Company registration number 04472743 (England and Wales)
ROBERT BIRD & PARTNERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ROBERT BIRD & PARTNERS LIMITED
COMPANY INFORMATION
Directors
J Beutel
H Poologasundram
D Seel
T Dobbins
G Grant
Secretary
A McColl
Company number
04472743
Registered office
First Floor
Harling House
Great Suffolk Street
London
SE1 0BS
Auditor
Verallo
Century House
Wargrave Road
Henley-on-Thames
Oxfordshire
RG9 2LT
ROBERT BIRD & PARTNERS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
6 - 8
Income statement
9
Statement of financial position
10 - 11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 34
ROBERT BIRD & PARTNERS 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
Revenues and head count increased during 2023 ahead of business plan expectations, and achieved forecast gross margin and operating profit targets.
Continued progress was made with the implementation of the company’s sustainability and carbon strategies, with our Science Based Targets carbon reduction commitments reviewed and accepted by the Business Ambition 1.5 framework. During the year, we continued to refine and develop our approach to the design of low embodied carbon buildings that leverages our corporate philosophies of Lead, Create and Deliver.
New projects were secured from a diverse range of sectors, aligned to our business plan objectives, with the most significant growth sectors being in Sports (with the successful conversion of a major European stadium project) and Data Centres. Securing new work from the UK private sector clients remained challenging with fewer projects awarded and/or progressing into detailed design, and competitive pricing in the residential sector, however we continue to secure high quality projects in the commercial office buildings, and transport sectors (including from our National Rail and High Speed Rail frameworks). International markets also generated revenues, predominantly from the Middle East with key projects in Saudi Arabia. The year finished with a healthy work in hand and pipeline of opportunities for 2024.
The company's core principles in managing the volatility of financial risk faced by the business remain conservative in nature including maintaining flexibility within our workforce, ability to share work/resources within our wider global group of companies, and growth funded by retaining profits within the company.
Key performance indicators
Position of the business
Confirmed workload and pipeline opportunities continued to strengthen in the new year, underpinned by a major Industrial project commencing next stage of design, and ongoing workload from infrastructure frameworks and established building sector clients. It is pleasing to see the continuation of high-quality city office sector project opportunities where our approach to engineering and focus on designing low embodied carbon developments is providing value to our clients. We continue our strategy of further diversification through the growth into the High-Tech Manufacture sector, Defence and Life Science sectors. We are targeting geographic growth in the UK including having secured major projects in Manchester and Scotland, and into continental Europe.
Robert Bird group (RBG) continues to offer a full range of Structural & Civil Engineering consultancy services for permanent and temporary works, as well as Construction Engineering, Geotechnical Engineering and Advanced Technical Services and Pre-Construction Solutions (PCS). The diverse skill sets within the company enable an agile response to changing market trends, and to manage its risks while working with top tier developers, asset owners, and contractors across a variety of urban building and infrastructure sectors.
The Directors are forecasting 2024 to have slightly lower revenues compared to last year, before a return to growth in 2025.
ROBERT BIRD & PARTNERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties
The principal risks facing the Company are set out below together with the procedures and controls to mitigate them:
Project delivery risk – technical risks are managed with well-established design, review and check procedures, developed and certified to relevant ISO accreditations, and supported by the ongoing staff training and development. The organisational reporting structure was renewed at the beginning of 2024 to provide enhanced clarity regarding leadership roles and risk management accountability, and responding to the evolving Group structures to facilitate closer working relationships with related entities to support future growth.
Attracting and retaining talent - staff retention and recruitment are key to achieving planned growth. The Robert Bird Group has a reputation for innovation and the foundation of this is its people. The future success of the business is dependent on positive staff engagement built on a strong culture of shared purpose and values. Recruitment and retention are key focal points, supported by learning and development (L&D) strategies including the RBG graduate training programme and leadership development programme. The leadership team is committed to building an engaged workforce based on shared purpose, identity and values.
Work winning - strategic diversification of sectors and geographic regions continues to facilitate growth and build business resilience. The global business is committed to actively sharing workload providing further mitigation of risks associated with regional market volatility. Client care initiatives are focussed on maintaining quality existing client relationships and repeat business while growth focusses on securing new work with targeted efforts focussed on new clients, broaden market share, strategic sectors, and geographic regions. RBG’s unique selling proposition (USP) continues to generate new work based on reputation of technical excellence and the approach to designing for delivery. Company activities remain socially responsible and environmentally sustainable, and looking forward there will be further efforts in applying engineering expertise to the design of low carbon developments.
