Company Registration No. 06296993 (England and Wales)
BOND BRYAN ARCHITECTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
BOND BRYAN ARCHITECTS LIMITED
COMPANY INFORMATION
Directors
G Halliwell
J Herbert
B Raw
J Stibbons
M Hutton
Z Masters
S Maslin
(Appointed 4 January 2022)
P Severn
(Appointed 4 January 2022)
Company number
06296993
Registered office
The Church Studio
Springvale Road
Sheffield
S10 1LP
Auditor
Hart Shaw LLP
Europa Link
Sheffield Business Park
Sheffield
S9 1XU
BOND BRYAN ARCHITECTS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Notes to the financial statements
9 - 23
BOND BRYAN ARCHITECTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present the strategic report for the year ended 31 December 2021.
Fair review of the business
The impact of the COVID-19 virus, first felt during 2020, continued to have an impact on the business in 2021 and with additional uncertainty added more recently by the war in Ukraine and rising inflation, the Directors continue to be pleased with the resilience and adaptability of the business.
Whilst turnover fell by 2.3% from £9.05M to £8.85M, the fall was entirely attributable to sales charged for the work of our sub-consultants. Fees generated by the activities of our own staff (net of Work in Progress adjustments) actually rose by 4%. Despite this improvement in revenue, there were a number of projects that were delayed into 2022 that were expected to commence in the latter part of 2021, which ultimately affected business profitability in the year. Staff related costs increased by 4% in line with the increase in sales and overheads increased by 14% due to investment in ICT to support more flexible methods of working and higher market rates for PI Insurance. Other cost savings made in 2020 as a result of lockdown also started to reverse in 2021.
The consequence of this was a decrease in pre-tax profit from £0.35M to £0.25M in the year. Due to the ongoing challenges mentioned above and whilst the Directors are targeting profit growth in 2022, it is felt that this will be relatively modest.
Geographically, the South of England contributed 54% of sales, slightly up on 2020 (52%). Whilst the Education sector remains the largest single sector for the business (54% of net fee income) the spread of business won across different sectors has added to the resilience of the business and improves its ability to withstand shocks to a particular sector. However, projects in the Education sector are being procured in 2022 and so it is hoped that there will be reasonable growth in this area.
On 23
rd
December 2021, the Company entered into a joint venture agreement with Build Data Group to further develop and grow the Bond Bryan Digital brand. The Directors feel that the investment obtained as part of this agreement will enable the business to develop rapidly by increasing the resources available to it. Bond Bryan Architects has retained a 20% stake in the business.
S Maslin
Director
8 June 2022
BOND BRYAN ARCHITECTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activities of the company are those of architecture and design.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
G Halliwell
J Herbert
B Raw
J Stibbons
M Hutton
Z Masters
S Maslin
(Appointed 4 January 2022)
P Severn
(Appointed 4 January 2022)
Auditor
The auditor, Hart Shaw LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of
future developments and research and development.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
On behalf of the board
S Maslin
Director
8 June 2022
BOND BRYAN ARCHITECTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
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:
-
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 company will continue in business.
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.
BOND BRYAN ARCHITECTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BOND BRYAN ARCHITECTS LIMITED
- 4 -
Opinion
We have audited the financial statements of Bond Bryan Architects Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 December 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.
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
Auditor's
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.
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.
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.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport 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.
BOND BRYAN ARCHITECTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BOND BRYAN ARCHITECTS LIMITED
- 5 -
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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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 is 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
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.
Auditor's 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
auditor's
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
.
Extent to which the audit was considered capable of detecting irregularities, including fraud and the audit response
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:
We have assessed the overall susceptibility of the financial statements to material misstatement due to
irregularities as low.
At the planning stage we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and other management, as required by auditing standards. The potential effect of any laws and regulation on the financial statements can vary considerably. There are laws and regulations that directly affect the financial statements (e.g. the Companies Act) as well as many other operational laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements. Owing to the size, nature and complexity of the organisation and the applicable laws and regulations to which it must adhere, the risk of material misstatement was deemed to be low, therefore the procedures performed by the audit team were limited to:
-
Communicating identified laws and regulations at planning throughout the audit team to remain alert to any indications of non-compliance throughout the audit.
-
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as non-compliance with laws and regulations.
-
Reviewing minutes of meetings of those charged with governance.
-
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
BOND BRYAN ARCHITECTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BOND BRYAN ARCHITECTS LIMITED
- 6 -
We have assessed the overall susceptibility of the financial statements to material misstatement due to fraud as moderate. This is due to the nature of the industry in which the company operates involving long term contracts which, in accordance with the applicable accounting framework, requires a higher degree of estimation surrounding the stage of completion of contracts. This increases the risk of material misstatements within this industry.
