Adlams LLP - LLP accounts 23.2

REGISTERED NUMBER: OC336674 (England and Wales)

REPORT OF THE MEMBERS AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

FOR

ADLAMS LLP

Page

General Information

1

Report of the Members

2

Income Statement

3

Balance Sheet

4

Reconciliation of Members' Interests

6

Notes to the Financial Statements

8

DESIGNATED MEMBERS:

Mrs J E Lowther

P Lowther

Mrs E Whitfield

REGISTERED OFFICE:

37b Market Square

St Neots

Cambridgeshire

PE19 2AR

REGISTERED NUMBER:

OC336674 (England and Wales)

ACCOUNTANTS:

Rawlinson Pryde & Partners

Chartered Certified Accountants

Argent House

5 Goldington Road

Bedford

Bedfordshire

MK40 3JY

The members present their report with the financial statements of the LLP for the year ended 31 March 2023.

PRINCIPAL ACTIVITY

The principal activity of the LLP in the year under review was that of the provision of legal services.

DESIGNATED MEMBERS

The designated members during the year under review were:

Mrs J E Lowther

P Lowther

Mrs E Whitfield

RESULTS FOR THE YEAR AND ALLOCATION TO MEMBERS

The profit for the year before members' remuneration and profit shares was £272,461 (2022 - £254,621 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.

The level of members' capital is determined by the members from time to time. On retirement, capital is repaid to members.

ON BEHALF OF THE MEMBERS:

P Lowther - Designated member

7 December 2023

TURNOVER

1,332,683

1,341,425

Cost of sales

5,095

11,125

GROSS PROFIT

1,327,588

1,330,300

Administrative expenses

977,191

1,025,209

OPERATING PROFIT

4

350,397

305,091

Interest receivable and similar income

9,684

718

360,081

305,809

Interest payable and similar expenses

87,620

51,188

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

272,461

254,621

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

272,461

254,621

Members' remuneration charged as an expense

5

(272,461

)

(254,621

)

PROFIT FOR THE FINANCIAL YEAR AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS

-

-

FIXED ASSETS

Tangible assets

6

24,557

20,188

CURRENT ASSETS

Debtors

7

605,563

610,454

Prepayments and accrued income

73,854

70,604

Cash at bank and in hand

9,963,930

10,701,891

10,643,347

11,382,949

CREDITORS

Amounts falling due within one year

8

10,409,371

11,078,230

NET CURRENT ASSETS

233,976

304,719

TOTAL ASSETS LESS CURRENT LIABILITIES

258,533

324,907

CREDITORS

Amounts falling due after more than one year

9

(85,229

)

(168,991

)

ACCRUALS AND DEFERRED INCOME

(38,443

)

(28,223

)

NET ASSETS ATTRIBUTABLE TO MEMBERS

134,861

127,693

LOANS AND OTHER DEBTS DUE TO MEMBERS

10

134,861

127,693

TOTAL MEMBERS' INTERESTS

Loans and other debts due to members

10

134,861

127,693

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 31 March 2023.

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 7 December 2023 and were signed by:

P Lowther - Designated member

Mrs E Whitfield - Designated member

EQUITY

DEBT

TOTAL

Members'

Loans and other debts due to

MEMBERS'

other

members less any amounts due

INTERESTS

interests

from members in debtors

Members'

capital

Other

(classified

Other

reserves

as debt)

amounts

Total

Total

£

£

£

£

£

Amount due to members

120,000

7,693

127,693

Amount due from members

-

-

-

Balance at 1 April 2022

-

120,000

7,693

127,693

127,693

Members' remuneration charged as an expense, including employment and retirement benefit costs

-

-

272,461

272,461

272,461

Profit for the financial year available for discretionary division among members

-

-

-

-

-

Members' interests after profit for the year

-

120,000

280,154

400,154

400,154

Drawings on account and distributions of profit

-

-

(265,293

)

(265,293

)

(265,293

)

Amount due to members

120,000

14,861

134,861

Amount due from members

-

-

-

Balance at 31 March 2023

-

120,000

14,861

134,861

134,861

EQUITY

DEBT

TOTAL

Members'

Loans and other debts due to

MEMBERS'

other

members less any amounts due

INTERESTS

interests

from members in debtors

Members'

capital

Other

(classified

Other

reserves

as debt)

amounts

Total

Total

£

£

£

£

£

Amount due to members

135,000

12,463

147,463

Amount due from members

-

(9,038

)

