Hopkins Solicitors LLP - LLP accounts 20.1

REGISTERED NUMBER: OC326488 (England and Wales)

HOPKINS SOLICITORS LLP

REPORT OF THE MEMBERS AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Page

General Information

1

Report of the Members

2

Chartered Accountants' Report

3

Income Statement

4

Balance Sheet

5

Notes to the Financial Statements

9

DESIGNATED MEMBERS:

Mr P J Todd

Mr R P A Siderfin

Mr M C Knox

Mr C P Wright

Mr T W Stendall

REGISTERED OFFICE:

Eden Court

Crow Hill Drive

Mansfield

Nottinghamshire

NG19 7AE

REGISTERED NUMBER:

OC326488 (England and Wales)

ACCOUNTANTS:

ApC

Chartered Accountants

7 St John Street

Mansfield

Nottinghamshire

NG18 1QH

The members present their report with the financial statements of the LLP for the year ended 31 March 2022.

PRINCIPAL ACTIVITY

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

DESIGNATED MEMBERS

The designated members during the year under review were:

Mr P J Todd

Mr R P A Siderfin

Mr M C Knox

Mr C P Wright

Mr T W Stendall

RESULTS FOR THE YEAR AND ALLOCATION TO MEMBERS

The profit for the year before members' remuneration and profit shares was £1,184,445 (2021 - £1,224,383 profit).

MEMBERS' INTERESTS

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 the anticipated cash needs of the LLP.

New members are required to subscribe 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.

During the year £Nil (2021:£Nil) was transferred from debt due to members to member's interests.

ON BEHALF OF THE MEMBERS:

Mr M C Knox - Designated member

26 May 2022

In order to assist you to fulfil your duties under the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, we have prepared for your approval the financial statements of Hopkins Solicitors LLP for the year ended 31 March 2022 which comprise the Income Statement, Balance Sheet and the related notes from the LLP's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the members of Hopkins Solicitors LLP, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Hopkins Solicitors LLP and state those matters that we have agreed to state to the members of Hopkins Solicitors LLP, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Hopkins Solicitors LLP and its members, as a body, for our work or for this report.

It is your duty to ensure that Hopkins Solicitors LLP has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Hopkins Solicitors LLP. You consider that Hopkins Solicitors LLP is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Hopkins Solicitors LLP. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

ApC

Chartered Accountants

7 St John Street

Mansfield

Nottinghamshire

NG18 1QH

27 May 2022

TURNOVER

4,607,636

4,490,614

Administrative expenses

(3,393,190

)

(3,387,422

)

1,214,446

1,103,192

Other operating income

3,900

152,208

OPERATING PROFIT

4

1,218,346

1,255,400

Interest receivable and similar income

3

2,391

1,218,349

1,257,791

Interest payable and similar expenses

(33,904

)

(33,408

)

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

1,184,445

1,224,383

FIXED ASSETS

Intangible assets

7

16,185

-

Tangible assets

8

224,241

223,827

240,426

223,827

CURRENT ASSETS

Debtors

9

1,964,810

1,728,342

Cash at bank and in hand

770,439

1,139,938

2,735,249

2,868,280

CREDITORS

Amounts falling due within one year

10

540,527

669,873

NET CURRENT ASSETS

2,194,722

2,198,407

TOTAL ASSETS LESS CURRENT LIABILITIES

2,435,148

2,422,234

CREDITORS

Amounts falling due after more than one year

11

273,286

337,609

NET ASSETS ATTRIBUTABLE TO MEMBERS

2,161,862

2,084,625

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 2022.

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.

LOANS AND OTHER DEBTS DUE TO MEMBERS

1,561,862

1,484,625

MEMBERS' OTHER INTERESTS

Capital accounts

600,000

600,000

2,161,862

2,084,625

TOTAL MEMBERS' INTERESTS

Loans and other debts due to members

1,561,862

1,484,625

Members' other interests

600,000

600,000

2,161,862

2,084,625

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 2022.

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 and authorised for issue on 26 May 2022 and were signed by:

Mr M C Knox - Designated member

1.	STATUTORY INFORMATION

Hopkins Solicitors 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.	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" including the provisions of Section 1A "Small Entities" and the requirements of the Statement of Recommended Practice, Accounting by Limited Liability Partnerships. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

The preparation of the financial statements requires the members to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Conditional fee arrangements on personal injury cases require a favourable outcome preceding payment for legal services plus any percentage success fees; the members assume "no win no fee" as at the balance sheet date.

The financial statement includes estimations that assume the historical results can project the future expectations regarding the recognition of revenue at the balance sheet date and within in the next financial year.

