Pell Frischmann Consultants Limited
Annual Report and Financial Statements
For the year ended 31 December 2023
Company Registration No. 1777946 (England and Wales)
Pell Frischmann Consultants Limited
Company Information
Directors
I A Bisset
L S Roberts
S Cox
(Appointed 1 June 2023)
Secretary
L S Roberts
Company number
1777946
Registered office
5th Floor
85 Strand
London
WC2R 0DW
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Pell Frischmann Consultants Limited
Contents
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 10
Statement of comprehensive income
11
Statement of financial position
12
Statement of changes in equity
13
Notes to the financial statements
14 - 28
Pell Frischmann Consultants Limited
Strategic Report
For the year ended 31 December 2023
Page 1

The directors present the strategic report for the year ended 31 December 2023.

Fair review of the business

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:

 

 

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.

Pell Frischmann Consultants Limited
Strategic Report (Continued)
For the year ended 31 December 2023
Page 2

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.

Pell Frischmann Consultants Limited
Strategic Report (Continued)
For the year ended 31 December 2023
Page 3

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)

Pell Frischmann Consultants Limited
Strategic Report (Continued)
For the year ended 31 December 2023
Page 4
Corporate Social Responsibility (CSR)

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:

 

 

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.

Key performance indicators

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

I A Bisset
Director
20 March 2024
Pell Frischmann Consultants Limited
Directors' Report
For the year ended 31 December 2023
Page 5

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 multidisciplinary consulting engineering and project management including specialist areas such as building structures, civil engineering, land development and regeneration infrastructure, traffic & transportation, rail, fire, waste management, power including nuclear power, water and environmental engineering, facilities management and property services.

Results and dividends

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.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

I A Bisset
L S Roberts
S Cox
(Appointed 1 June 2023)
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

Auditor

The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Pell Frischmann Consultants Limited
Directors' Report (Continued)
For the year ended 31 December 2023
Page 6
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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
L S Roberts
Director
20 March 2024
Pell Frischmann Consultants Limited
Independent Auditor's Report
To the Members of Pell Frischmann Consultants Limited
Page 7
Opinion

We have audited the financial statements of Pell Frischmann Consultants Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, the Statement Of Financial Position, the Statement of Changes in Equity 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Pell Frischmann Consultants Limited
Independent Auditor's Report (Continued)
To the Members of Pell Frischmann Consultants Limited
Page 8

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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 or the Directors' Report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

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.

Pell Frischmann Consultants Limited
Independent Auditor's Report (Continued)
To the Members of Pell Frischmann Consultants Limited
Page 9
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.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

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.

 

 

Pell Frischmann Consultants Limited
Independent Auditor's Report (Continued)
To the Members of Pell Frischmann Consultants Limited
Page 10

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:

 

 

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.

Rebecca Shields (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
28 March 2024
Chartered Accountants
Statutory Auditor
6th Floor
9 Appold Street
London
EC2A 2AP
Pell Frischmann Consultants Limited
Statement of Comprehensive Income
For the year ended 31 December 2023
Page 11
2023
2022
Notes
£
£
Turnover
3
39,958,702
33,440,480
Cost of sales
(33,377,293)
(29,293,235)
Gross profit
6,581,409
4,147,245
Administrative expenses
(7,736,965)
(6,247,914)
Other operating income
3,747,173
4,337,949
Operating profit
4
2,591,617
2,237,280
Interest receivable and similar income
8
-
0
1,309
Profit before taxation
2,591,617
2,238,589
Tax on profit
9
(9,186)
(182,045)
Profit for the financial year
2,582,431
2,056,544
Other comprehensive income
Currency translation loss taken to retained earnings
(2,437)
(8,124)
Total comprehensive income for the year
2,579,994
2,048,420

The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.

