Powell Dobson LLP |
Members' Report |
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The members present their report and accounts for the year ended 30 September 2023. |
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Principal activities |
The principal activity of the limited liability partnership continues to be that of the provision of design and project management services in the construction industry. |
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Designated members |
The following persons served as designated members during the year: |
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Ms A Smale |
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Mr A M Nixon |
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Ms B Kinsella |
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Mr A Davies |
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Mrs V Kimber (Resigned 31 July 2023) |
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Results and dividends |
2023 has been a challenging year as the UK construction industry battles with tough economic conditions alongside trying to recover from the major disruptions of the past few years. One of the key legislative changes is the Building Safety Act, which sets out greater accountability and responsibility for fire and structural safety issues throughout the life cycle of buildings within a new regulatory framework for building safety. |
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Many projects have been impacted by rising construction costs as a result of rising material prices; this has either led to project delays as a result of brief changes to reduce the programme and value engineer the scheme, or to projects being put on hold where budgets are under greater pressure. The rise in mortgage rates and low consumer confidence have also led to a downturn in the private residential sector, which has significantly affected the industry and the number of development opportunities. The business has considerable experience in public sector housing and this is a sector that has seen continued growth and opportunities. |
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Despite the challenges being faced by the industry, the Directors feel positive about the results achieved by the business. |
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The financial statements of Powell Dobson LLP should be read in conjunction with the accounts of Powell Dobson Architects Limited. |
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The Powell Dobson Group results are summarised below: |
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2023 |
2022 |
£ |
£ |
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Turnover |
5,127,199 |
5,776,821 |
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(Loss)/profit for the year - Powell Dobson Architects Limited |
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(299,438) |
452,585 |
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Profit for the year - Powell Dobson LLP and Group |
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537,059 |
1,131,480 |
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The members are pleased with the results for the year given the economic conditions. |
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Members' drawings, contributions and repayments |
The members' drawing policy allows each member to draw a proportion of their profit share, subject to the cash requirements of the business. |
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A member's capital requirement is linked to their share of profit and the financing requirement of the limited liability partnership. There is no opportunity for appreciation of the capital subscribed. Just as incoming members introduce their capital at "par", so the retiring members are repaid their capital at "par". |
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This report was approved by the members on 28 March 2024 and signed on their behalf by: |
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Ms A Smale |
Mr A M Nixon |
Designated member |
Designated member |
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Mr A Davies |
Ms BJ Kinsella |
Designated member |
Designated member |
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Powell Dobson LLP |
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Chartered Accountants' report to the members on the preparation of the unaudited statutory accounts of Powell Dobson LLP for the year ended 30 September 2023 |
In order to assist you to fulfil your duties under the Companies Act 2006 (as applied by the LLP regulations), we have prepared for your approval the accounts of Powell Dobson LLP for the year ended 30 September 2023 which comprise the Profit and Loss Account, the Balance Sheet, the Reconciliation of Members' Interests and the related notes from the LLP’s accounting records and from information and explanations you have given us. |
As a practising member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at www.icaew.com/en/members/regulations-standards-and-guidance |
This report is made solely to the members of Powell Dobson LLP, as a body, in accordance with the terms of our engagement letter dated 20 December 2020. Our work has been undertaken solely to prepare for your approval the accounts of Powell Dobson LLP and state those matters that we have agreed to state to the members of Powell Dobson LLP, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Powell Dobson LLP and its members as a body for our work or for this report. |
It is your duty to ensure that Powell Dobson LLP has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Powell Dobson LLP. You consider that Powell Dobson LLP is exempt from the statutory audit requirement for the year. |
We have not been instructed to carry out an audit or a review of the accounts of Powell Dobson LLP. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts. |
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GSPW Limited |
Chartered Accountants |
137 Heol y Deri |
Cardiff |
CF14 6UH |
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28 March 2024 |
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Powell Dobson LLP |
Notes to the Accounts |
for the year ended 30 September 2023 |
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1 |
Accounting policies |
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Limited liability partnership information |
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Powell Dobson LLP is a limited liability partnership incorporated in England and Wales. The registered office is Suite 1F, Building One, Eastern Business Park, Wern Fawr Lane, Old St Mellons, CARDIFF, UK, CF3 5EA. |
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The limited liability partnership's principal activities are disclosed in the Members' Report. |
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Accounting convention |
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These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in January 2017, together 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. |
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The financial statements are prepared in sterling, which is the functional currency of the limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest £. |
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The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. |
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Going concern |
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At 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. |
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Turnover |
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Turnover comprises revenue recognised by the LLP in respect of services supplied during the year, exclusive of Value Added Tax and trade discounts. Turnover is recognised when a bill is issued to a customer. |
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Members' participating interests |
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Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits). |
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Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity. |
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All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests. |
