,983

CREDITORS

Amounts falling due within one year

11

8,769,922

5,924,388

NET CURRENT ASSETS

1,551,854

1,439,595

TOTAL ASSETS LESS CURRENT LIABILITIES

3,467,930

3,428,186

CREDITORS

Amounts falling due after more than one year

12

990,651

1,152,471

NET ASSETS ATTRIBUTABLE TO MEMBERS

2,477,279

2,275,715

LOANS AND OTHER DEBTS DUE TO MEMBERS

16

2,477,279

2,275,715

TOTAL MEMBERS' INTERESTS

Loans and other debts due to members

16

2,477,279

2,275,715

The financial statements were approved by the members of the LLP on 17 July 2019 and were signed by:

M Corbett - Designated member

EQUITY

DEBT

TOTAL

Members'

Loans and other debts due to

MEMBERS'

other

members less any amounts due

INTERESTS

interests

from members in debtors

Other

Other

reserves

amounts

Total

£

£

£

Amount due to members

2,275,715

Amount due from members

-

Balance at 1 October 2017

-

2,275,715

2,275,715

Profit for the financial year available for discretionary division among members

452,875

-

452,875

Members' interests after profit for the year

452,875

2,275,715

2,728,590

Other divisions of profit

(452,875

)

452,875

-

Drawings

-

(251,311

)

(251,311

)

Amount due to members

2,477,279

Amount due from members

-

Balance at 30 September 2018

-

2,477,279

2,477,279

EQUITY

DEBT

TOTAL

Members'

Loans and other debts due to

MEMBERS'

other

members less any amounts due

INTERESTS

interests

from members in debtors

Other

Other

reserves

amounts

Total

£

£

£

Amount due to members

2,391,828

Amount due from members

-

Balance at 30 September 2016

-

2,391,828

2,391,828

Profit for the financial year available for discretionary division among members

214,270

-

214,270

Members' interests after profit for the year

214,270

2,391,828

2,606,098

Other divisions of profit

(214,270

)

214,270

-

Drawings

-

(330,383

)

(330,383

)

Amount due to members

2,275,715

Amount due from members

-

Balance at 30 September 2017

-

2,275,715

2,275,715

Cash flows from operating activities

Cash generated from operations

1

(179,092

)

257,341

Interest paid

(111,526

)

(92,492

)

Net cash from operating activities

(290,618

)

164,849

Cash flows from investing activities

Purchase of tangible fixed assets

(1,044

)

(23,368

)

Sale of tangible fixed assets

50

-

Interest received

174

740

Net cash from investing activities

(820

)

(22,628

)

Transactions with members and former

members

Payments to members

(251,311

)

(330,383

)

Cash flows from other financing activities

New loans in year

434,229

110,000

Loan repayments in year

(271,304

)

(884,723

)

162,925

(774,723

)

Net cash from financing activities

(88,386

)

(1,105,106

)

Decrease in cash and cash equivalents

(379,824

)

(962,885

)

Cash and cash equivalents at beginning of year

2

(246,644

)

716,241

Cash and cash equivalents at end of year

2

(626,468

)

(246,644

)

1.	RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR BEFORE MEMBERS' REMUNERATION AND PROFIT SHARES AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS TO CASH GENERATED FROM OPERATIONS

Period

30.9.16

Year Ended

to

30.9.18

30.9.17

£

£

Profit for the financial year before members' remuneration and profit shares available for discretionary division among members

452,875

214,270

Depreciation charges

73,559

76,260

(Profit)/loss on disposal of fixed assets

(50

)

4,794

Movement in Provision

-

43,960

Finance costs

111,526

92,492

Finance income

(174

)

(740

)

637,736

431,036

Increase in trade and other debtors

(2,274,368

)

(299,787

)

Increase in trade and other creditors

1,457,540

126,092

Cash generated from operations

(179,092

)

257,341

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these

Balance Sheet amounts:

Year ended 30 September 2018

30.9.18

1.10.17

£

£

Cash and cash equivalents

3,809

3,809

Bank overdrafts

(630,277

)

(250,453

)

(626,468

)

(246,644

)

Period ended 30 September 2017

30.9.17

30.9.16

£

£

Cash and cash equivalents

3,809

716,241

Bank overdrafts

(250,453

)

-

(246,644

)

716,241

1.	STATUTORY INFORMATION

Clear Law LLP is registered in England and Wales. The LLP's registered number and registered office address

can be found on the General Information page.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the requirements of the Statement of Recommended Practice, Accounting by Limited Liability Partnerships.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The financial statements are for the individual entity only.

The financial statements are presented in sterling (£), rounded to the nearest £1.

Significant judgements and estimates

The LLP makes estimates and assumptions concerning the future. The resulting accounting estimates will, by

definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of

causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are

addressed below.

The LLP makes an estimate of the turnover to be recognised in respect of long-term contracts and contracts for

on-going services. When assessing the turnover to be recognised, management considers the number of on-going

cases, the nature of the cases and the expected value of the work. Management make judgements regarding the

stage of completion of on-going cases in calculating the value of turnover to be recognised. The amount by

which recorded turnover is in excess of payments on account is classified as amounts recoverable on contract and

disclosed within debtors (note 10). Amounts recoverable on contract includes disbursements in respect of

on-going cases. Management make an estimate of the recoverable value of disbursements, considering factors

including the expected recoverability of related work in progress balances, the ageing profile of the

disbursements and expected receipts from applicable debtor insurance policies. Due to the value of amounts

recoverable on contract at 30th September 2018 (£8,689,717) and the uncertainty regarding the outcome of

ongoing cases, there is a significant risk of a material adjustment within the next financial year.

