Gladman Homes LLP LLP accounts

REGISTERED NUMBER: OC332129

Gladman Homes LLP

Financial Statements

31 March 2020

Gladman Homes LLP

Financial Statements

Year ended 31 March 2020

Contents	Pages

Designated members and professional advisers	1

Members' report	2 to 4

Independent auditor's report to the members	5 to 7

Statement of comprehensive income	8

Statement of financial position	9

Reconciliation of members' interests	10 to 11

Statement of cash flows	12

Notes to the financial statements	13 to 21

The following pages do not form part of the financial statements

Members detailed schedules	23

Gladman Homes LLP

Designated Members and Professional Advisers

Designated members	Mr D J Gladman
	Mrs K J Gladman
	Mr J M S Shepherd

Registered office	Gladman House
	Alexandria Way
	Congleton Business Park
	Congleton
	Cheshire
	CW12 1LB

Auditor	MBL (Business and Tax Advisers) Ltd
	Chartered Accountants & statutory auditor
	MBL House
	16 Edward Court
	Altrincham Bus. Park
	Altrincham
	Cheshire
	WA14 5GL

Gladman Homes LLP

Members' Report

Year ended 31 March 2020

The members present their report and the financial statements of the LLP for the year ended 31 March 2020 .

Principal activities

The principal activity of the LLP was the provision of construction services.

Designated members

The designated members who served the LLP during the year were as follows:

Mr D J Gladman
Mrs K J Gladman
Mr J M S Shepherd

Policy regarding members' drawings and the subscription and repayment of amounts subscribed or otherwise contributed by members

Members are either Designated Members (DMs) or Non Designated Members (NDMs).

Profits are distributed in accordance with the Members' Agreement with profits being split into various fixed and discretionary tranches allocated to DMs and NDMs in accordance with the agreement.

New members are required to subscribe to a minimum level of capital.

Each member is paid on account of his/her share of profits such sum as the DMs may determine on a monthly basis and profits shall be allocated as drawn with the balance allocated following approval of the relevant accounts.

If any member withdraws funds in excess of his/her combined profit share for an accounting year and the balance standing to the credit of his/her current account at the start of the accounting year, that member shall repay the excess drawings to the LLP immediately on demand.

If a member leaves, the LLP shall pay him/her:

i) the amount of any capital which he/she is entitled to be credited by the LLP to his/her capital account;

ii) any undrawn balance of his/her profit share and such sums to which he/she is entitled to be credited by the LLP to his/her current account to the period ending on his/her leaving date;

iii) any sums due to him/her in respect of any individual loans.

Policy on Payment of Creditors

If the LLP is wound up, and a surplus sum remains at the conclusion of the winding up after payment of all money due to the creditors of the LLP and the expenses of the winding up, the liquidator shall pay that surplus sum to the DMs and NDMs in accordance with the respective proportions to which the members' share profits or losses of a capital nature.

Covid-19

The company responded early to Covid-19, acting decisively to protect the financial health of the business including use of the Government furlough scheme. Build activities have gradually re-commenced and are undertaken with strict adherence to Government guidance and regulations. After some minor materials supply issues in the first few weeks of resumption of construction, activity has returned to a virtually normal level. Whilst it is currently unclear what the true effect of the global pandemic will be, the partners are confident the market will remain resilient over the medium to long term. There is no denying, however, that the company will see the financial effect in the next financial year.

Members' responsibilities statement

The members are responsible for preparing the members' report and the financial statements in accordance with applicable law and regulations. Company law as applied to limited liability partnerships 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 (United Kingdom Accounting Standards and applicable law). Under company law as applied 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 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 judgments 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 limited liability partnerships 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. This report was approved by the members on 23 October 2020 and signed on behalf of the members by:

Mr J M S Shepherd

Designated Member

Registered office:

Gladman House

Alexandria Way

Congleton Business Park

Congleton

Cheshire

CW12 1LB

Gladman Homes LLP

Independent Auditor's Report to the Members of Gladman Homes LLP

Year ended 31 March 2020

Opinion

We have audited the financial statements of Gladman Homes LLP (the 'LLP') for the year ended 31 March 2020 which comprise the statement of comprehensive income, statement of financial position, reconciliation of members' interests, statement of cash flows and the related notes, 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 LLP'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; - 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.

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 auditor's 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.

