Company No: OC353948 (England and Wales)

Contents

• Statement of Financial Position
• Reconciliation of Members' Interests
• Notes to the Financial Statements

	Note	2023		2022
		£		£
Fixed assets
Investment property	3	0		3,000,000
		0		3,000,000
Current assets
Debtors	4	1,030,928		242,032
Cash at bank and in hand		509,029		7,048
		1,539,957		249,080
Creditors: amounts falling due within one year	5	( 8,445)		( 236,383)
Net current assets		1,531,512		12,697
Total assets less current liabilities		1,531,512		3,012,697
Creditors: amounts falling due after more than one year	6	0		( 1,202,078)
Net assets attributable to members		1,531,512		1,810,619
Represented by
Loans and other debts due to members within one year
Other amounts		1,531,512		376,631
		1,531,512		376,631
Members' other interests
Revaluation reserve		0		1,433,988
		0		1,433,988
		1,531,512		1,810,619
Total members' interests
Loans and other debts due to members		1,531,512		376,631
Members' other interests		0		1,433,988
		1,531,512		1,810,619

For the financial year ending 31 March 2023 the LLP was entitled to exemption from audit under section 477 of the Companies Act 2006, as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.

Members' responsibilities:

• The members acknowledge their responsibilities for complying with the requirements of the Companies Act 2006, as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to Limited Liability Partnerships subject to the small Limited Liability Partnerships regime and a copy of the Income Statement has not been delivered.

The financial statements of The Willows HH LLP (registered number: OC353948) were approved and authorised for issue by the Director on 29 September 2023. They were signed on its behalf by:

A L Lovat Designated member

	EQUITY Members' other interests	DEBT Loans and other debts due to members less any amounts due from members in debtors	Total members' interests
	Revaluation reserves	Other amounts	Total
	£	£	£
Amounts due to members		238,051
Balance at 01 April 2021	1,733,988	238,051	1,972,039
Members' remuneration charged as an expense, including employment and retirement benefit costs	0	138,580	138,580
Members' interest after result for the financial year	1,733,988	376,631	2,110,619
Revaluations	(300,000)	0	(300,000)
Amounts due to members		376,631
Balance at 31 March 2022	1,433,988	376,631	1,810,619
Members' remuneration charged as an expense, including employment and retirement benefit costs	0	1,424,845	1,424,845
Members' interest after result for the financial year	1,433,988	1,801,476	3,235,464
Drawings	0	(269,964)	(269,964)
Transfer from revaluation reserve	(1,433,988)	0	(1,433,988)
Amounts due to members		1,531,512
Balance at 31 March 2023	0	1,531,512	1,531,512

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

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

The Willows HH LLP is a limited liability partnership, incorporated in the United Kingdom under the Limited Liability Partnerships Act 2000 and is registered in England and Wales. The address of the LLP's registered office is 35 Ballards Lane, London, N3 1XW, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Limited Liability Partnerships Act 2000 as applicable to companies subject to the small companies regime and the requirements of the Statement of Recommended Practice Accounting by Limited Liability Partnerships issued in December 2021 (SORP 2022).

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Statement of Financial Position date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Income Statement in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

Turnover

Turnover represents the amounts receivable for rent.

Investment property

Investment property is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at each reporting date with changes in fair value recognised in profit or loss. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.

The fair value is determined annually by the members, on an open market value for existing use basis.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.

Financial instruments

The Company only enters into basic financial instruments and 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 and from related parties and investments in non-puttable ordinary shares.

Financial assets
Basic financial assets, including trade and other debtors, and amounts due from related companies, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

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) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, 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 receipts discounted at a market rate of interest.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade 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.

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.

Members' participation rights

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed, remuneration and profits).

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with FRS 25 (IAS 32) Financial Instruments: Disclosure and Presentation and UITF abstract 39 Members' shares in co-operative entities and similar instruments. A 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 payments to members. If the LLP does not have such an unconditional right, such amounts are classified as liabilities.

The profits are not automatically divided as they arise, the LLP therefore has an unconditional right to refuse payment of the profits for a particular year unless and until those profits are divided by a decision taken by the members; and accordingly, following such a division, those profits are classed as an appropriation in the Profit and Loss Account.

All amounts due to members' and are charged to the Profit and Loss Account within 'Members' remuneration charged as an expense'. Amounts due to members that are classified as equity are shown in the Statement of Financial Position within 'Members' other interests'.

The profits are not automatically divided as they arise, the LLP therefore has an unconditional right to refuse payment of the profits for a particular year unless and until those profits are divided by a decision taken by the members; and accordingly, following such a division, those profits are classed as an appropriation or equity rather than an expense. They are therefore shown as a residual amount available for appropriation in the Profit and Loss Account.

All amounts due to members that are classified as liabilities are presented in the Statement of Financial Position within 'Loans and other debts due to members' and are charged to the Profit and Loss Account within 'Members' remuneration charged as an expense'. Amounts due to members that are classified as equity are shown in the Statement of Financial Position within 'Members' other interests'.

2. Employees

	2023		2022
	Number		Number
Monthly average number of persons employed by the LLP during the year	0		0

3. Investment property

	Investment property
	£
Valuation
As at 01 April 2022	3,000,000
Disposals	(3,000,000)
As at 31 March 2023	0

Valuation

Investment property was valued by an independent property expert in the prior year.

4. Debtors

	2023		2022
	£		£
Amounts owed by Group undertakings	1,029,314		232,172
Other debtors	1,614		9,860
	1,030,928		242,032

5. Creditors: amounts falling due within one year

	2023		2022
	£		£
Bank loans	0		126,685
Amounts owed to Group undertakings	3,000		105,000
Other creditors	5,445		4,698
	8,445		236,383

6. Creditors: amounts falling due after more than one year

	2023		2022
	£		£
Bank loans	0		1,202,078

7. Related party transactions

Other related party transactions

	2023		2022
	£		£
Amounts owed by related parties	1,029,315		232,172
Amounts owed to related parties	(3,000)		(105,000)

During the year the limited liability partnership charged rent of £112,500 (2022: £195,900) to a related party.

8. Fair value adjustment reserve

	2023		2022
	£		£
At beginning of year	0		1,733,988
Fair value adjustment arising in the year	0		(300,000)
	0		1,433,988

9. Financial commitments, guarantees and contingent liabilities

The LLP has given a guarantee in the form of debenture over the assets of the LLP to the bankers.

Related parties of the LLP have given guarantees over the bank loan for the investment property.

The bank loan is secured over the investments property of the LLP.