D Seel
Director
28 March 2024
ROBERT BIRD & PARTNERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of consulting civil, structural and geotechnical engineers.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £1,000,000 (2022: £500,000). 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:
J Beutel
H Poologasundram
D Seel
T Dobbins
G Grant
Supplier payment policy
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from https://www.cbi.org.uk/media/6080/cbi-code-of-conduct-for-suppliers.pdf).
The company's current policy concerning the payment of trade creditors is to:
settle the terms of payment with suppliers when agreeing the terms of each transaction;
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the company's contractual and other legal obligations.
Trade creditors of the company at the year-end were equivalent to 30 days purchases, based on the average daily amount invoiced by suppliers during the year.
Political donations
The company made no political donations or incurred any political expenditure in the year.
Financial instruments
Risks relating to financial instruments have been identified as the following:
Liquidity risk
The company has funded its growth through the retention of profit, operating cash flows and an overdraft facility with its banking partner. Financial risk is managed conservatively by ensuring sufficient liquidity is available to meet forecast cash flows.
Credit risk
The primary credit risk arises from recovery of trade debtors. Management of this risk is on-going and is governed by management's delegation of authority.
Research and development
Whilst the company does not undertake specific research and development activities, some of the company's expenditure qualifies as research and development for taxation purposes and therefore attracts government grants.
ROBERT BIRD & PARTNERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Going concern
The directors have prepared the financial statements on a going concern basis for the following reasons. The company is generally providing services to customers which are operating large well-funded projects and financial resilience remains a key consideration whenever entering new business relationships. The company recorded a profit after tax for the year ended 31 December 2023 of £1.6m and held cash of £4.0m at that date. Confirmed projects and pipeline have strengthened since the year end and the company continues to deliver services to its customers. The company has recorded a profit before tax for the first two months subsequent to the year end and had cash of £3.5m as at 29 February 2024.
Forecast revenue for the 2024 financial year is £25.7m the majority of which has already been secured. The company has no external debt or capital commitments as at the year end and 29 February 2024. The directors have prepared detailed cash flow forecasts for the period ended March 2024 on both a base case and downside scenario to reflect the impact any additional delay in customer receipts and potential loss of revenue.
The base case forecast and downside scenario forecast, described in the paragraph above, indicate that the company will have sufficient funds to meet its liabilities as they fall due for the forecast period. The directors are therefore confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
Post reporting date events
In late 2023 and early 2024, the company established a branch in Saudi Arabia. This included in January 2024 the signing of a new short-term office lease. In February 2024, the company provided initial capital of 250,000 SAR in the branch. The branch became fully operational from March 2024.
Future developments
The directors are optimistic that the business can retain its market share and are forecasting 2024 to achieve slightly lower revenues compared to 2023 based on confirmed projects and known opportunities. This is discussed further in the strategic report. The directors are confident that the business will deliver sound results for all stakeholders.
Auditor
The auditor, Verallo, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' 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 they have elected to prepare the financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS101 Reduced Disclosure Framework.
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;
state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
assess the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
use the going concern basis of accounting unless they either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
ROBERT BIRD & PARTNERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
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 responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have a general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities.
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
D Seel
Director
28 March 2024
ROBERT BIRD & PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ROBERT BIRD & PARTNERS LIMITED
- 6 -
Opinion
We have audited the financial statements of Robert Bird & Partners Limited (the 'company') for the year ended 31 December 2023 which comprise the income statement, the statement of financial position, the statement of changes in equity, the statement of cash flows 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 FRS101 'Reduced Disclosure Framework ' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the accompanying financial statements in all material respects:
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 financial statements, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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 themselves 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' 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.
ROBERT BIRD & PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ROBERT BIRD & PARTNERS LIMITED
- 7 -
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management. Our approach was as follows: 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 policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (IFRS and the Companies Act 2006) and the relevant tax compliance regulations in the UK; We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
|
ROBERT BIRD & PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ROBERT BIRD & PARTNERS LIMITED
- 8 -
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
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 member 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 member, those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Michelle Hewitt-Dutton (Senior Statutory Auditor)
For and on behalf of Verallo
Statutory Auditor
Century House
Wargrave Road
Henley-on-Thames
Oxfordshire
RG9 2LT
8 April 2024
ROBERT BIRD & PARTNERS LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Revenue
4
32,515,280
23,584,982
Cost of sales
(22,500,707)
(15,321,141)
Gross profit
10,014,573
8,263,841
Administrative expenses
(7,675,915)
(6,545,278)
Other operating income
105,913
276,790
Operating profit
5
2,444,571
1,995,353
Investment income
9
17,576
-
Finance costs
10
(80,427)
(48,914)
Profit before taxation
2,381,720
1,946,439
Tax on profit
11
(745,363)
(315,983)
Profit and total comprehensive income for the financial year
1,636,357
1,630,456
The income statement has been prepared on the basis that all operations are continuing operations.
