Company Registration No. SC241155 (Scotland)
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
COMPANY INFORMATION
Directors
W S Henderson
M J Horner
Company number
SC241155
Registered office
Cornerstone
60 South Gyle Crescent
Edinburgh
EH12 9EB
Auditors
Geoghegans
Chartered Accountants
6 St Colme Street
Edinburgh
EH3 6AD
Bankers
Bank of Scotland
38 St Andrew Square
Edinburgh
EH2 2YR
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 5
Profit and loss account
6
Balance sheet
7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10 - 22
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2020
- 1 -
The directors present the strategic report for the year ended 31 January 2020.
Fair review of the business
The directors report a profit before tax for the year of £300,302 after deducting a loss of £129,777 for discontinued operations which they consider to be a satisfactory result considering the competition in the construction sector and the current economic conditions.
The directors decided to sell the London M&E business during the year and focus on developing and growing their operations based in Scotland.
The profit and loss account splits the activities of the continuing and discontinued operations during the financial year.
Given the nature of the business, the directors are of the opinion that analysis using key performance indicators is not necessary for an understanding of the development, performance and position of the business.
Principal risks and uncertainties
Having recognised the risks and uncertainties for the business in the current economic climate the company continues to embark upon a strategy of market diversification as a defence against future trading volatility.
The directors have reviewed the potential impact and assessed the risks of the COVID-19 pandemic on the company and the business environment that it operates within, to ensure that operational costs match future revenues and that future cash flows meet the needs of the business.
The directors monitor risk to assist in the development and improvement of its systems and operations. This will ensure that the company continues to meet its contractual commitments, improve health and safety standards and deliver increasing level of service to its clients.
Development and performance
The directors' main objective is to develop the business by offering services to a wide range of clients in existing and different market sectors.
The directors are confident that their strategy will deliver continuing profitability and generate the required cash flow
s
to finance its future operations.
M J Horner
Director
25 August 2020
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2020
- 2 -
The directors present their report and financial statements for the year ended 31 January 2020.
Principal activities
The principal activity of the company continued to be that of civil, structural, mechanical and electrical engineering consultancy and the provision of services to clients on all aspects and types of construction work.
Directors
The following directors have held office since 1 February 2019:
W S Henderson
M J Horner
M G Pile
(Resigned 9 August 2019)
Results and dividends
The results for the year are set out on page 6.
The directors do not recommend payment of a dividend
.
Auditor
In accordance with the company's articles, a resolution proposing that Geoghegans be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
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.
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
- 3 -
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
M J Horner
Director
25 August 2020
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
- 4 -
Opinion
We have audited the financial statements of Blyth & Blyth Consulting Engineers Limited
(the 'company')
for the year ended 31 January 2020 which comprise
the Profit And Loss Account, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows 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 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 January 2020 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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
true
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.
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BLYTH & BLYTH CONSULTING ENGINEERS 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 directors' 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.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
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 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.
Iain Binnie (Senior Statutory Auditor)
for and on behalf of Geoghegans
25 August 2020
Chartered Accountants
Statutory Auditor
6 St Colme Street
Edinburgh
EH3 6AD
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2020
- 6 -
Continuing
Discontinued
31 January
Continuing
Discontinued
31 January
operations
operations
2020
operations
operations
2019
Notes
£
£
£
£
£
£
Turnover
3
9,133,541
364,583
9,498,124
8,692,565
918,886
9,611,451
Cost of sales
(6,333,450)
(308,877)
(6,642,327)
(6,226,488)
(739,299)
(6,965,787)
Gross profit
2,800,091
55,706
2,855,797
2,466,077
179,587
2,645,664
Administrative expenses
(2,368,090)
(185,801)
(2,553,891)
(1,847,311)
(454,223)
(2,301,534)
Operating profit
4
432,001
(130,095)
301,906
618,766
(274,636)
344,130
Interest receivable and similar income
7
1,552
1,552
1,196
-
1,196
Interest payable and similar expenses
8
(3,474)
318
(3,156)
(3,040)
-
(3,040)
Profit before taxation
430,079
(129,777)
300,302
616,922
(274,636)
342,286
Taxation
9
(65,069)
(65,069)
(9,685)
-
(9,685)
Profit for the financial year