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Once an unavoidable obligation has been created in favour of members through allocation of profits or other means, any undrawn profits remaining at the reporting date are shown as ‘Loans and other debts due to members’ to the extent they exceed debts due from a specific member. |
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Other amounts applied to members, for example remuneration paid under an employment contract and interest on capital balances, are treated in the same way as all other divisions of profits, as described above, according to whether the LLP has, in each case, an unconditional right to refuse payment. |
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Where there exists an asset and liability component in respect of an individual member's participation rights, they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the recognised amounts, and it intends either to settle on a net basis or to settle and realise these amounts simultaneously, in which case they are presented net. |
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Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at cost, 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. |
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Cash at bank and in hand |
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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. |
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Financial instruments |
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The limited liability partnership 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. |
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Financial instruments are recognised in the limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument. |
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Financial assets and liabilities are offset and 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. |
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Basic financial assets |
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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. |
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Other financial assets |
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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. |
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Impairment of financial assets |
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Derecognition of financial assets |
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Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership 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. |
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Classification of financial liabilities |
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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 limited liability partnership after deducting all of its liabilities. |
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Basic financial liabilities |
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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. |
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Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
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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. |
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Other financial liabilities |
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Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge. |
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Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy. |
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Derecognition of financial liabilities |
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Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled. |
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Equity instruments |
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Equity instruments issued by the limited liability partnership are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the limited liability partnership. |
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Employee benefits |
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3 |
Employees |
2023 |
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2022 |
Number |
Number |
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Average number of persons employed by the LLP |
67 |
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64 |
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4 |
Members' remuneration |
2023 |
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2022 |
Number |
Number |
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Average number of members during the year |
5 |
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5 |
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2023 |
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2022 |
£ |
£ |
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Profit attributable to the member with the highest entitlement |
117,281 |
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299,032 |
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5 |
Income from investments |
2023 |
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2022 |
£ |
£ |
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Income from shares in group undertakings |
5,000 |
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10,000 |
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6 |
Fixed asset investments |
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Other |
investments |
£ |
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Cost |
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At 1 October 2022 |
1,402,897 |
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Revaluation |
(304,440) |
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At 30 September 2023 |
1,098,457 |
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7 |
Debtors |
2023 |
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2022 |
£ |
£ |
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Amounts owed by group undertakings and undertakings in which the LLP has a participating interest |
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37,001 |
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32,001 |
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Other debtors |
6,203 |
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5,921 |
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43,204 |
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37,922 |
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8 |
Creditors: amounts falling due within one year |
2023 |
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2022 |
£ |
£ |
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Trade creditors |
13,392 |
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7,738 |
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Other taxes and social security costs |
243,733 |
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241,636 |
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Other creditors |
62,193 |
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148,502 |
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319,318 |
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397,876 |
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9 |
Creditors: amounts falling due after one year |
2023 |
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2022 |
£ |
£ |
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Other creditors |
570,082 |
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263,521 |
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10 |
Loans and other debts due to members |
2023 |
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2022 |
£ |
£ |
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Amounts due to members in respect of profits |
289,212 |
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814,594 |
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Amounts falling due within one year |
289,212 |
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814,594 |
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Loans and other debts due to members rank equally with debts due to ordinary creditors in a winding up. |