The notes on pages 14 to 34 form part of these financial statements.
ROBERT BIRD & PARTNERS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Non-current assets
Intangible assets
13
66,509
-
Property, plant and equipment
14
40,412
66,576
Right-of-use assets
14
1,310,627
3,353,922
Deferred tax asset
22
109,079
136,121
1,526,627
3,556,619
Current assets
Trade and other receivables
16
8,768,143
8,852,123
Cash and cash equivalents
4,007,818
1,548,637
12,775,961
10,400,760
Current liabilities
Trade and other payables
20
5,404,466
3,559,281
Current tax liabilities
-
81,083
Other taxation and social security
944,239
1,039,153
Lease liabilities
21
615,521
604,457
6,964,226
5,283,974
Net current assets
5,811,735
5,116,786
Total assets less current liabilities
7,338,362
8,673,405
Non-current liabilities
Lease liabilities
21
398,139
2,375,627
(398,139)
(2,375,627)
Provisions for liabilities
Other provisions
23
(228,344)
(222,256)
Net assets
6,711,879
6,075,522
Equity
Called up share capital
25
100
100
Retained earnings
6,711,779
6,075,422
Total equity
6,711,879
6,075,522
The notes on pages 14 to 34 form part of these financial statements.
ROBERT BIRD & PARTNERS LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 28 March 2024 and are signed on its behalf by:
D Seel
Director
Company registration number 04472743 (England and Wales)
ROBERT BIRD & PARTNERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 January 2022
100
4,944,966
4,945,066
Year ended 31 December 2022:
Profit and total comprehensive income
-
1,630,456
1,630,456
Transactions with owners:
Dividends
12
-
(500,000)
(500,000)
Balance at 31 December 2022
100
6,075,422
6,075,522
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,636,357
1,636,357
Transactions with owners:
Dividends
12
-
(1,000,000)
(1,000,000)
Balance at 31 December 2023
100
6,711,779
6,711,879
The notes on pages 14 to 34 form part of these financial statements.
ROBERT BIRD & PARTNERS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
5,276,719
2,431,180
Interest paid
(74,339)
(41,826)
Income taxes paid
(1,042,148)
(487,267)
Net cash inflow from operating activities
4,160,232
1,902,087
Investing activities
Purchase of intangible assets
(89,440)
Purchase of property, plant and equipment
(24,730)
(27,879)
Proceeds from disposal of property, plant and equipment
225
Interest received
17,576
-
Net cash used in investing activities
(96,594)
(27,654)
Financing activities
Payment of lease liabilities
(604,457)
(640,723)
Dividends paid
(1,000,000)
(500,000)
Net cash used in financing activities
(1,604,457)
(1,140,723)
Net increase in cash and cash equivalents
2,459,181
733,710
Cash and cash equivalents at beginning of year
1,548,637
814,927
Cash and cash equivalents at end of year
4,007,818
1,548,637
The notes on pages 14 to 34 form part of these financial statements.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information
Robert Bird & Partners Limited (04472743) is a private company limited by shares incorporated in England and Wales. The registered office is First Floor, Harling House, Great Suffolk Street, London, SE1 0BS. The company's principal activities and nature of its operations are disclosed in the directors' report.
1.1
Accounting convention
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.
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 £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below and have, unless otherwise stated, been applied consistently to all periods presented in these financial statements and in preparing an opening FRS101 balance sheet at 1 January 2019 for the purposes of the transition to FRS101.
As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:
inclusion of an explicit and unreserved statement of compliance with IFRS;
disclosure of the objectives, policies and processes for managing capital;
disclosure of key management personnel compensation;
comparative period reconciliations for property, plant and equipment;
disclosure of the categories of financial instrument and the nature and extent of risks arising on these financial instruments;
the effect of financial instruments on the statement of comprehensive income;
comparative narrative information;
for financial instruments, investment property and biological assets measured at fair value and within the scope of IFRS 13, the valuation techniques and inputs used to measure fair value, the effect of fair value measurements with significant unobservable inputs on the result for the period and the impact of credit risk on the fair value; and
related party disclosures for transactions with the parent or wholly owned members of the group.
Where required, equivalent disclosures are given in the group accounts of Surbana Jurong Holdings (Australia) Pty Ltd. These can be obtained as set out in note 27.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.2
Going concern
The directors have prepared the financial statements on a going concern basis for the following reasons. The company is generally providing services to customers which are operating large well-funded projects and financial resilience remains a key consideration whenever entering new business relationships. The company recorded a profit after tax for the year ended 31 December 2023 of £1.6m and held cash of £4.0m at that date. Confirmed projects and pipeline have strengthened since the year end and the company continues to deliver services to its customers. The company has recorded a profit before tax for the first two months subsequent to the year end and had cash of £3.5m as at 29 February 2024. true
Forecast revenue for the 2024 financial year is £25.7m the majority of which has already been secured. The company has no external debt or capital commitments as at the year end and 29 February 2024. The directors have prepared detailed cash flow forecasts for the period ended March 2024 on both a base case and downside scenario to reflect the impact any additional delay in customer receipts and potential loss of revenue.