365,010
(129,777)
235,233
607,237
(274,636)
332,601
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2020
31 January 2020
- 7 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
12
259,819
239,387
Current assets
Debtors
13
6,064,990
4,938,028
Cash at bank and in hand
651,892
1,693,876
6,716,882
6,631,904
Creditors: amounts falling due within one year
14
(4,434,423)
(4,149,664)
Net current assets
2,282,459
2,482,240
Total assets less current liabilities
2,542,278
2,721,627
Creditors: amounts falling due after more than one year
15
(20,426)
Provisions for liabilities
18
(64,543)
(226,474)
Net assets
2,477,735
2,474,727
Capital and reserves
Called up share capital
21
123,820
146,388
Capital redemption reserve
76,180
53,612
Employee Benefit Trust reserve
22
(214,718)
(214,718)
Profit and loss reserve
2,492,453
2,489,445
Total equity
2,477,735
2,474,727
The financial statements were approved by the board of directors and authorised for issue on 25 August 2020 and are signed on its behalf by:
M J Horner
Director
Company Registration No. SC241155
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2020
- 8 -
Share capital
Capital redemption reserve
Employee Benefit Trust reserve
Profit and loss reserve
Total
Notes
£
£
£
£
£
Balance at 1 February 2018
153,334
46,666
(214,718)
2,228,318
2,213,600
Year ended 31 January 2019:
Profit and total comprehensive income for the year
-
-
-
332,601
332,601
Purchase of own shares
21
(6,946)
6,946
-
(71,474)
(71,474)
Balance at 31 January 2019
146,388
53,612
(214,718)
2,489,445
2,474,727
Year ended 31 January 2020:
Profit and total comprehensive income for the year
-
-
-
235,233
235,233
Purchase of own shares
21
(22,568)
22,568
-
(232,225)
(232,225)
Balance at 31 January 2020
123,820
76,180
(214,718)
2,492,453
2,477,735
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2020
- 9 -
2020
2019
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
26
(567,454)
(141,071)
Interest paid
(3,156)
(3,040)
Taxation paid
(21,814)
(46,142)
Net cash outflow from operating activities
(592,424)
(190,253)
Investing activities
Purchase of tangible fixed assets
(153,617)
(10,728)
Proceeds on disposal of tangible fixed assets
392
437
Interest received
1,552
1,196
Net cash used in investing activities
(151,673)
(9,095)
Financing activities
Redemption of shares
(232,225)
(71,474)
Repayment of borrowings
(4,201)
(9,594)
Repayment of finance lease obligations
(61,461)
(68,608)
Net cash used in financing activities
(297,887)
(149,676)
Net decrease in cash and cash equivalents
(1,041,984)
(349,024)
Cash and cash equivalents at beginning of year
1,693,876
2,042,900
Cash and cash equivalents at end of year
651,892
1,693,876
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
- 10 -
1
Accounting policies
Company information
Blyth & Blyth Consulting Engineers Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Cornerstone, 60 South Gyle Crescent, Edinburgh, EH12 9EB.
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 on the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors a
re confident
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.
In their assessment of going concern, the directors have considered the implications of the Covid-19 pandemic. They believe it does not have a material impact on the company's going concern status.
1.3
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Term of the lease
Office equipment
25-100% per annum
Fixtures and fittings
20% per annum
Computer equipment
33% per annum
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
.
1.4
Impairment of fixed assets
The carrying value of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.
1.5
Contract accounting
The profit on contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the period end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Full provision is made for losses on all contracts in the period in which they are foreseen.
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
1
Accounting policies
(Continued)
- 11 -
1.6
Financial assets
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.
Debtors
Debtors with no stated interest rate or receivable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account.
1.7
Financial liabilities
Creditors with no stated interest rate and payable within one year are recorded at transaction price.
All interest bearing loans and borrowings which are basic financial instruments are initially recorded at the present value of cash payable. After initial recognition they are measured at amortised cost.
1.8
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.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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 is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date.
A net deferred tax asset is regarded as recoverable and therefore recognised only when, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits against which to recover carried forward tax losses and from which the future reversal of underlying timing differences can be deducted.
Deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing differences are expected to reverse, based on the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured on a non-discounted basis.
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
1
Accounting policies
(Continued)
- 12 -
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense
.
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.
The company operates a defined contribution pension scheme. The pension costs charged to the financial statements represent the contributions payable by the company during the year in accordance with FRS 102 (section 28).
