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ZAHA HADID LIMITED |
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Strategic Report, Directors' Report and |
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Audited Financial Statements |
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for the Year Ended 30 April 2021 |
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ZAHA HADID LIMITED |
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Strategic Report, Directors' Report and |
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Audited Financial Statements |
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for the Year Ended 30 April 2021 |
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ZAHA HADID LIMITED (REGISTERED NUMBER: 03749443) |
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Contents of the Financial Statements |
for the year ended 30 April 2021 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Directors' Report | 7 |
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Independent Auditors' Report | 9 |
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Statement of Comprehensive Income | 12 |
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Balance Sheet | 13 |
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Statement of Changes in Equity | 14 |
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Notes to the Financial Statements | 15 |
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ZAHA HADID LIMITED |
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Company Information |
for the year ended 30 April 2021 |
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Directors: |
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Registered office: |
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Registered number: |
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Auditors: |
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Chartered Accountants and Statutory Auditor |
New Derwent House |
69-73 Theobalds Road |
London |
WC1X 8TA |
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Bankers: |
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34 Sloane Square |
London |
SW1W 8AZ |
ZAHA HADID LIMITED (REGISTERED NUMBER: 03749443) |
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Strategic Report |
for the year ended 30 April 2021 |
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The directors present their strategic report for the year ended 30 April 2021. |
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Review of business |
Winning significant new commissions and more than 30 international awards, the diversity of ZHL's global portfolio demonstrates their continued success in delivering transformational architecture across six continents. |
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Transitioning to employee ownership through an Employee Benefit Trust, ZHL has excelled through a period of unprecedented global challenges and expanded by over 30% to a team of more than 500 dedicated professionals. As the Trust has no external shareholders, we can now reinvest all profits back into the business, into our people, equipment and facilities to the benefit all our employees; allowing us to prioritise our work with visionary clients, communities and industry experts around the world to advance the quality of the built environment. |
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Built around a deep commitment to the culture of diverse people working collaboratively, ZHL's ongoing projects demonstrate a steadfast commitment to the highest standards of design and construction. |
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The Shanghai campus of the China Energy Conservation and Environmental Protection Group (CECEP) celebrated its ground-breaking. Home to the country's leading institution initiating and funding projects with a focus on renewable technologies, the new mixed-use urban campus will incorporate the renovation and re-use of the site's existing 1930's sugar factory and has been designed to achieve more than 90 credits in China's Three Star Green Building Rating system. |
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The Shenzhen Science & Technology Museum also began construction. Planned as benchmark for sustainability within the region's civic architecture, the museum's design guides visitors on a journey of discovery through a sequence of interconnected galleries and educational facilities centred around its atrium courtyard. |
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Construction works also started on the new halls of residence for 1,500 students at Hong Kong University of Science & Technology (HKUST). Combining advanced digital design with sustainable construction practices and operational strategies for its 50-year life cycle, the design is defined by the university's mission to achieve carbon-neutral operations by harnessing technology and innovation. |
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ZHL was selected to build Tower C at the Shenzhen Bay Super Headquarters Base, a new business and financial district accommodating 300,000 employees each day. |
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The Tower C development is a multi-dimensional vertical city of two towers at nearly 400m. Its design responds to its location at the intersection of the city's planned north-south green axis and Shenzhen's east-west urban corridor. The adjacent park transforms into a terraced landscape extending upwards within its two towers; inviting the public into the heart of the building. |