The base case forecast and downside scenario forecast, described in the paragraph above, indicate that the company will have sufficient funds to meet its liabilities as they fall due for the forecast period. The directors are therefore confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
1.3
Revenue
Revenue represents the value of work carried out on contracts during the year, including amounts invoiced, assessed by reference to the extent to which work has been completed and where it is known that an invoice will be rendered in due course. Revenue accrued on contracts in progress at the end of the year end is shown in debtors. Revenue excludes VAT.
Long term contracts
Long term contracts are assessed on a contract by contract basis and are reflected in the statement of comprehensive income by recording revenue and related costs as contract activity progresses. Where the outcome of each long term contract can be assessed with reasonable certainty before its conclusion, the attributable profit is recognised in the statement of comprehensive income as the difference between the reported revenue and related costs for that contract.
Contract assets and liabilities
When revenue recognised is more than amounts invoiced on account, a contract asset is recognised.
When fees are rendered in advance of work being carried out at the period end, the amount of income is excluded from revenue and is treated as deferred income. This is shown in the balance sheet as contract liabilities.
1.4
Intangible 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:
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.5
Property, plant and equipment
Property, plant and equipment 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 property
over the lease term
Fixtures and fittings
20% straight line
Computer equipment
33% straight line
Assets residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
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.
1.6
Borrowing costs related to non-current assets
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
1.7
Impairment of tangible assets
At each reporting 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.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.8
Cash and cash equivalents
Cash and cash equivalents 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.
1.9
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Financial assets at fair value through profit or loss
When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
Financial assets at fair value through other comprehensive income
Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.
The company has made an irrevocable election to recognise changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognised initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognised or its fair value substantially decreased. Dividends are recognised as finance income in profit or loss.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Impairment of financial assets
Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.
The company assesses impairment at the end of the reporting year by evaluating conditions specific to the company and wider group that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed by determining fair value less cost of disposal or value-in-use calculations which incorporate various key assumptions.
The value of the provision for impairment of receivables at the end of the reporting period was calculated based on expected loss rate which is calculated on the average of actual losses over the past four financial periods applied against the current year balance of the receivables. The level of provision is assessed by taking into account the recent experience of the specific debtor, the ageing of the debt, historical collection rates and specific knowledge of the individual debtor's financial position.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.10
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.11
Equity instruments
Equity instruments issued by the company 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 company.
1.12
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 income statement 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.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event and it is probable that the company will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
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 inventories or non-current 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
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid, the company has no further payment obligations.
The contributions are recognised as an expenses in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.16
Leases
At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
1.17
Grants
Government grants are recognised when there is reasonable assurance that the grant conditions will be met and the grants will be received.
1.18
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
2
Adoption of new and revised standards and changes in accounting policies
The following amendments are effective for the period beginning 1 January 2023:
• Definition of Accounting Estimates (IAS 8)
• Disclosure of accounting policies (IAS 1 and IFRS Practice Statement 2)
• Deferred Tax related to Assets and Liabilities arising from a Single Transaction (IAS 12)
• International Tax Reform—Pillar Two Model Rules (IAS 12).
These amendments to various IFRS standards are mandatorily effective for reporting periods beginning on or after 1 January 2023. See the applicable notes for further details on how the amendments affected the company.
Definition of Accounting Estimates - Amendments to IAS8
The amendments to IAS8 clarify the distinction between changes in accounting estimates, changes in
accounting policies and the correction of errors. They also clarify how entities use measurement techniques
and inputs to develop accounting estimates.
The amendments had no impact on the Company's financial statements.
Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2
The amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgements provide guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. The amendments have had an impact on the Company's disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company's financial statements
Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12
The amendments to IAS 12 Income Tax narrow the scope of the initial recognition exception, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases and decommissioning liabilities.
The amendments had no impact on the Company's financial statements.
International Tax Reform—Pillar Two Model Rules – Amendments to IAS 12
The amendments to IAS 12 have been introduced in response to the OECD’s BEPS Pillar Two rules and include:
• A mandatory temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules; and
• Disclosure requirements for affected entities to help users of the financial statements better understand an entity’s exposure to Pillar Two income taxes arising from that legislation, particularly before its effective date.