Emphasis of matter

In forming our opinion on the financial statements, which is not modified, we draw your attention to the designated members view on the impact of COVID-19 as disclosed on page 3 and the consideration in the going concern basis of preparation on page 14. The full impact of COVID-19 is still unknown. It is therefore not possible to evaluate all the potential implications to the company’s trade, customers, suppliers and the wider economy.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The members are responsible for the other information. 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

In the light of the knowledge and understanding of the LLP and its environment obtained in the course of the audit, we have not identified material misstatements in the members' report. We have nothing to report in respect of the following matters where the Companies Act 2006 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 the returns; or - we have not received all the information and explanations we require for our audit; and

Responsibilities of members

As explained more fully in the members' responsibilities statement, 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 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.

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 judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the members. - Conclude on the appropriateness of the members' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the LLP's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the LLP to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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 limited liability partnerships 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 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 LLP and the LLP's members as a body, for our audit work, for this report, or for the opinions we have formed.

Elaine Jess MA FCA

(Senior Statutory Auditor)

For and on behalf of

MBL (Business and Tax Advisers) Ltd

Chartered Accountants & statutory auditor

MBL House

16 Edward Court

Altrincham Bus. Park

Altrincham

Cheshire

WA14 5GL

23 October 2020

Gladman Homes LLP

Statement of Comprehensive Income

Year ended 31 March 2020

		2020	2019
Note		£	£
Turnover	4	16,493,571	21,383,840

Cost of sales	( 14,869,079)	( 19,164,503)
	-------------	-------------
Gross profit	1,624,492	2,219,337

Administrative expenses		( 1,378,843)	( 958,306)
		------------	------------
Operating profit	7	245,649	1,261,031

Other interest receivable and similar income	8	118	302
		------------	------------
Profit for the financial year before members' remuneration and profit shares available for discretionary division among members		245,767	1,261,333
		------------	------------

All the activities of the LLP are from continuing operations.

Gladman Homes LLP

Statement of Financial Position

31 March 2020

	2020		2019
Note	£	£	£

Fixed assets

Tangible assets	10		18,854	16,411

Current assets

Debtors	11	8,151,490	10,057,965
Cash at bank and in hand		28,550	513,162
		------------	-------------
		8,180,040	10,571,127

Creditors: amounts falling due within one year	12	3,040,364		5,337,706
		------------		-------------
Net current assets			5,139,676	5,233,421
			------------	------------
Total assets less current liabilities			5,158,530	5,249,832
			------------	------------
Net assets			5,158,530	5,249,832
			------------	------------

Represented by:

Loans and other debts due to members

Other amounts	14		3,508,530	3,586,502

Members' other interests

Members' capital classified as equity	1,650,000	1,663,330
Other reserves, including the fair value reserve	–	–
	------------	------------
	5,158,530	5,249,832
	------------	------------

Total members' interests

Amounts due from members		(2,904,312)	(2,258,901)
Loans and other debts due to members	14	3,508,530	3,586,502
Members' other interests		1,650,000	1,663,330
		------------	------------
		2,254,218	2,990,931
		------------	------------

These financial statements were approved by the members and authorised for issue on 23 October 2020 , and are signed on their behalf by:

Mr J M S Shepherd

Designated Member

Registered number: OC332129

Gladman Homes LLP

Reconciliation of Members' Interests

Year ended 31 March 2020

	Members' other interests			Loans and other debts due to members less any amounts due from members in debtors		Total members' interests
	Members' capital (classified as equity)	Other reserves, including the fair value reserve	Total	Other amounts	Total	Total 2020
	£	£	£	£	£	£
Amounts due to members				3,586,502	3,586,502
Amounts due from members				(2,258,901)	(2,258,901)
				------------	------------
Balance at 1 April 2019	1,663,330	–	1,663,330	1,327,601	1,327,601	2,990,931
Profit for the financial year available for discretionary division among members		245,767	245,767			245,767
	------------	---------	------------	------------	------------	------------
Members' interests after profit for the year	1,663,330	245,767	1,909,097	1,327,601	1,327,601	3,236,698
Other division of profits		(245,767)	(245,767)	245,767	245,767	–
Repayments of capital	(13,330)		(13,330)		–	(13,330)
Drawings				(937,158)	(937,158)	(937,158)
Other movements	–	–	–	(31,992)	(31,992)	(31,992)
				------------	------------
Amounts due to members				3,508,530	3,508,530
Amounts due from members				(2,904,312)	(2,904,312)
	------------	---------	------------	------------	------------	------------
Balance at 31 March 2020	1,650,000	–	1,650,000	604,218	604,218	2,254,218
	------------	---------	------------	------------	------------	------------