The LLP makes and estimate of the recoverable value of debtors. When assessing impairment of trade debtors,

management considers factors including the current credit rating of the debtor, the ageing profile of debtors and

historical experience. See note 10 for the net carrying amount of debtors.

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives

and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They

are amended when necessary to reflect current estimates, economic utilisation and the physical condition of the

assets. See note 9 for the carrying amount of tangible fixed assets, and note 3 for the useful economic lives for

each class of assets.

Turnover

Turnover represents amounts derived from the provision of services to clients during the year, excluding

discounts, rebates, value added tax and other sales taxes and including estimates of amounts not invoiced.

Revenue in respect of long-term contracts and contracts for on-going services is recognised in the income

statement by reference to the stage of completion at the period end, provided that a right to consideration has

been obtained through performance. Consideration accrues as contract activity progresses by reference to the

value of work performed.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Long leasehold property - 2% on cost

Computer equipment - 18% on reducing balance

Fixtures and fittings - 18% on reducing balance

Motor Vehicles - 18% on reducing balance

Tangible fixed assets are stated at historic cost less accumulated depreciation. Costs include original purchase

price of the asset and the costs attributable to bringing the asset to its working condition for its intended use.

Financial instruments

(i) Financial assets

Basic financial assets, including trade receivables, amounts due from group undertakings and cash and bank

balances, are initially recognised at transaction price and subsequently carried at amortised cost with an

assessment for objective evidence of impairment. Any impairment is recognised in profit or loss.

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 or control of the ownership of the asset are transferred to

another party.

(ii) Financial liabilities

Basic financial liabilities, including trade payables, amounts due to group undertakings and bank and other loans,

are initially recognised at transaction price and subsequently carried at amortised cost.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is

discharged, cancelled or expires.

Pension costs and other post-retirement benefits

The LLP operates a defined contribution pension scheme. Contributions payable to the LLP's pension scheme

are charged to profit or loss in the period to which they relate.

Amounts recoverable on contract

Contracts for services have been accounted for as long term contracts where contract activity falls into different

accounting periods. The amount recorded as turnover is ascertained by reference to the value of the work carried

out to date, as described in the turnover accounting policy. The amount by which recorded turnover is in excess

of payments on account is classified as amounts recoverable on contract. Amounts recoverable on contract also

includes disbursements in respect of on-going cases. A provision is included at the balance sheet date for

expected non-recoverable client balances and disbursements.

Members' remuneration

A member's share in the profit or loss for the year is accounted for as an allocation of profits.

Leases

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the

period of the lease.

4.	EMPLOYEE INFORMATION

Period

30.9.16

Year Ended

to

30.9.18

30.9.17

£

£

Wages and salaries

1,955,208

1,890,880

Social security costs

195,102

159,336

Other pension costs

19,707

33,133

2,170,017

2,083,349

The average number of employees during the year was as follows:

Period

30.9.16

Year Ended

to

30.9.18

30.9.17

Average number of employees

71

75

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

Period

30.9.16

Year Ended

to

30.9.18

30.9.17

£

£

Depreciation - owned assets

73,559

76,260

(Profit)/loss on disposal of fixed assets

(50

)

4,794

Operating leases

81,955

66,630

6.	AUDITORS' REMUNERATION

Period

30.9.16

Year Ended

to

30.9.18

30.9.17

£

£

Fees payable to the LLP's auditors for the audit of the LLP's financial statements

23,290

6,339

Auditors' remuneration for non audit work

11,471

19,892

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

30.9.16

Year Ended

to

30.9.18

30.9.17

£

£

Bank loan interest

111,526

92,492

8.	INFORMATION IN RELATION TO MEMBERS

Period

30.9.16

Year Ended

to

30.9.18

30.9.17

£

£

The amount of profit attributable to the member with the largest entitlement was

452,875

214,270

Period

30.9.16

Year Ended

to

30.9.18

30.9.17

The average number of members during the year was

2

2

9.	TANGIBLE FIXED ASSETS

Fixtures

Long

and

Computer

leasehold

fittings

equipment

Totals

£

£

£

£

COST

At 1 October 2017

1,795,425

425,948

5,846

2,227,219

Additions

-

-

1,044

1,044

At 30 September 2018

1,795,425

425,948

6,890

2,228,263

DEPRECIATION

At 1 October 2017

35,909

200,659

2,060

238,628

Charge for year

35,910

37,162

487

73,559

At 30 September 2018

71,819

237,821

2,547

312,187

NET BOOK VALUE

At 30 September 2018

1,723,606

188,127

4,343

1,916,076

At 30 September 2017

1,759,516

225,289

3,786

1,988,591

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.9.18

30.9.17

£

£

Amounts recoverable on contract

8,689,717

7,060,162

Other debtors

13,529

-

Amounts held on behalf of

clients

1,598,545

283,837

Prepayments

16,176

16,175

10,317,967

7,360,174