The mandatory temporary exception – the use of which is required to be disclosed – applies immediately. The remaining disclosure requirements apply for annual reporting periods beginning on or after 1 January 2023, but not for any interim periods ending on or before 31 December 2023.
The amendments had no impact on the Company's financial statements as the Company is not in scope of the Pillar Two model rules as its revenue is less that EUR 750 million/year.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Adoption of new and revised standards and changes in accounting policies
(Continued)
- 22 -
Standards which are in issue but not yet effective
At the date of authorisation of these financial statements, the following Standards and Interpretations, which have not yet been applied in these financial statements, were in issue but not yet effective (and in some cases had not yet been adopted by the UK):
Lease Liability in a Sale and Leaseback (IFRS 16)
Classification of Liabilities as Current or Non-current (IAS 1)
Supplier finance arrangements (IAS7 and IFRS 7)
Lease Liability in a Sale and Leaseback (IFRS 16)
Amendments to IFRS 16 to specify the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain or loss that relates to the right of use it retain
Classification of Liabilities as Current or Non-current (IAS 1)
Amendments to paragraphs 69 to 76 of IAS 1 to specify the requirements for classifying liabilities as current or non-current.
Supplier finance arrangements (IAS7 and IFRS 7)
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments Disclosures to clarify the characteristics of supplier finance arrangements and require additional disclosure of such arrangements
The application of such IFRS's has been reviewed and are not considered to have a significant effect on the company's accounting policies or financial statements.
3
Critical accounting estimates and judgements
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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Critical judgements
Impairment of tangible fixed assets
In determining whether there are any indicators of impairment of the company's tangible fixed assets, the directors consider the economic viability and expected future financial performance.
Bad debt provisions
In determining whether there are any circumstances regarding a customer's inability to meet its financial obligation and whether a provision is required against the debt, the directors consider factors such as potential prevailing economic conditions in the industry and their potential impact on customers.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Critical accounting estimates and judgements
(Continued)
- 23 -
Right-of-use assets and lease liabilities
In determining the lease term the company assesses whether it is reasonably certain to exercise, or not to exercise, options to extend or terminate a lease. This assessment is made at the start of the lease and is re-assessed if significant events or changes in circumstances occur that are within the lessee's control.
Assets and liabilities arising from a lease are initially measured on a present value basis. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be determined, or the company's incremental borrowing rate if not. The company used a rate of 2.73% (2022: 2.73%) for its office leases and 3.35% for its equipment leases in the calculations based on the estimated rate of interest that they have to pay to borrow over a similar term, and with similar security, the funds necessary to obtain assets of similar value to the right-of-use assets in a similar economic environment.
Contract assets and liabilities
Management exercise their judgement and make use of estimates to determine the performance and position of long-term contracts. This involves the value of work performed to date, work to be performed still, costs to complete and the impact of variation in the scope of work. These judgements may affect the amount of the revenue to be recognised and the related contract assets and liabilities.
Frequent assessments and reviews are performed on each contract and regular forecasts are produced on their expected outcome. As part of these assessments and forecast, estimates are made with the regards to the recoverability of amounts due from the client and other contractual parties, liabilities arising and the requirements for any provisions against contract losses.
Supplier contract provisions
In determining provisions for contracted services, an amount is recognised as a best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks, probability, and uncertainties surrounding the obligation.
4
Revenue
2023
2022
£
£
Revenue analysed by class of business
Revenue from contracts with customers
30,677,213
21,450,837
Revenue from fees to group
1,838,067
2,134,145
32,515,280
23,584,982
2023
2022
£
£
Other operating income
RDEC credits received
105,913
276,790
105,913
276,790
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
4
Revenue
(Continued)
- 24 -
2023
2022
£
£
Revenue analysed by geographical market
UK
30,677,213
21,451,387
Middle East
1,041,188
1,572,492
Australia and New Zealand
598,961
474,235
Rest of the world including USA
197,918
86,868
32,515,280
23,584,982
5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
98,990
(16,895)
Government grants - RDEC
(105,913)
(276,790)
Depreciation of property, plant and equipment
732,222
801,957
(Profit)/loss on disposal of property, plant and equipment
-
763
