The directors present the strategic report for the year ended 31 December 2023.
The performance of the company in the financial year is considered successful in an uncertain economic climate with post tax profits of £2.6m (2022: £2.1m).
The financial year of 2023 represents a further year of delivery against the business’ strategic growth plan, following a period of business transformation between 2019 and 2021. This has shown that investment decisions made in 2021 have largely resulted in our anticipated positive trading outcomes. The underlying focus on ensuring that the company operates in a resilient and agile manner remains unchanged and operational priorities continue to drive these attributes.
In the context of our primary markets, we have continued to see a mixture of both opportunity and threat. Underlying societal needs align well with our existing and developing service lines. Each of our core sectors have faced their own challenges, so we have positioned ourselves to be ready to work with clients to address these. In summary these are:
Water: after decades of under investment, the UK’s water utility companies are forecasting investing £96bn across AMP8 which compares to £51bn across AMP7. Many of our clients have already started to ramp up their capex programmes to meet this expectation.
Environment: driven by legislation and changes in societal expectations, environmental considerations across all projects in the built environment have changed and will continue to change. We have invested significantly in upskilling our staff’s awareness of these issues, placing sustainability at the heart of our business focus. Our capabilities in environmental management and assessment, ecology and biodiversity, sustainability, circular economy and net zero services have been transformed and now form a core part of our business model. Added to our long-standing reputation in flood resilience and mitigation and contaminated land, we now have a broad skills range to offer to clients.
Buildings: our structural engineering practice has further diversified into defence projects, life sciences and higher education where we see more certainty of investment. We have continued to enhance our capabilities in reuse and refurbishment and have been successful in delivering award winning projects with high sustainability credentials. Our expertise in material reuse and net zero solutions has become a market differentiator for us.
Highways & Transportation: major highways project opportunities have dropped off but our focus on the regions, public transport and active travel as a specialism has seen significant growth across many of our teams. We have been successful in integrating new requirements into roads schemes that have been mooted for many years and are working with clients from business case production, through design to construction support.
Rail: despite the cancellation of HS2 North of Birmingham, the rail sector remains a growing market for us, with our focus on stations, depots, bridges and earthworks delivering a pipeline of opportunities to extend the life of assets and create better value for customers and operators.
Land Development: strategic land clients and the wider private sector market has built steadily over the year as we have broadened our offering to the development market, whilst continuing to work in collaboration with a range of SME specialists with whom we have long term relationships.
We believe that our people are the heart and soul of our success, and our strategy is underpinned by this ethos. By creating a collaborative and nurturing environment, we are starting to witness our very best talent develop and thrive. Our success can be demonstrated by our impressive growth figures but more importantly, we are proud of the vibrant culture we have built. We empower our people to be driven by their passions and discover their purpose. As we look forward, we are confident that our continued investment in our people will fuel even greater achievements and solidify our position as a leader in the industry.
The growth in our core markets and the diversification of services into those markets has been achieved through a sustained period of organic growth, with nearly 100 additional members of staff at the end of 2023 compared to the end of 2022. In conjunction with attracting high quality talent into the organisation and pleasingly the return of some former employees, we have continued to invest in developing our existing talent. Recognising the talent early on and investing in their futures has resulted in us achieving Gold accredited membership from the 5% Club for our continued development where we have 16% of our employees in “earn & learn” schemes such as apprenticeships, graduates and sponsored student placements. Furthermore, 30% of our employees are aged 20-29, compared to 19% on average across the industry - a statistic that shows our commitment to nurturing the talent of tomorrow.
Our focus on Women in Engineering has seen many of our young female engineers being recognised for major awards such as: Top 50 Women in Engineering, CN & NCE Inspiring Women in Construction and Engineering and the International Association for Bridge and Structural Engineering (IABSE), but we also have a much stronger representation of women in our workforce than the industry can offer.
Principal Risks & Uncertainties
Talent Acquisition & Retention: Despite our success in growing our staff numbers throughout 2023, we have had to continue to operate in a challenging employment market with demand exceeding supply. Our staff turnover rate has declined throughout the year and our feedback indicates that leavers that provided a response are, without exception, all happy to return to the business at some point in the future and would recommend Pell Frischmann to others. However, the rate of staff churn and growth has seen a considerable investment in recruitment both directly and working with industry talent acquisition specialists.
Economic: We monitor economic indicators and sentiment in the markets in which we operate. We expect to experience continued volatility across markets as the wider economic challenges of borrowing, inflation and recession in the UK flows down. However, as a subsidiary of a strong group, capable of withstanding instability, and our ability to take a long-term view of both risks, opportunities and resilience, we are well placed to weather such volatility.
Environment & Sustainability: The UK construction industry is the largest contributor to UK carbon and also provides the greatest opportunity for its reduction. As consultants, we have a responsibility to advise and support our clients to minimise and mitigate damage to the environment and are empowering our staff to do so through extensive training and development opportunities against their core sustainability competencies.
Our Sustainability Strategy guides us towards a more sustainable future and has minimised our environmental footprint. Our Carbon Reduction Plan solidifies our commitment to carbon neutrality in our operations by 2025 and net zero carbon by 2040. We have already seen a 60% reduction in Scope 1 and 2 and a 33% decrease in total Carbon emissions (including Scope 3) since the plan was implemented.
Financial: Our long/medium-term framework contracts bring predictable cash flows into the foreseeable future. This, together with our existing balance sheet strength, and minimal exposure to foreign exchange rate movements, significantly mitigates financial risks to our business. For UK projects, we minimise working capital balances and avoid overexposure to non-payment risk and support the wider industry through our commitment to prompt supply chain partners payment. Finally, we continually monitor resource utilisation, profitability, invoicing and cash collection very closely to ensure predictability of financial KPIs.
Geo-Political: Political instability in the regions within which we operate can threaten our ability to deliver contractual services and receive payment as well as endangering the safety of our staff. We obtain the latest professional risk and security information before engaging in contracts in new geographies and continue to monitor the stability and seek professional advice in respect of the markets in which we trade. The ongoing impact of the war in Ukraine and the increased instability in the Middle East has presented a challenge to the UK economy, our clients and our staff due to its impact on inflation. We continue to monitor such matters in particular in respect of staff deployment to and securing payment from overseas locations.
Government Policy: We operate in a fluid and responsive environment which may be altered by government changes in regulation, procurement practices or policy. We mitigate this by carefully monitoring policy trends and attempting to ‘get ahead of the curve’. Notably, in respect of climate change recently, public procurement is being steered by government to ensure suppliers have a Carbon Reduction Plan and a net zero carbon commitment in place if they are to be awarded contracts over a specific value. Having already prepared a strategy and plan that responds to this, we were ahead of both the public announcement and its effect on public procurement procedure.
Health & Safety (H&S): Our business is concerned with the built environment, entailing significant safety risks to employees, clients, contractors and third parties. We take H&S seriously and ensure all staff are appropriately trained, and procedures are continuously reviewed and improved. The directors accept ultimate responsibility for the H&S and seek to ensure continual improvement in performance. Our Business Management System is ISO45001:2018 (H&S management system standard) compliant with additional and specialist certifications in place for rail via RISQS and for water via Achilles UVDB. We proactively track our Accident Incident Rate (AIR) and, once again, there have been no Enforcement/Prohibition Notices, or Offence Convictions in the year.
Physical & Data Security: Our business is dependent on the secure storage and transmission of data in either physical or electronic form. The risk of confidential data being mishandled, resulting in breach of contract, or the inappropriate release or loss of personal information of our clients or employees is significant. Because of this, our business systems will always be a target for crime, cyber or otherwise. We use appropriate physical security, secure networks and encryption in order to protect data with strong data protection business practices in place. We train staff on best practice in information security and confidentiality. We are Cyber Essentials Plus accredited and in 2022 achieved ISO 27001:2018 (information security management) accreditation for our systems.
Digitisation: Separate to the risk of data integrity is the effect of new/emerging technology on our traditional business model; much like e-commerce has disrupted the traditional high street. However, digital technology is also an opportunity. Due to our size, we can be more agile and therefore be earlier adopters of new ways of working and delivering. We were an earlier adopter of BIM and continue to see the potential in integrating a personable, relationship-based consultancy service with the speed and efficiency of automation and/or machine-learning techniques for solving problems. We continually monitor digital trends, carefully interrogate new/emerging technologies such as Artificial Intelligence and their likelihood of disruption and/or commoditisation of our services and, where relevant, seek to adopt them quickly and re-orient our business model to suit. Our Business Management System is ISO 19650:2018 (building information modelling) compliant.
Reputational Risk: Our business is built on repeat business with key clients. Reputational damage could impact our ability to win future work or indeed damage these long-term relationships. We mitigate this by managing our contractual commitments and ensuring we operate robust cost and project management systems; certified and accredited to ISO 9001:2015 (quality management system)
We are committed to corporate transparency on broader matters and believe it indicates our ability to generate and preserve value over the long term, and to assess the management of risks which may impact the sustainability of our business or affect society more broadly. 2023 represented another year of development in our performance, position and activities, including:
Equality, Diversity & Inclusion (EDI): Our Equal Opportunities policy was reviewed, refreshed and re-launched in 2021 as our EDI Policy to reflect our EDI strategy, launched late in 2020. In 2023 we saw the continued positive impact of our employee-led EDI Action Group, empowered to develop and deliver initiatives to improve EDI in our business and our industry more widely. In the year we applied a particular focus on inclusivity, ensuring that every employee had the opportunity to be at their best whilst at work. Our monitoring suggests we are leading our peers with metrics including gender, ethnicity and sexual orientation showing greater diversity in our organisation in comparison to the engineering industry as a whole.