Management override is inherently high risk on any audit. Management override which may cause there to be a material misstatement within the financial statements may present itself in a number of ways, for example:
-
Override of internal controls (e.g. segregation of duties)
-
Entering into transactions outside the normal course of business, especially with related parties
-
Fraudulent revenue recognition, including fictitious sales and sales being recorded in the wrong period
-
Presenting bias in accounting judgements and estimates, particularly the ones disclosed in note 2 to the financial statements.
In order to reduce the risk of material misstatement to an acceptable level, numerous audit procedures were performed including:
-
Enquiries of management as to whether they had any knowledge of any actual or suspected fraud
-
Review of all material journal entries made throughout the year as well as those made to prepare the financial statements
-
Reviewing the underlying rationale behind transactions in order to assess whether they were outside the normal course of business
-
Increased substantive testing across all material income streams
-
Assessing whether management’s judgements and estimates indicated potential bias, particularly those disclosed in note 2 to the financial statements
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected material misstatements in the financial statements, even though we have performed our audit in accordance with auditing standards. Furthermore, as with all audits, there is a higher risk of irregularities (especially those relating to fraud) being undetected, as these may involve the override of internal controls, collusion, intentional omissions and misrepresentations etc. We are not responsible for preventing non-compliance or fraud and therefore cannot be expected to detect all instances of such. Our audit was not designed to identify misstatements or other irregularities that would not be considered to be material to the financial statements. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
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 auditor's 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.
Adam Shield (Senior Statutory Auditor)
For and on behalf of Hart Shaw LLP
13 June 2022
Chartered Accountants
Statutory Auditor
Europa Link
Sheffield Business Park
Sheffield
S9 1XU
BOND BRYAN ARCHITECTS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
2021
2020
Notes
£
£
Turnover
3
8,846,495
9,047,859
Cost of sales
(6,599,538)
(6,929,053)
Gross profit
2,246,957
2,118,806
Administrative expenses
(1,997,171)
(1,851,793)
Other operating income
87,700
Operating profit
4
249,786
354,713
Interest payable and similar expenses
7
(22)
(1,097)
Profit before taxation
249,764
353,616
Tax on profit
8
(40,774)
148,940
Profit for the financial year
208,990
502,556
Retained earnings brought forward
1,311,381
1,308,825
Dividends
9
(500,000)
Retained earnings carried forward
1,520,371
1,311,381
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BOND BRYAN ARCHITECTS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 8 -
2021
2020
Notes
£
£
£
£
Fixed assets
Goodwill
10
606,668
808,890
Other intangible assets
10
48,762
65,016
Total intangible assets
655,430
873,906
Tangible assets
11
217,045
243,211
Investments
12
62,500
934,975
1,117,117
Current assets
Debtors
14
4,177,577
3,264,052
Cash at bank and in hand
186,400
634,104
4,363,977
3,898,156
Creditors: amounts falling due within one year
15
(1,720,634)
(1,643,223)
Net current assets
2,643,343
2,254,933
Total assets less current liabilities
3,578,318
3,372,050
Provisions for liabilities
Deferred tax liability
16
37,673
40,395
(37,673)
(40,395)
Net assets
3,540,645
3,331,655
Capital and reserves
Called up share capital
18
10,406
10,406
Share premium account
2,009,868
2,009,868
Profit and loss reserves
1,520,371
1,311,381
Total equity
3,540,645
3,331,655
The financial statements were approved by the board of directors and authorised for issue on 8 June 2022 and are signed on its behalf by:
S Maslin
Director
Company Registration No. 06296993
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
1
Accounting policies
Company information
Bond Bryan Architects Limited is a
private
company
, limited by shares
and
incorporated in
England and Wales
.
The registered office is
The Church Studio, Springvale Road, Sheffield, S10 1LP.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues
: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
-
Section 26 ‘Share based Payment’
:
Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements
;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
Bond Bryan Architects (Holdings) Limited
. These consolidated financial statements are available from its registered office,
The Church Studio, Springvale Road, S10 1LP, United Kingdom.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 10 -
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Purchase of Name
useful life in line with goodwill
1.7
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment
15% - 33% straight line
Computer equipment
33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 11 -
1.8
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
1.9
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.10
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in
profit
or
loss
, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 12 -
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 13 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.17
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 14 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following
accounting estimates
have had the most significant
effect on amounts recognised in the financial statements.