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With all 700 apartments sold before completion, Sky Park in Bratislava welcomed its first residents. Located southeast of the city centre, the Sky Park development converts a derelict industrial zone into a new 20,000m² public park and community of homes, offices and shops served by the city's tram network. |
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The Ecopark Stadium in the UK was approved by the English Football League to be developed as the new home of Forest Green Rovers (FGR) Football Club. Providing important new facilities for its community and echoing FGR's holistic vision, the stadium is designed for the club's future growth and embodies low carbon construction methods and operational processes; almost every element made from sustainably sourced timber together with the on-site provision of renewable energy generation. |
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ZHL was awarded the commission to build Phase II of the International Exhibition Centre in Beijing. The 438,500m2 Phase II by ZHL will significantly expand the centre's exhibition space while its modular fabrication and construction methods will minimize construction time, investment and operational costs. |
ZAHA HADID LIMITED (REGISTERED NUMBER: 03749443) |
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Strategic Report |
for the year ended 30 April 2021 |
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ZHL also won the competition to renovate the Vilnius railway station, creating an integrated transportation hub for the 21st century. Meeting the city's ongoing sustainability agenda that prioritizes pedestrians and cyclists, the design creating a major transport interchange for national and local rail services in addition to the new Rail Baltic line that links with Europe's high-speed network. |
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Infinitus Plaza was inaugurated in Guangzhou, China. Incorporating work environments designed to nurture connectivity, creativity and entrepreneurship, the new headquarters combines innovative design and construction technologies with proven sustainability strategies to create spaces that unite all departments and enhance communication throughout the group. |
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Construction works began on Phase One of Western Sydney Airport. Beginning with its initial stage serving 10 million annual passengers by 2026, further stages will increase capacity to 82 million passengers a year to become the largest gateway to Australia. The ZHL/COX design incorporates sustainable design principles across the building's architecture and construction, integrating extensive use of daylight, natural ventilation and water recycling in a modular, energy-efficient design. |
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ZHL looks forward to the completion of seminal projects in the coming year including: |
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The Xi'an International Football Centre is a 60,000-seat stadium for national & international matches as well as league games, youth training academies & entertainment events. With its legacy mode operations as the starting point to provide optimum conditions for football and maximum use by future generations, the design's open facades invite the city's residents to enjoy its public spaces, recreation areas and dining facilities within a series of shaded south-facing garden terraces with views over the city. |
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Incorporating sustainability and technology working together to drive positive change, Bee'ah's new headquarters in Sharjah, UAE targets LEED Platinum certification. With environmental considerations woven into every aspect of its design and construction, the new headquarters has an ultra-low carbon footprint and will be powered by solar energy to achieve carbon zero operations. |
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Located on the banks of the Bouregreg River between the ancient cities of Rabat and Salé, the Grand Theatre in Rabat continues the region's rich traditions in performing arts and storytelling in its experimental performance space, outdoor amphitheatre for 7,000 spectators and 1,800-seat operatic theatre with its crystalline geometries inspired by the angular vaulting of traditional Moroccan muqarnas. |
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The King Abdullah Financial District (KAFD) Metro Station in Riyadh will also open this year. With six platforms over four public levels, the station targets LEED Gold accreditation and will be a key interchange between Line 1, Line 4 and Line 6 of the new Riyadh Metro. Anticipated to transport 3.6 million passengers a day by 2030, Riyadh Metro will contribute to reducing the number of car journeys throughout the city by almost 2 million car trips every day. |
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Exhibitions around the world showcased ZHL's integration of architecture, engineering and urbanism: |
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The 'Close Up - Work & Research' exhibition was presented at the Modern Art Museum (MAM) Shanghai. ZHL's first large-scale monographic show in mainland China, the exhibition showcased the technological innovations that are transforming how the studio imagines, designs and constructs built environments. |
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The Striatus Bridge was installed at the 'Time Space Existence' exhibition during the Venice Architecture Biennale. An arched masonry footbridge composed of 3D-printed concrete blocks assembled without mortar or reinforcement, Striatus is the first of its kind; proposing a new language for concrete that is structurally informed, fabrication aware, ecologically responsible and precisely placed to build more with less. |
