ACCOUNTS - Final Accounts

OPERATING PROFIT/(LOSS)

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

HAMPSHIRE & KENT COMMERCIAL SERVICES LLP - Company Information

Caseware UK (AP4) 2020.0.247 2020.0.247 2021-03-3135200020002021-03-31false852020-04-01falseNo description of principal activity86falseThe members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. OC424699 2020-04-01 2021-03-31 OC424699 2019-04-01 2020-03-31 OC424699 2021-03-31 OC424699 2020-03-31 OC424699 2019-04-01 OC424699 3 2020-04-01 2021-03-31 OC424699 3 2019-04-01 2020-03-31 OC424699 5 2020-04-01 2021-03-31 OC424699 5 2019-04-01 2020-03-31 OC424699 1 2020-04-01 2021-03-31 OC424699 d:FurnitureFittings 2020-04-01 2021-03-31 OC424699 d:FurnitureFittings 2021-03-31 OC424699 d:FurnitureFittings 2020-03-31 OC424699 d:FurnitureFittings d:OwnedOrFreeholdAssets 2020-04-01 2021-03-31 OC424699 d:ComputerSoftware 2021-03-31 OC424699 d:ComputerSoftware 2020-03-31 OC424699 d:OtherResidualIntangibleAssets 2020-04-01 2021-03-31 OC424699 d:CurrentFinancialInstruments 2021-03-31 OC424699 d:CurrentFinancialInstruments 2020-03-31 OC424699 d:CurrentFinancialInstruments d:WithinOneYear 2021-03-31 OC424699 d:CurrentFinancialInstruments d:WithinOneYear 2020-03-31 OC424699 d:OtherMiscellaneousReserve 2020-04-01 2021-03-31 OC424699 d:OtherMiscellaneousReserve 2021-03-31 OC424699 d:OtherMiscellaneousReserve 2020-03-31 OC424699 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2021-03-31 OC424699 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2020-03-31 OC424699 d:FinancialLiabilitiesFairValueThroughProfitOrLoss d:ListedExchangeTraded 2021-03-31 OC424699 d:FinancialLiabilitiesFairValueThroughProfitOrLoss d:ListedExchangeTraded 2020-03-31 OC424699 d:FinancialLiabilitiesFairValueThroughProfitOrLoss d:UnlistedNon-exchangeTraded 2021-03-31 OC424699 d:FinancialLiabilitiesFairValueThroughProfitOrLoss d:UnlistedNon-exchangeTraded 2020-03-31 OC424699 e:FRS102 2020-04-01 2021-03-31 OC424699 e:Audited 2020-04-01 2021-03-31 OC424699 e:FullAccounts 2020-04-01 2021-03-31 OC424699 e:LimitedLiabilityPartnershipLLP 2020-04-01 2021-03-31 OC424699 d:WithinOneYear 2021-03-31 OC424699 d:WithinOneYear 2020-03-31 OC424699 d:BetweenOneFiveYears 2021-03-31 OC424699 d:BetweenOneFiveYears 2020-03-31 OC424699 d:MoreThanFiveYears 2021-03-31 OC424699 d:MoreThanFiveYears 2020-03-31 OC424699 2 2020-04-01 2021-03-31 OC424699 d:ComputerSoftware d:OwnedIntangibleAssets 2020-04-01 2021-03-31 OC424699 e:PartnerLLP1 2020-04-01 2021-03-31 OC424699 e:PartnerLLP2 2020-04-01 2021-03-31 OC424699 d:FurtherSpecificReserve2ComponentTotalEquity 2021-03-31 OC424699 d:FurtherSpecificReserve2ComponentTotalEquity 2020-03-31 OC424699 d:OtherRelatedPartyRelationshipType1ComponentTotalRelatedParties d:OtherTransactionType1 2020-04-01 2021-03-31 OC424699 d:OtherRelatedPartyRelationshipType2ComponentTotalRelatedParties d:OtherTransactionType2 2020-04-01 2021-03-31 OC424699 d:OtherMembersGroupNotDefinedElsewhere d:OtherTransactionType3 2020-04-01 2021-03-31 iso4217:GBP xbrli:pure

Registered number: OC424699

HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

INFORMATION

Designated Members	Hampshire County Council
	Commercial Services Kent Limited

LLP registered number

OC424699

Registered office

1 Abbey Wood Road

Kings Hill

West Malling

Kent

ME19 4YT

Independent auditors

Bishop Fleming LLP

Chartered Accountants

Salt Quay House

4 North East Quay

Sutton Harbour

Plymouth

PL4 0BN

HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

CONTENTS

	Page
Members' report	1
Members' responsibilities statement	2
Independent auditors' report	3 - 6
Statement of comprehensive income	7
Statement of financial position	8
Statement of changes in equity	9
Statement of cash flows	10
Notes to the financial statements	11 - 22

HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

MEMBERS' REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The members present their annual report together with the audited financial statements of Hampshire & Kent Commercial Services LLP (the "LLP") for the year ended 31 March 2021.