Payments received on account
The company has a number of contracts for rendering of services which were in progress at the year end for which the costs incurred are less than the revenue billed to the customer. The company recognises revenue throughout the length of the contract through the costs incurred to date, as this is the significant act that ensures the company will be entitled to the full amount of revenue.
In making this judgement, management has considered the detailed criteria set out for the recognition of revenue in FRS 102 Section 23.
As such, the company has deferred income of £255,128 (2020 £53,555) at the year end.
Gross amounts owed by contract customers
The company has a number of contracts for rendering of services which were in progress at the year end for which the costs incurred were in excess of the revenue billed to the customer. In accordance with the accounting policy and the standards mentioned above, the company has accrued revenue for which it is entitled to on these contracts to ensure that sufficient revenue has been recognised.
As such, the company has accrued income of £351,237 (2020 £380,671) at the year end.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2021
2020
£
£
Other significant revenue
Government grants - Covid support
87,700
2021
2020
£
£
Turnover analysed by geographical market
UK
8,846,495
9,047,859
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 15 -
4
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(87,700)
Fees payable to the company's auditor for the audit of the company's financial statements
26,000
27,908
Depreciation of owned tangible fixed assets
135,463
139,480
Profit on disposal of tangible fixed assets
(60,399)
(1,763)
Amortisation of intangible assets
218,476
218,476
Operating lease charges
332,284
300,085
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Directors
6
6
Administration
14
15
Technical
109
111
Total
129
132
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
5,077,494
4,967,584
Social security costs
556,713
548,443
Pension costs
163,252
152,711
5,797,459
5,668,738
6
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
604,452
593,972
Company pension contributions to defined contribution schemes
30,319
24,509
634,771
618,481
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2020 - 5).
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
6
Directors' remuneration
(Continued)
- 16 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2021
2020
£
£
Remuneration for qualifying services
113,672
119,029
Company pension contributions to defined contribution schemes
5,000
5,000
7
Interest payable and similar expenses
2021
2020
£
£
Interest on bank overdrafts and loans
22
1,097
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
(Continued)
- 17 -
8
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
(41,676)
(108,412)
Adjustments in respect of prior periods
85,172
(43,543)
Total current tax
43,496
(151,955)
Deferred tax
Origination and reversal of timing differences
(2,722)
3,015
Total tax charge/(credit)
40,774
(148,940)
The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Profit before taxation
249,764
353,616
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
47,455
67,187
Tax effect of expenses that are not deductible in determining taxable profit
55,248
5,219
Capital allowances in excess of depreciation
(22,297)
(2,693)
Amortisation on assets not qualifying for tax allowances
41,510
41,510
Research and development tax credit
(151,779)
(142,057)
Under/(over) provided in prior years
85,172
(43,532)
Utilisation of research and development tax losses
(11,813)
(77,589)
Deferred tax
(2,722)
3,015
Taxation charge/(credit) for the year
40,774
(148,940)
9
Dividends
2021
2020
£
£
Interim paid
500,000
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 18 -
10
Intangible fixed assets
Goodwill
Purchase of Name
Total
£
£
£
Cost
At 1 January 2021 and 31 December 2021
9,920,583
140,824
10,061,407
Amortisation and impairment
At 1 January 2021
9,111,693
75,808
9,187,501
Amortisation charged for the year
202,222
16,254
218,476
At 31 December 2021
9,313,915
92,062
9,405,977
Carrying amount
At 31 December 2021
606,668
48,762
655,430
At 31 December 2020
808,890
65,016
873,906
The goodwill is being amortised evenly over the directors' estimate of its useful life of 10 years. At the year end, the remaining amortisation period of the goodwill is 3 years.
The purchase of name is being amortised evenly in line with the goodwill. At the year end, the remaining amortisation period is 3 years.
11
Tangible fixed assets
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
Cost
At 1 January 2021
85,539
491,810
577,349
Additions
2,423
133,861
136,284
Disposals
(5,892)
(151,393)
(157,285)
At 31 December 2021
82,070
474,278
556,348
Depreciation and impairment
At 1 January 2021
41,682
292,456
334,138
Depreciation charged in the year
15,785
119,678
135,463
Eliminated in respect of disposals
(5,892)
(124,406)
(130,298)
At 31 December 2021
51,575
287,728
339,303
Carrying amount
At 31 December 2021
30,495
186,550
217,045
At 31 December 2020
43,857
199,354
243,211
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 19 -
12
Fixed asset investments
2021
2020
Notes
£
£
Investments in associates
13
62,500
Movements in fixed asset investments
Shares in associates
£
Cost or valuation
At 1 January 2021
-
Additions
62,500
At 31 December 2021
62,500
Carrying amount
At 31 December 2021
62,500
At 31 December 2020
-
13
Associates
Details of the company's associates at 31 December 2021 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Bond Bryan Digital Limited
104 Clifton Street, London, EC2A 4DF, United Kingdom
Ordinary
20.00
14
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
2,029,771
1,683,102
Gross amounts owed by contract customers
351,237
380,671
Corporation tax recoverable
64,915
205,015
Amounts owed by group undertakings
1,167,614
757,133
Other debtors
78,090
Prepayments and accrued income
337,750
238,131
4,029,377
3,264,052
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
14
Debtors
(Continued)
- 20 -
2021
2020
Amounts falling due after more than one year:
£
£
Other debtors
148,200
Total debtors
4,177,577
3,264,052
Amounts owed by group undertakings are unsecured and repayable on demand.