Gladman Homes LLP

Reconciliation of Members' Interests (continued)

Year ended 31 March 2020

	Members' other interests			Loans and other debts due to members less any amounts due from members in debtors		Total members' interests
	Members' capital (classified as equity)	Other reserves, including the fair value reserve	Total	Other amounts	Total	Total 2019
	£	£	£	£	£	£
Amounts due to members				3,366,437	3,366,437
Amounts due from members				(2,665,305)	(2,665,305)
				------------	------------
Balance at 1 April 2018	1,663,330	–	1,663,330	701,132	701,132	2,364,462
Profit for the financial year available for discretionary division among members		1,261,333	1,261,333			1,261,333
	------------	------------	------------	------------	------------	------------
Members' interests after profit for the year	1,663,330	1,261,333	2,924,663	701,132	701,132	3,625,795
Other division of profits		(1,261,333)	(1,261,333)	1,261,333	1,261,333	–
Repayments of capital	–		–		–	–
Drawings				(634,864)	(634,864)	(634,864)
Other movements	–	–	–	–	–	–
				------------	------------
Amounts due to members				3,586,502	3,586,502
Amounts due from members				(2,258,901)	(2,258,901)
	------------	------------	------------	------------	------------	------------
Balance at 31 March 2019	1,663,330	–	1,663,330	1,327,601	1,327,601	2,990,931
	------------	------------	------------	------------	------------	------------

Gladman Homes LLP

Statement of Cash Flows

Year ended 31 March 2020

	2020	2019
	£	£

Cash flows from operating activities

Profit for the financial year	245,767	1,261,333

Adjustments for:
Depreciation of tangible assets	6,285	5,470
Other interest receivable and similar income	( 118)	( 302)
Gains on disposal of tangible assets	( 25,000)	–
Accrued expenses	19,765	12,971

Changes in:
Trade and other debtors	2,551,886	( 3,185,655)
Trade and other creditors	( 2,317,107)	2,749,673
	------------	------------
Cash generated from operations	481,478	843,490

Interest received	118	302
	---------	---------
Net cash from operating activities	481,596	843,792
	---------	---------

Cash flows from investing activities

Purchase of tangible assets	( 8,728)	–
Proceeds from sale of tangible assets	25,000	–
	---------	---------
Net cash from investing activities	16,272	–
	---------	---------

Cash flows from financing activities

Repayment of capital or debt to members	(13,330)	–
Payments to members representing a return on amounts subscribed or otherwise contributed	(937,158)	(634,864)
Other financing cash flow adjustment	(31,992)	–
	---------	---------
Net cash used in financing activities	( 982,480)	( 634,864)
	---------	---------

Net (decrease)/increase in cash and cash equivalents	( 484,612)	208,928
Cash and cash equivalents at beginning of year	513,162	304,234
	---------	---------
Cash and cash equivalents at end of year	28,550	513,162
	---------	---------

Gladman Homes LLP

Notes to the Financial Statements

Year ended 31 March 2020

1.	General information

The LLP is registered in England and Wales. The address of the registered office is Gladman House, Alexandria Way, Congleton Business Park, Congleton, Cheshire, CW12 1LB.

2.	Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', and the requirements of the Statement of Recommended Practice 'Accounting by Limited Liability Partnerships' issued in December 2018 (SORP 2018).

3.	Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

In making their going concern assessment, the designated members have prepared financial projections extending more than 12 months from the date of approval of these financial statements. The projections incorporate the known and likely impacts of COVID-19 and forecast continued profitability. These projections show that the LLP will be able to operate within their facilities over the forecasted period. The designated members consider that the LLP has adequate resources to continue in operational existence for the foreseeable future and thus the financial statements have been prepared on the going concern basis.

