Old Mill Financial Planning 2021 LLP - LLP accounts 22.3
Old Mill Financial Planning 2021 LLP - LLP accounts 22.3
REGISTERED NUMBER: |
Report of the Members and |
Financial Statements for the Year Ended 30 June 2022 |
for |
Old Mill Financial Planning 2021 LLP |
Old Mill Financial Planning 2021 LLP (Registered number: OC320853) |
Contents of the Financial Statements |
for the Year Ended 30 June 2022 |
Page |
General Information | 1 |
Report of the Members | 2 |
Report of the Independent Auditors | 4 |
Statement of Comprehensive Income | 7 |
Balance Sheet | 8 |
Reconciliation of Members' Interests | 9 |
Cash Flow Statement | 11 |
Notes to the Cash Flow Statement | 12 |
Notes to the Financial Statements | 14 |
Old Mill Financial Planning 2021 LLP |
General Information |
for the Year Ended 30 June 2022 |
DESIGNATED MEMBERS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
5 Barnfield Crescent |
Exeter |
Devon |
EX1 1QT |
Old Mill Financial Planning 2021 LLP (Registered number: OC320853) |
Report of the Members |
for the Year Ended 30 June 2022 |
The members present their report with the financial statements of the LLP for the year ended 30 June 2022. |
CESSATION OF TRADING |
The LLP ceased trading on 25 October 2021. |
PRINCIPAL ACTIVITY |
The principal activity of the LLP (whilst trading) in the year under review was that of independent financial advisers. |
DESIGNATED MEMBERS |
The designated members during the year under review were: |
RESULTS FOR THE YEAR AND ALLOCATION TO MEMBERS |
The profit for the year before members' remuneration and profit shares was £8,253,185 (2021 - £3,310,463 profit). |
MEMBERS' INTERESTS |
The LLP has equity classes of members as defined by the members' agreement. Equity members are required to contribute capital to the LLP, the amount of which is determined by their position on the equity scale. |
Equity members receive an allocation of the residual profits earned, which are allocated on a discretionary basis. |
POLICY ON MEMBERS' DRAWINGS |
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 anticipated working capital requirements of the LLP. |
New members are required to subscribe for a minimum 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. |
STATEMENT OF MEMBERS' RESPONSIBILITIES |
The members are responsible for preparing the Report of the Members and the financial statements in accordance with applicable law and regulations. |
Legislation applicable to limited liability partnerships 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under legislation applicable to limited liability partnerships 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 and then apply them consistently; |
- | make judgements 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 LLP 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 enable them to ensure that the financial statements comply with the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of 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. |
Old Mill Financial Planning 2021 LLP (Registered number: OC320853) |
Report of the Members |
for the Year Ended 30 June 2022 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the members are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the LLP's auditors are unaware, and each member has taken all the steps that he or she ought to have taken as a member in order to make himself or herself aware of any relevant audit information and to establish that the LLP's auditors are aware of that information. |
ON BEHALF OF THE MEMBERS: |
Report of the Independent Auditors to the Members of |
Old Mill Financial Planning 2021 LLP |
Opinion |
We have audited the financial statements of Old Mill Financial Planning 2021 LLP (the 'LLP') for the year ended 30 June 2022 which comprise the Statement of Comprehensive Income, Balance Sheet, Reconciliation of Members' Interests, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, 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 30 June 2022 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 LLPs 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 UK, including the FRC'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 |
As set out in the financial statements the going concern basis has not been used in preparing the financial statements. |
Emphasis of matter |
We draw attention to note 17 to the financial statements which explains that the members sold the trade and assets of the LLP during the year and therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than going concern as described in note 2. Our opinion is not modified in respect of this matter. |
Other information |