15
Creditors: amounts falling due within one year
2021
2020
£
£
Payments received on account
255,128
53,555
Trade creditors
460,417
307,440
Taxation and social security
682,166
794,678
Other creditors
10,322
4,798
Accruals and deferred income
312,601
482,752
1,720,634
1,643,223
16
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2021
2020
Balances:
£
£
ACAs
37,673
40,395
2021
Movements in the year:
£
Liability at 1 January 2021
40,395
Credit to profit or loss
(2,722)
Liability at 31 December 2021
37,673
The deferred tax
liability
set out above
is expected to reverse within
36
months and relates to the
net book value of fixed assets being greater than the tax written down value of the same assets.
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 21 -
17
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
163,252
152,711
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2021
2020
£
£
Ordinary share capital
Authorised
803,115 Ordinary A shares of 1p each
8,031
8,031
237,500 Ordinary B shares of 1p each
2,375
2,375
50,000 Ordinary C shares of 1p each
500
500
10,906
10,906
Issued and fully paid
803,115 Ordinary A shares of 1p each
8,031
8,031
237,500 Ordinary B shares of 1p each
2,375
2,375
10,406
10,406
The company has issued ordinary A and B shares. Each class of A & B share is entitled to one vote in any circumstances and shall have an equal right to share in any assets on liquidation or otherwise after payment of the company's liabilities.
19
Financial commitments, guarantees and contingent liabilities
The company has provided cross guarantees and debentures for its parent company Bond Bryan Architects (Holdings) Limited for two business loans taken out by Bond Bryan Architects (Holdings) Limited.
The total amount of the loans outstanding at the year end is £200,000 (2020 £600,000).
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 22 -
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2021
2020
£
£
Within one year
113,382
196,483
Between two and five years
15,414
128,796
128,796
325,279
21
Related party transactions
The company has provided guarantees against a loan held in Bond Bryan Architects (Holdings) Limited in the form of a charge over life policies of three of the directors, charges over stocks and cross guarantees supported by debentures from the company.
During the year, the company sold part of its operations for consideration in shares to the value of £62,500. The shares received gave the company significant influence in the purchaser Bond Bryan Digital Limited.
During the year, sales for recharged costs of £15,500 (2020 £nil) were made to Bond Bryan Digital Limited, a company in which significant influence is held.
The company has taken advantage of the exemption available in FRS 102 "Related party disclosures" whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.
22
Directors' transactions
Interest free loans have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Interest free loan
-
-
195,000
(23,400)
171,600
-
195,000
(23,400)
171,600
During the period loans of £195,000 were granted to directors to fund the purchase of shares in Bond Bryan Architects (Holdings) Limited.
The loans are interest free and to be repaid over 5 to 10 year periods in monthly intervals.
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 23 -
23
Ultimate controlling party
The immediate and ultimate parent company is Bond Bryan Architects (Holdings) Limited.
Bond Bryan Architects (Holdings) Limited is the largest and smallest group in which the Company is a member and for which group financial statements are drawn up. Bond Bryan Architects (Holdings) Limited is registered in England. Copies of the consolidated financial statements of Bond Bryan Architects (Holdings) Limited are available from the Companies registered office, The Church Studio, Springvale Road, S10 1LP, United Kingdom.
