Company registration number 06296993 (England and Wales)
BOND BRYAN ARCHITECTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
BOND BRYAN ARCHITECTS LIMITED
COMPANY INFORMATION
Directors
B Raw
J Stibbons
M Hutton
Z Masters
S Maslin
P Severn
J Rigby
(Appointed 2 January 2024)
Company number
06296993
Registered office
152 Rockingham Street
Sheffield
S1 4EB
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 - 20
BOND BRYAN ARCHITECTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
2023 was our most financially successful year since the MBO, over a decade ago. The significant income growth and profitability experienced in Q4 2022 continued and accelerated through 2023. Most significantly the pipeline of projects in both Further Education and Schools, originally delayed until the second half of 2022, came to full fruition in 2023.
Over the full year, turnover increased by 33% from £8.5m in 2022 to £11.3m. Staff numbers increased by an average of 8, which, whilst representing a significant increase in order to service the new work, it still represented a smaller proportion of income (46%) than budgeted (63%).
The consequence of this was that pre-tax profit represented a very significant improvement over previous years (£2.0m in 2023 compared to £0.23m in 2022). As already noted, this performance has continued into the early months of 2024. Directors are extremely pleased with the current financial position of the business and the additional profit generated has enabled increased investment back into the business, its processes and people.
Fee growth was achieved across the business in both North and South England, however the more significant growth was achieved in the North; 60% of sales were generated in the North (2022: 46%). Part of the above-mentioned investment has been made to strengthen regional presence with new offices in Bristol and Cambridge, providing improved market access for our core sectors.
The Education sector continues to be the largest single area for the business, growing significantly in 2023 to 56% of net fee income (2022: 43%). The strategy set by the Directors to diversify into different sectors to improve the resilience of the business has also continued with growth in other target sectors of residential and manufacturing over the last year also significant (50% and 30% respectively). The net result is that, despite the large growth in Education sector opportunity in 2023, the business has successfully diversified moving from a position of 75% Education-based income in 2020.
S Maslin
Director
3 May 2024
BOND BRYAN ARCHITECTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activities of the company are those of architecture and design.
Results and dividends
Ordinary dividends were paid amounting to £1,770,000. 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
(Resigned 10 March 2023)
J Herbert
(Resigned 10 March 2023)
B Raw
J Stibbons
M Hutton
Z Masters
S Maslin
P Severn
J Rigby
(Appointed 2 January 2024)
Auditor
The auditor, Hart Shaw LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
S Maslin
Director
3 May 2024
BOND BRYAN ARCHITECTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 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 2023 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 Financial Reporting Standard 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 2023 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' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 identified material misstatements in the strategic report and the directors' report.
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' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine 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:
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. Management override is the most likely way in which fraud might present itself and is therefore 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 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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
Adam Shield (Senior Statutory Auditor)
For and on behalf of Hart Shaw LLP
3 May 2024
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 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
11,277,814
8,461,772
Cost of sales
(6,870,385)
(5,997,349)
Gross profit
4,407,429
2,464,423
Administrative expenses
(2,402,983)
(2,231,689)
Operating profit
4
2,004,446
232,734
Interest receivable and similar income
7
2,860
Profit before taxation
2,007,306
232,734
Tax on profit
8
(553,365)
106,475
Profit for the financial year
1,453,941
339,209
Retained earnings brought forward
1,859,580
1,520,371
Dividends
9
(1,770,000)
Retained earnings carried forward
1,543,521
1,859,580
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 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
202,224
404,446
Other intangible assets
10
16,254
32,508
Total intangible assets
218,478
436,954
Tangible assets
11
404,475
314,347
Investments
12
62,500
62,500
685,453
813,801
Current assets
Debtors
14
4,138,930
4,133,799
Cash at bank and in hand
1,340,189
270,072
5,479,119
4,403,871
Creditors: amounts falling due within one year
15
(2,508,281)
(1,278,623)
Net current assets
2,970,838
3,125,248
Total assets less current liabilities
3,656,291
3,939,049
Provisions for liabilities
Deferred tax liability
16
92,496
59,195
(92,496)
(59,195)
Net assets
3,563,795
3,879,854
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
1,543,521
1,859,580
Total equity
3,563,795
3,879,854
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 3 May 2024 and are signed on its behalf by:
S Maslin
Director
Company registration number 06296993 (England and Wales)
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 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 152 Rockingham Street, Sheffield, S1 4EB.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts 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.
When reviewing the disclosure requirements for the company, the directors have chosen to align with the disclosure requirements available to 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. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
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, 152 Rockingham Street, Sheffield, S1 4EB.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the 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.
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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 recovered.
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:
Leasehold improvements
Over the life of the lease
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 2023
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.
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.
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
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 payments 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. Amounts 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.
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.
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 leases asset are consumed.
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stage of completion - professional services
The group has a number of contracts for rendering of professional services which are treated in line with FRS102 s23. The group recognises revenue throughout the length of the contract based on its stage of completion. The stage of completion is measured based on labour costs incurred to date compared to cost to complete. Assessing the costs to complete involves a degree of estimations and as such actual outcomes can vary significantly from estimates.
Invoicing on contracts can be upfront or in arrears. As such, deferred income included in amounts owed to contract customers of £409,454 (2022 - £138,095) has been recognised along with accrued income included in amounts owed by contract customers of £453,701 (2022 - £316,192).
