Mogers Drewett LLP - Period Ending 2023-05-31
Mogers Drewett LLP - Period Ending 2023-05-31
Registration number:
Prepared for the registrar
Mogers Drewett LLP
Annual Report and Financial Statements
for the Year Ended 31 May 2023
Mogers Drewett LLP
Limited liability partnership information
Designated members |
F G Collins S K McDonough T J Webb |
Members |
R E Beresford M M England J B Hopkins R G McFarlane R J Silcock A E Treble D P Hill J D Osman |
Registered office |
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Bankers |
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Accountants |
Hazlewoods LLP |
Mogers Drewett LLP
(Registration number: OC349811)
Balance Sheet as at 31 May 2023
Note |
2023 |
2022 |
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Fixed assets |
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Tangible assets |
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|
|
Investments |
|
|
|
|
|
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Current assets |
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Debtors |
|
|
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Cash and short-term deposits |
|
|
|
|
|
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Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Net assets attributable to members |
|
|
|
Represented by: |
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Loans and other debts due to members |
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Members' capital classified as a liability |
1,197,000 |
1,197,000 |
|
Other amounts |
43,887 |
195,754 |
|
1,240,887 |
1,392,754 |
||
Members’ other interests |
|||
Other reserves |
|
|
|
2,251,801 |
1,876,477 |
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Total members' interests |
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Loans and other debts due to members |
1,240,887 |
1,392,754 |
|
Equity |
|
|
|
2,251,801 |
1,876,477 |
These financial statements have been prepared in accordance with the special provisions relating to LLPs subject to the small LLPs regime within Part 15 of the Companies Act 2006, as applied to LLPs.
These financial statements have been delivered in accordance with the provisions applicable to LLPs subject to the small LLPs regime, as applied to LLPs, and the option not to file the Profit and Loss Account has been taken.
The members acknowledge their responsibilities for complying 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 with respect to accounting records and the preparation of accounts.
Mogers Drewett LLP
(Registration number: OC349811)
Balance Sheet as at 31 May 2023 (continued)
The financial statements of Mogers Drewett LLP (registered number OC349811) were approved by the
.........................................
F G Collins
Designated member
Mogers Drewett LLP
Notes to the Financial Statements for the Year Ended 31 May 2023
General information |
The place of registration of the LLP is England & Wales under the Limited Liability Partnership Act 2000.
The address of the registered office is:
Spring House
East Mill Lane
Sherborne
England
DT9 3DP
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
The limited liability partnership is incorporated in the United Kingdom under the Limited Liability Partnership Act 2000. The address of the registered office is given on the limited liability partnership information page. The nature of the limited liability partnership’s operations and its principal activities are given in the members’ report.
These financial statements have been prepared using the historical cost convention, modified to include certain items at fair value, and in accordance with Financial Reporting Standard FRS 102 1A (FRS 102 1A) issued by the Financial Reporting Council and the requirements of the Statement of Recommended Practice Accounting by Limited Liability Partnerships (issued January 2017).
The functional currency of Mogers Drewett LLP is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Exemption from preparing group accounts
The limited liability partnership is part of a small group. The limited liability partnership has taken advantage of the exemption provided by Section 399 (2A) of the Companies Act 2006, as applied to limited liability partnerships, and has not prepared group accounts.
Mogers Drewett LLP
Notes to the Financial Statements for the Year Ended 31 May 2023 (continued)
2 |
Accounting policies (continued) |
Judgements
In the application of the LLP's accounting policies, 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 recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
Key sources of estimation uncertainty
Amounts recoverable on contracts - the process of assessing amounts recoverable on contracts requires various estimates and judgements to be made. Fee earners are required to record time spent on client assignments and this is used as the basis for the amounts recoverable on contracts estimate. Fee earners review their time balances on a regular basis and identify irrecoverable amounts to be written off. The carrying amount is £858,582 (2022 - £829,957).
Bad debt provision - due to the nature of the business, there are high levels of trade receivables at the year end, and therefore a risk that some of these balances maybe irrecoverable. A bad debt review is carried out, where debts are assessed and provided against when recoverability of these balances is considered to be uncertain. The carrying amount is £8,671 (2022 - £13,246).
Revenue recognition
Fee income represents the fair value of services provided during the year on client assignments. Fair value reflects the amounts expected to be recoverable from clients based on time spent, skills provided and expenses incurred, and excludes VAT. Income is recognised as contract activity progresses and the right to consideration is secured, except where the final outcome cannot be assess with reasonable certainty.
Income in respect of contingent fee assignments is recognised in the period when the contingent event occurs and collectability of the fee is assured.
Unbilled income on individual client assignments is included as amounts recoverable on contracts within debtors.
Government grants
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
Disbursements
Members' remuneration and division of profits
The profits of the LLP are divided among the members in accordance with the agreed profit share arrangements.
A member's share of the profit or loss for the year is accounted for as allocation of profits.
Taxation
The taxation payable on the partnership's profits is the personal liability of the members.