2021-12-31
2021-01-01
false
CCH Software
CCH Accounts Production 2022.100
G Halliwell
G Halliwell
J Herbert
J Stibbons
M Hutton
B Raw
S Maslin
J Stibbons
06296993
2021-01-01
2021-12-31
06296993
bus:Director2
2021-01-01
2021-12-31
06296993
bus:Director3
2021-01-01
2021-12-31
06296993
bus:Director6
2021-01-01
2021-12-31
06296993
bus:Director8
2021-01-01
2021-12-31
06296993
bus:Director10
2021-01-01
2021-12-31
06296993
bus:Director11
2021-01-01
2021-12-31
06296993
bus:Director12
2021-01-01
2021-12-31
06296993
bus:Director13
2021-01-01
2021-12-31
06296993
bus:Director1
2021-01-01
2021-12-31
06296993
bus:Director4
2021-01-01
2021-12-31
06296993
bus:Director5
2021-01-01
2021-12-31
06296993
bus:Director7
2021-01-01
2021-12-31
06296993
bus:RegisteredOffice
2021-01-01
2021-12-31
06296993
2021-12-31
06296993
2020-01-01
2020-12-31
06296993
core:RetainedEarningsAccumulatedLosses
2020-12-31
06296993
core:RetainedEarningsAccumulatedLosses
2019-12-31
06296993
core:RetainedEarningsAccumulatedLosses
2021-12-31
06296993
core:RetainedEarningsAccumulatedLosses
2020-12-31
06296993
core:ShareCapital
2021-12-31
06296993
core:ShareCapital
2020-12-31
06296993
core:SharePremium
2021-12-31
06296993
core:SharePremium
2020-12-31
06296993
2020-12-31
06296993
core:ShareCapitalOrdinaryShares
2021-12-31
06296993
core:ShareCapitalOrdinaryShares
2020-12-31
06296993
core:RetainedEarningsAccumulatedLosses
2020-01-01
2020-12-31
06296993
core:Goodwill
2021-12-31
06296993
core:Goodwill
2020-12-31
06296993
core:OtherResidualIntangibleAssets
2021-12-31
06296993
core:OtherResidualIntangibleAssets
2020-12-31
06296993
core:PatentsTrademarksLicencesConcessionsSimilar
2021-12-31
06296993
core:PatentsTrademarksLicencesConcessionsSimilar
2020-12-31
06296993
core:FurnitureFittings
2021-12-31
06296993
core:ComputerEquipment
2021-12-31
06296993
core:FurnitureFittings
2020-12-31
06296993
core:ComputerEquipment
2020-12-31
06296993
core:CurrentFinancialInstruments
core:WithinOneYear
2021-12-31
06296993
core:CurrentFinancialInstruments
core:WithinOneYear
2020-12-31
06296993
core:CurrentFinancialInstruments
2021-12-31
06296993
core:CurrentFinancialInstruments
2020-12-31
06296993
core:RestatedAmount
2021-01-01
2021-12-31
06296993
core:Goodwill
2021-01-01
2021-12-31
06296993
core:IntangibleAssetsOtherThanGoodwill
2021-01-01
2021-12-31
06296993
core:PatentsTrademarksLicencesConcessionsSimilar
2021-01-01
2021-12-31
06296993
core:FurnitureFittings
2021-01-01
2021-12-31
06296993
core:ComputerEquipment
2021-01-01
2021-12-31
06296993
core:UKTax
2021-01-01
2021-12-31
06296993
core:UKTax
2020-01-01
2020-12-31
06296993
1
2021-01-01
2021-12-31
06296993
1
2020-01-01
2020-12-31
06296993
2
2021-01-01
2021-12-31
06296993
2
2020-01-01
2020-12-31
06296993
3
2021-01-01
2021-12-31
06296993
3
2020-01-01
2020-12-31
06296993
4
2021-01-01
2021-12-31
06296993
4
2020-01-01
2020-12-31
06296993
core:Goodwill
2020-12-31
06296993
core:PatentsTrademarksLicencesConcessionsSimilar
2020-12-31
06296993
2020-12-31
06296993
core:FurnitureFittings
2020-12-31
06296993
core:ComputerEquipment
2020-12-31
06296993
core:Non-currentFinancialInstruments
2021-12-31
06296993
core:Non-currentFinancialInstruments
2020-12-31
06296993
core:Associate1
2021-01-01
2021-12-31
06296993
core:Associate1
1
2021-01-01
2021-12-31
06296993
core:WithinOneYear
2021-12-31
06296993
core:WithinOneYear
2020-12-31
06296993
core:BetweenTwoFiveYears
2021-12-31
06296993
core:BetweenTwoFiveYears
2020-12-31
06296993
bus:PrivateLimitedCompanyLtd
2021-01-01
2021-12-31
06296993
bus:FRS102
2021-01-01
2021-12-31
06296993
bus:Audited
2021-01-01
2021-12-31
06296993
bus:FullAccounts
2021-01-01
2021-12-31
xbrli:pure
xbrli:shares
iso4217:GBP