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Registered number: OC342005
BHM ONE LLP
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
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BHM ONE LLP
CONTENTS
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Notes to the Financial Statements
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BHM ONE LLP
INFORMATION
Designated Members
M Posner
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Prince Investments Limited
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LLP registered number
OC342005
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Registered office
3rd Floor, 115 Baker Street, London, W1U 6RT
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Accountants
Blick Rothenberg Limited, 16 Great Queen Street, Covent Garden, London, WC2B 5AH
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REGISTERED NUMBER:OC342005
BHM ONE LLP
BALANCE SHEET
AS AT 31 MARCH 2021
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Creditors: Amounts Falling Due Within One Year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Loans and other debts due to members within one year
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Members' capital classified as equity
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Loans and other debts due to members
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REGISTERED NUMBER:OC342005
BHM ONE LLP
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2021
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small LLPs regime.
The entity was entitled to exemption from audit under section 477 of the Companies Act 2006, as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.
The members acknowledge their responsibilities for complying with the requirements of the Companies Act 2006, as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, with respect to accounting records and the preparation of financial statements.
The financial statements have been delivered in accordance with the provisions applicable to LLPs subject to the small LLPs regime.
The entity has opted not to file the profit and loss account in accordance with the provisions applicable to entities subject to the small LLPs regime.
The financial statements were approved and authorised for issue by the members and were signed on their behalf by:
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M Posner
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The notes on pages 4 to 12 form part of these financial statements.
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BHM ONE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
BHM One LLP is a limited liability partnership, incorporated in England and Wales. Its registered office is 3rd Floor, 115 Baker Street, London, W1U 6RT.
The financial statements are presented in Sterling (£).
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006 and the requirements of the Statement of Recommended Practice "Accounting by Limited Liability Partnerships".
Change in accounting policy
The partnership has applied a change in accounting policy in connection with the recognition of finance income and finance costs. In this regard the interest income and expense have been grossed up to better reflect the terms of the loan agreement between the bank, BHM One LLP and the LLP’s referred to in note 11. The comparatives have been restated on the same basis. The change in accounting policy has no effect on the LLP’s results or statement of financial position as at the balance sheet date.
The following principal accounting policies have been applied:
On the 11 March 2020, the World Health Organisation ("WHO") declared a pandemic in light of the rise of a new virus ("Covid-19") and governments have implemented a range of policies to combat the virus and its economic impact. While the outcome of the global pandemic remains uncertain and the potential impact unknown, the directors continue to monitor the situation closely.
The members, after making relevant enquiries, considers there to be reasonable evidence that the LLP has sufficient resources to continue in operational existence for the foreseeable future. For this reason, the members continue to adopt the going concern basis in preparing the financial statements.
Revenue comprises rental income from tenants of the LLP’s investment property net of value added tax. Rental income is recognised on an accruals basis in the period in which it is earned, in accordance with the terms of the lease.
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BHM ONE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
2.Accounting policies (continued)
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Operating leases: the LLP as lessor
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Rental income from operating leases is credited to profit or loss on a straight line basis over the lease term.
Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.
Temporary rent concessions occurring as a direct consequence of the COVID-19 pandemic have been recognised on a systematic basis over the periods that the change in lease income is intended to compensate. This is conditional on:
∙the change in lease income resulting in revised consideration for the lease that is less than the consideration for the lease immediately preceding the change;
∙any reduction in lease income affecting only income originally due on or before 30 June 2021;
∙there being no significant change to other terms and conditions of the lease.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Investment property is carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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BHM ONE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
2.Accounting policies (continued)
The LLP has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the LLP becomes party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the LLP after deducting all of its liabilities.
The LLP’s policies for its major classes of financial assets and financial liabilities are set out below.
Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Financial liabilities
Basic financial liabilities, including trade and other creditors, and bank loans are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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BHM ONE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
2.Accounting policies (continued)
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Financial instruments (continued)
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Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the LLP would receive for the asset if it were to be sold at the reporting date.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets and financial liabilities
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.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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BHM ONE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
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Judgments in applying accounting policies and key sources of estimation uncertainty
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In the application of the LLP's accounting policies, the members are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 recognised in the period in which the estimate is revised where the revision affects only that period, or in that period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follow:
Valuation of investment property
The fair value of the investment property is evaluated annually by the LLP Members. The valuation is subjective to, among other factors, the economic climate, the location of the property and expected future rental income. There is an inevitable degree of judgement involved and the valuation can only ultimately be reliably tested in the market itself.