Amortisation of intangible assets (included within administrative expenses)
22,931
-
Reversal of impairment loss recognised on trade receivables
(17,800)
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
30,630
28,950
7
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Technical
206
174
Administration
27
26
Total
233
200
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Employees
(Continued)
- 25 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
13,223,479
11,269,386
Social security costs
1,471,871
1,318,404
Pension costs
761,270
666,366
15,456,620
13,254,156
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
580,274
564,768
Company pension contributions to defined contribution schemes
32,024
32,730
612,298
597,498
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
363,877
329,063
Company pension contributions to defined contribution schemes
19,807
19,276
9
Investment income
2023
2022
£
£
Interest income
Interest on bank deposits
17,576
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
10
Finance costs
2023
2022
£
£
Interest on other financial liabilities:
Interest on lease liabilities
74,339
41,826
Other finance costs:
Unwinding of discount on provisions
6,088
7,088
Total finance costs
80,427
48,914
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
513,105
404,289
Adjustments in respect of prior periods
22,135
-
Double taxation relief
(96,246)
-
Total UK current tax
438,994
404,289
Foreign taxes and reliefs
279,327
718,321
404,289
Deferred tax
Origination and reversal of temporary differences
27,042
(88,306)
Total tax charge
745,363
315,983
An increase in the UK corporation tax rate from 19% to 25% (effective from 1 April 2023) was substantively enacted on 10 June 2021.The increase in the rate will apply to companies with profits over £250k. Also announced in the Budget on 3 March 2021 was the introduction of small profits rate of 19% to apply to profits under £50k with a tapered rate to apply on profits above this threshold but under £250k.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
(Continued)
- 27 -
The charge for the year can be reconciled to the profit per the income statement as follows:
2023
2022
£
£
Profit before taxation
2,381,720
1,946,439
Expected tax charge based on a corporation tax rate of 23.50% (2022: 19.00%)
559,704
369,823
Effect of expenses not deductible in determining taxable profit
(962)
6,622
Income not taxable
(24,890)
(44,650)
Effect of change in UK corporation tax rate
(17,401)
Double tax relief
(96,246)
Permanent capital allowances in excess of depreciation
6,295
1,589
Under provided in prior years
22,135
-
Effect of foreign taxes and reliefs
279,327
-
Taxation charge for the year
745,363
315,983
12
Dividends
2023
2022
2023
2022
Amounts recognised as distributions:
per share
per share
Total
Total
£
£
£
£
Ordinary A shares
Interim dividend paid
20,000.00
10,000.00
1,000,000
500,000
13
Intangible fixed assets
Software
£
Cost
Additions - purchased
89,440
At 31 December 2023
89,440
Amortisation and impairment
Charge for the year
22,931
At 31 December 2023
22,931
Carrying amount
At 31 December 2023
66,509
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
14
Property, plant and equipment
Leasehold property
Fixtures and fittings
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2023
4,484,073
413,187
698,569
5,595,829
Additions
4,919
19,811
24,730
Disposals
(242,356)
(242,356)
Valuation decrease
(1,361,967)
(1,361,967)
At 31 December 2023
3,122,106
418,106
476,024
4,016,236
Accumulated depreciation and impairment
At 1 January 2023
1,149,486
357,564
668,281
2,175,331
Charge for the year
669,118
42,249
20,855
732,222
Eliminated on disposal
(242,356)
(242,356)
At 31 December 2023
1,818,604
399,813
446,780
2,665,197
Carrying amount analysed between owned assets and right-of-use assets
At 31 December 2023
Owned assets
-
18,293
29,244
40,412
Right-of-use assets
1,303,502
-
-
1,310,627
1,303,502
18,293
29,244
1,351,039
At 31 December 2022
Owned assets
-
55,623
30,288
66,576
Right-of-use assets
3,334,587
-
-
3,353,922
3,334,587
55,623
30,288
3,420,498
Property, plant and equipment includes right-of-use assets, as follows:
Right-of-use assets
2023
2022
£
£
Net values at the year end
Property
1,303,502
3,334,587
Office equipment
7,125
19,335
1,310,627
3,353,922
Depreciation charge for the year
Property
669,118
430,288
Office equipment
12,210
12,210
681,328
442,498
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Property, plant and equipment
(Continued)
- 29 -
On 14 July 2022, the company signed a new lease contract to execute a lease extension based on the existing make good obligation (per previous lease signed on 20 November 2017) for the Harling House London office. The modification to the lease term was for the period of 25 December 2022 to 24 December 2027, with a break clause on 25 July 2025. At 31 December 2023 the directors concluded the company can no longer be reasonably certain it will not evoke the break clause. The right of use asset was adjusted accordingly to represent this position.
15
Contracts with customers
2023
2022
2022
Year end
Year end
Year start
£
£
£
Contracts in progress
Contract assets
1,065,226
642,122
927,191
Contract liabilities
(1,494,606)
(2,400,424)
(938,336)
The contract assets primarily relate to the company's rights to consideration for work completed but not billed at the reporting date. The contract assets are transferred to receivables when the rights become unconditional. Contract liabilities primarily relate to the advance consideration received from customers.