The members are responsible for the other information. The other information comprises the information in the Report of the Members, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, 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 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. |
Matters on which we are required to report by exception |
We have nothing to report in respect of the following matters where the Companies Act 2006 as applied to LLPs 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 Statement of Members' Responsibilities set out on page two, 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 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. |
Report of the Independent Auditors to the Members of |
Old Mill Financial Planning 2021 LLP |
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 a Report of the Auditors 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. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- | we identified the laws and regulations applicable to the LLP through discussions with the members and other management, and from our commercial knowledge and experience; |
- | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the LLP, including the Companies Act 2006 as applied to LLPs, taxation legislation, employment, financial services, environmental and health and safety legislation; |
- | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing correspondence with industry regulators, and inspecting legal correspondence; and |
- | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
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 assessed the susceptibility of the LLP's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | reading the minutes of meetings of those charged with governance; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HMRC, relevant regulators, and the LLP's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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 Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Old Mill Financial Planning 2021 LLP |
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 to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application 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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
5 Barnfield Crescent |
Exeter |
Devon |
EX1 1QT |
Old Mill Financial Planning 2021 LLP (Registered number: OC320853) |
Statement of Comprehensive |
Income |
for the Year Ended 30 June 2022 |
30.6.22 | 30.6.21 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) |
8,262,525 | 3,317,257 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
8,262,607 | 3,323,492 |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR BEFORE MEMBERS' REMUNERATION AND PROFIT SHARES |
8,253,185 |
3,310,463 |
PROFIT FOR THE FINANCIAL YEAR BEFORE MEMBERS' REMUNERATION AND PROFIT SHARES |
8,253,185 |
3,310,463 |
Members' remuneration charged as an expense |
7 |
(787,010 |
) |
(2,158,154 |
) |
PROFIT FOR THE FINANCIAL YEAR AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Old Mill Financial Planning 2021 LLP (Registered number: OC320853) |
Balance Sheet |
30 June 2022 |
30.6.22 | 30.6.21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
CURRENT ASSETS |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
and |
NET ASSETS ATTRIBUTABLE TO MEMBERS |
7,467,228 |
2,665,758 |
LOANS AND OTHER DEBTS DUE TO MEMBERS |
15 |
7,466,175 |
2,664,705 |
MEMBERS' OTHER INTERESTS |
Other reserves |
7,467,228 | 2,665,758 |
TOTAL MEMBERS' INTERESTS |
Loans and other debts due to members | 15 | 7,466,175 | 2,664,705 |
Members' other interests | 1,053 | 1,053 |
Amounts due from members | 11 | (6,158,084 | ) | - |
1,309,144 | 2,665,758 |
The financial statements were approved by the members of the LLP and authorised for issue on |
Old Mill Financial Planning 2021 LLP (Registered number: OC320853) |
Reconciliation of Members' Interests |
for the Year Ended 30 June 2022 |
EQUITY | DEBT | TOTAL |
Members' | Loans and other debts due to | MEMBERS' |
other | members less any amounts due | INTERESTS |
interests | from members in debtors |
Other | Other |
reserves | amounts | Total |
£ | £ | £ |
Amount due to members | 2,664,705 |
Amount due from members | - |
Balance at 1 July 2021 | 1,053 | 2,664,705 | 2,665,758 |
Members' remuneration charged as an expense, including employment and retirement benefit costs |
- |
787,010 |
787,010 |
Profit for the financial year available for discretionary division among members |
7,466,175 |
- |
7,466,175 |
Members' interests after profit for the year |
7,467,228 |
3,451,715 |
10,918,943 |
Other divisions of profit | (7,466,175 | ) | 7,466,175 | - |
Drawings | - | (9,609,799 | ) | (9,609,799 | ) |
Amount due to members | 7,466,175 |
Amount due from members | (6,158,084 | ) |