PRINCIPAL ACTIVITIES

The LLP was incorporated on 1 November 2018 and commenced trading on 1 April 2019. The prior period numbers are for the 17 months from incorporation to 31 March 2020.

The principal object of the LLP is to provide temporary staff to customers including Hampshire County Council.

DESIGNATED MEMBERS

Hampshire County Council and Commercial Services Kent Limited were designated members of the LLP throughout the period.

MEMBERS' CAPITAL AND INTERESTS

Capital requirements are determined by the designated members and all members are required to subscribe a proprtion of that capital.

Capital is repaid only by prior written approval of all members or on winding up of the LLP and hence is classifed as equity.

Details of changes in members' capital in the year ended 31 March 2021 are set out in the financial statements.

Members do not receive drawings during the year.

Profits are determined, allocated and divided between members only after finalisation of the financial statements and a decision is made about whether to allocate such. Prior to the allocation of profits and their division between members, unallocated profits are included within equity as members' others interests.

RESULTS AND PERFORMANCE

The results of the LLP for the period are set out on page 7 and show a profit for the period of £352,000 (2020: £2,000). Total members' interests are £860,000 (2020: £485,000).

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the members at the time when this Members' report is approved has confirmed that:

∙so far as that member is aware, there is no relevant audit information of which the LLP's auditors are unaware, and

∙that member has taken all the steps that ought to have been taken as a member in order to be aware of any relevant audit information and to establish that the LLP's auditors are aware of that information.

This report was approved by the members on 15 November 2021 and signed on their behalf by:

M D Johnson

Director of Designated member

Page 1

HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

MEMBERS' RESPONSIBILITIES STATEMENT

FOR THE YEAR ENDED 31 MARCH 2021

The members are responsible for preparing the annual report and thefinancial statements in accordance with applicable law and regulations.

Company law, (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008), 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law, as applied to LLPs, 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 for the LLP's financial statements and then apply them consistently;

∙make judgments 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 entity 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 to enable them to ensure that the financial statements comply with the Limited Liability Partnerships (Accounts and Audit) (Application of the 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.

Page 2

HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

OPINION

We have audited the financial statements of Hampshire & Kent Commercial Services LLP (the 'LLP') for the year ended 31 March 2021, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity and the related notes, 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 31 March 2021 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 limited liability partnerships 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 United Kingdom, including the Financial Reporting Council'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

In auditing the financial statements, we have concluded that the members' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the LLP's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the members with respect to going concern are described in the relevant sections of this report.

OTHER INFORMATION

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The members are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Page 3

HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAMPSHIRE & KENT COMMERCIAL SERVICES LLP (CONTINUED)

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006, as applied to limited liability partnerships, 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 Members' responsibilities statement on page 2, 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 is 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 an Auditors' report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

∙We have considered the nature of the industry and sector, control environment and business performance;

∙We have considered the results of our enquiries of management and members in relation to their own identification and assessment of the risks of irregularities within the LLP; and

∙We have considered any matters we identified having obtained and reviewed the LLP’s documentation of their policies and procedures relating to:

°Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

°Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and

°The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.

As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to income recognition, with a particular risk in relation to year-end cut off. In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override.
We have also obtained understanding of the legal and regulatory frameworks that the LLP operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Financial Reporting Standard 102, Statement of Recommended Practice "Accounting by

Page 4

HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAMPSHIRE & KENT COMMERCIAL SERVICES LLP (CONTINUED)

Limited Liability Partnerships" and UK tax legislation. In addition we considered the provision of other laws and regulations that do not have a direct effect on the financial statements but compliance with may be fundamental for the LLP’s ability to operate or avoid a material penalty. These including health and safety regulations, employment legislation, and data protection laws.
Our procedures to respond to risks identified included the following:

∙Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

∙Reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue;

∙Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

∙Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

∙Reviewing board minutes;

∙Identifying and testing journal entries, evaluating whether there was evidence of bias by the members that represented a risk of material misstatement due to fraud; and

∙Challenging assumptions and judgements made by management in the significant accounting estimates.