Tangible fixed assets
Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Mogers Drewett LLP
Notes to the Financial Statements for the Year Ended 31 May 2023 (continued)
2 |
Accounting policies (continued) |
Depreciation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Asset class |
Depreciation method and rate |
Leasehold property |
over the period of the lease |
Computer equipment |
25% straight line |
Office equipment |
25% straight line |
Fixed asset investments
Fixed asset investments are revalued each year at fair value with changes in fair value recognised in the Statement of Comprehensive Income.
Trade debtors
Trade debtors are amounts due from clients for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the limited liability partnership will not be able to collect all amounts due according to the original terms of the receivables.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the LLP does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Provisions
Provisions are recognised when the limited liability partnership has an obligation at the reporting date 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.
Hire purchase and leasing
Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the partnership, are capitalised in the balance sheet as tangible fixed assets and are depreciated over the shorter of the lease term and their useful lives. The capital elements of future obligations under the leases are included as liabilities in the balance sheet. The interest element of the rental obligation is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding. Assets held under hire purchase agreements are capitalised as tangible fixed assets and are depreciated over the shorter of the lease term and their useful lives. The capital element of future finance payments is included within creditors. Finance charges are allocated to accounting periods over the length of the contract and represent a constant proportion of the balance of capital repayments outstanding.
Members' interests
Amounts due to members after more than one year comprise provisions for annuities to current members and certain loans from members which are not repayable within twelve months of the balance sheet date.
Pensions and other post retirement obligations
The LLP operates a defined benefit contribution pension scheme. Contributions are charged in the profit and loss account as they become payable in accordance with the rules of the scheme.
Mogers Drewett LLP
Notes to the Financial Statements for the Year Ended 31 May 2023 (continued)
2 |
Accounting policies (continued) |
Financial instruments
Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the LLP after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the LLP is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
Recognition and Measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Impairment of financial assets
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
Particulars of employees |
The average number of persons employed by the LLP during the year was
Mogers Drewett LLP
Notes to the Financial Statements for the Year Ended 31 May 2023 (continued)
Tangible fixed assets |
Long leasehold land and buildings |
Office equipment |
Total |
|
Cost |
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At 1 June 2022 |
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|
|
Additions |
- |
|
|
Disposals |
- |
( |
( |
At 31 May 2023 |
|
|
|
Depreciation |
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At 1 June 2022 |
|
|
|
Charge for the year |
|
|
|
Eliminated on disposals |
- |
( |
( |
At 31 May 2023 |
|
|
|
Net book value |
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At 31 May 2023 |
|
|
|
At 31 May 2022 |
|
|
|
Mogers Drewett LLP
Notes to the Financial Statements for the Year Ended 31 May 2023 (continued)
Investments held as fixed assets |
2023 |
2022 |
|
Other investments |
|
|
The fair value is based on the net assets position at the year end.
Other investments
Subsidiary undertakings |
Total |
|
Cost |
||
At 1 June 2022 |
407,981 |
407,981 |
Revaluation |
119,402 |
119,402 |
Additions |
98,932 |
98,932 |
At 31 May 2023 |
626,315 |
626,315 |
Net book value |
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At 31 May 2023 |
626,315 |
626,315 |
At 31 May 2022 |
407,981 |
407,981 |
Details of undertakings
Details of the investments in which the limited liability partnership holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Country of incorporation |
Holding |
Proportion of voting rights and shares held |
Subsidiary undertakings |
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|
England and Wales |
Ordinary |
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Significant holdings |
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Mogers Drewett Services Limited |
England & Wales |
Ordinary |
100% |
Mogers Drewett LLP
Notes to the Financial Statements for the Year Ended 31 May 2023 (continued)
Debtors |
2023 |
2022 |
|
Trade debtors |
|
|
Amounts owed by related parties |
|
|
Other debtors |
|
|
Amounts recoverable on contracts |
858,582 |
829,957 |
Prepayments and accrued income |
|
|
2,275,369 |
2,016,515 |
Creditors: Amounts falling due within one year |
2023 |
2022 |
|
Bank loans and overdrafts |
107,313 |
106,327 |
Trade creditors |
699,965 |
648,001 |
Other creditors |
113,893 |
12,256 |
Accruals and deferred income |
133,847 |
98,214 |
Taxation and social security |
202,444 |
225,551 |
1,257,462 |
1,090,349 |
Creditors amounts falling due within one year includes the following liabilities, on which security has been given by the LLP:
2023 |
2022 |
|
Bank loans and overdrafts |
107,313 |
106,327 |
Bank loans and overdrafts are secured by a debenture over the LLP's assets.
Creditors: Amounts falling due after more than one year |
2023 |
2022 |
|
Bank loans and overdrafts |
85,437 |
188,924 |
Other creditors |
15,017 |
- |
100,454 |
188,924 |
Creditors amounts falling due after more than one year includes the following liabilities, on which security has been given by the LLP:
2023 |
2022 |
|
Bank loans and overdrafts |
85,437 |
188,924 |
Bank loans and overdrafts are secured by a debenture over the LLP's assets.
Mogers Drewett LLP
Notes to the Financial Statements for the Year Ended 31 May 2023 (continued)
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £
Audit report |