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ZHL's 'High-performing Urban Ecologies' installation was presented at the Italian Pavilion's 'Resilient Communities' exhibition for the Venice Architecture Biennale. Within ZHL's Alis meeting pod, the installation showcased the Unicorn Island masterplan that is currently under construction in Chengdu, China; redefining the built environment's true measure of efficiency as the improved well-being of its inhabitants. |
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Presented during Art Basel Miami Beach, 'NFTism' was a virtual gallery exploring architecture and social interaction in the metaverse - an online environment coupling spatial and interaction experiences of cyberspace with supporting social, community-forming infrastructure. |
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ZAHA HADID LIMITED (REGISTERED NUMBER: 03749443) |
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Strategic Report |
for the year ended 30 April 2021 |
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Principal risks and uncertainties |
The company and its management are faced with the following principal risks and uncertainties: |
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Recruiting and retaining staff of the appropriate experience and calibre |
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Our business success depends on us being able to recruit and retain sufficient architects and associate professionals with the highest level of design skills and experience. We provide our team with the opportunity to work on very innovative and significant projects worldwide, we provide training and development for all staff and we constantly review and appraise their development and skills. We create an environment which is collaborative and inclusive at all levels attracting the highest kind of a creative staff. With staff working in many cases remotely due to the Covid restrictions we are working hard to ensure that we continue to provide the support needed to retain and motivate staff. |
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The global market for construction projects |
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We constantly evaluate our pipeline of new projects to create a diverse portfolio with wide geographical spread in order to reduce the risk of dependencies on any one geographical market. |
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Competition within the sector both in the UK and internationally |
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Competition in the UK for architectural contract is currently very challenging but our global customer spread has mitigated the effect of this on our business internationally. We strive to achieve the highest possible standards in everything we do. |
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Section 172(1) statement |
As the Board of Zaha Hadid Limited, we take our responsibilities under section 172 of the Companies Act 2006 very seriously. Employing comprehensive data analysis to accurately forecast the impact of our decisions on the company and all its stakeholders, we act in the way we consider, in good faith, will most effectively promote the company's success. This statement outlines the principles in which we as a Board address these responsibilities. |
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Founded by Zaha Hadid in 1979, Zaha Hadid Limited (ZHL) has grown to become a truly global and diversified business with a strong collaborative culture. The company has established a leading reputation for delivering award-winning projects that set new benchmarks for the industry. |
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With agile management structures and strategies to embrace new ideas and technologies, our teams realise transformational architecture across six continents, advancing the quality of the built environment in established and developing markets and sectors. |
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Our integrated, holistic approach is driven by ongoing research to provide our clients with future resilient architecture that is more spatially inventive, structurally efficient, technologically advanced and environmentally sensitive with each new design. |
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Integrated Design |
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With a collective, multi-disciplinary approach problem-solving, we strive to be the global leader in the advancement of new technologies to benefit our clients; applying computational design tools that include scripting techniques, agent based modelling and digital mapping analysis to optimise efficiencies in massing, site conditions, structure, facade-to-floor ratios, solar irradiation, orientation, procurement and construction schedules. |
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Our ongoing investment in IT infrastructure is structured to ensure ZHL is able to set new standards for best practice. The company's research units collaborate with the some of the world's most respected scientific institutions to improve how the industry designs and constructs; establishing advancements in robotics, 3D printing, artificial intelligence, virtual reality, data analytics and digital fabrication for architecture and construction. |
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Pioneering innovations to improve the design process of our increasingly global design teams, we are developing 3D virtual interfaces that support enhanced collaboration. Using virtual reality software developed by ZHL and our partners, teams of architects and engineers based worldwide can interact in real time to generate optimal design solutions. |
ZAHA HADID LIMITED (REGISTERED NUMBER: 03749443) |
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Strategic Report |
for the year ended 30 April 2021 |
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Sustainability |
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Embedding sustainability within the design, procurement, construction and operations of our projects, we work to build the most integrated client/contractor/design team relationships that will maximise opportunities to improve systems which prioritise environmental issues and ensure cost-effective sustainability. Delivering architecture around the world targeting the highest sustainability certification, ZHL is currently developing projects for clients in the Middle East, Europe and the Americas planning carbon-neutral operations. |
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Marrying innovations in design and operational technologies with the advances in ecologically sound materials and sustainable construction practices, we don't look only at the disparate parts, but work to understand them as a whole to deliver solutions to the defining challenges of our era. |
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Our Team |
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Our architecture is built around a deep commitment to the culture of diverse people working collaboratively. Managing resources in line with clients' requirements and the on-going assessment of skills, we cultivate the talent and diversity that drives our decision-making and enriches the built environments we create. |
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We have established training and development programmes to enable everyone at ZHL to realise their ambitions in architecture. This comprehensive programme of internships, mentoring, forums, task forces and reviews enables all talents at to grow and progress regardless of gender, race or identity. We are an industry leader with women comprising 45% of architects at ZHA where the London team of 50 different nationalities includes more than 30% with Black, Asian and minority ethnic backgrounds. |
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Community |
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ZHL has deep commitment to education and a long history of association with academic institutions around the world. We support over 60 members of our team who offer their time to teach at schools, universities and research institutions every month, mentoring a new generation of designers and ensuring the transfer of knowledge and skills to communities worldwide. |
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With a design approach that enables local construction teams and tradesmen to benefit from the knowledge and experience obtained by working with new technologies, we work to ensure local suppliers are given the assistance and training required to develop their product lines for our projects. |
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Our teams build a comprehensive understanding of the local supply chains with materials from certified sustainable sources, developing logistics strategies and construction techniques to promote the use of local materials, craftsmanship and manufacturing facilities which support the economies of the regions where we work. |
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Financial risks |
The company's operations expose it to a variety of financial risks that include funding risk, liquidity risk, foreign currency risk and credit risk. |
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Funding risk |
Treasury policies are designed to manage the main financial risks faced by the company in relation to funding and investment. These policies ensure that any borrowings and investment are with high quality counterparties; are limited to specific instruments; the exposure to any one counterparty or type of instrument is controlled; and the company's exposure to exchange rate movements is monitored. No transactions of a purely speculative nature are undertaken. The directors monitor the company's financing through regular review of trading performance and authorise all significant transactions. |
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Liquidity risk |
The company meets its monthly operating cash requirements in the normal course of business using monthly cash inflows from customers. Management maintain a forecast income model with sensitivity analysis to ensure that the company has sufficient liquid resources to discharge its obligations as they fall due for payment. |
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In line with other architects practices of its size, the company has a substantial working capital requirement both in respect of trade debtors and liquid resources. This working capital requirement is reviewed periodically in the context of forecast revenue and costs. |
ZAHA HADID LIMITED (REGISTERED NUMBER: 03749443) |
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Strategic Report |
for the year ended 30 April 2021 |
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Foreign currency risk |
The company operates internationally and therefore has a number of contracts denominated in non-sterling currencies. The company manages its exposure to foreign exchange movements by converting significant foreign currency cash balances into sterling as soon as practicable. The company does not hold any financial instruments designed to manage fluctuations in foreign exchange rates. |
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Credit risk |