16
Trade and other receivables
2023
2022
£
£
Trade receivables (note 17)
6,299,791
7,382,075
Provision for bad and doubtful debts (note 17)
(359,075)
(279,866)
5,940,716
7,102,209
Contract assets (note 15)
1,065,226
642,122
Corporation tax recoverable
242,744
-
Amounts owed by fellow group undertakings
752,308
203,086
Other receivables
137,857
298,254
Prepayments and accrued income
629,292
606,452
8,768,143
8,852,123
Amounts owed by group undertakings are repayable on demand and are interest free.
17
Trade receivables - credit risk
Fair value of trade receivables
The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.
No significant receivable balances are impaired at the reporting end date.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
17
Trade receivables - credit risk
(Continued)
- 30 -
Movement in the allowances for impairment of trade receivables
2023
2022
£
£
Balance at 1 January 2023
279,866
87,516
Additional allowance recognised
79,209
210,150
Amounts recovered in the year
-
(17,800)
Balance at 31 December 2023
359,075
279,866
Allowances for impairment of trade receivables is made up of specific allowances of £344,075 (2022: 264,866) and expected credit losses of £15,000 (2022: £15,000).
18
Liabilities
2023
2022
Notes
£
£
Trade and other payables
20
5,404,466
3,559,281
Taxation and social security
944,239
1,120,236
6,348,705
4,679,517
19
Fair value of financial liabilities
The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.
Trade payables and other payables are classified as financial liabilities and are held at amortised cost.
20
Trade and other payables
2023
2022
£
£
Trade payables
425,803
380,884
Contract liabilities (note 15)
1,494,606
2,400,424
Amounts owed to fellow group undertakings
1,756,004
-
Accruals and deferred income
890,222
366,713
Other payables
837,831
411,260
5,404,466
3,559,281
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
21
Lease liabilities
2023
2022
Maturity analysis
£
£
Within one year
615,521
604,457
In two to five years
398,139
2,375,627
Total undiscounted liabilities
1,013,660
2,980,084
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2023
2022
£
£
Current liabilities
615,521
604,457
Non-current liabilities
398,139
2,375,627
1,013,660
2,980,084
2023
2022
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
74,339
41,826
22
Deferred taxation
2023
2022
£
£
Deferred tax assets
(109,079)
(136,121)
(109,079)
(136,121)
Deferred tax assets are expected to be recovered after more than one year.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Deferred taxation
(Continued)
- 32 -
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
Accelerated capital allowances
Retirement benefit obligations
Other temporary timing differences
Total
£
£
£
£
Asset at 1 January 2022
(43,162)
(15,656)
11,006
(47,812)
Deferred tax movements in prior year
Charge/(credit) to profit or loss
(63,059)
(14,244)
(11,006)
(88,309)
Asset at 1 January 2023
(106,221)
(29,900)
(136,121)
Deferred tax movements in current year
Charge/(credit) to profit or loss
10,186
16,856
-
27,042
Asset at 31 December 2023
(96,035)
(13,044)
(109,079)
23
Provisions for liabilities
2023
2022
£
£
Make good provision
228,344
222,256
Movements on provisions:
Make good provision
£
At 1 January 2023
222,256
Unwinding of discount
6,088
At 31 December 2023
228,344
The make-good provision includes amounts payable on termination of the company's property lease. No payment is expected for this amount until July 2025, when the break clause may be utilised.
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
761,270
666,366
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.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
24
Retirement benefit schemes
(Continued)
- 33 -
Contributions totalling £117,959 (2022: £110,635) were payable to the fund at the balance sheet date and are included in other payables.
25
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
50
50
50
50
Ordinary B shares of £1 each
50
50
50
50
100
100
100
100
The A and B shares rank pari passu in all respects.
26
Events after the reporting date
In late 2023 and early 2024, the company established a branch in Saudi Arabia. This included in January 2024 the signing of a new short-term office lease. In February 2024, the company provided initial capital of 250,000 SAR in the branch. The branch became fully operational from March 2024.
27
Controlling party
In the opinion of the directors, Robert Bird Group Pty Limited, a company registered in Australia is the immediate parent company. Its registered office address is Level 8, 470 St. Pauls Terrace, Fortitude Valley, Brisbane, Queensland, 4006, Australia.