We also communicated identified laws and regulations and potential fraud risks to all members of the
engagement team and remained alert to possible indicators of fraud or non-compliance with laws and
regulations throughout the audit.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Auditors' report.

Page 5

HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HAMPSHIRE & KENT COMMERCIAL SERVICES LLP (CONTINUED)

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 by Part 12 of The Limited Liability Partnerships (Accounts and Audit) (Applications 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 an Auditors' report 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.

Nathan Coughlin FCA (Senior statutory auditor)

for and on behalf of

Bishop Fleming LLP

Chartered Accountants

Statutory Auditors

Salt Quay House

4 North East Quay

Sutton Harbour

Plymouth

PL4 0BN

16 November 2021

Page 6

HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2021

	2021	2020
Note	£000	£000


Turnover		27,052	27,145
Cost of sales		(25,543)	(25,862)
Gross profit		1,509	1,283
Administrative expenses		(1,188)	(1,273)
Other operating income		51	-
Operating profit	4	372	10
Interest receivable and similar income	8	3	15
Profit for the year before profit shares available for discretionary division among members		375	25

Profit for the year before members' remuneration and profit shares	375	25
Members' remuneration charged as an expense	(23)	(23)
PROFIT FOR THE FINANCIAL YEAR AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS	352	2

The notes on pages 11 to 22 form part of these financial statements.

Page 7

HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

REGISTERED NUMBER:OC424699

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2021

		2021		2020
Note		£000		£000

Fixed assets
Intangible assets	9		3		4
Tangible assets	10		31		41
			34		45
Current assets
Debtors	11	707		753
Cash at bank and in hand		2,318		2,385
		3,025		3,138
Creditors: amounts falling due within one year	12	(2,199)		(2,698)
Net current assets			826		440

Net assets			860		485

Represented by:
Loans and other debts due to members
Other amounts	506	483
Members' other interests
Other reserves classified as equity	354	2
	860	485

Total members' interests
Loans and other debts due to members	506	483
Members' other interests	354	2
	860	485

The financial statements were approved and authorised for issue by the members and were signed on their behalf on 15 November 2021.

M D Johnson

Director of designated member

The notes on pages 11 to 22 form part of these financial statements.

Page 8

HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2021

	Members' other interests	Total equity
	£000	£000
Comprehensive income for the period
Profit for period for discretionary division among members	2	2

At 1 April 2020	2	2
Comprehensive income for the year
Profit for year for discretionary division among members	352	352
At 31 March 2021	354	354

The notes on pages 11 to 22 form part of these financial statements.

Page 9

HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

			2021	2020
			£000	£000

Cash flows from operating activities
Profit for the financial year	352	2
Adjustments for:
Members' remuneration charged as an expense	23	23
Amortisation of intangible assets	1	1
Depreciation of tangible assets	10	10
Interest received	(3)	(15)
Decrease/(increase) in debtors	46	(753)
(Decrease)/increase in creditors	(499)	2,698
Net cash generated from operating activities before transactions with members	(70)	1,966

Cash flows from investing activities
Purchase of intangible fixed assets	-	(5)
Purchase of tangible fixed assets	-	(51)
Interest received	3	15
Net cash from investing activities	3	(41)
Cash flows from financing activities
Loans from members	-	460
Net cash used in financing activities	-	460
Net (decrease)/increase in cash and cash equivalents	(67)	2,385
Cash and cash equivalents at beginning of year	2,385	-
Cash and cash equivalents at the end of year	2,318	2,385

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	2,318	2,385
	2,318	2,385

The notes on pages 11 to 22 form part of these financial statements.

Page 10

HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1.	GENERAL INFORMATION

Hampshire & Kent Commercial Services LLP (“the LLP”) provides temporary recruitment services to customers including Hampshire County Council.
The LLP is incorporated in the United Kingdom and registered in England. The address of its registered office is 1 Abbey Wood Road, Kings Hill, West Malling, Kent, ME19 4YT.

2.ACCOUNTING POLICIES

2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with 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".

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the LLP's accounting policies.

The following principal accounting policies have been applied:

2.2

GOING CONCERN

At 31 March 2021, the LLP had cash balance of £2,318,000 and net current assets of £826,000 together with long-term contracts with Hampshire County Council and Commercial Services Kent Limited. The LLP’s forecast and projections for 12 months after the signing of these accounts, taking account of reasonably possible changes in trading performance, show that the LLP should be able to operate without any additional borrowing facilities being required. As a consequence, the members believe that the LLP is well places to manage its business risk successfully despite the current uncertain economic outlook caused by COVID-19 pandemic.
Therefore, the members have a reasonable expectation that the LLP has adequate resources to continue in operational existence for the foreseeable future. The members have therefore adopted the going concern basis in preparing the financial statements for the year ended 31 March 2021.

2.3

FOREIGN CURRENCY TRANSLATION

Functional and presentation currency

The LLP's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Page 11

HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

2.ACCOUNTING POLICIES (continued)

2.4

REVENUE

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the LLP and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the LLP will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

The LLP operates a recruitment agency. Revenue from temporary placements, which represents amounts billed for the services of temporary staff including the salary cost of those staff, is recognised when the service has been provided. Revenue from permenant placements is typically based on a percentage of the candidate's remuneration package and is recognised when a candicate commences employment.

2.5

OPERATING LEASES: THE LLP AS LESSEE

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.6

GOVERNMENT GRANTS

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

2.7

INTEREST INCOME

Interest income is recognised in profit or loss using the effective interest method.

Page 12

HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

2.ACCOUNTING POLICIES (continued)

2.8

PENSIONS

DEFINED CONTRIBUTION PENSION PLAN

The LLP operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the LLP pays fixed contributions into a separate entity. Once the contributions have been paid the LLP has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the LLP in independently administered funds.

2.9

EMPLOYEE BENEFITS

The LLP provide a range of benefits to employees, including commission and bonus arrangements and paid holiday arrangements
i. Short term benefits
Short term benefits, including holiday pay, and other similar non-monetary benefits are recognised as an expense in the period in which the service is received.
ii. Commission and bonus plans
The LLP operates a number of commission and bonus plans for employees. An expense is recognised in the statement of comprehensive income when the LLP has a legal or constructive obligation to make payments under the plans as a result of past events and a reliable estimate of the obligation can be made.

2.10

MEMBERS' REMUNERATION

Profits attributable to members are determined, allocated and divided between members after a decision is made about whether to allocate and until that time are included in equity within members' other interests.
The term of the members' agreement requires that capital is repaid by prior written approval of all members or on winding up of the LLP. Capital is accordingly accounted for as equity.

Page 13

HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

2.ACCOUNTING POLICIES (continued)

2.11

INTANGIBLE ASSETS

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

The estimated useful lives range as follows:

Computer software

years

Amortisation is charged to administrative expenses in the statement of comprehensive income.

2.12

TANGIBLE FIXED ASSETS

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures and fittings

5 to 10 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.13

DEBTORS

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.14

CASH AND CASH EQUIVALENTS

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.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the LLP's cash management.

Page 14

HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

2.ACCOUNTING POLICIES (continued)

2.15

CREDITORS

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.16

FINANCIAL INSTRUMENTS

The LLP only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Investments in non-derivative instruments that are equity to the issuer are measured:

∙at fair value with changes recognised in the Statement of comprehensive income if the shares are publicly traded or their fair value can otherwise be measured reliably;

∙at cost less impairment for all other investments.

Financial assets that are 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 Statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a 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.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the LLP would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of financial position 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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HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

3.	OTHER OPERATING INCOME
		2021	2020
		£000	£000

	Government grants receivable	51	-

Pre trading expenses

223

5.	AUDITORS' REMUNERATION
		2021	2020
		£000	£000

Fees payable to the LLP's auditor and its associates for the audit of the LLP's annual financial statements

Wages and salaries	2,026	2,030
Social security costs	165	151
Cost of defined contribution scheme	31	26
	2,222	2,207

The average monthly number of persons (including members with contracts of employment) employed during the year was as follows:

	2021	2020
	No.	No.

Temporary staff	70	76
Recruitment team	15	10

	85	86

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HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

7.	INFORMATION IN RELATION TO MEMBERS
		2021	2020
		Number	Number


The average number of members during the year was	2	2

					2021	2020
					£000	£000


Members' remuneration charged as an expense: Interest on members' loans	23,000	23,000


Profit attributable to the member with the largest entitlement to profit	352,000	2,000

Profit is to be split equally between the members.

8.	INTEREST RECEIVABLE
		2021	2020
		£000	£000

Other interest receivable

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HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

9.	INTANGIBLE ASSETS

		Computer software
		£000
	COST
	At 1 April 2020	5
	At 31 March 2021	5
	AMORTISATION
	At 1 April 2020	1
	Charge for the year on owned assets	1
	At 31 March 2021	2
	NET BOOK VALUE
	At 31 March 2021	3
	At 31 March 2020	4

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HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

10.	TANGIBLE FIXED ASSETS

		Fixtures and fittings
		£000
	COST
	At 1 April 2020	51
	At 31 March 2021	51
	DEPRECIATION
	At 1 April 2020	10
	Charge for the year on owned assets	10
	At 31 March 2021	20
	NET BOOK VALUE
	At 31 March 2021	31
	At 31 March 2020	41

11.

DEBTORS

					2021	2020
					£000	£000


Other debtors	104	-
Prepayments and accrued income	603	753
	707	753

12.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
		2021	2020
		£000	£000

Trade creditors	65	78
Other taxation and social security	668	314
Other creditors	5	7
Accruals and deferred income	1,461	2,299
	2,199	2,698

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HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

13.	FINANCIAL INSTRUMENTS
		2021	2020
		£000	£000

FINANCIAL ASSETS MEASURED AT AMORTISED COST
Other debtors	104	-
Accrued income	588	751
Cash and cash equivalents	2,318	2,385
	3,010	3,136

FINANCIAL LIABILITIES MEASURED AT AMORTISED COST
Trade creditors	(65)	(78)
Accruals	(1,461)	(2,299)
Other creditors	(5)	(7)
	(1,531)	(2,384)

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HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

14.

RECONCILIATION OF MEMBERS' INTERESTS


	EQUITY Members' other interests	DEBT Loans and other debts due to members less any amounts due from members in debtors	Total members' interests
	Other reserves	Other amounts	Total
	£000	£000	£000
BALANCE AT 1 NOVEMBER 2018	-	-	-
Members' remuneration charged as an expense	-	23	23
Profit for the year available for discretionary division among members	2	-	2
MEMBERS' INTERESTS AFTER PROFIT FOR THE PERIOD	2	23	25
Amounts introduced by members	-	460	460
Amounts due to members		483
BALANCE AT 31 MARCH 2020	2	483	485
Members' remuneration charged as an expense	-	23	23
Profit for the year available for discretionary division among members	352	-	352
MEMBERS' INTERESTS AFTER PROFIT FOR THE YEAR	354	506	860
Amounts due to members		506
BALANCE AT 31 MARCH 2021	354	506	860

Amounts due to members who are unsecured creditors will rank pari passu with other unsecured creditors in the event of a winding up. In such circumstance, the members have subordinated their rights to payments of amounts owed to them in respect of the amounts standing to their current accounts and capital contributions in preference to external creditors.
Members' capital (classified as equity) is £2.
Other amounts are the initial loans made by the members which carry interest at a rate of 5% per annum. The initial loans and interest thereon are repayable on demand of the members jointly in writing after 29 March 2022 and in any event by 29 March 2025.

There are no existing restrictions or limitations which impact the ability of the members of the LLP to reduce the amount of Members' other interests.

15.	PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independantly administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £31,000 (2020: £27,000). Contributions totalling £4,000 (2020: £6,000) were payable to the fund at the balance sheet date and were included within creditors.

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HAMPSHIRE & KENT COMMERCIAL SERVICES LLP

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Not later than 1 year	63	63
Later than 1 year and not later than 5 years	250	250
Later than 5 years	187	250
	500	563

17.	RELATED PARTY TRANSACTIONS
	The LLP's related party transactions were with Hampshire County Council, Kent County Council and entities controlled by Kent County Council and so have not been disclosed under FRS 102 paragraph 33.11.

18.	POST BALANCE SHEET EVENTS

The Board agreed to allocate the profits for the year to its members at its Executive Board meeting on 25 June 2021. As this decision was made after the year end, the profit is still to be treated as unallocated within the financial statements and therefore included within 'Other reserves' within the Reconiliation of Members' Interests.

19.	CONTROLLING PARTY

The LLP does not have a parent undertaking. The ultimate controlling party of the LLP is considered to be the members in aggregate.

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