3
Turnover
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by geographical market
UK
11,277,814
8,461,772
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
17,000
16,500
Depreciation of owned tangible fixed assets
138,920
123,297
Profit on disposal of tangible fixed assets
(9,705)
(11,871)
Amortisation of intangible assets
218,476
218,476
Operating lease charges
340,427
327,507
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Directors
7
8
Administration
13
12
Technical
101
93
Total
121
113
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
5,386,790
4,763,572
Social security costs
597,551
547,770
Pension costs
164,452
158,354
6,148,793
5,469,696
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
660,610
800,779
Company pension contributions to defined contribution schemes
30,191
39,500
690,801
840,279
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 8 (2022 - 8).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
113,798
117,967
Company pension contributions to defined contribution schemes
3,390
5,000
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
2,860
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
441,301
(63,190)
Adjustments in respect of prior periods
78,763
(64,807)
Total current tax
520,064
(127,997)
Deferred tax
Origination and reversal of timing differences
33,301
21,522
Total tax charge/(credit)
553,365
(106,475)
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:
2023
2022
£
£
Profit before taxation
2,007,306
232,734
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
472,118
44,219
Tax effect of expenses that are not deductible in determining taxable profit
16,652
12,974
Permanent capital allowances in excess of depreciation
(31,306)
(31,622)
Amortisation on assets not qualifying for tax allowances
51,386
41,510
Research and development tax credit
(88,322)
(160,828)
Under/(over) provided in prior years
78,763
(64,807)
Utilisation of research and development tax losses
20,773
30,557
Deferred tax
33,301
21,522
Taxation charge/(credit) for the year
553,365
(106,475)
9
Dividends
2023
2022
£
£
Interim paid
1,770,000
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
10
Intangible fixed assets
Goodwill
Purchase of Name
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
9,920,583
140,824
10,061,407
Amortisation and impairment
At 1 January 2023
9,516,137
108,316
9,624,453
Amortisation charged for the year
202,222
16,254
218,476
At 31 December 2023
9,718,359
124,570
9,842,929
Carrying amount
At 31 December 2023
202,224
16,254
218,478
At 31 December 2022
404,446
32,508
436,954
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 1 year.
The purchase of name is being amortised evenly in line with the goodwill. At the year end, the remaining amortisation period is 1 year.
11
Tangible fixed assets
Leasehold improvements
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2023
160,413
71,180
418,982
650,575
Additions
23,498
209,623
233,121
Disposals
(4,073)
(22,329)
(26,402)
At 31 December 2023
156,340
94,678
606,276
857,294
Depreciation and impairment
At 1 January 2023
29,047
307,181
336,228
Depreciation charged in the year
17,378
9,902
111,640
138,920
Eliminated in respect of disposals
(22,329)
(22,329)
At 31 December 2023
17,378
38,949
396,492
452,819
Carrying amount
At 31 December 2023
138,962
55,729
209,784
404,475
At 31 December 2022
160,413
42,133
111,801
314,347
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
12
Fixed asset investments
2023
2022
Notes
£
£
Investments in associates
13
62,500
62,500
13
Associates
Details of the company's associates at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Createmaster Information Management Limited (formerly Bond Bryan Digital Limited)
104 Clifton Street, London, EC2A 4DF, United Kingdom
Ordinary
20.00
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,780,273
2,373,616
Amounts owed by contract customers
453,701
316,192
Corporation tax recoverable
63,190
169,672
Amounts owed by group undertakings
444,683
823,045
Other debtors
46,043
47,287
Prepayments and accrued income
285,792
279,187
4,073,682
4,008,999
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
65,248
124,800
Total debtors
4,138,930
4,133,799
Amounts owed by group undertakings are unsecured, non interest bearing, and repayable on demand.
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
15
Creditors: amounts falling due within one year
2023
2022
£
£
Amounts owed to contract customers
409,454
138,095
Trade creditors
191,746
386,262
Corporation tax
520,064
Other taxation and social security
653,468
492,090
Other creditors
57,782
5,463
Accruals and deferred income
675,767
256,713
2,508,281
1,278,623
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
2023
2022
Balances:
£
£
Accelerated capital allowances
92,496
59,195
2023
Movements in the year:
£
Liability at 1 January 2023
59,195
Charge to profit or loss
33,301
Liability at 31 December 2023
92,496
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.
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
164,452
158,354
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.
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
18
Share capital
2023
2022
£
£
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 one business loan taken out by Bond Bryan Architects (Holdings) Limited.
The total amount of the loans outstanding at the year end is £450,000 (2022 - £650,000).
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:
2023
2022
£
£
Within one year
153,874
269,445
Between two and five years
458,496
346,731
612,370
616,176
BOND BRYAN ARCHITECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
21
Related party transactions
The company has provided guarantees against a loan held in Bond Bryan Architects (Holdings) Limited in the form of charges over stocks and cross guarantees supported by debentures from the company.
During the year, sales for recharged costs of £nil (2022 - £23,460) were made to Bond Bryan Digital Limited. At the year end, a balance of £5,416 (2022 - £53,292) was owed to the company by Bond Bryan Digital Limited.
The company has taken advantage of the exemption available in FRS 102 "Related party disclosures" whereby it has not disclosed transactions with the 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
£
£
£
£
Director's loan account 1
-
29,700
-
(29,700)
-
Director's loan account 2
-
67,800
-
(49,300)
18,500
Director's loan account 3
-
66,300
-
(49,300)
17,000
Director's loan account 4
-
-
79,971
(49,300)
30,671
Director's loan account 5
-
-
90,374
(49,300)
41,074
163,800
170,345
(226,900)
107,245
The loans were granted to the directors to fund the purchase of shares in Bond Bryan Architects (Holdings) Limited and are to be repaid over a maximum 5 and 10 year period.
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 Company's registered office.
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