Archr LLP - LLP accounts 16.3

REGISTERED NUMBER: OC371018 (England and Wales)

REPORT OF THE MEMBERS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2017

FOR

ARCHR LLP

Page

General Information

1

Report of the Members

2

Report of the Independent Auditors

4

Statement of Comprehensive Income

6

Balance Sheet

7

Reconciliation of Members' Interests

8

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DESIGNATED MEMBERS:

Archr UK Ltd

Ashbean 1 LLP

S R Deighton

M&R Capital LLP

Tomimi LLP

Totleigh LLP

Kamulla LLP

REGISTERED OFFICE:

115b Drysdale Street

Hoxton

London

N1 6ND

REGISTERED NUMBER:

OC371018 (England and Wales)

AUDITORS:

Anstey Bond LLP

1 Charterhouse Mews

London

EC1M 6BB

BANKERS:

Coutts & Co

440 Strand

London

WC2R 0QS

The members present their report with the financial statements of the LLP for the year ended 31 March 2017.

PRINCIPAL ACTIVITY

The principal activity of the LLP in the year under review was that of Investment brokers.

DESIGNATED MEMBERS

The designated members during the year under review were:

Archr UK Ltd

Ashbean 1 LLP

S R Deighton

M&R Capital LLP

Tomimi LLP

Totleigh LLP

Kamulla LLP

RESULTS FOR THE YEAR AND ALLOCATION TO MEMBERS

The profit for the year before members' remuneration and profit shares was £2,866,766 (2016 - £2,655,896 profit).

MEMBERS' INTERESTS

Members' capital is repayable upon the relevant member ceasing to be a member.

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.

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 ought to have taken as a

member in order to make himself aware of any relevant audit information and to establish that the LLP's auditors are

aware of that information.

AUDITORS

The auditors, Anstey Bond LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE MEMBERS:

Ashbean 1 LLP - Designated member

26 June 2017

Opinion

We have audited the financial statements of Archr LLP (the 'LLP') for the year ended 31 March 2017 on pages six to

sixteen. 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).

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.

In our opinion the financial statements:

-	give a true and fair view of the state of the LLP's affairs as at 31 March 2017 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the members' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the members have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the LLP's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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 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, 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.

Our 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.

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.

Colin Ellis FCCA CF (Senior Statutory Auditor)

for and on behalf of Anstey Bond LLP

1 Charterhouse Mews

London

EC1M 6BB

26 June 2017

TURNOVER

4,329,272

4,113,614

Cost of sales

452,119

455,433

GROSS PROFIT

3,877,153

3,658,181

Administrative expenses

1,048,202

1,010,074

2,828,951

2,648,107

Other operating income

39,472

9,797

OPERATING PROFIT

3

2,868,423

2,657,904

Interest receivable and similar income

85

104

2,868,508

2,658,008

Interest payable and similar expenses

4

1,742

2,112

PROFIT FOR THE FINANCIAL YEAR BEFORE MEMBERS' REMUNERATION AND PROFIT SHARES AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS

2,866,766

2,655,896

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,866,766

2,655,896

FIXED ASSETS

Tangible assets

6

67,862

107,899

CURRENT ASSETS

Debtors

7

1,714,863

1,122,781

Cash at bank

419,599

762,910

2,134,462

1,885,691

CREDITORS

Amounts falling due within one year

8

95,623

130,421

NET CURRENT ASSETS

2,038,839

1,755,270

TOTAL ASSETS LESS CURRENT LIABILITIES

and

NET ASSETS ATTRIBUTABLE TO MEMBERS

2,106,701

1,863,169

LOANS AND OTHER DEBTS DUE TO MEMBERS

11

1,250,474

894,942

MEMBERS' OTHER INTERESTS

Capital accounts

856,227

968,227

2,106,701

1,863,169

TOTAL MEMBERS' INTERESTS

Loans and other debts due to members

11

1,250,474

894,942

Members' other interests

856,227

968,227

Amounts due from members

7

(3,708

)

(13,000

)

2,102,993

1,850,169

The financial statements were approved by the members of the LLP on 26 June 2017 and were signed by:

Ashbean 1 LLP - Designated member

EQUITY

Members' other interests

Members'

capital

(classified

as

Other

equity)

reserves

Total

£

£

£

Balance at 1 April 2016

968,227

-

968,227

Profit for the financial year available for discretionary division among members

-

2,866,766

2,866,766

Members' interests after profit for the year

968,227

2,866,766

3,834,993

Other divisions of profit

-

(2,866,766

)

(2,866,766

)

Introduced by members

(112,000

)

-

(112,000

)