Balance at 30 June 2022 | 1,053 | 1,308,091 | 1,309,144 |
Old Mill Financial Planning 2021 LLP (Registered number: OC320853) |
Reconciliation of Members' Interests |
for the Year Ended 30 June 2022 |
EQUITY | DEBT | TOTAL |
Members' | Loans and other debts due to | MEMBERS' |
other | members less any amounts due | INTERESTS |
interests | from members in debtors |
Other | Other |
reserves | amounts | Total |
£ | £ | £ |
Amount due to members | 2,272,621 |
Amount due from members | - |
Balance at 1 July 2020 | 1,053 | 2,272,621 | 2,273,674 |
Members' remuneration charged as an expense, including employment and retirement benefit costs |
- |
2,158,154 |
2,158,154 |
Profit for the financial year available for discretionary division among members |
1,152,309 |
- |
1,152,309 |
Members' interests after profit for the year |
1,153,362 |
4,430,775 |
5,584,137 |
Other divisions of profit | (1,152,309 | ) | 1,152,309 | - |
Drawings | - | (2,918,379 | ) | (2,918,379 | ) |
Amount due to members | 2,664,705 |
Amount due from members | - |
Balance at 30 June 2021 | 1,053 | 2,664,705 | 2,665,758 |
Old Mill Financial Planning 2021 LLP (Registered number: OC320853) |
Cash Flow Statement |
for the Year Ended 30 June 2022 |
30.6.22 | 30.6.21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Sale of intangible fixed assets |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) |
Transactions with members and former | members |
Payments to members | (9,609,799 | ) | (2,918,379 | ) |
Cash flows from other financing activities |
Capital repayments in year | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
1,333,646 |
Cash and cash equivalents at end of year | 2 | 58,509 | 1,725,779 |
Old Mill Financial Planning 2021 LLP (Registered number: OC320853) |
Notes to the Cash Flow Statement |
for the Year Ended 30 June 2022 |
1. | RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS TO CASH GENERATED FROM OPERATIONS |
30.6.22 | 30.6.21 |
£ | £ |
Profit for the financial year available for discretionary division among members |
7,466,175 |
1,152,309 |
Members' remuneration charged as an expense | 787,010 | 2,158,154 |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Finance costs | 9,422 | 13,029 |
Finance income | (82 | ) | (267 | ) |
1,072,810 | 3,405,112 |
(Increase)/decrease in trade and other debtors | ( |
) |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2022 |
30.6.22 | 1.7.21 |
£ | £ |
Cash and cash equivalents | 58,509 | 1,725,779 |
Year ended 30 June 2021 |
30.6.21 | 1.7.20 |
£ | £ |
Cash and cash equivalents | 1,725,779 | 1,333,646 |
Old Mill Financial Planning 2021 LLP (Registered number: OC320853) |
Notes to the Cash Flow Statement |
for the Year Ended 30 June 2022 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.7.21 | Cash flow | changes | At 30.6.22 |
£ | £ | £ | £ |
Net cash |
Cash at bank | 1,725,779 | (1,667,270 | ) | 58,509 |
1,725,779 | ( |
) | 58,509 |
Debt |
Finance leases | (11,078 | ) | 11,078 | - | - |
(11,078 | ) | 11,078 | - | - |
Net funds (before |
members' debt) | 1,714,701 | (1,656,192 | ) | - | 58,509 |
Loans and other debts |
due to members |
Other amounts |
due to members | (2,664,705 | ) | 8,822,789 | (13,624,259 | ) | (7,466,175 | ) |
Net debt | (950,004 | ) | 7,166,597 | (13,624,259 | ) | (7,407,666 | ) |
Old Mill Financial Planning 2021 LLP (Registered number: OC320853) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2022 |
1. | STATUTORY INFORMATION |
Old Mill Financial Planning 2021 LLP is registered in England and Wales. The LLP's registered number and registered office address can be found on the General Information page. |
On 10 October 2022, Old Mill Financial Planning LLP changed its name to Old Mill Financial Planning 2021 LLP. |
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" and the requirements of the Statement of Recommended Practice, Accounting by Limited Liability Partnerships 2018 and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The presentation currency of the financial statements is the Pound Sterling (£). Monetary amounts in these financial statements are rounded to the nearest £. |
The LLP ceased to trade on the 25 October 2021 and consequently the financial statements are not prepared on a going concern basis.The financial statements have been prepared on a basis other than going concern. |
Significant judgements and estimates |
In the application of the LLP's accounting policies, which are described below, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 accounted for in the period in which the estimate is revised if the revision only affects that period, or in the period of revision and future periods if the revision affects both current and future periods. |