1.11
Share-based payments
The company grants equity-settled share based payments to certain employees and directors through the issuing of share options.
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using
an appropriate pricing
model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
1.12
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.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
1
Accounting policies
(Continued)
- 13 -
1.13
Employee Share Ownership Plan
The company established on 10 November 2004 the Blyth & Blyth Consulting Engineers Limited Employee Benefits Trust (EBT) for the purpose of encouraging or facilitating the holding of shares or debentures in the company by or for the benefit of employees of the company.
The company sponsors and controls the Employee Benefit Trust (EBT). All the assets and liabilities of the EBT are accounted for in accordance with
FRS 102 (section 9)
.
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.
3
Turnover analysed by geographical market
An analysis of the company's turnover is as follows:
2020
2019
£
£
United Kingdom
9,497,077
9,609,861
Overseas
1,047
1,590
9,498,124
9,611,451
4
Operating profit
2020
2019
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditors for the audit of the company's financial statements
14,750
13,925
Fees payable to the company's auditors for non audit work
5,520
7,570
Depreciation of owned tangible fixed assets
71,658
65,498
Depreciation of tangible fixed assets held under finance leases
60,845
67,994
Impairment of owned tangible fixed assets
-
71,814
Loss/(profit) on disposal of tangible fixed assets
290
(437)
Operating lease charges
177,148
207,134
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
- 14 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Office and administration
9
9
Other
60
61
69
70
Their aggregate remuneration comprised:
2020
2019
£
£
Wages and salaries
3,111,572
3,069,043
Social security costs
336,540
345,002
Pension costs
564,726
446,707
4,012,838
3,860,752
In addition, the company engaged the services of, on average, 1
3
(201
9
-1
7
) contractors under various forms of contract during the year.
On 5 July 2019, 7 employees were transferred via TUPE to an independent third party upon the sale of the company's London operations.
Remuneration of key management personnel
The remuneration of key management personnel, which also includes directors, is as follows.
2020
2019
£
£
Aggregate remuneration
1,940,039
1,801,552
6
Directors' remuneration
2020
2019
£
£
Remuneration for qualifying services
259,755
307,738
Company pension contributions to defined contribution schemes
76,146
39,379
335,901
347,117
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
6
Directors' remuneration
(Continued)
- 15 -
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2019 - 2
).
The number of directors who exercised share options during the year was 1 (2019 - 0
). The aggregate amount of the gains by the directors on the exercise of share options during the financial year was £6,797 (2019 - £nil).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2020
2019
£
£
Remuneration for qualifying services
169,349
138,686
Company pension contributions to defined contribution schemes
41,039
27,399
7
Interest receivable and similar income
2020
2019
£
£
Interest income
Interest on bank deposits
1,552
1,196
8
Interest payable and similar expenses
2020
2019
£
£
Interest on financial liabilities measured at amortised cost:
Interest on finance leases and hire purchase contracts
405
2,296
Other interest
2,751
744
3,156
3,040
9
Taxation
2020
2019
£
£
Current tax
UK corporation tax on profits for the current period
72,000
75,400
Adjustments in respect of prior periods
-
(53,594)
Total current tax
72,000
21,806
Deferred tax
Origination and reversal of timing differences
(6,931)
(12,121)
Total tax charge
65,069
9,685
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
9
Taxation
(Continued)
- 16 -
The actual charge 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:
2020
2019
£
£
Profit before taxation
300,302
342,286
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2019: 19.00%)
57,057
65,034
Tax effect of expenses that are not deductible in determining taxable profit
9,473
11,189
Depreciation on assets not qualifying for tax allowances
1,618
5,292
Research and development tax credit
-
(19,662)
Other tax adjustments
(3,079)
1,426
Adjustments in respect of prior periods
-
(53,594)
Taxation charge for the year
65,069
9,685
10
Discontinued operations
London operations
On 5 July 2019 the company
sold
its London operations
to an independent third party
.
The decision to dispose of the London operations was made by the Board and was
effected in order to improve the overall profitability of the company.
11
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2020
2019
£
£
In respect of:
Leasehold improvements
-
71,814
Recognised in:
Administrative expenses
-
71,814
The impairment loss recognised on tangible fixed assets in the period was £nil (2018: £71,814).