Drawings

-

-

-

Balance at 31 March 2017

856,227

-

856,227

DEBT

TOTAL

Loans and other debts due to

MEMBERS'

members less any amounts due

INTERESTS

from members in debtors

Other

amounts

Total

£

£

Amount due to members

894,941

Amount due from members

(13,000

)

Balance at 1 April 2016

881,941

1,850,168

Profit for the financial year available for discretionary division among members

-

2,866,766

Members' interests after profit for the year

881,941

4,716,934

Other divisions of profit

2,866,766

-

Introduced by members

63,935

(48,065

)

Drawings

(2,565,876

)

(2,565,876

)

Amount due to members

1,250,474

Amount due from members

(3,708

)

Balance at 31 March 2017

1,246,766

2,102,993

EQUITY

Members' other interests

Members'

capital

(classified

as

Other

equity)

reserves

Total

£

£

£

Balance at 1 April 2015

951,977

-

951,977

Profit for the financial year available for discretionary division among members

-

2,655,896

2,655,896

Members' interests after profit for the year

951,977

2,655,896

3,607,873

Other divisions of profit

-

(2,655,896

)

(2,655,896

)

Introduced by members

16,250

-

16,250

Drawings

-

-

-

Balance at 31 March 2016

968,227

-

968,227

DEBT

TOTAL

Loans and other debts due to

MEMBERS'

members less any amounts due

INTERESTS

from members in debtors

Other

amounts

Total

£

£

Amount due to members

1,349,492

Amount due from members

-

Balance at 1 April 2015

1,349,492

2,301,469

Profit for the financial year available for discretionary division among members

-

2,655,896

Members' interests after profit for the year

1,349,492

4,957,365

Other divisions of profit

2,655,896

-

Introduced by members

-

16,250

Drawings

(3,123,446

)

(3,123,446

)

Amount due to members

894,942

Amount due from members

(13,000

)

Balance at 31 March 2016

881,942

1,850,169

Cash flows from operating activities

Cash generated from operations

1

2,258,495

2,725,596

Interest paid

(1,742

)

(2,112

)

Net cash from operating activities

2,256,753

2,723,484

Cash flows from investing activities

Purchase of tangible fixed assets

(2,708

)

(13,017

)

Interest received

85

104

Net cash from investing activities

(2,623

)

(12,913

)

Cash flows from financing activities

Transactions with members and former

members

Payments to members

(2,565,876

)

(3,123,446

)

Contributions by members

(48,065

)

29,250

Net cash from financing activities

(2,613,941

)

(3,094,196

)

Decrease in cash and cash equivalents

(359,811

)

(383,625

)

Cash and cash equivalents at beginning of year

2

742,048

1,125,673

Cash and cash equivalents at end of year

2

382,237

742,048

1.	RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR BEFORE MEMBERS' REMUNERATION AND PROFIT SHARES AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS TO CASH GENERATED FROM OPERATIONS

2017

2016

£

£

Profit for the financial year before members' remuneration and profit shares available for discretionary division among members

2,866,766

2,655,896

Depreciation charges

42,745

41,203

Finance costs

1,742

2,112

Finance income

(85

)

(104

)

2,911,168

2,699,107

(Increase)/decrease in trade and other debtors

(601,375

)

271,470

Decrease in trade and other creditors

(51,298

)

(244,981

)

Cash generated from operations

2,258,495

2,725,596

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 31 March 2017

31.3.17

1.4.16

£

£

Cash and cash equivalents

419,599

762,910

Bank overdrafts

(37,362

)

(20,862

)

382,237

742,048

Year ended 31 March 2016

31.3.16

1.4.15

£

£

Cash and cash equivalents

762,910

1,146,861

Bank overdrafts

(20,862

)

(21,188

)

742,048

1,125,673

1.	STATUTORY INFORMATION

Archr LLP is registered in England and Wales. The LLP's registered number and registered office address can be

found on the General Information page.

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. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Tangible fixed assets

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

Improvements to property

-

Over the useful life of the lease

Fixtures and fittings

-

20% on cost

Computer equipment

-

33% on cost

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at

the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

Vat

VAT is accounted for under Partial Exemption rules with any irrecoverable VAT being written off to the Profit

& Loss Account.

Revenue recognition

Broking is transacted on an arranging, execution and give-up basis. Revenue is recognised as the per lot

commission on a trade date basis. Outstanding brokerage is reflected on the balance sheet as trade debtors.

Members profit allocations

Guaranteed drawings of profits are shown within the Profit and Loss Account as members' salaries charged as an

expense. Unallocated profits and losses are distributed per the partnership agreement.

