Old Mill Financial Planning LLP - LLP accounts 20.1

REGISTERED NUMBER: OC320853 (England and Wales)

Report of the Members and

Financial Statements for the Year Ended 30 June 2020

for

Old Mill Financial Planning LLP

Page

General Information

1

Report of the Members

2

Report of the Independent Auditors

4

Statement of Comprehensive Income

6

Balance Sheet

7

Reconciliation of Members' Interests

8

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

13

DESIGNATED MEMBERS:

S M H Cole

Old Mill Jackson Limited

J R G Stonehouse

K C Whitmarsh

I Carlson

REGISTERED OFFICE:

Maltravers House

Petters Way

Yeovil

Somerset

BA20 1SH

REGISTERED NUMBER:

OC320853 (England and Wales)

AUDITORS:

Kirk Hills

Chartered Accountants and Statutory Auditors

5 Barnfield Crescent

Exeter

Devon

EX1 1QT

The members present their report with the financial statements of the LLP for the year ended 30 June 2020.

PRINCIPAL ACTIVITY

The principal activity of the LLP in the year under review was that of independent financial advisors.

DESIGNATED MEMBERS

The designated members during the year under review were:

M J Butler - Resigned 31 July 2019

S M H Cole

Old Mill Jackson Limited

J R G Stonehouse

K C Whitmarsh

I Carlson

RESULTS FOR THE YEAR AND ALLOCATION TO MEMBERS

The profit for the year before members' remuneration and profit shares was £3,034,182 (2019 - £2,633,874 profit).

MEMBERS' INTERESTS

The LLP has equity classes of members as defined by the members' agreement. Equity members are required to contribute capital to the LLP, the amount of which is determined by their position on the equity scale.

Equity members receive an allocation of the residual profits earned, which are allocated on a discretionary basis.

POLICY ON MEMBERS' DRAWINGS

Members are permitted to make drawings in anticipation of profits which will be allocated to them. The amount of such drawings is set at the beginning of each financial year, taking into account anticipated working capital requirements of the LLP.

New members are required to subscribe for a minimum level of capital and in subsequent years members are invited to subscribe for further capital, the amounts of which is determined by the performance and seniority of those members. On retirement, capital is repaid to members.

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 or she ought to have taken as a member in order to make himself or herself aware of any relevant audit information and to establish that the LLP's auditors are aware of that information.

AUDITORS

The auditor, Kirk Hills, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE MEMBERS:

S M H Cole - Designated member

3 December 2020

Opinion

We have audited the financial statements of Old Mill Financial Planning LLP (the 'LLP') for the year ended 30 June 2020 which comprise the Statement of 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 June 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 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.

Adrian Hills ACA (Senior Statutory Auditor)

for and on behalf of Kirk Hills

Chartered Accountants and Statutory Auditors

5 Barnfield Crescent

Exeter

Devon

EX1 1QT

9 December 2020

TURNOVER

7,075,075

6,739,697

Cost of sales

(1,783,746

)

(1,579,554

)

GROSS PROFIT

5,291,329

5,160,143

Administrative expenses

(2,268,607

)

(2,487,137

)

3,022,722

2,673,006

Other operating income

20,720

-

OPERATING PROFIT

4

3,043,442

2,673,006

Interest receivable and similar income

2,630

2,856

3,046,072

2,675,862

Interest payable and similar expenses

5

(11,890

)

(41,988

)

PROFIT FOR THE FINANCIAL YEAR BEFORE MEMBERS' REMUNERATION AND PROFIT SHARES

3,034,182

2,633,874

PROFIT FOR THE FINANCIAL YEAR BEFORE MEMBERS' REMUNERATION AND PROFIT SHARES

3,034,182

2,633,874

Members' remuneration charged as an expense

6

(2,014,997

)

(1,975,894

)

PROFIT FOR THE FINANCIAL YEAR AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS

1,019,185

657,980

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,019,185

657,980

FIXED ASSETS

Intangible assets

7

241,319

295,746

Tangible assets

8

62,529

123,652

303,848

419,398

CURRENT ASSETS

Debtors

9

1,175,041

1,664,787

Cash at bank

1,333,646

858,443

2,508,687

2,523,230

CREDITORS

Amounts falling due within one year

10

470,596

569,568

NET CURRENT ASSETS

2,038,091

1,953,662

TOTAL ASSETS LESS CURRENT LIABILITIES

2,341,939

2,373,060

CREDITORS

Amounts falling due after more than one year

11

68,265

157,120

NET ASSETS ATTRIBUTABLE TO MEMBERS

2,273,674

2,215,940

LOANS AND OTHER DEBTS DUE TO MEMBERS

15

2,272,621

2,214,887

MEMBERS' OTHER INTERESTS

Other reserves

1,053

1,053

2,273,674

2,215,940

TOTAL MEMBERS' INTERESTS

Loans and other debts due to members

15

2,272,621

2,214,887

Members' other interests

1,053

1,053

2,273,674

2,215,940

The financial statements were approved by the members of the LLP and authorised for issue on 3 December 2020 and were signed by:

S M H Cole - 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

2,214,887

Amount due from members

-

Balance at 1 July 2019

1,053

2,214,887

2,215,940

Members' remuneration charged as an expense, including employment and retirement benefit costs

-

2,014,997

2,014,997

Profit for the financial year available for discretionary division among members

1,019,185

-

1,019,185

Members' interests after profit for the year

1,020,238

4,229,884

5,250,122

Other divisions of profit

(1,019,185

)

1,019,185

-

Drawings

-

(2,976,448

)

(2,976,448

)

Amount due to members

2,272,621

Amount due from members

-

Balance at 30 June 2020

1,053

2,272,621

2,273,674

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

1,963,817

Amount due from members

-

Balance at 1 July 2018

1,053

1,963,817

1,964,870

Members' remuneration charged as an expense, including employment and retirement benefit costs

-

1,975,894

1,975,894

Profit for the financial year available for discretionary division among members

657,980

-

657,980

Members' interests after profit for the year

659,033

3,939,711

4,598,744

Other divisions of profit

(657,980

)

657,980

-

Drawings

-

(2,382,804

)

(2,382,804

)

Amount due to members

2,214,887

Amount due from members

-

Balance at 30 June 2019

1,053

2,214,887

2,215,940

Cash flows from operating activities

Cash generated from operations

1

3,651,253

2,271,177

Interest paid

(8,333

)

(37,587

)

Interest element of hire purchase payments paid

(3,557

)

(4,401

)

Net cash from operating activities

3,639,363

2,229,189

Cash flows from investing activities

Purchase of intangible fixed assets

(69,236

)

(47,000

)

Purchase of tangible fixed assets

-

(59,875

)

Sale of tangible fixed assets

-

66,250

Interest received

2,630

2,856

Net cash from investing activities

(66,606

)

(37,769

)

Transactions with members and former

members

Payments to members

(2,976,448

)

(2,382,804

)

Cash flows from other financing activities

Capital repayments in year

(36,542

)

(45,153

)

Net cash from financing activities

(3,012,990

)

(2,427,957

)

Increase/(decrease) in cash and cash equivalents

559,767

(236,537

)

Cash and cash equivalents at beginning of year

2

773,879

1,010,416

Cash and cash equivalents at end of year

2

1,333,646

773,879

1.	RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS TO CASH GENERATED FROM OPERATIONS

30.6.20

30.6.19

£

£

Profit for the financial year available for discretionary division among members

1,019,185

657,980

Members' remuneration charged as an expense

2,014,997

1,975,894

Depreciation charges

102,786

90,540

Profit on disposal of fixed assets

-

(53,310

)

Finance costs

11,890

41,988

Finance income

(2,630

)

(2,856

)

3,146,228

2,710,236

Decrease/(increase) in trade and other debtors

489,746

(366,052

)

Increase/(decrease) in trade and other creditors

15,279

(73,007

)

Cash generated from operations

3,651,253

2,271,177

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 June 2020

30.6.20

1.7.19

£

£

Cash and cash equivalents

1,333,646

858,443

Bank overdrafts

-

(84,564

)

1,333,646

773,879

Year ended 30 June 2019

30.6.19

1.7.18

£

£

Cash and cash equivalents

858,443

1,117,649

Bank overdrafts

(84,564

)

(107,233

)

773,879

1,010,416

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.7.19

Cash flow

changes

At 30.6.20

£

£

£

£

Net cash

Cash at bank

858,443

475,203

1,333,646

Bank overdrafts

(84,564

)

84,564

-

773,879

559,767

1,333,646

Debt

Finance leases

(79,474

)

36,542

-

(42,932

)

(79,474

)

36,542

-

(42,932

)

Net funds (before

members' debt)

694,405

596,309

-

1,290,714

Loans and other debts

due to members

Other amounts

due to members

(2,214,887

)

961,451

(1,019,185

)

(2,272,621

)

Net debt

(1,520,482

)

1,557,760

(1,019,185

)

(981,907

)

1.	STATUTORY INFORMATION

Old Mill Financial Planning 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.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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 2018 and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The presentation currency of the financial statements is the Pound Sterling (£). Monetary amounts in these financial statements are rounded to the nearest £.