Social Value: In 2021 we launched our social value strategy and commenced working on the development and delivery of procedures and process to support the business and its people in delivering a positive impact on the communities within which we work. We leverage our expertise to address vital social challenges, delivering tangible value to communities. In 2023 we became ‘Leaders’ as defined by the Social Value Portal’s Maturity Index Tool. We also generated around £10.0m worth of Social Value to our communities compared to £7.5m in 2022.
Health & Wellbeing: Our Wellbeing Action Plan incorporated the results of our comprehensive 2022 Wellbeing Survey, inviting employees to provide feedback on their work-life balance, the impact of our line managers, our wellbeing benefits, internal communications and more. This early dialogue enabled us to identify priority areas which formed the basis of our Plan. The Action Plan was intentionally developed as a holistic framework to ensure that we take a fully integrated approach to wellbeing. We based the Plan on the CIPD’s seven inter-related 'domains' of employee wellbeing as a best-practice approach which enabled us to define key objectives aligned to each domain. Through the Plan, our people can understand how everything we do is connected. For example, how our Wellbeing, Equity Diversity & Inclusion, Social Value, Sustainability and L&D strategies are integrated and collectively contribute to positive wellbeing outcomes.
We continue to operate, monitor and review our other corporate policies in this space, including: Alcohol, Drug & Substance Abuse, Anti-Bribery, Anti-Slavery & Human Trafficking, Criminal Facilitation of Tax Evasion, Fatigue Management & Working Hours, Modern Slavery and Whistle Blowing.
The directors use a range of performance measures to monitor and manage the business. A number of these measures are particularly important in the generation of shareholder value, thus are considered KPIs. Our KPIs monitor past performance which not only provides us with information to manage the business in the present, but also enables us to make informed choices regarding future strategic decisions. Turnover, gross profit margin and EBITDA are monitored closely. KPIs for the year ended 31 December 2023 are turnover of £40.0m (2022: £33.4m), gross profit margin of 16.5% (2022: 12.4%) and EBITDA of £3.1m (2022: £2.7m), with the growth in turnover being supported by our strategic investments and converted effectively into EBITDA through good resource and cost management across the company.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2023.
The results for the year are set out on page 11.
No ordinary dividends were paid (2022: £1,500,000). The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Basis for 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.
Other information
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.
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.
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.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The objectives of our audit in respect of 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 to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.
Pell Frischmann Consultants Limited is a private company limited by shares, domiciled and incorporated in England and Wales. The registered office is 5th Floor, 85 Strand, London, WC2R 0DW.
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 £.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The information is included in the consolidated financial statements of RSBG UK Limited, a company registered in England and Wales, as at 31 December 2023, and these financial statements may be obtained from the company secretary at the company’s registered address: 5th Floor, 85 Strand, London, WC2R 0DW.
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.
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.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. 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.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, 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.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
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 being measured at fair value through 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.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Accrued and deferred income are assessed on an individual basis with revenue earned being ascertained based on the stage of completion of the contract which is estimated using a combination of the milestones in the contract and the time spent to date. This is compared to the total time expected to be required to undertake the contract. Estimates of the total time required to undertake the contracts are made on a regular basis and subject to management review. These estimates may differ from the actual results due to a variety of factors such as efficiency of working, accuracy of assessment of progress to date and client decision making.
The average monthly number of persons (including directors) employed by the company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 1).
The tax rate for the current year has changed to 25% from 1 April 2023 as introduced by Finance Act 2021 (2022: 19%)
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
The dilapidations provision relates to the anticipated costs for restoring the company offices to their original state on termination of the leases and is expected to be utilised in line with when the leases expire. The timing of the utilisation of other provisions is uncertain.
The following are the major deferred tax liabilities recognised by the company and movements thereon:
The deferred tax liability set out above is not expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
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.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
There are unquantified contingent liabilities in the normal course of business arising under consultancy contracts and the company is covered by professional indemnity insurance in respect of claims which the directors believe is adequate.
There is also an unlimited multilateral guarantee and debenture including fixed and floating charges over all assets between the company and its fellow group companies.
The company has taken advantage of the exemption available in accordance with FRS 102 'Related party disclosures' not to disclose transactions with other group companies.
The immediate parent company is PF Consulting Group Limited whose registered address is 5th Floor, 85 Strand, London, WC2R 0DW.
The ultimate controlling party of the company is RAG-Stiftung, a company registered in Germany.
The largest group of undertakings which prepares consolidated financial statements including the company is RAG-Stiftung. These financial statements may be obtained from RAG-Stiftung, Ruttenscheider Strasse 1-3, 45128 Essen, Germany.
The smallest group of undertakings which prepares consolidated financial statements including the company is PF Consulting Group Ltd. These financial statements may be obtained from PF Consulting Group Ltd, 5th Floor, 85 Strand, London, WC2R 0DW.