In the prior year the impairment loss arose on leasehold improvement assets in the London office where the company has vacated the building after exercising the break clause within the lease. The recoverable value of these leasehold improvement assets was therefore £nil and as such they were impaired to reflect this.
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
- 17 -
12
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Office and computer equipment
Total
£
£
£
£
Cost
At 1 February 2019
368,976
135,155
800,519
1,304,650
Additions
101,046
29,221
23,350
153,617
Disposals
(184,736)
(57,303)
(76,657)
(318,696)
At 31 January 2020
285,286
107,073
747,212
1,139,571
Depreciation and impairment
At 1 February 2019
252,071
122,765
690,427
1,065,263
Depreciation charged in the year
36,174
10,887
85,442
132,503
Eliminated in respect of disposals
(184,736)
(57,303)
(75,975)
(318,014)
At 31 January 2020
103,509
76,349
699,894
879,752
Carrying amount
At 31 January 2020
181,777
30,724
47,318
259,819
At 31 January 2019
116,905
12,390
110,092
239,387
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases. The depreciation charge in respect of such assets amounted to £60,845 (2019 - £67,994
) for the year.
2020
2019
£
£
Office and computer equipment
22,126
82,971
13
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
3,260,592
2,282,217
Gross amounts due from contract customers
1,998,689
1,727,358
Corporation tax recoverable
-
53,586
Other debtors
529,796
623,669
Prepayments and accrued income
275,913
251,198
6,064,990
4,938,028
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
- 18 -
14
Creditors: amounts falling due within one year
2020
2019
Notes
£
£
Obligations under finance leases
17
19,376
61,461
Loans and overdrafts
16
1,050
4,201
Payments received on account
1,371,528
1,185,081
Trade creditors
1,168,065
710,178
Corporation tax
72,000
75,400
Other taxation and social security
534,121
636,748
Accruals and deferred income
1,268,283
1,476,595
4,434,423
4,149,664
15
Creditors: amounts falling due after more than one year
2020
2019
Notes
£
£
Obligations under finance leases
17
-
19,376
Loans and overdrafts
16
-
1,050
-
20,426
16
Loans and overdrafts
2020
2019
£
£
Other loans
1,050
5,251
Payable within one year
1,050
4,201
Payable after one year
-
1,050
17
Finance lease obligations
2020
2019
Future minimum lease payments due under finance leases:
£
£
Within one year
19,376
61,461
In two to five years
-
19,376
19,376
80,837
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
- 19 -
18
Provisions for liabilities
2020
2019
Notes
£
£
Other
60,000
215,000
Deferred tax liabilities
19
4,543
11,474
64,543
226,474
Movements on provisions apart from deferred tax liabilities:
£
At 1 February 2019
215,000
Reversal of provision
(155,000)
At 31 January 2020
60,000
Other provisions represent claims made against contracts in excess of amounts covered by professional indemnity insurance.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2020
2019
Balances:
£
£
Accelerated capital allowances
28,302
13,554
Other timing differences
(23,759)
(2,080)
4,543
11,474
2020
Movements in the year:
£
Liability at 1 February 2019
11,474
Credit to profit and loss
(6,931)
Liability at 31 January 2020
4,543
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so.
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
- 20 -
20
Retirement benefit schemes
2020
2019
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
564,726
446,707
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. The unpaid contributions outstanding at the period end, and included i
n creditors, amounted to £95,379
(201
9 - £37,904
).
21
Share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
123,820 Ordinary shares of £1 each
123,820
146,388
During the year the company bought back 22,568 shares of £1 each for a total consideration of £232,225
. On completion of the share buy back the shares purchased were cancelled.
The company has previously granted options to certain employees to subscribe for A ordinary shares
and ordinary shares
.
O
ptions
in place are as follows:
Options to allow
certain
employees to purchase 10,000 A ordinary shares at an exercise price of £6.62
.
The
se options have a 10 year
exercise period
and expire on 16 January 2024. The exercise of these options is conditional
upon
the
employee
s
achieving satisfactory performance
within the company.
The options must be exercised within a prescribed period of meeting these conditions.
Options to allow
certain
employees to purchase 5,000 A ordinary shares at an exercise price of £6.62
.
The
se options have a 10 year
exercise period
and expire on 24 March 2025. The exercise of these options is conditional
upon
the
employee
s
achieving satisfactory performance
within the company.
