Mercury Legal LLP - Accounts to registrar (filleted)

REGISTERED NUMBER: OC345261 (England and Wales)

Unaudited Financial Statements

for the Year Ended 30 April 2018

for

Mercury Legal LLP

Page

General Information

1

Abridged Balance Sheet

2

Notes to the Financial Statements

4

DESIGNATED MEMBERS:

P H McKeown

S J Harvey

D M J Wright

REGISTERED OFFICE:

Gorse Stack House

George Street

Chester

Cheshire

CH1 3EQ

REGISTERED NUMBER:

OC345261 (England and Wales)

ACCOUNTANTS:

McEwan Wallace Limited

68 Argyle Street

Birkenhead

CH41 6AF

FIXED ASSETS

Intangible assets

4

126,750

136,500

Tangible assets

5

8,294

9,750

135,044

146,250

CURRENT ASSETS

Stocks

61,020

166,956

Debtors

2,093,184

1,897,056

Cash at bank and in hand

20,362

1,621

2,174,566

2,065,633

CREDITORS

Amounts falling due within one year

890,910

793,183

NET CURRENT ASSETS

1,283,656

1,272,450

TOTAL ASSETS LESS CURRENT
LIABILITIES

1,418,700

CREDITORS

Amounts falling due after more than one year

1,380,000

NET ASSETS ATTRIBUTABLE TO
MEMBERS

38,700

LOANS AND OTHER DEBTS DUE TO
MEMBERS

8

38,700

TOTAL MEMBERS' INTERESTS

Loans and other debts due to members

8

38,700

Amounts due from members

(1,300,624

)

(896,706

)

(1,261,924

)

(858,006

)

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 30 April 2018.

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 and delivered in accordance with the provisions of Part 15 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 small LLPs.

All the members have consented to the preparation of an abridged Income Statement and an abridged Balance Sheet for the year ended 30 April 2018 in accordance with Section 444(2A) of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.

In accordance with Section 444 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, the Income Statement has not been delivered.

The financial statements were approved by the members of the LLP on 6 December 2018 and were signed by:

S J Harvey - Designated member

1.	STATUTORY INFORMATION

Mercury Legal 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 the provisions of Section 1A "Small Entities" of 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.

The entity commenced trading in November 2009, and the losses shown for the period to 30th April 2010 were in

line with the members financial projections, profitable trading has been achieved in subsequent years. The business

is being supported by the members and by external investors.

In 2018 the partnership made a trading loss, however the members remain confident in the future of the business as a

going concern.

Turnover

Fee income turnover 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 current

assets as amounts recoverable under contracts and payments on account in excess of the relevant amount of revenue

are included in creditors.

Fee income that is contingent on events outside the control of the firm is recognised when the contingent event

occurs.

Intangible assets

Intangible asset, being the amount paid in connection with a domain name licence. Amortisation is charged evenly

over its estimated useful life of twenty years.

Tangible fixed assets

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

Fixtures and fittings

-

10% on cost

Computer equipment

-

25% on cost

Hire purchase and leasing commitments

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the

lessor are charged against profits 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.

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 (ISA 32) Financial : Instruments

Disclosure and Presentation and UITF abstract 39 Members' share 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 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 Profit and Loss Account 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 as an

expense. They are therefore shown as a residual amount available for discretionary division among members on the

Profit and Loss Account and are equity appropriations in the Balance sheets.

Other amounts applied to members, for example remuneration paid under an employment contract and interest on

capital balances, are treated in the same was 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 Profit and Loss Account 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 interest'.

Taxation

The taxation payable on the LLP profits is the personal liability of the members therefore neither partnership taxation

nor related deferred taxation are accounted for in the financial statements.

Financial instruments

The following assets and liabilities are classified as financial instruments - trade debtors, trade creditors, and

directors' loans.

Directors' loans (being repayable on demand), trade debtors and trade creditors are measured at the undiscounted

amount of the cash or other consideration expected to be paid or received.

Financial assets that are measured at amortised cost are assessed at the end of each reporting period for objective

evidence of impairment. If objective evidence of impairment is found, an impairment loss in recognised in the

Statement of Income and Retained Earnings.

Critical accounting estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors,

including expectations of future events that are believed to be reasonable under the circumstances. The company

makes estimates and assumptions concerning the future.

The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The

estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of

assets and liabilities within the next financial year are discussed below;

When an asset is purchased it is categorised into an asset class, the depreciation policy of each class estimates the

economic life of all assets within the class.

The depreciation policy of each asset class is determined by management and reviewed regularly for appropriateness.

The depreciation policy adopted is based on historical experience as well as considering the future events which may

impact the useful economic life of all assets within each class, such as changes in market demands.

In addition FRS 102 requires an entity to assess at each reporting date whether there is any indication that assets

within a class may be impaired i.e. the recoverable amount of the asset is less than the carrying amount. If any such

indication exists, management are required to estimate the recoverable amount of the individual assets concerned.

Management judgement is applied to determine if revenue and costs should be recognised in the current period.

3.	EMPLOYEE INFORMATION

The average number of employees during the year was 14 (2017 - 11 ) .

4.	INTANGIBLE FIXED ASSETS

Totals

£

COST

At 1 May 2017

and 30 April 2018

195,000

AMORTISATION

At 1 May 2017

58,500

Amortisation for year

9,750

At 30 April 2018

68,250

NET BOOK VALUE

At 30 April 2018

126,750

At 30 April 2017

136,500

5.	TANGIBLE FIXED ASSETS

Totals

£

COST

At 1 May 2017

and 30 April 2018

13,066

DEPRECIATION

At 1 May 2017

3,316

Charge for year

1,456

At 30 April 2018

4,772

NET BOOK VALUE

At 30 April 2018

8,294

At 30 April 2017

9,750

6.	LEASING AGREEMENTS

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

30.4.18

30.4.17

£

Within one year

4,200

Between one and five years

7,000

11,200

15,400

7.	SECURED DEBTS

Creditors include an amount of £1,380,000 (2017 - £1,380,000) for which security has been given.

8.

LOANS AND OTHER DEBTS DUE TO MEMBERS

At 30 April 2018, Mercury Legal LLP owed £38,700 to members (2017 - £38,700) which are classified as 'loans and

other debts due to members' in the balance sheet. No interest has been charged to the LLP in respect of these loans

which are repayable on demand. In the event of the LLP being wound up, these liabilities will rank equally with the

debts due to other unsecured creditors.

There were no restrictions on the ability of members to reduce the amount of members' other interest in the balance

sheet at 30 April 2018 or 30 April 2017.

Mercury Legal LLP - Accounts to registrar (filleted) - small 18.2

Mercury Legal LLP - Accounts to registrar (filleted) - small 18.2