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board. All customers who wish to trade on credit terms are subject to credit verification procedures. The diversity of our work means that our customers include public and private companies, national, state and local governments and state owned companies. This requires us to operate across many different legal jurisdictions and accept the associated legal and political risks to recovery of trade debts. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary. |
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Key performance indicators |
The company continues to perform strongly and has invested in design excellence and research in recent years. |
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This has enabled it to continue to prosper during the Covid 19 pandemic period which follows these accounts. |
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Key Performance Indicators |
Year ended
April |
Year ended
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Year ended
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2021 | 2020 | 2019 |
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Gross Turnover | £60,925,093 | £53,011,803 | £56,596,220 |
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Operating profit | £9,064,231 | £3,247,492 | £1,640,852 |
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Turnover per technical employee | £180,252 | £163,617 | £152,963 |
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Average number of technical employees | 338 | 324 | 370 |
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Cash | £25,909,537 | £11,956,894 | £11,490,502 |
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On behalf of the board: |
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22 December 2021 |
ZAHA HADID LIMITED (REGISTERED NUMBER: 03749443) |
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Directors' Report |
for the year ended 30 April 2021 |
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The directors present their report with the financial statements of the company for the year ended 30 April 2021. |
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Principal activity |
The principal activity of the company in the year under review was that of architects and designers. |
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Dividends |
No dividend was paid during the year (2020: £ nil). |
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Directors |
The directors shown below have held office during the whole of the period from 1 May 2020 to the date of this report. |
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Other changes in directors holding office are as follows: |
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Charitable donations |
2021 | 2020 |
£ | £ |
Charitable donations | - | 5,553 |
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Employee involvement |
The company's policy is to consult and discuss with employees matters likely to affect employees' interests using appropriate content and methods of communication. |
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Disabled persons |
The company has an equal opportunities policy to ensure that it recruits and retains the best applicants. Once employed, a career plan is developed so as to ensure suitable opportunities for all employees including those with a disability. Arrangements are made, wherever possible, to make reasonable adjustments as appropriate for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities. |
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Streamlined energy and carbon reporting |
Zaha Hadid Limited's streamlined energy and carbon report is included in the parent company's (Zaha Hadid Holdings Limited) group report. |
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Disclosure in the strategic report |
Information concerning future developments, the financial risk management objectives and policies of the company, and the exposure of the company to price risk, credit risk, liquidity risk and cash flow risk is disclosed in the Strategic Report. |
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ZAHA HADID LIMITED (REGISTERED NUMBER: 03749443) |
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Directors' Report |
for the year ended 30 April 2021 |
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Directors' responsibilities statement |
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations. |
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Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
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On behalf of the board: |
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Independent Auditors' Report to the Members of |
Zaha Hadid Limited |
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Opinion |
We have audited the financial statements of Zaha Hadid Limited (the 'company') for the year ended 30 April 2021 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. 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). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 April 2021 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. |
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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 company 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. |
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Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
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Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