Amounts recoverable on legal service contracts are calculated on a basis in line with the legal service type; wills, conveyancing, family, commercial, probate and either the estimated stage of completion for fixed fee arrangements or the historical results percentage is applied to calculate the total carrying value of £793,993 (2021:£786,501) as at the reporting date.

Turnover

Turnover represents the value excluding Value Added Tax, of legal services supplied to customers during the year.

In respect of income received on fixed fee contracts, income is released into the profit and loss account in line with the stage of completion of the contract.

In respect of no win, no fee contracts, income is only released into the profit and loss account when a positive outcome to the case has been agreed.

In respect of any other legal services supplied to customers, all income is taken to profit and loss at the same point as the right to receive the consideration is acquired.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of nil years.

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

-

10% straight line

Fixtures and fittings

-

10% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% straight line

Hire purchase and leasing commitments

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.

Under the terms of the membership agreement the LLP has a liability to make post retirement payments to members after they have retired from the partnership.

Irrespective of the fact that the right to these payments accrues over the period in which the individual serves as a member the costs are recognised each year as the payments are made. These amounts are included in 'Members' remuneration charged as an expense' in the Profit and Loss Account.

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 FRS 25 (IAS 32) Financial Instruments: Disclosure and Presentation and UITF abstract 39 Members' shares in co-operative entities and similar instruments. 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 Profit and Loss Account in the relevant year. To the extent that they remain unpaid at the year 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 as an expense. They are therefore shown as a residual amount available for discretionary division among members in the Profit and Loss Account 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 rights 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 Profit and Loss Account 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'.

Debtors and creditors repayable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Taxation

The taxation payable on the partnership profits is the personal liability of the members and consequently neither taxation nor related deferred taxation are accounted for in the financial statements. Amounts retained for members' personal tax liabilities are treated in the same way as other profits of the partnership and are included in 'Loans and other debts due to members'.

3.	EMPLOYEE INFORMATION

The average number of employees during the year was 77 (2021 - 83 ) .

4.	OPERATING PROFIT

The operating profit is stated after charging:

2022

2021

£

£

Depreciation - owned assets

58,234

58,034

5.	INFORMATION IN RELATION TO MEMBERS

2022

2021

The average number of members during the year was

5

5

Profits are shared amongst members in line with the percentage of each members capital account's.

6.

PENSIONS

The LLP operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the LLP in an independently administered fund. the pension cost charged represents contributions payable by the LLP to the fund and amounted to £38,909 (2020:£41,026).

7.	INTANGIBLE FIXED ASSETS

Computer

software

£

COST

Additions

16,185

At 31 March 2022

16,185

NET BOOK VALUE

At 31 March 2022

16,185

8.	TANGIBLE FIXED ASSETS

Fixtures

Long

and

Motor

Computer

leasehold

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 April 2021

148,503

159,294

4,700

270,732

583,229

Additions

-

14,601

-

44,047

58,648

At 31 March 2022

148,503

173,895

4,700

314,779

641,877

DEPRECIATION

At 1 April 2021

40,838

77,217

3,864

237,483

359,402

Charge for year

14,850

9,668

209

33,507

58,234

At 31 March 2022

55,688

86,885

4,073

270,990

417,636

NET BOOK VALUE

At 31 March 2022

92,815

87,010

627

43,789

224,241

At 31 March 2021

107,665

82,077

836

33,249

223,827

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

956,624

750,637

Amounts recoverable on contract

793,993

786,501

Prepayments and accrued income

214,193

191,204

1,964,810

1,728,342

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts

64,262

34,696

Hire purchase contracts (see note 12)

14,071

-

Trade creditors

6,925

15,482

Social security and other taxes

52,761

45,582

VAT

208,265

415,904

Other creditors

-

178

Accruals and deferred income

194,243

158,031

540,527

669,873

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans - 2-5 years

273,286

308,442

Bank loans more 5 yr by instal

-

29,167

273,286

337,609

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

-

29,167

12.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

2022

2021

£

£

Net obligations repayable:

Within one year

14,071

-

Non-cancellable

operating leases

2022

2021

£

£

Within one year

88,572

123,184

Between one and five years

103,902

231,474

In more than five years

85,000

18,000

277,474

372,658

13.	RELATED PARTY TRANSACTION

During the year the LLP was charged rent and insurance for one of its offices, from I.P.M SIPP Administration Limited, a collection of personal pension arrangements for some of the members. The charge to the profit and loss account during the year amounted to £61,849 and £1,145 respectively (2021:£51,750 and £2,069). There were no (2021:no) amounts outstanding with respect to these transactions at the balance sheet date. All transactions were carried out at an open market value.

14.	CONTROLLING PARTY

There is no controlling party as no member has over 50% of the equity of the LLP.