The options must be exercised within a prescribed period of meeting these conditions.
O
ptions
to allow certain employees to
purchase
5,556
ordinary shares at a
n exercise
price of £6.62.
The options have a 10 year exercise period and expire on 27 January 2024.
Options over
4
,000 A ordinary shares
and over 1,852 ordinary shares were exercised during
the year
at an exercise price of £6.62
.
This resulted in the company making a contribution of £21,477 into the Employee Benefit Trust, the cost of which was fully accrued in the prior year financial statements.
As at the balance sheet date, options were outstanding in relation to
1
5
,000
A ordinary shares (2019: 19,000 A ordinary shares) and 5,556 ordinary shares (2019: 7,408 ordinary shares).
All of these outstanding options are covered by shares held in the Employee Benefit Trust as at the balance sheet date.
Upon the future exercise of share options, the company would be required to make a contribution to the Employee Benefit Trust equal to the value of the share price at the exercise date less the exercise price that the options were issued at.
Of the
options exercisable as at the balance sheet date, the estimated contribution value
required to be made by the company to the Employee Benefit Trust
would amount to £2
0,391 (2019: £20,391)
.
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
- 21 -
22
Other reserves
The company established on 10 November 2004 the Blyth & Blyth Consulting Engineers Limited Employee Benefits Trust (EBT) for the purpose of encouraging or facilitating the holding of shares or debentures in the company by or for the benefit of employees of the company
.
23
Financial commitments
At the balance sheet date the company had outstanding commitments for future minimum lease payments under operating leases, which fall due as follows:
Land and buildings
2020
2019
£
£
Within one year
139,466
164,323
Between two and five years
752,600
473,382
In over five years
323,280
224,449
1,215,346
862,154
24
Capital commitments
Amounts contracted for but not provided in the financial statements:
2020
2019
£
£
Acquisition of tangible fixed assets
-
14,611
25
Related party transactions
The directors are of the opinion that there are no related party transactions.
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
- 22 -
26
Cash absorbed by operations
2020
2019
£
£
Profit for the year
235,233
332,601
Adjustments for:
Taxation
65,069
9,685
Finance costs
3,156
3,040
Investment income
(1,552)
(1,196)
Loss/(profit) on disposal of tangible fixed assets
290
(437)
Depreciation and impairment of tangible fixed assets
132,503
205,306
Decrease in provisions
(155,000)
(110,000)
Movements in working capital:
Increase in debtors
(1,180,548)
(1,533,062)
Increase in creditors
333,395
952,992
Cash absorbed by operations
(567,454)
(141,071)
27
Analysis of changes in net funds/(debt)
2020
£
Opening net funds/(debt)
Cash and cash equivalents
1,693,876
Loans
(5,251)
Obligations under finance leases
(80,837)
1,607,788
Changes in net funds/(debt) arising from:
Cash flows of the entity
(976,322)
Closing net funds/(debt) as analysed below
631,466
Closing net funds/(debt)
Cash and cash equivalents
651,892
Loans
(1,050)
Obligations under finance leases
(19,376)
631,466
2020-01-31
2019-02-01
false
CCH Software
CCH Accounts Production 2020.200
W S Henderson
M J Horner
M G Pile
SC241155
2019-02-01
2020-01-31
SC241155
bus:Director1
2019-02-01
2020-01-31
SC241155
bus:Director2
2019-02-01
2020-01-31
SC241155
bus:Director3
2019-02-01
2020-01-31
SC241155
bus:RegisteredOffice
2019-02-01
2020-01-31
SC241155
bus:Director3
2020-01-31
SC241155
2020-01-31
SC241155
core:ContinuingOperations
2019-02-01
2020-01-31
SC241155
core:DiscontinuedOperations
2019-02-01
2020-01-31
SC241155
core:ContinuingOperations
2018-02-01
2019-01-31
SC241155
core:DiscontinuedOperations
2018-02-01
2019-01-31
SC241155
2018-02-01
2019-01-31
SC241155
2019-01-31
SC241155
core:LeaseholdImprovements
2020-01-31
SC241155
core:FurnitureFittings
2020-01-31
SC241155
core:ComputerEquipment
2020-01-31
SC241155
core:LeaseholdImprovements
2019-01-31
SC241155
core:FurnitureFittings
2019-01-31
SC241155
core:ComputerEquipment
2019-01-31
SC241155
core:CurrentFinancialInstruments
2020-01-31
SC241155
core:CurrentFinancialInstruments
2019-01-31
SC241155
core:Non-currentFinancialInstruments
2020-01-31
SC241155
core:Non-currentFinancialInstruments
2019-01-31
SC241155
core:ShareCapital
2020-01-31
SC241155
core:ShareCapital
2019-01-31
SC241155
core:CapitalRedemptionReserve
2020-01-31
SC241155
core:CapitalRedemptionReserve
2019-01-31
SC241155
core:OtherMiscellaneousReserve
2020-01-31
SC241155
core:OtherMiscellaneousReserve
2019-01-31
SC241155
core:RetainedEarningsAccumulatedLosses
2020-01-31
SC241155
core:RetainedEarningsAccumulatedLosses
2019-01-31
SC241155
core:ShareCapital
core:RestatedAmount
2018-01-31
SC241155
core:CapitalRedemptionReserve
core:RestatedAmount
2018-01-31
SC241155
core:OtherMiscellaneousReserve
core:RestatedAmount
2018-01-31
SC241155
core:RetainedEarningsAccumulatedLosses
core:RestatedAmount
2018-01-31
SC241155
core:RestatedAmount
2018-01-31
SC241155
core:ShareCapital
2018-02-01
2019-01-31
SC241155
core:ShareCapital
2019-02-01
2020-01-31
SC241155
core:CapitalRedemptionReserve
2018-02-01
2019-01-31
SC241155
core:RetainedEarningsAccumulatedLosses
2018-02-01
2019-01-31
SC241155
core:CapitalRedemptionReserve
2019-02-01
2020-01-31
SC241155
core:RetainedEarningsAccumulatedLosses
2019-02-01
2020-01-31
SC241155
2019-01-31
SC241155
2018-01-31
SC241155
bus:PrivateLimitedCompanyLtd
2019-02-01
2020-01-31
SC241155
core:LandBuildings
core:LeasedAssetsHeldAsLessee
2019-02-01
2020-01-31
SC241155
core:PlantMachinery
2019-02-01
2020-01-31
SC241155
core:FurnitureFittings
2019-02-01
2020-01-31
SC241155
core:ComputerEquipment
2019-02-01
2020-01-31
SC241155
core:OwnedAssets
2019-02-01
2020-01-31
SC241155
core:OwnedAssets
2018-02-01
2019-01-31
SC241155
core:LeasedAssets
2019-02-01
2020-01-31
SC241155
core:LeasedAssets
2018-02-01
2019-01-31
SC241155
bus:HighestPaidDirector
2019-02-01
2020-01-31
SC241155
bus:HighestPaidDirector
2018-02-01
2019-01-31
SC241155
core:UKTax
2019-02-01
2020-01-31
SC241155
core:UKTax
2018-02-01
2019-01-31
SC241155
1
2019-02-01
2020-01-31
SC241155
1
2018-02-01
2019-01-31
SC241155
2
2019-02-01
2020-01-31
SC241155
2
2018-02-01
2019-01-31
SC241155
3
2018-02-01
2019-01-31
SC241155
core:LeaseholdImprovements
2019-01-31
SC241155
core:FurnitureFittings
2019-01-31
SC241155
core:ComputerEquipment
2019-01-31
SC241155
core:LeaseholdImprovements
2019-02-01
2020-01-31
SC241155
core:PlantMachinery
2020-01-31
SC241155
core:PlantMachinery
2019-01-31
SC241155
core:WithinOneYear
2020-01-31
SC241155
core:WithinOneYear
2019-01-31
SC241155
core:BetweenTwoFiveYears
2019-01-31
SC241155
bus:OrdinaryShareClass1
2020-01-31
SC241155
bus:OrdinaryShareClass1
2019-02-01
2020-01-31
SC241155
core:BetweenTwoFiveYears
2020-01-31
SC241155
core:MoreThanFiveYears
2020-01-31
SC241155
core:MoreThanFiveYears
2019-01-31
SC241155
bus:FRS102
2019-02-01
2020-01-31
SC241155
bus:Audited
2019-02-01
2020-01-31
SC241155
bus:FullAccounts
2019-02-01
2020-01-31
xbrli:pure
xbrli:shares
iso4217:GBP