Significant judgements and estimates

In the application of the LLP's accounting policies, which are described below, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 accounted for in the period in which the estimate is revised if the revision only affects that period, or in the period of revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are in relation to 'Amounts recoverable under contracts' as described below.

Turnover

Fee income represents revenue earned under a wide variety of contracts to provide professional services. Revenue is recognised as earned when, and to the extent that, the firm obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to clients, including expenses and disbursements but excluding value added tax.

Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Revenue not billed to clients is included in debtors and payments on account in excess of the relevant amount of revenue are included in creditors.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of businesses in 2012, 2017 & 2019, all are being amortised evenly over their estimated useful life of eight years.

Tangible fixed assets

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

Plant and machinery

-

Straight line over 3 - 5 years

Tangible fixed assets held for the LLP's own use are stated at cost less accumulated depreciation and accumulated impairment losses.

Assets held under finance leases are depreciated in the same way as owned assets.

At each balance sheet date, the LLP reviews the carrying value of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the LLP estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Financial instruments

(i) Financial assets

Basic financial assets, including trade and other debtors are initially recognised at the transaction price and therefore stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the debtors are stated at cost less impairment losses for bad and doubtful debts.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans and other loans are initially recognised at transaction price, unless the arrangement constitutes a financing transaction.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial 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 the Income Statement in the period to which they relate.

Members' participation rights

Members' participation rights are the right of a member against the LLP that arises under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed, remunerated 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. A members' 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 Income Statement in the relevant year. To the extent that they remain unpaid at the period end, they are shown as liabilities in the Balance Sheet.

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 an expense. They are therefore shown as a residual amount available for discretionary division among members in the Income Statement and are equity appropriations in the Balance Sheet.

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 Balance Sheet within 'Loans and other debts due to members' and are charged to the Income Statement within 'Members' remuneration charged as an expense'. Amounts due to members that are classified as equity are shown in the Balance Sheet within 'Members' other interests'.

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 the Income Statement over the relevant period. The capital element of the future payments is treated as a liability.

3.	EMPLOYEE INFORMATION

30.6.20

30.6.19

£

£

Wages and salaries

1,279,308

1,097,701

Social security costs

120,788

103,327

Other pension costs

134,682

128,357

1,534,778

1,329,385

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

30.6.20

30.6.19

Productive staff

17

16

Administrative staff

28

28

45

44

4.	OPERATING PROFIT

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

30.6.20

30.6.19

£

£

Depreciation - owned assets

61,123

70,440

Profit on disposal of fixed assets

-

(53,310

)

Goodwill amortisation

41,663

20,100

Auditors' remuneration

7,000

6,971

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

30.6.20

30.6.19

£

£

Bank interest

3,664

2

Other interest

4,669

37,585

Hire purchase

3,557

4,401

11,890

41,988

6.	INFORMATION IN RELATION TO MEMBERS

30.6.20

30.6.19

£

£

Members' remuneration charged as an expense

Other payments

2,014,997

1,975,894

30.6.20

30.6.19

£

£

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

318,281

275,764

30.6.20

30.6.19

The average number of members during the year was

42

42

7.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 July 2019

343,188

Reclassification/transfer

(12,764

)

At 30 June 2020

330,424

AMORTISATION

At 1 July 2019

47,442

Amortisation for year

41,663

At 30 June 2020

89,105

NET BOOK VALUE

At 30 June 2020

241,319

At 30 June 2019

295,746

8.	TANGIBLE FIXED ASSETS

Plant and

machinery

£

COST

At 1 July 2019

and 30 June 2020

217,398

DEPRECIATION

At 1 July 2019

93,746

Charge for year

61,123

At 30 June 2020

154,869

NET BOOK VALUE

At 30 June 2020

62,529

At 30 June 2019

123,652

All tangible fixed assets are held under hire purchase contracts.

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.20

30.6.19

£

£

Trade debtors

570,903

660,939

Other debtors

549,953

945,329

Prepayments

54,185

58,519

1,175,041

1,664,787