The following judgements have had the most significant effect on amounts recognised in the financial statements: |
The value of unbilled commission income is shown within prepayments and accrued income. In arriving at the carrying value shown in the balance sheet, judgements are made about the estimated billable value on a case by case basis. |
There is an element of estimation and judgement made by the LLP when considering the bad debt provision included within trade debtors. The value of the client balance recoverable is considered on a case by case basis. |
In determining the estimated life of goodwill the LLP has considered the average life of a client and concluded a period of 8 years to be appropriate. Each year the LLP reviews this policy to ensure it remains appropriate. |
Turnover |
Fee income represents revenue earned under a wide variety of contracts to provide professional services. Revenue is recognised as earned when, and to the extent that, the firm obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to clients, including expenses and disbursements but excluding value added tax. |
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 debtors and payments on account in excess of the relevant amount of revenue are included in creditors. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of businesses in 2012, 2017 & 2019, all are being amortised evenly over their estimated useful life of eight years. |
Old Mill Financial Planning 2021 LLP (Registered number: OC320853) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2022 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Plant and machinery | - |
Tangible fixed assets held for the LLP's own use are stated at cost less accumulated depreciation and accumulated impairment losses. |
Assets held under finance leases are depreciated in the same way as owned assets. |
At each balance sheet date, the LLP reviews the carrying value of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the LLP estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
Financial instruments |
(i) Financial assets |
Basic financial assets, including trade and other debtors are initially recognised at the transaction price and therefore stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the debtors are stated at cost less impairment losses for bad and doubtful debts. |
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. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other creditors, bank loans and other loans are initially recognised at transaction price, unless the arrangement constitutes a financing transaction. |
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
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 the Income Statement in the period to which they relate. |
Old Mill Financial Planning 2021 LLP (Registered number: OC320853) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2022 |
2. | ACCOUNTING POLICIES - continued |
Members' participation rights |
Members' participation rights are the right of a member against the LLP that arises under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed, remunerated 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. A members' 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 Income Statement in the relevant year. To the extent that they remain unpaid at the period 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 an expense. They are therefore shown as a residual amount available for discretionary division among members in the Income Statement 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 right 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 Income Statement 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'. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to the Income Statement over the relevant period. The capital element of the future payments is treated as a liability. |
Cash and cash equivalents |
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less. |
3. | TURNOVER |
The turnover and profit for the financial year before members' remuneration and profit shares are attributable to the one principal activity of the LLP. |
An analysis of turnover by geographical market is given below: |
30.6.22 | 30.6.21 |
£ | £ |
United Kingdom |
Europe |
North America | 194 | 570 |
Other | 3,634 | 12,190 |
Old Mill Financial Planning 2021 LLP (Registered number: OC320853) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2022 |
4. | EMPLOYEE INFORMATION |
30.6.22 | 30.6.21 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
30.6.22 | 30.6.21 |
Productive staff | 18 | 17 |
Administrative staff | 29 | 27 |
The employee numbers are proportionate for the trading period. |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
30.6.22 | 30.6.21 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Goodwill amortisation |
Auditors' remuneration |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.6.22 | 30.6.21 |
£ | £ |
Bank interest |
Other interest |
Hire purchase |
7. | INFORMATION IN RELATION TO MEMBERS |
30.6.22 | 30.6.21 |
£ | £ |
Members' remuneration charged as an expense |
Other payments | 787,010 | 2,158,154 |
30.6.22 | 30.6.21 |
£ | £ |
The amount of profit attributable to the member with the largest entitlement was | 865,817 |
335,011 |
30.6.22 | 30.6.21 |
The average number of members during the year was | 41 | 41 |
Old Mill Financial Planning 2021 LLP (Registered number: OC320853) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2022 |
8. | EXCEPTIONAL ITEMS |
Administrative expenses for the year total £(6,487,027), this includes the profit on sale of the trade and assets of £7,208,830. |
9. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 July 2021 |
Disposals | ( |
) |
At 30 June 2022 |
AMORTISATION |
At 1 July 2021 |
Amortisation for year |
Eliminated on disposal | ( |
) |
At 30 June 2022 |
NET BOOK VALUE |
At 30 June 2022 |
At 30 June 2021 |
10. | TANGIBLE FIXED ASSETS |
Plant and |
machinery |
£ |
COST |
At 1 July 2021 |
Disposals | ( |
) |
At 30 June 2022 |
DEPRECIATION |
At 1 July 2021 |
Charge for year |
Eliminated on disposal | ( |
) |
At 30 June 2022 |
NET BOOK VALUE |
At 30 June 2022 |
At 30 June 2021 |
The net book value of fixed assets held under hire purchase contracts is £nil (2021: £17,281). |
Old Mill Financial Planning 2021 LLP (Registered number: OC320853) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2022 |
11. | DEBTORS |
30.6.22 | 30.6.21 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts due from members | 6,158,084 | - |
Other debtors |
Prepayments |
Amounts falling due after more than one year: |
Other debtors |
Aggregate amounts |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.22 | 30.6.21 |
£ | £ |
Hire purchase contracts (see note 13) |
Trade creditors |
Social security and other taxes |
Other creditors |
Accrued expenses |
13. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
30.6.22 | 30.6.21 |
£ | £ |
Net obligations repayable: |
Within one year |
Finance lease agreements generally include fixed lease payments and a purchase option at the end of the lease term. |
14. | SECURED DEBTS |
The following secured debts are included within creditors: |
30.6.22 | 30.6.21 |
£ | £ |
Hire purchase contracts | - | 11,078 |
Hire purchase contracts are secured against the specific assets purchased under those agreements. |
Old Mill Financial Planning 2021 LLP (Registered number: OC320853) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2022 |
15. | LOANS AND OTHER DEBTS DUE TO MEMBERS |
30.6.22 | 30.6.21 |
£ | £ |
Amounts owed to members in respect of profits | 7,466,175 | 2,664,705 |
Falling due within one year | 7,466,175 | 2,664,705 |
Whilst the profit amount above is due to members within one year the sale agreement as referred to in note 17 provides that deferred consideration of £872,754 will be paid after one year. |
Loans and other debts due to members rank equally with debts due to unsecured creditors in the event of wind up. There is no provision for legally enforceable protection afforded to creditors in such event. There is no restrictions or limitations on the ability of the members to reduce the amount of 'Members' other interests'. |
16. | RELATED PARTY TRANSACTIONS |
The LLP has related parties by virtue of common control. All transactions with related parties are performed on an arm's length basis. During the year, the LLP had transactions with other related parties as follows: |
30.6.22 | 30.6.21 |
Purchase of marketing, financial, establishment and administrative services: |
£403,745 |
£1,341,725 |
License fees paid in respect of business information, goodwill and intellectual property: |
£44,325 |
£141,390 |
As at 30 June 2022 the balances are as follows: |
Amounts owed to the LLP of £114,924 (2021: £186,166). |
Amounts owed by the LLP of £173,420 (2021: £nil). |
These amounts are unsecured, interest free, have no fixed date for repayment and are repayable on demand. |
During the year, a total of key management personnel compensation of £231,944 (2021: £1,016,686) was paid. |
17. | RELATED PARTY TRANSACTIONS - TRADE SALE |
On 25 October 2021, the trade and assets of Old Mill Financial Planning 2021 LLP (formerly Old Mill Financial Planning LLP) were transferred to Old Mill Financial Planning 2021 Limited for £9,280,641. This was considered to be a fair value. At the year end there was a balance owed to the LLP of £1,309,132. |