(9,038

)

Balance at 1 April 2021

-

135,000

3,425

138,425

138,425

Members' remuneration charged as an expense, including employment and retirement benefit costs

-

-

254,621

254,621

254,621

Profit for the financial year available for discretionary division among members

-

-

-

-

-

Members' interests after profit for the year

-

135,000

258,046

393,046

393,046

Introduced by members

-

-

15,000

15,000

15,000

Repayments of debt (including members' capital classified as a liability)

-

(15,000

)

-

(15,000

)

(15,000

)

Drawings on account and distributions of profit

-

-

(265,353

)

(265,353

)

(265,353

)

Amount due to members

120,000

7,693

127,693

Amount due from members

-

-

-

Balance at 31 March 2022

-

120,000

7,693

127,693

127,693

1.	STATUTORY INFORMATION

Adlams LLP is registered in England and Wales. The LLP's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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" including the provisions of Section 1A "Small Entities" and the requirements of the Statement of Recommended Practice, Accounting by Limited Liability Partnerships. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover represents net invoiced sale of services, excluding value added tax, except in respect of service contracts where turnover is recognised when the LLP obtains the right to consideration.

Tangible fixed assets

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

Library

-

Nil

Long leasehold

-

straight line over period of the lease

Improvements to property

-

15% on cost

Fixtures and fittings

-

25% on cost

Financial instruments

Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as either financial assets or financial liabilities.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in profit or loss in other administrative expenses.

Prepayments are valued at the amount prepaid net of any trade discounts due. Accrued income and tax recoverable is included at the best estimate of the amounts receivable at the balance sheet date.

Creditors and provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably measured. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Loans and borrowings are initially recognised at the transaction price including costs. Subsequently, they are measured at amortised cost using the effective interest method, less impairment. If an arrangement constitutes a financing transaction it is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. The present value of a financial asset or financial liability that is repayable on demand is equal to the undiscounted cash amount expect to be pair or received.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss.

Hire purchase and leasing commitments

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

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.

Accrued income

Accrued income is calculated by reference to individual jobs, and for each job represents all direct costs, and the relevant proportion of fixed and variable overheads, and estimated gross profit.

Borrowing costs

All borrowing costs are recognised in the profit or loss in the period in which they are incurred.

Provisions

Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated.

Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

3.	EMPLOYEE INFORMATION

The average number of employees during the year was 20 (2022 - 19 ) .

4.	OPERATING PROFIT

The operating profit is stated after charging:

31.3.23

31.3.22

£

£

Depreciation - owned assets

350

-

5.	INFORMATION IN RELATION TO MEMBERS

31.3.23

31.3.22

£

£

Members' remuneration charged as an expense

Amounts arising from

participation rights that give

rise to a liability

272,461

254,621

Total remuneration

272,461

254,621

6.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

Long

to

and

Library

leasehold

property

fittings

Totals

£

£

£

£

£

COST

At 1 April 2022

31,828

20,144

10,222

75,935

138,129

Additions

-

-

-

4,719

4,719

At 31 March 2023

31,828

20,144

10,222

80,654

142,848

DEPRECIATION

At 1 April 2022

11,697

20,143

10,221

75,880

117,941

Charge for year

-

-

-

350

350

At 31 March 2023

11,697

20,143

10,221

76,230

118,291

NET BOOK VALUE

At 31 March 2023

20,131

1

1

4,424

24,557

At 31 March 2022

20,131

1

1

55

20,188

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.23

31.3.22

£

£

Trade debtors

86,996

80,155

Accrued income

518,567

530,299

605,563

610,454

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.23

31.3.22

£

£

Bank loans and overdrafts

136,334

130,844

Finance leases

195,742

175,873

Trade creditors

8,139

11,096

Client account balances

9,953,899

10,689,680

Social security and other taxes

64,485

23,695

VAT

50,772

47,042

10,409,371

11,078,230

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.23

31.3.22

£

£

Bank loans - 1-5 years

85,229

168,991

10.

LOANS AND OTHER DEBTS DUE TO MEMBERS

Loans and other debts due to members rank equally with debts due to unsecured creditors in the event of a winding up.

There is no provision for specific legally enforceable protection afforded to creditors in such an event.

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

11.	OTHER FINANCIAL COMMITMENTS

The LLP has total guarantees and commitments at the balance sheet date of £111,515 (2022: £115,281).