3.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2017

2016

£

£

Other operating leases

129,469

99,425

Depreciation - owned assets

42,745

41,203

Auditors' remuneration

5,750

5,750

Foreign exchange differences

(39,472

)

10,247

4.

INTEREST PAYABLE AND SIMILAR EXPENSES

2017

2016

£

£

Bank interest

1,742

6

Bank loan interest

-

2,106

1,742

2,112

5.	INFORMATION IN RELATION TO MEMBERS

2017

2016

£

£

The amount of profit attributable to the member with the largest entitlement was

785,156

761,165

2017

2016

The average number of members during the year was

13

14

6.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

and

Computer

property

fittings

equipment

Totals

£

£

£

£

COST

At 1 April 2016

30,882

24,794

93,426

149,102

Additions

-

1,477

1,231

2,708

At 31 March 2017

30,882

26,271

94,657

151,810

DEPRECIATION

At 1 April 2016

6,180

4,727

30,296

41,203

Charge for year

6,180

5,156

31,409

42,745

At 31 March 2017

12,360

9,883

61,705

83,948

NET BOOK VALUE

At 31 March 2017

18,522

16,388

32,952

67,862

At 31 March 2016

24,702

20,067

63,130

107,899

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

1,208,931

642,802

Amounts due from members

3,708

13,000

Other debtors

415,600

390,623

VAT

18,556

9,179

Prepayments

68,068

67,177

1,714,863

1,122,781

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Bank loans and overdrafts (see note 9)

37,362

20,862

Trade creditors

21,533

47,265

Other creditors

1,295

14,583

Accrued expenses

35,433

47,711

95,623

130,421

9.

LOANS

An analysis of the maturity of loans is given below:

2017

2016

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

37,362

20,862

10.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2017

2016

£

£

Within one year

127,000

127,000

Between one and five years

190,500

317,500

317,500

444,500

11.

LOANS AND OTHER DEBTS DUE TO MEMBERS

2017

2016

£

£

Amounts owed to members in respect of profits

1,250,474

894,942

Falling due within one year

1,250,474

894,942

12.	FCA DISCLOSURES

Overview

These disclosures are made in accordance with the rules of the Financial Conduct Authority which implement in

the UK the EU directives regarding the revised capital adequacy framework agreed by the Basel Committee on

Banking Supervision. It is this application of the Capital Requirement Directive and Basel II that requires Archr

LLP to make these disclosures.

The FCA Framework consists of three Pillars:

- Pillar 1: the minimum capital requirements that must be held;

- Pillar 2: supervisory review and evaluation process through which the firm and regulator satisfy themselves that

capital held under Pillar 1 sufficient to cover additional risks not covered by Pillar 1 requirements;

- Pillar 3: disclosure requirements allowing market participants to assess the information on a firms' risk, capital

and risk management procedures.

The Financial Conduct Authority, in BIPRU 11, outlines the minimum disclosure requirements. The information

below satisfies Archr LLP's Pillar 3 requirement.

Frequency of Disclosure

Archr LLP report their Pillar 3 disclosure annually or upon material change. These disclosures are based on the

company's position as at 31st March 2017. The Pillar 2 (ICAAP) capital requirements are excluded from this

summary but are reviewed annually or upon material change.

Location and Verification

These disclosures have been validated by the senior partners. These disclosures are not subject to an audit except

to the extent where they are equivalent to disclosures made under accounting requirements.

Scope of Application

This disclosure is made on an individual basis.

Risk Management

The partners of the firm, in addition to the risk mapping structure of the ICAAP, are very much involved with the

company including the continual assessment of risk. They meet on a regular basis to discuss current projections

for profitability, regulatory capital management, business planning and risk management. The partners manage

the firm's risks through a framework of policy and procedures having regard to relevant laws, standards,

principles and rules (including FCA principles and rules) with the aim to operate a defined and transparent risk

management framework. These policies and procedures are updated as required.

The firm is relatively small with an operation infrastructure appropriate to its size.

The ICAAP has identified the material risk types to which Archr LLP are exposed to as follows:

Operational Risk

Operational risk is the risk of loss resulting from internal processes which are inadequate or have failed due to

human errors, system failures, or external events. The firm is exposed to operational risk as a consequence of its

core business, with the loss of key staff identified as having potential to negatively impact the firm's financial

activity and performance.

The firm seeks to manage and mitigate operation risk through continuously improving processes and controls and

encouraging a positive and proactive management and operational risk culture.

Business Risk

Business risk encompasses the exposure to uncertainty in wider economic and competitive environment and the

impact on the firm's ability to carry out its stated business plan. The risk is managed with a long-term focus,

assisted by appropriate management oversight to maintain high investment performance and trade execution

levels for clients.