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Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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However, not all future events or conditions can be predicted. The COVID-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the company's trade, customers, suppliers and wider economy. The Directors' view on the impact of COVID-19 is disclosed within the accounting policies note. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report thereon. |
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Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
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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 we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
Independent Auditors' Report to the Members of |
Zaha Hadid Limited |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 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 |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of directors |
As explained more fully in the Directors' Responsibilities Statement, the directors 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 directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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In preparing the financial statements, the directors are responsible for assessing the company'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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
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Auditors' 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 an Auditors' Report 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. |
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Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We discussed with the Directors the policies and procedures in place regarding |
compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance. |
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During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. |
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Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. |
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Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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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 Auditors' Report. |
Independent Auditors' Report to the Members of |
Zaha Hadid Limited |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
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for and on behalf of
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Chartered Accountants and Statutory Auditor |
New Derwent House |
69-73 Theobalds Road |
London |
WC1X 8TA |
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ZAHA HADID LIMITED (REGISTERED NUMBER: 03749443) |
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Statement of Comprehensive |
Income |
for the year ended 30 April 2021 |
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2021 | 2020 |
Notes | £ | £ |
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Turnover | 3 |
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Cost of sales |
( |
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( |
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Gross profit |
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Administrative expenses |
( |
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8,948,161 | 3,247,492 |
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Other operating income |
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Operating profit |
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Interest receivable and similar income |
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9,068,429 | 3,292,039 |
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Interest payable and similar expenses | 6 |
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( |
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Profit before taxation | 7 |
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Tax on profit | 9 |
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Profit for the financial year |
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Other comprehensive income | - | - |
Total comprehensive income for the year |
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ZAHA HADID LIMITED (REGISTERED NUMBER: 03749443) |
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Balance Sheet |
30 April 2021 |
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2021 | 2020 |
Notes | £ | £ |
Fixed assets |
Tangible assets | 10 |
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Investments | 11 |
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Current assets |
Debtors | 12 |
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Cash at bank and in hand |
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Creditors |
Amounts falling due within one year | 13 |
( |
) |
( |
) |
Net current assets |
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities | 16 | ( |
) |
|
Net assets |
|
|
|
Capital and reserves |
Called up share capital | 17 |
|
|
Retained earnings | 18 |
|
|
Shareholders' funds |
|
|
|
The financial statements were approved by the Board of Directors and authorised for issue on
|
|
|
|
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|
|
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ZAHA HADID LIMITED (REGISTERED NUMBER: 03749443) |
|
Statement of Changes in Equity |
for the year ended 30 April 2021 |
|
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
|
Balance at 1 May 2019 |
|
|
|
|
Changes in equity |
Total comprehensive income | - |
|
|
Balance at 30 April 2020 |
|
|
|
|
Changes in equity |
Total comprehensive income | - |
|
|
Balance at 30 April 2021 |
|
|
|
ZAHA HADID LIMITED (REGISTERED NUMBER: 03749443) |
|
Notes to the Financial Statements |
for the year ended 30 April 2021 |
|
|
1. | Statutory information |
|
Zaha Hadid Limited is a
|
|
2. | Accounting policies |
|
Basis of preparing the financial statements |
|
|
The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Directors have reviewed their cash flow analysis to take into account the impact on the business of COVID-19, alongside the measures that they have taken to mitigate that impact. During the pandemic staff have worked remotely from home where necessary. Based on these assessments, given the measures that have been undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. |
|
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". |
|
- the requirements of Section 7 Statements of Cash Flows. |
- the requirements of paragraph 33.7 of FRS 102 to disclose key management personnel compensation in total. |
|
Preparation of consolidated financial statements |
The financial statements contain information about Zaha Hadid Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Zaha Hadid Holdings Limited, 28 Shad Thames, London, United Kingdom, SE1 2YD. |
|
Turnover |
Turnover represents amounts receivable for architectural and design services net of VAT. |
|
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 debtors 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. |
|
Tangible fixed assets |
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows: |
|
Fixtures, fittings & equipment | 25% straight line |
Motor vehicles | 25% straight line |
Leasehold | 20% Straight Line |
|
Initial direct costs incurred as lessee of an operating lease, are recognised as an asset and are depreciated |
|
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
|
ZAHA HADID LIMITED (REGISTERED NUMBER: 03749443) |
|
Notes to the Financial Statements - continued |
for the year ended 30 April 2021 |
|
|
2. | Accounting policies - continued |
Taxation |
Taxation for year comprises current and deferred tax. Tax is recognised in the income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
|
Current or deferred taxation assets and liabilities are not discounted. |
|
Current tax is recognised at the amount of tax payable or receivable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. The company is a beneficiary of Research & Development (R&D) tax relief from the UK Government in the form of reductions in its annual tax liability, as well as repayable tax credits. Current tax assets or reductions in current tax liabilities for R&D claims are only recognised when the amount can be reliably determined and the probability of HM Revenue & Customs accepting the claim is considered high. |
|
Taxation |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
|
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
|
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
|
Foreign currencies |
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. |
|
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
|
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account. |
|
Leases |
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. At the balance sheet date all leases are classified as operating leases. |
|
Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the term of the relevant lease. Benefits received and receivable as an incentive to enter into an operating lease are also spread on a straight line basis over the lease term. |
|
Employee benefits |
Short term employee benefits including holiday pay and annual bonuses are accrued as services are rendered. Contributions to defined contribution pension schemes are charged to profit or loss as they become payable in accordance with the rules of the scheme. Differences between contributions payable in the year and those actually paid are shown as either accruals or prepayments in the balance sheet. |
ZAHA HADID LIMITED (REGISTERED NUMBER: 03749443) |
|
Notes to the Financial Statements - continued |
for the year ended 30 April 2021 |
|
|
2. | Accounting policies - continued |
|
Financial instruments |
Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument. |
|
Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due. |
|
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the company's cash management. |
|
Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. |
|
Key sources of estimation uncertainty and judgements |
The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. |
|
The company engages in projects which can take many years to complete. The directors therefore must make estimations in terms of the level of revenue to recognise within each set of annual financial statements. Such estimations are by their nature judgemental but are backed by reviews of correspondence and resourcing forecasts performed post year end. |
|
There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provision do not match the level of debts which ultimately prove to be uncollectable. |
|
3. | Turnover |
|
The turnover and profit before taxation are attributable to the one principal activity of the company. |
|
An analysis of turnover by geographical market is given below: |
|
2021 | 2020 |
£ | £ |
United Kingdom |
|
|
Europe |
|
|
South America |
|
|
Asia |
|
|
Africa | - | 368,105 |
Middle East | 5,931,478 | 3,850,420 |
Australia | 1,584,938 | 2,677,241 |
North America | 328,263 | - |
|
|
ZAHA HADID LIMITED (REGISTERED NUMBER: 03749443) |
|
Notes to the Financial Statements - continued |
for the year ended 30 April 2021 |
|
|
4. | Employees and directors |
2021 | 2020 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
2021 | 2020 |
|
Directors | 6 | 7 |
Production | 338 | 324 |
Administration | 44 | 47 |
|
|
|
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £415,691 (2020: £377,770). |
|
5. | Directors' emoluments |
|
Directors' Remuneration | 2021 | 2020 |
£ | £ |
Directors' remuneration for qualifying services | 3,283,128 | 2,020,861 |
Pension | 6,419 | 6,428 |
|
3,289,547 | 2,027,289 |
|
The emoluments for the highest paid director in 2021 were £1,516,342 (2020: £648,543). |
|
During the period retirement benefits were accruing to 5 directors (2020 - 5) in respect of defined contribution |
pension schemes. |
|
Key management personnel includes all directors across the company who together have authority for planning, directing and controlling the activities of the company. |
|
6. | Interest payable and similar expenses |
2021 | 2020 |
£ | £ |
Interest on overdue tax |
|
|
|
7. | Profit before taxation |
|
The profit is stated after charging: |
|
2021 | 2020 |
£ | £ |
Other operating leases |
|
|
Depreciation - owned assets |
|
|
ZAHA HADID LIMITED (REGISTERED NUMBER: 03749443) |
|
Notes to the Financial Statements - continued |
for the year ended 30 April 2021 |
|
|
8. | Auditors' remuneration |
2021 | 2020 |
£ | £ |
Fees payable to the company's auditors and their associates for the audit
of the company's financial statements |
57,023 |
66,895 |
Total audit fees | 57,023 | 66,895 |
|
Taxation advisory services |
|
|
Payroll services |
|
|
Consultancy services |
|
|
Total non-audit fees | 46,392 | 221,993 |
Total fees payable | 103,415 | 288,888 |
|
9. | Taxation |
|
Analysis of the tax credit |
The tax credit on the profit for the year was as follows: |
2021 | 2020 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
Corporation tax prior year |
in relation to R&D tax credits | (1,959,688 | ) | (1,136,154 | ) |
Total current tax | ( |
) | ( |
) |
|
Deferred tax |
|
( |
) |
Tax on profit | ( |
) | ( |
) |
|
UK corporation tax has been charged at 19% (2020 - 19%). |
|
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
|
2021 | 2020 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
(2020 - |
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
Other tax adjustments | 99,861 | (98,027 | ) |
Total tax credit | (63,149 | ) | (581,503 | ) |
ZAHA HADID LIMITED (REGISTERED NUMBER: 03749443) |
|
Notes to the Financial Statements - continued |
for the year ended 30 April 2021 |
|
|
10. | Tangible fixed assets |
Fixtures |
Long | and | Motor |
leasehold | fittings | vehicles | Totals |
£ | £ | £ | £ |
Cost |
At 1 May 2020 |
|
|
|
|
Additions |
|
|
|
|
At 30 April 2021 |
|
|
|
|
Depreciation |
At 1 May 2020 |
|
|
|
|
Charge for year |
|
|
|
|
At 30 April 2021 |
|
|
|
|
Net book value |
At 30 April 2021 |
|
|
|
|
At 30 April 2020 |
|
|
|
|
|
11. | Fixed asset investments |
Shares in |
group |
undertakings |
£ |
Cost |
At 1 May 2020 |
and 30 April 2021 |
|
Net book value |
At 30 April 2021 |
|
At 30 April 2020 |
|
|
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
|
|
Registered office: China |
Nature of business:
|
% |
Class of shares: | holding |
|
|
|
|
Registered office: Hong Kong |
Nature of business:
|
% |
Class of shares: | holding |
|
|
|
|
Registered office: China |
Nature of business:
|
% |
Class of shares: | holding |
|
|
ZAHA HADID LIMITED (REGISTERED NUMBER: 03749443) |
|
Notes to the Financial Statements - continued |
for the year ended 30 April 2021 |
|
|
11. | Fixed asset investments - continued |
|
|
Registered office: England |
Nature of business:
|
% |
Class of shares: | holding |
|
|
|
12. | Debtors: amounts falling due within one year |
2021 | 2020 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Amounts recoverable on contracts |
|
|
Other debtors |
|
|
Directors' current accounts | - | 29,429 |
Corporation tax |
|
|
VAT |
|
|
Deferred tax asset |
|
|
Prepayments and accrued income |
|
|
|
|
|
Deferred tax asset |
2020 |
£ |
Accelerated capital allowances |
|
Other timing differences | 149,161 |
|
|
13. | Creditors: amounts falling due within one year |
2021 | 2020 |
£ | £ |
Payments on account |
|
|
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Corporation tax |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Accruals and deferred income |
|
|
|
|
|
14. | Leasing agreements |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2021 | 2020 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
15. | Secured debts |
|
All the companies assets are secured over fixed and floating charges. |
ZAHA HADID LIMITED (REGISTERED NUMBER: 03749443) |
|
Notes to the Financial Statements - continued |
for the year ended 30 April 2021 |
|
|
16. | Provisions for liabilities |
2021 |
£ |
Deferred tax |
Accelerated capital allowances |
|
|
Deferred tax |
£ |
Balance at 1 May 2020 | ( |
) |
Charge to Statement of Comprehensive Income during year |
|
Balance at 30 April 2021 |
|
|
17. | Called up share capital |
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
|
Ordinary | £1 | 2 | 2 |
|
18. | Reserves |
Retained |
earnings |
£ |
|
At 1 May 2020 |
|
Profit for the year |
|
At 30 April 2021 |
|
|
19. | Related party disclosures |
|
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
|
At the year end the company was owed £241,443 (2020 - £289,210) by companies under common control by the Estate of Dame Zaha Hadid. |
|
During the year a fee for the use of the trademark £3,355,989 (2020 - £2,785,413) was paid to the Zaha Hadid Foundation which is controlled by the Estate of Dame Zaha Hadid. |
|
20. | Ultimate controlling party |
|
The ultimate parent company at the year end was Zaha Hadid Holdings Limited, a company registered in England and Wales. On 6 December 2021, the ownership was transferred to Studio 9 Employee Trustee Limited, as trustee of the Studio 9 Employee Trust. |
|
Zaha Hadid Holdings Limited prepares group financial statements and copies can be obtained from Companies House. |