Clapham & Collinge LLP - LLP accounts 20.1

REGISTERED NUMBER: OC373858 (England and Wales)

REPORT OF THE MEMBERS AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2021

FOR

CLAPHAM & COLLINGE LLP

Page

General Information

1

Report of the Members

2

Income Statement

3

Balance Sheet

4

Reconciliation of Members' Interests

5

Notes to the Financial Statements

7

DESIGNATED MEMBERS:

Mr B J Lowe

Mr M C Kermez

Mrs L J Whitehead

Mr N Grearson

Mr P S Lumb

Miss R A Farman

REGISTERED OFFICE:

St Catherines House

All Saints Green

Norwich

Norfolk

NR1 3GA

REGISTERED NUMBER:

OC373858 (England and Wales)

ACCOUNTANTS:

Sexty & Co

Chartered Certified Accountants

124 Thorpe Road

Norwich

Norfolk

NR1 1RS

The members present their report with the financial statements of the LLP for the year ended 30 April 2021.

PRINCIPAL ACTIVITY

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

DESIGNATED MEMBERS

The designated members during the year under review were:

Mr B J Lowe

Mr M C Kermez

Mrs L J Whitehead

Mr N Grearson

Mr P S Lumb

Miss R A Farman

RESULTS FOR THE YEAR AND ALLOCATION TO MEMBERS

The profit for the year before members' remuneration and profit shares was £650,249 (2020 - £686,400 profit).

MEMBERS' INTERESTS

The limited liability partnership operates a drawings policy which has regard to a cautious estimate of budgeted profits and restricts drawings to prudent levels until the results for the year and individual members' allocations have been determined. In addition, the Membership Agreement provides a framework for further restriction of drawings under circumstances where the cash requirements of the business need to take priority over the cash needs of the members.

Members' capital requirements are determined from time to time by having regard to the short, medium and long term needs of the firm. Other than in rare and exceptional cases, members' capital is only repaid following retirement.

ON BEHALF OF THE MEMBERS:

Mr M C Kermez - Designated member

10 September 2021

TURNOVER

2,894,081

3,244,979

Cost of sales

1,304,196

1,407,434

GROSS PROFIT

1,589,885

1,837,545

Administrative expenses

1,125,257

1,261,122

464,628

576,423

Other operating income

163,901

22,423

OPERATING PROFIT

628,529

598,846

Interest receivable and similar income

21,720

87,554

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

650,249

686,400

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

650,249

686,400

Members' remuneration charged as an expense

4

(457,749

)

(477,559

)

PROFIT FOR THE FINANCIAL YEAR AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS

192,500

208,841

FIXED ASSETS

Intangible assets

5

2

2

Tangible assets

6

105,855

153,219

105,857

153,221

CURRENT ASSETS

Debtors

7

887,476

1,062,740

Cash at bank and in hand

41,775

145,228

929,251

1,207,968

CREDITORS

Amounts falling due within one year

8

470,530

783,976

NET CURRENT ASSETS

458,721

423,992

TOTAL ASSETS LESS CURRENT LIABILITIES

and

NET ASSETS ATTRIBUTABLE TO MEMBERS

564,578

577,213

LOANS AND OTHER DEBTS DUE TO MEMBERS

9

564,578

577,213

TOTAL MEMBERS' INTERESTS

Loans and other debts due to members

9

564,578

577,213

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 30 April 2021.

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 10 September 2021 and were signed by:

Mr M C Kermez - 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

Members'

capital

Other

(classified

Other

reserves

as debt)

amounts

Total

Total

£

£

£

£

£

Amount due to members

270,000

307,213

577,213

Amount due from members

-

-

-

Balance at 1 May 2020

-

270,000

307,213

577,213

577,213

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

-

-

457,749

457,749

457,749

Profit for the financial year available for discretionary division among members

192,500

-

-

-

192,500

Members' interests after profit for the year

192,500

270,000

764,962

1,034,962

1,227,462

Other divisions of profit

(192,500

)

-

192,500

192,500

-

Rent credited

-

-

11,436

11,436

11,436

Drawings

-

-

(674,320

)

(674,320

)

(674,320

)

Amount due to members

270,000

294,578

564,578

Amount due from members

-

-

-

Balance at 30 April 2021

-

270,000

294,578

564,578

564,578

EQUITY

DEBT

TOTAL

Members'

Loans and other debts due to

MEMBERS'

other

members less any amounts due

INTERESTS

interests

from members in debtors

Members'

capital

Other

(classified

Other

reserves

as debt)

amounts

Total

Total

£

£

£

£

£

Amount due to members

266,250

189,158

455,408

Amount due from members

-

-

-

Balance at 1 May 2019

-

266,250

189,158

455,408

455,408

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

-

-

477,559

477,559

477,559

Profit for the financial year available for discretionary division among members

208,841

-

-

-

208,841

Members' interests after profit for the year

208,841

266,250

666,717

932,967

1,141,808

Other divisions of profit

(208,841

)

-

208,841

208,841

-

Rent credited

-

3,750

10,063

13,813

13,813

Drawings

-

-

(578,408

)

(578,408

)

(578,408

)

Amount due to members

270,000

307,213

577,213

Amount due from members

-

-

-

Balance at 30 April 2020

-

270,000

307,213

577,213

577,213

1.	STATUTORY INFORMATION

Clapham & Collinge 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" 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.

Turnover

Turnover represents fee income earned from the provision of legal services in the United Kingdom, and is stated net of value added tax and reflects the fair value of services provided to each client, including expenses and disbursements, based on the stage of completion of each assignment at the balance sheet date.

Services provided during the year to clients which at the balance sheet date have not yet been billed, are recognised as amounts recoverable on contracts. Provision is made against unbilled amounts on those client engagements where the right to receive consideration is contingent on factors outside the control of the limited liability partnership.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of businesses in 2007, is being written off evenly over its estimated useful life.

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.

Tangible fixed assets

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

Improvements to leasehold property - 20% on cost

Office equipment - 25% on reducing balance

Computer equipment - 25% on cost

Government grants

Government grants are recognised immediately to the profit and loss and the grants will be received using the accrual model.

Taxation

The taxation payable on the profits of the limited liability partnership is the personal liability of the members and consequently neither taxation or related deferred taxation are provided for in the financial statements.

Sums set aside in respect of members' tax obligations are included in the balance sheet within loans and other debts due to members.

Members' capital

Members' capital is repayable and is therefore classified as a liability. Other than in exceptional cases, it is not repaid until after retirement. Typically capital is repaid within three years of serving notice, and members' capital is therefore shown as being due after more than one year notwithstanding that repayment could be made earlier at the discretion of the members.

Members’ remuneration

Associate members

The share of profits payable to associate members is discretionary on the part of the limited liability partnership and are reported as 'members' other interests'

Full members

Profit remaining after sums allocated to associate members is automatically allocated and are treated as members’ remuneration charged as an expense to the profit and loss account.

Operating leases

Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

3.	EMPLOYEE INFORMATION

The average number of employees during the year was 56 (2020 - 63 ) .

4.	INFORMATION IN RELATION TO MEMBERS

2021

2020

£

£

Members' remuneration charged as an expense

Partners' salaries as an

expense

7,698

9,209

Automatic division of profit

450,051

468,350

Total remuneration

457,749

477,559

5.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 May 2020

and 30 April 2021

104,286

AMORTISATION

At 1 May 2020

and 30 April 2021

104,284

NET BOOK VALUE

At 30 April 2021

2

At 30 April 2020

2

6.	TANGIBLE FIXED ASSETS

Improvements

to

leasehold

Office

Computer

property

Equipment

equipment

Totals

£

£

£

£

COST

At 1 May 2020

189,859

141,645

500,523

832,027

Additions

-

1,216

5,234

6,450

Disposals

-

(76,364

)

(276,029

)

(352,393

)

At 30 April 2021

189,859

66,497

229,728

486,084

DEPRECIATION

At 1 May 2020

174,069

117,931

386,808

678,808

Charge for year

6,427

5,176

38,532

50,135

Eliminated on disposal

-

(72,503

)

(276,211

)

(348,714

)

At 30 April 2021

180,496

50,604

149,129

380,229

NET BOOK VALUE

At 30 April 2021

9,363

15,893

80,599

105,855

At 30 April 2020

15,790

23,714

113,715

153,219

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

338,786

337,136

Amounts recoverable on contracts

380,569

393,220

Other debtors

168,121

332,384

887,476

1,062,740

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade creditors

88,871

122,920

Taxation and social security

129,630

288,315

Other creditors

252,029

372,741

470,530

783,976

9.

LOANS AND OTHER DEBTS DUE TO MEMBERS

2021

2020

£

£

Amounts owed to members in respect of profits

294,578

307,213

Capital account

270,000

270,000

564,578

577,213

Falling due within one year

294,578

307,213

Falling due after more than one year

270,000

270,000

564,578

577,213

Loans and other debts due to members rank pari passu with unsecured creditors.

10.	OTHER FINANCIAL COMMITMENTS

The LLP has operating lease commitments of £126,450 (2020 £126,450).