Judgements and key sources of estimation uncertainty

Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Useful economic lives of tangible fixed assets As described in the accounting policies note to the financial statements, depreciation of tangible fixed assets has been based on economic useful lives and residual values deemed appropriate by the designated members. Estimated useful lives and residual values are reviewed annually and revised as appropriate. Revisions take into account estimated useful lives used by other businesses operating in the sector and actual asset lives and residual values, as evidenced by disposals during current and prior accounting periods. Valuation of Amounts Recoverable on Contracts As described in the accounting policies note to the financial statements, amounts recoverable on contracts includes estimates of amounts not invoiced. This takes into account the work completed up to the year end and the contractually agreed mark-up.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. The LLP provides construction services to other entities within the Gladman group on the basis of costs incurred plus a mark up that is contractually agreed. The LLP is responsible for meeting snagging costs from the agreed mark up and snagging costs are charged to the accounts as they are incurred. In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.

Members' participation rights

Members' participation rights are the rights of a member against the LLP that arise under the members' 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, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', and the requirements of the Statement of Recommended Practice 'Accounting by Limited Liability Partnerships'. A member's participation right results in a liability unless the right to any payment is discretionary on the part of the LLP.

Amounts subscribed or otherwise contributed by members, for example members' capital, are classed as equity if the LLP has an unconditional right to refuse payment to members. If the LLP does not have such an unconditional right, such amounts are classified as liabilities.

Where profits are automatically divided as they arise, so the LLP does not have an unconditional right to refuse payment, the amounts arising that are due to members are in the nature of liabilities. They are therefore treated as an expense in the statement of comprehensive income in the relevant year. To the extent that they remain unpaid at the year end, they are shown as liabilities in the statement of financial position.

Conversely, where profits are divided only after a decision by the LLP or its representative, so that the LLP has an unconditional right to refuse payment, such profits are classed as an appropriation of equity rather than as an expense. They are therefore shown as a residual amount available for discretionary division among members in the statement of comprehensive income and are equity appropriations in the statement of financial position.

Other amounts applied to members, for example remuneration paid under an employment contract and interest on capital balances, are treated in the same way as all other divisions of profits, as described above, according to whether the LLP has, in each case, an unconditional right to refuse payment.

All amounts due to members that are classified as liabilities are presented in the statement of financial position within 'Loans and other debts due to members' and are charged to the statement of comprehensive income within 'Members' remuneration charged as an expense'. Amounts due to members that are classified as equity are shown in the statement of financial position within 'Members' other interests'.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant & Machinery	-	25% straight line
Fixtures & Fittings	-	25% straight line
Motor Vehicles	-	25% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

Financial instruments

A financial asset or a financial liability is recognised only when the LLP becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4.	Turnover

Turnover arises from:

	2020	2019
	£	£
Construction contracts	16,493,571	21,383,840
	-------------	-------------

The whole of the turnover is attributable to the principal activity of the LLP wholly undertaken in the United Kingdom.

5.	Staff costs

The average number of persons employed by the LLP during the year, including the members with contracts of employment, amounted to:

	2020	2019
	No	No
Production	1	1
Administrative	8	5
Number of project managers	13	10
	----	----
	22	16
	----	----

The aggregate employment costs incurred during the year (excluding members) were:

	2020	2019
	£	£
Wages and salaries	1,299,891	876,207
Social security costs	152,896	163,458
Other pension costs	130,872	97,288
	------------	------------
	1,583,659	1,136,953
	------------	------------

6.	Auditor's remuneration

	2020	2019
	£	£
Fees payable for the audit of the financial statements	14,500	14,727
	--------	--------

7.	Operating profit

Operating profit or loss is stated after charging/crediting:

	2020	2019
	£	£
Depreciation of tangible assets	6,285	5,470
Gains on disposal of tangible assets	( 25,000)	–
Operating lease rentals	57,695	44,223
	--------	--------

8.	Other interest receivable and similar income

	2020	2019
	£	£
Interest on cash and cash equivalents	118	302
	----	----

9.	Information in relation to members

	2020	2019
	£	£
Highest paid members remuneration	1	–
	----	----

	2020	2019
	No	No
Average number of members	3	3
	----	----

10.	Tangible assets

	Plant and machinery	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£
Cost
At 1 April 2019	311,423	–	38,900	350,323
Additions	–	8,728	–	8,728
Disposals	( 87,436)	–	–	( 87,436)
	---------	-------	--------	---------
At 31 March 2020	223,987	8,728	38,900	271,615
	---------	-------	--------	---------
Depreciation
At 1 April 2019	311,423	–	22,489	333,912
Charge for the year	–	2,182	4,103	6,285
Disposals	( 87,436)	–	–	( 87,436)
	---------	-------	--------	---------
At 31 March 2020	223,987	2,182	26,592	252,761
	---------	-------	--------	---------
Carrying amount
At 31 March 2020	–	6,546	12,308	18,854
	---------	-------	--------	---------
At 31 March 2019	–	–	16,411	16,411
	---------	-------	--------	---------

11.	Debtors

	2020	2019
	£	£
Trade debtors	4,294,054	6,472,907
Prepayments and accrued income	51,636	27,421
Amounts due from members	2,904,312	2,258,901
Amounts recoverable on contracts	583,619	690,648
Other debtors	317,869	608,088
	------------	-------------
	8,151,490	10,057,965
	------------	-------------

12. Creditors: amounts falling due within one year

	2020	2019
	£	£
Trade creditors	2,940,179	5,271,317
Accruals and deferred income	53,108	33,343
Social security and other taxes	47,077	33,046
	------------	------------
	3,040,364	5,337,706
	------------	------------

13.	Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 130,872 (2019: £ 97,288 ).

14.	Loans and other debts due to members

	2020	2019
	£	£
Amounts owed to members in respect of profits	3,508,530	3,586,502
	------------	------------

15.	Analysis of changes in net debt

	At 1 Apr 2019	Cash flows	At 31 Mar 2020
	£	£	£
Cash at bank and in hand	513,162	(484,612)	28,550
	---------	---------	--------
Net debt (before members' debt)	513,162	(484,612)	28,550
	---------	---------	--------
Loans and other debts due to members
Other amounts	(3,586,502)	77,972	(3,508,530)
	------------	---------	------------
Net debt	( 3,073,340)	( 406,640)	( 3,479,980)
	------------	---------	------------

16.	Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2020	2019
	£	£
Not later than 1 year	56,878	32,805
Later than 1 year and not later than 5 years	64,068	27,589
	---------	--------
	120,946	60,394
	---------	--------

17.	Related party transactions

During the year the LLP entered into the following transactions with related parties:

	Transaction value		Balance owed by/(owed to)
	2020	2019	2020	2019
	£	£	£	£
Gladman Developments Limited	–	–	497,994	7,866
Trustees of the Gladman SIPPS	–	–	576	576
Gladman Retirement Living Limited	–	–	3,784,825	6,451,943
Gladman Commercial Properties	–	–	379	( 27)
Gladman Estate Management Limited	–	–	7,323	2,317
	----	----	------------	------------

Gladman Homes LLP

Notes to the Financial Statements (continued)

Year ended 31 March 2020

17. Related party transactions (continued)

During the year, the LLP made sales totalling £16,493,571 (2019 - £21,383,840) to companies which the designated members have an interest. During the year, the LLP was charged rent totalling £10,000 (2019 - £5,000) to companies which the designated members have an interest. Gladman Developments Limited is a company in which Mr DJ Gladman, Mrs KJ Gladman and Mr JMS Shepherd have an interest. Trustees of the Gladman SIPPS is a pension scheme in which Mr DJ Gladman, Mrs KJ Gladman and Mr JMS Shepherd are trustees and beneficiaries. Gladman Retirement Living Limited is a company in which Mr DJ Gladman, Mrs KJ Gladman, and Mr JMS Shepherd have an interest. Gladman Commercial Properties is a company in which Mr DJ Gladman, Mrs KJ Gladman and Mr JMS Shepherd have an interest. Gladman Estate Management Limited is a company in which Mr DJ Gladman, Mrs KJ Gladman and Mr JMS Shepherd have an interest.

18.	Controlling party

The LLP was under the control of the designated members throughout the current and previous year.

Gladman Homes LLP

Management Information

Year ended 31 March 2020

The following pages do not form part of the financial statements.

Gladman Homes LLP

Members Detailed Schedules

Year ended 31 March 2020

Members capital account summary for the year ending 31 March 2020

	Equity
	Members capital
	£
Mr D J Gladman	948,750
Mrs K J Gladman	288,750
Mr J M S Shepherd	412,500
	------------
Total	1,650,000
	------------

Loans and other debts due to members. Summary as at 31 March 2020

	Members current account
	£
Mrs K J Gladman	3,508,530
	------------

Loans and other debts due from members. Summary as at 31 March 2020

	Members current account
	£
Mr D J Gladman	1,575,049
Mr J M S Shepherd	1,329,263
	------------
Total	2,904,312
	------------