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The entity has no employees.
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Information in relation to members
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Remuneration under the terms of the LLP agreement
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Income received on surrender of lease
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BHM ONE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
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Freehold investment property
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The 2021 valuations were made by the designated members, on an open market value for existing use basis.
At the approval of these financial statements the members have given consideration to the effects of COVID-19 on the investment property valuation. While there is a nationwide impact on commercial property and the high street in general, the members are of the view that any revaluation cannot be reliably undertaken until such time as the COVID-19 vaccine is in effect and the market returns to a kind of normality.
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If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
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Due after more than one year
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Amounts owed by connected entities
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Prepayments and accrued income
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BHM ONE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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Analysis of the maturity of loans is given below:
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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The bank loan is secured by way of fixed charge over the assets of the LLP, and those assets held by the following LLP's: BHM Two LLP, BHM Three LLP, BHM Five LLP, BHM Six LLP, BHM Seven LLP, BHM Nine LLP, BHM Ten LLP, BHM Thirteen LLP, BHM Fourteen LLP and BHM Seventeen LLP. The charge extends to the assets of the LLP's, both present and future.
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BHM ONE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
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Loans and other debts due to members
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Other amounts due to members
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Loans and other debts due to members may be further analysed as follows:
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Falling due within one year
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Loans and other debts due to members rank equally with debts due to ordinary creditors in the event of a winding up.
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BHM ONE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
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Related party transactions
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BHM One LLP and BHM Two LLP have the same designated members. At the balance sheet date, BHM Two LLP owed £1,163,142 (2020: £1,144,000) to BHM One LLP.
BHM One LLP and BHM Three LLP have the same designated members. At the balance sheet date, BHM Three LLP owed £4,679,060 (2020: £4,682,000) to BHM One LLP.
BHM One LLP and BHM Five LLP have the same designated members. At the balance sheet date, BHM Five LLP owed £3,076,724 (2020: £3,077,000) to BHM One LLP.
BHM One LLP and BHM Six LLP have the same designated members. At the balance sheet date, BHM Six LLP owed £997,580 (2020: £997,000) to BHM One LLP.
BHM One LLP and BHM Seven LLP have the same designated members. At the balance sheet date, BHM Seven LLP owed £1,533,361 (2020: £1,533,000) to BHM One LLP.
BHM One LLP and BHM Nine LLP have the same designated members. At the balance sheet date, BHM Nine LLP owed £2,324,992 (2020: £2,327,000) to BHM One LLP.
BHM One LLP and BHM Ten LLP have the same designated members. At the balance sheet date, BHM Ten LLP owed £1,599,565 (2020: £nil) to BHM One LLP
BHM One LLP and BHM Thirteen LLP have the same designated members. At the balance sheet date, BHM Thirteen LLP owed £1,525,364 (2020: £1,525,000) to BHM One LLP.
BHM One LLP and BHM Fourteen LLP have the same designated members. At the balance sheet date, BHM Fourteen LLP owed £3,111,794 (2020: £3,105,000) to BHM One LLP.
BHM One LLP and BHM Seventeen LLP have the same designated members. At the balance sheet date, BHM Seventeen LLP owed £824,651 (2020: £824,000) to BHM One LLP.
BHM One LLP and BHM Four LLP have the same designated members. At the balance sheet date, BHM Four LLP owed £795 (2020: £501) to BHM One LLP.
BHM One LLP and BHM Eight LLP have the same designated members. At the balance sheet date, BHM Four LLP owed £503 (2020: £258) to BHM One LLP.
BHM One LLP and BHM Eleven LLP have common designated members. At the balance sheet date, BHM Eleven LLP owed £994 (2020: £627) to BHM One LLP.
BHM One LLP and BHM Twelve LLP have common designated members. At the balance sheet date, BHM Twelve LLP owed £754 (2020: £387) to BHM One LLP.
BHM One LLP and BHM Fifteen LLP have common designated members. At the balance sheet date, BHM Fifteen LLP owed £994 (2020: £627) to BHM One LLP.
BHM One LLP and BHM Sixteen LLP have common designated members. At the balance sheet date, BHM Sixteen LLP owed £994 (2020: £627) to BHM One LLP.
The directors of BHM Three Limited are designated members of BHM One LLP. At the balance sheet date, BHM Three Ltd owed £387 (2020: £387) to BHM One LLP.
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