The parent undertaking of the smallest group of which the company is a member and consolidated financial statements are prepared is Surbana Jurong (Holdings) Australia Pty Limited, a company incorporated in Australia. The parent undertaking of the largest group of which the company is a member and consolidation financial statements are prepared is Temasek Holdings (Private) Limited, a company incorporated in Singapore. The consolidated financial statements of Surbana Jurong (Holdings) Australia Pty Limited are available from the Australian Securities & Investments Commission at www.asic.gov.au.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
28
Cash generated from operations
2023
2022
£
£
Profit for the year before income tax
2,381,720
1,946,439
Adjustments for:
Finance costs
80,427
48,914
Investment income
(17,576)
(Gain)/loss on disposal of property, plant and equipment
-
763
Amortisation and impairment of intangible assets
22,931
-
Depreciation and impairment of property, plant and equipment
732,222
801,957
Decrease in provisions
-
(31,214)
Movements in working capital:
(Increase)/decrease in contract assets
(423,104)
285,069
Decrease/(increase) in trade and other receivables
749,828
(2,540,130)
(Decrease)/increase in contract liabilities
(905,818)
1,462,088
Increase in trade and other payables
2,656,089
457,294
Cash generated from operations
5,276,719
2,431,180
29
Analysis of changes in net funds/(debt)
1 January 2023
Cash flows
New finance leases
Other non-cash changes
31 December 2023
£
£
£
£
£
Cash at bank and in hand
1,548,637
2,459,181
-
-
4,007,818
Obligations under finance leases
(2,980,084)
604,457
-
1,361,967
(1,013,660)
(1,431,447)
3,063,638
-
1,361,967
2,994,158
1 January 2022
Cash flows
New finance leases
Other non-cash changes
31 December 2022
Prior year:
£
£
£
£
£
Cash at bank and in hand
814,927
733,710
-
-
1,548,637
Obligations under finance leases
(525,194)
640,723
(3,095,613)
-
(2,980,084)
289,733
1,374,433
(3,095,613)
-
(1,431,447)
2023-12-312023-01-01J BeutelH PoologasundramD SeelT DobbinsG GrantA McCollfalseCCH SoftwareiXBRL Review & Tag 2022.2044727432023-01-012023-12-3104472743bus:Director12023-01-012023-12-3104472743bus:Director22023-01-012023-12-3104472743bus:Director32023-01-012023-12-3104472743bus:Director42023-01-012023-12-3104472743bus:Director52023-01-012023-12-3104472743bus:CompanySecretary12023-01-012023-12-3104472743bus:RegisteredOffice2023-01-012023-12-31044727432023-12-31044727432022-01-012022-12-3104472743core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3104472743core:RetainedEarningsAccumulatedLosses2022-01-012022-12-31044727432022-12-3104472743core:AcceleratedTaxDepreciationDeferredTax2021-12-3104472743core:RetirementBenefitObligationsDeferredTax2021-12-3104472743core:RevaluationInvestmentPropertyDeferredTax2021-12-31044727432021-12-3104472743core:AcceleratedTaxDepreciationDeferredTax2022-12-3104472743core:RetirementBenefitObligationsDeferredTax2022-12-3104472743core:RevaluationInvestmentPropertyDeferredTax2022-12-3104472743core:AcceleratedTaxDepreciationDeferredTax2023-12-3104472743core:RetirementBenefitObligationsDeferredTax2023-12-3104472743core:RevaluationInvestmentPropertyDeferredTax2023-12-31044727432022-12-3104472743core:WithinOneYear2023-12-3104472743core:WithinOneYear2022-12-3104472743core:CurrentFinancialInstruments2023-12-3104472743core:CurrentFinancialInstruments2022-12-3104472743core:ShareCapital2023-12-3104472743core:ShareCapital2022-12-3104472743core:RetainedEarningsAccumulatedLosses2023-12-3104472743core:RetainedEarningsAccumulatedLosses2022-12-3104472743core:ShareCapitalOrdinaryShares2023-12-3104472743core:ShareCapitalOrdinaryShares2022-12-3104472743core:FinancialInstrumentsFairValueThroughProfitOrLoss2023-01-012023-12-3104472743core:Held-to-maturityFinancialAssets2023-01-012023-12-3104472743core:Available-for-saleFinancialAssets2023-01-012023-12-3104472743core:UKTax2023-01-012023-12-3104472743core:UKTax2022-01-012022-12-3104472743core:ForeignTax12023-01-012023-12-3104472743core:ForeignTax12022-01-012022-12-3104472743core:ComputerSoftware2023-01-012023-12-3104472743core:ComputerSoftware2023-12-3104472743core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3104472743core:FurnitureFittings2022-12-3104472743core:ComputerEquipment2022-12-3104472743core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3104472743core:FurnitureFittings2023-12-3104472743core:ComputerEquipment2023-12-3104472743core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3104472743core:FurnitureFittings2023-01-012023-12-3104472743core:ComputerEquipment2023-01-012023-12-3104472743core:ContinuingOperations2023-12-3104472743core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3104472743core:FurnitureFittings2022-12-3104472743core:ComputerEquipment2022-12-310447274312023-01-012023-12-3104472743bus:PrivateLimitedCompanyLtd2023-01-012023-12-3104472743bus:FRS1012023-01-012023-12-3104472743bus:Audited2023-01-012023-12-3104472743bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP