Hopkins Solicitors LLP - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: OC326488 (England and Wales)

HOPKINS SOLICITORS LLP

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Page

General Information

1

Balance Sheet

2

Notes to the Financial Statements

4

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

FIXED ASSETS

Tangible assets

4

223,827

260,245

CURRENT ASSETS

Debtors

5

1,728,342

1,825,915

Cash at bank and in hand

1,139,938

774,398

2,868,280

2,600,313

CREDITORS

Amounts falling due within one year

6

669,874

548,129

NET CURRENT ASSETS

2,198,406

2,052,184

TOTAL ASSETS LESS CURRENT LIABILITIES

2,422,233

2,312,429

CREDITORS

Amounts falling due after more than one year

7

337,609

122,344

NET ASSETS ATTRIBUTABLE TO MEMBERS

2,084,624

2,190,085

LOANS AND OTHER DEBTS DUE TO MEMBERS

1,484,624

1,590,085

MEMBERS' OTHER INTERESTS

Capital accounts

600,000

600,000

2,084,624

2,190,085

TOTAL MEMBERS' INTERESTS

Loans and other debts due to members

1,484,624

1,590,085

Members' other interests

600,000

600,000

2,084,624

2,190,085

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 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 and delivered in accordance with the provisions applicable to LLPs subject to the small LLPs regime.

In accordance with Section 444 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, the Income Statement has not been delivered.

The financial statements were approved by the members of the LLP and authorised for issue on 11 June 2021 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 £786,501 (2020:£800,001) 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.

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 83 (2020 - 82 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Long

and

Motor

Computer

leasehold

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 April 2020

148,503

158,368

4,700

296,300

607,871

Additions

-

926

-

20,690

21,616

Disposals

-

-

-

(46,258

)

(46,258

)

At 31 March 2021

148,503

159,294

4,700

270,732

583,229

DEPRECIATION

At 1 April 2020

25,988

68,097

3,585

249,956

347,626

Charge for year

14,850

9,120

279

33,785

58,034

Eliminated on disposal

-

-

-

(46,258

)

(46,258

)

At 31 March 2021

40,838

77,217

3,864

237,483

359,402

NET BOOK VALUE

At 31 March 2021

107,665

82,077

836

33,249

223,827

At 31 March 2020

122,515

90,271

1,115

46,344

260,245

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

750,637

852,297

Amounts recoverable on contract

786,501

800,001

Prepayments and accrued income

191,204

173,617

1,728,342

1,825,915

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

34,696

14,997

Trade creditors

15,483

22,475

Social security and other taxes

45,582

53,286

VAT

415,904

240,759

Other creditors

178

37,229

Accruals and deferred income

158,031

179,383

669,874

548,129

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans - 2-5 years

308,442

122,344

Bank loans more 5 yr by instal

29,167

-

337,609

122,344

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

29,167

-

8.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2021

2020

£

£

Within one year

123,184

12,624

Between one and five years

231,474

234,093

In more than five years

18,000

195,750

372,658

442,467

9.	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 £51,750 and £2,187 respectively (2020:£51,750 and £2,069). There were no (2020:no) amounts outstanding with respect to these transactions at the balance sheet date. All transactions were carried out at an open market value.

10.	CONTROLLING PARTY

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