ECL Howard Watson Smith LLP - LLP accounts 18.2

REGISTERED NUMBER: OC336589 (England and Wales)

REPORT OF THE MEMBERS AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019

FOR

ECL HOWARD WATSON SMITH LLP

Page

General Information

1

Report of the Members

2

Income Statement

3

Balance Sheet

4

Notes to the Financial Statements

6

DESIGNATED MEMBERS:

M L Clark

M J Wright

D R Kerins

REGISTERED OFFICE:

ECL House

Lake Street

Leighton Buzzard

Bedfordshire

LU7 1RT

REGISTERED NUMBER:

OC336589 (England and Wales)

ACCOUNTANTS:

ECL Howard Watson Smith LLP

Chartered Accountants

ECL House

Lake Street

Leighton Buzzard

Bedfordshire

LU7 1RT

The members present their report with the financial statements of the LLP for the year ended 31 March 2019.

DESIGNATED MEMBERS

The designated members during the year under review were:

M L Clark

M J Wright

D R Kerins

RESULTS FOR THE YEAR AND ALLOCATION TO MEMBERS

The profit for the year before members' remuneration and profit shares was £283,817 (2018 - £239,767 profit).

MEMBERS' INTERESTS

No amounts by any member were transferred from equity to debt and vice versa during the period and up to the date of

this report.

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;

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.

ON BEHALF OF THE MEMBERS:

M L Clark - Designated member

21 November 2019

TURNOVER

833,126

862,853

Cost of sales

301,639

370,890

GROSS PROFIT

531,487

491,963

Administrative expenses

243,416

246,802

OPERATING PROFIT

288,071

245,161

Interest receivable and similar income

8

46

288,079

245,207

Interest payable and similar expenses

4,262

5,440

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

283,817

239,767

FIXED ASSETS

Intangible assets

5

7,986

15,276

Tangible assets

6

59,623

52,769

67,609

68,045

CURRENT ASSETS

Debtors

7

317,906

340,295

Cash at bank and in hand

67,013

48,369

384,919

388,664

CREDITORS

Amounts falling due within one year

8

115,721

161,995

NET CURRENT ASSETS

269,198

226,669

TOTAL ASSETS LESS CURRENT LIABILITIES

336,807

294,714

CREDITORS

Amounts falling due after more than one year

9

29,185

27,790

NET ASSETS ATTRIBUTABLE TO MEMBERS

307,622

266,924

LOANS AND OTHER DEBTS DUE TO MEMBERS

11

307,622

266,924

TOTAL MEMBERS' INTERESTS

Loans and other debts due to members

11

307,622

266,924

The LLP is entitled to exemption from audit under Section 477 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 for the year ended 31 March 2019.

The members acknowledge their responsibilities for:

(a)	ensuring that the LLP keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the LLP as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply 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 relating to financial statements, so far as applicable to the LLP.

The financial statements have been prepared in accordance with the provisions applicable to LLPs subject to the small LLPs regime.

The financial statements were approved by the members of the LLP on 21 November 2019 and were signed by:

M J Wright - Designated member

1.	STATUTORY INFORMATION

ECL Howard Watson Smith LLP is registered in England and Wales. The LLP's registered number and

registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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" including the provisions of Section 1A "Small Entities" 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.

Turnover

Turnover represents the net supply of services provided excluding value added tax. A sale is recognised when

revenue and associated costs can be measured reliably and future economic benefits are probable. Revenue is

measured at the fair value of the consideration received or receivable for services provided in the normal course

of business, net of discounts and value added tax.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2008, has been amortised

evenly over its estimated useful life of ten years.

The LLP acquired further businesses during 2014 and 2016. Goodwill on these acquisitions is being amortised

evenly over its estimated useful life of five years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Fixtures and fittings

-

20% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on cost

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

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.

Debtors receivable and creditors payable

Debtors and creditors with no stated interest rate and receivable or payable within or after one year are recorded

at transaction price. Any losses arising from impairment are recognised in the income statement in administrative

expenses.

4.	EMPLOYEE INFORMATION

The average number of employees during the year was 16 (2018 - 18 ) .

5.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2018

129,713

Additions

2,697

At 31 March 2019

132,410

AMORTISATION

At 1 April 2018

114,437

Charge for year

9,987

At 31 March 2019

124,424

NET BOOK VALUE

At 31 March 2019

7,986

At 31 March 2018

15,276

6.	TANGIBLE FIXED ASSETS

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST

At 1 April 2018

11,238

87,487

38,366

137,091

Additions

-

31,215

6,788

38,003

Disposals

-

(27,009

)

(4,234

)

(31,243

)

At 31 March 2019

11,238

91,693

40,920

143,851

DEPRECIATION

At 1 April 2018

9,862

43,996

30,464

84,322

Charge for year

729

12,174

4,584

17,487

Eliminated on disposal

-

(13,347

)

(4,234

)

(17,581

)

At 31 March 2019

10,591

42,823

30,814

84,228

NET BOOK VALUE

At 31 March 2019

647

48,870

10,106

59,623

At 31 March 2018

1,376

43,491

7,902

52,769

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

At 1 April 2018

87,487

Additions

31,215

Disposals

(27,009

)

Transfer to ownership

(32,541

)

At 31 March 2019

59,152

DEPRECIATION

At 1 April 2018

43,997

Charge for year

12,174

Eliminated on disposal

(13,347

)

Transfer to ownership

(23,747

)

At 31 March 2019

19,077

NET BOOK VALUE

At 31 March 2019

40,075

At 31 March 2018

43,490

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.19

31.3.18

£

£

Trade debtors

194,596

214,812

Prepayments and accrued income

123,310

125,483

317,906

340,295

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.19

31.3.18

£

£

Bank loans and overdrafts

-

40,106

Hire purchase contracts

8,047

11,083

Trade creditors

6,210

4,960

Taxation and social security

85,542

83,488

Other creditors

15,922

22,358

115,721

161,995

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.19

31.3.18

£

£

Hire purchase contracts

29,185

27,790

10.	SECURED DEBTS

The following secured debts are included within creditors:

31.3.19

31.3.18

£

£

Bank overdraft

-

40,106

Hire purchase contracts

37,232

38,873

37,232

78,979

The bank overdraft facility is secured by a debenture over the book debts of the LLP.

Hire purchase contracts are secured against the relevant assets.

11.

LOANS AND OTHER DEBTS DUE TO MEMBERS

Loans and other debts due to members represent amounts introduced by members plus allocated profits less

members' drawings. In the event of a winding up, loans and other debts due to members rank equally with

unsecured creditors. No additional protection is afforded to unsecured creditors.

12.	OTHER FINANCIAL COMMITMENTS

The LLP has operating lease commitments of £93,500 (2018 - £115,500).

This all relates to a lease which expires in June 2023.