The Derek Evans Partnership LLP - LLP accounts 22.3

REGISTERED NUMBER: OC354835 (England and Wales)

REPORT OF THE MEMBERS AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2022

FOR

THE DEREK EVANS PARTNERSHIP LLP

Page

General Information

1

Report of the Members

2

Income Statement

3

Other Comprehensive Income

4

Statement of Financial Position

5

Notes to the Financial Statements

7

DESIGNATED MEMBERS:

Mr R V Davies

Mr N R Hague

REGISTERED OFFICE:

Newport House

Newport Road

Stafford

Staffordshire

ST16 1DA

REGISTERED NUMBER:

OC354835 (England and Wales)

ACCOUNTANTS:

Howards Limited

Chartered Certified Accountants

Newport House

Newport Road

Stafford

Staffordshire

ST16 1DA

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

CESSATION OF TRADING

The LLP ceased trading on 30th September 2022.

PRINCIPAL ACTIVITY

The principal activity of the limited liability partnership continued to be that of surveying, planning and advice to the construction industry until it ceased trading on 30 September 2022. On this date the business, assets and liabilities of the Derek Evans Partnership LLP were transferred to The DEP Group Ltd.

DESIGNATED MEMBERS

The designated members during the year under review were:

Mr R V Davies

Mr N R Hague

RESULTS FOR THE YEAR AND ALLOCATION TO MEMBERS

The profit for the year before members' remuneration and profit shares was £123,034 (2021 - £154,625 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 further capital, the amounts of which is determined by the performance and seniority of those members. On retirement capital is repaid to members.

GOING CONCERN

As stated above the LLP ceased trading on 30th September 2022 and therefore it is no longer a going concern. There are no adjustments required to the financial statements as a result of this.

MEMBERS' DRAWINGS, CONTRIBUTIONS AND REPAYMENTS

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 in to account the anticipated cash needs of the LLP.

New members are required to subscribe an agreed 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 in accordance with the members agreement.

ON BEHALF OF THE MEMBERS:

Mr R V Davies - Designated member

31st March 2023

TURNOVER

1,068,923

1,238,620

Administrative expenses

945,949

1,138,022

122,974

100,598

Other operating income

-

51,042

OPERATING PROFIT

122,974

151,640

Income from shares in group undertakings

-

4,000

Interest receivable and similar income

60

27

60

4,027

123,034

155,667

Interest payable and similar expenses

-

1,042

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

123,034

154,625

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

123,034

154,625

Members' remuneration charged as an expense

4

(123,034

)

(154,625

)

PROFIT FOR THE FINANCIAL YEAR AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS

-

-

PROFIT FOR THE FINANCIAL YEAR AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS

-

-

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

-

-

FIXED ASSETS

Tangible assets

5

-

19,240

Investments

6

-

50,300

-

69,540

CURRENT ASSETS

Debtors

7

-

276,962

Prepayments and accrued income

-

4,174

Cash at bank and in hand

86,245

334,678

86,245

615,814

CREDITORS

Amounts falling due within one year

8

40,712

283,523

NET CURRENT ASSETS

45,533

332,291

TOTAL ASSETS LESS CURRENT LIABILITIES

45,533

401,831

CREDITORS

Amounts falling due after more than one year

9

-

(78,712

)

ACCRUALS AND DEFERRED INCOME

-

(13,002

)

NET ASSETS ATTRIBUTABLE TO MEMBERS

45,533

310,117

LOANS AND OTHER DEBTS DUE TO MEMBERS

10

45,533

310,117

TOTAL MEMBERS' INTERESTS

Loans and other debts due to members

10

45,533

310,117

Amounts due from members

7

-

(46,913

)

45,533

263,204

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 31st December 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 31st March 2023 and were signed by:

Mr R V Davies - Designated member

Mr N R Hague - Designated member

1.	STATUTORY INFORMATION

The Derek Partnership LLP is a limited liability partnership incorporated in England and Wales. The registered office is Newport House, Newport Road, Stafford, ST16 1DA

The limited liability partnerships principal activities and nature of its operations are disclosed in the Members' Report.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in January 2017, together with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006 as applicable to limited liability partnerships subject to the small limited liability partnerships regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional current of the limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The LLP has taken advantage of the exemption of the Companies Act 2006 (small group) from the requirement to prepare consolidated financial statements. Consequently these financial statements present the financial position and performance of the LLP as a single entity.

Going concern

The designated members have a reasonable expectation that the LLP has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for sale of goods and services in the ordinary nature of the business. Turnover is shown net of Value Added Tax, of goods and services provided to customers and, in the case of long term contracts, credit is taken appropriate to the stage of completion when the outcome of the contract can be ascertained with reasonable certainty.

Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Revenue not billed to clients is included in amounts recoverable on contracts within debtors, and payments on account in excess of the relevant amount of revenue are included in creditors.

Tangible fixed assets

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

Plant and machinery

-

20% on cost

Fixtures and fittings

-

10% on cost

Financial instruments

The limited liability partnership has elected to apply the provisions of Section 'Basic Financial Instruments' and Section 'Other Financial Instruments Issues' of FRS to all of its financial instruments.

Financial instruments are recognised in the limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

Classification of financial liabilities

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 limited liability partnership after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities , including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

Debt instruments are subsequently carried at amortised cost using the effective interest rate method.

Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value, like plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss.

If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in profit or loss.

Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

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.

There are no post retirement payments due to members.

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 section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payments to members, in which case they are classified as equity.

Amounts subscribed or otherwise contributed by members, for example members' capital are classed as equity if the LLP has unconditional right to refuse payment to members. If the LLP does not have such an unconditional right, such amounts are classified as liabilities.

Profits are automatically divided as they arise, so the LLP does not have an unconditional right to refuse payment and the amounts arising that are due to members are in the nature of liabilities. They are therefore treated as an expense and presented as members remuneration charged as an expense in arriving at the result for the relevant year. To the extent that they remain unpaid at the period end, they are shown as liabilities.

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 right to refuse payment.

All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within 'Members' remuneration charged as an expense' in arriving at the relevant year's result. Undivided amounts that are classified as equity are shown within 'Members' other interests'. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members' interests.

Provisions

Provisions are recognised when the limited liability partnership has a legal or constructive present obligation as a result of a past event, it is probable that the limited liability partnership will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking in to account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the the obligation is recognised at present value. When a provision is measured at present value the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Provisions for the expected costs of future dilapidations under leases are charged against profits on an annual basis, spread over the life of the lease. The effect of the time value of money is not material and therefore the provisions are not discounted.

Employee benefits

The costs of short-term employee benefits are recognised as a liability as an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the limited liability partnership is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

3.	EMPLOYEE INFORMATION

The average number of employees during the year was 19 (2021 - 20 ) .

4.	INFORMATION IN RELATION TO MEMBERS

2022

2021

£

£

Members' remuneration charged as an expense

Automatic division of profit

123,034

154,625

2022

2021

The average number of members during the year was

2

2

5.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

machinery

fittings

Totals

£

£

£

COST

At 1st January 2022

117,509

16,704

134,213

Additions

1,257

-

1,257

Disposals

(118,766

)

(3,536

)

(122,302

)

At 31st December 2022

-

13,168

13,168

DEPRECIATION

At 1st January 2022

101,805

13,168

114,973

Eliminated on disposal

(101,805

)

-

(101,805

)

At 31st December 2022

-

13,168

13,168

NET BOOK VALUE

At 31st December 2022

-

-

-

At 31st December 2021

15,704

3,536

19,240

6.	FIXED ASSET INVESTMENTS

Unlisted

investments

£

COST

At 1st January 2022

50,300

Disposals

(50,300

)

At 31st December 2022

-

NET BOOK VALUE

At 31st December 2022

-

At 31st December 2021

50,300

The LLP has taken advantage of the exemption under FRS102 paragraph 9.26 to recognise the value of its subsidiary at cost.

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

-

127,141

Amounts recoverable on contract

-

100,709

Other debtors

-

49,112

-

276,962

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts

40,711

8,333

Trade creditors

1

80,785

Amounts owed to group undertakings

-

50,749

Taxation and social security

-

113,656

Other creditors

-

30,000

40,712

283,523

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans

-

41,667

Other creditors

-

37,045

-

78,712

10.

LOANS AND OTHER DEBTS DUE TO MEMBERS

2022

2021

£

£

Amounts owed to members in respect of profits

-

15,117

Capital account

45,533

295,000

45,533

310,117

Falling due within one year

45,533

310,117

In the event of a winding up the amounts included in "loans and other debts due to members" will rank equally with unsecured creditors.

There are no restrictions or limitations on the ability of members to reduce the amount of members' other interests.

11.	OTHER FINANCIAL COMMITMENTS

At the reporting date the limited liability partnership had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:-

2022

2021

£

£

Within one year

14,890

14,890

Between one and five years

-

-

14,890

14,890

12.	RELATED PARTY TRANSACTIONS