Pell Frischmann Consultants Limited
Statement of Financial Position
As at 31 December 2023
Page 12
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
977,285
1,092,382
Current assets
Debtors
12
15,571,657
11,052,795
Cash at bank and in hand
1,771,012
876,304
17,342,669
11,929,099
Creditors: amounts falling due within one year
13
(8,858,134)
(6,190,950)
Net current assets
8,484,535
5,738,149
Total assets less current liabilities
9,461,820
6,830,531
Provisions for liabilities
Provisions
14
(376,489)
(287,148)
Deferred tax liability
15
(115,426)
(153,472)
(491,915)
(440,620)
Net assets
8,969,905
6,389,911
Capital and reserves
Called up share capital
17
8,000
8,000
Foreign exchange reserve
18
(59,186)
(56,749)
Other reserves
18
1,384,274
1,384,274
Profit and loss reserves
18
7,636,817
5,054,386
Total equity
8,969,905
6,389,911
The financial statements were approved by the board of directors and authorised for issue on 20 March 2024 and are signed on its behalf by:
L S Roberts
Director
Company Registration No. 1777946
Pell Frischmann Consultants Limited
Statement of Changes in Equity
For the year ended 31 December 2023
Page 13
Share capital
Foreign Exchange Reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
8,000
(48,625)
1,384,274
4,497,842
5,841,491
Year ended 31 December 2022:
Profit for the year
-
-
-
2,056,544
2,056,544
Other comprehensive income:
Currency translation differences
-
-
-
(8,124)
(8,124)
Total comprehensive income for the year
-
0
-
0
-
0
2,048,420
2,048,420
Dividends
10
-
-
-
(1,500,000)
(1,500,000)
Transfer of currency translation differences
-
0
(8,124)
-
8,124
-
Balance at 31 December 2022
8,000
(56,749)
1,384,274
5,054,386
6,389,911
Year ended 31 December 2023:
Profit for the year
-
-
-
2,582,431
2,582,431
Other comprehensive income:
Currency translation differences
-
-
-
(2,437)
(2,437)
Total comprehensive income for the year
-
0
-
0
-
0
2,579,994
2,579,994
Transfer of currency translation differences
-
(2,437)
-
2,437
-
Balance at 31 December 2023
8,000
(59,186)
1,384,274
7,636,817
8,969,905
Pell Frischmann Consultants Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 14
1
Accounting policies
Company information

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.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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:

 

 

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.

1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company will be able to meet its liabilities as they fall due for the foreseeable future (and at least a period of 12 months beyond the date of approval of these financial statements). This is based on their assessment of the trading position of the company and their consideration of the impact of external factors. Having considered these factors, they have concluded that there is no significant impact to the going concern status of the company, thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true

Pell Frischmann Consultants Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 15
1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
25% straight line
Fixtures and fittings
25% straight line
Computer equipment
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

Pell Frischmann Consultants Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 16

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.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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.

Pell Frischmann Consultants Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 17
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Pell Frischmann Consultants Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 18
Other financial liabilities

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
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.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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.

Pell Frischmann Consultants Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 19
1.11
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, 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 the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
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.

Pell Frischmann Consultants Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 20
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

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

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.

3
Turnover and other income
The whole of turnover is attributable to the company's principal activity.
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
39,943,228
33,430,994
Europe
14,575
-
Rest of the World
899
9,486
39,958,702
33,440,480
2023
2022
£
£
Other significant income
R&D tax credit
24,879
88,711
Other operating income
318,207
93,939
Other income receivable from other group companies
3,404,087
4,155,299
3,747,173
4,337,949
Pell Frischmann Consultants Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 21
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
9,948
69
Depreciation of owned tangible fixed assets
485,116
460,330
Loss on disposal of tangible fixed assets
5,348
26,538
Operating lease charges
799,900
714,346
5
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
14,300
13,275
Other services
7,000
5,975
21,300
19,250
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Management
4
4
Administration
36
32
Operational
450
412
Total
490
448

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
21,443,685
18,283,831
Social security costs
2,308,785
2,037,683
Pension costs
1,580,617
1,364,824
25,333,087
21,686,338
Pell Frischmann Consultants Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 22
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
363,866
212,723
Company pension contributions to defined contribution schemes
37,897
35,208
401,763
247,931

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
264,977
212,723
Company pension contributions to defined contribution schemes
35,997
35,208
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
-
0
1,309
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
47,878
160,828
Deferred tax
Origination and reversal of timing differences
(38,692)
21,217
Total tax charge
9,186
182,045

The tax rate for the current year has changed to 25% from 1 April 2023 as introduced by Finance Act 2021 (2022: 19%)

Pell Frischmann Consultants Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
9
Taxation
(Continued)
Page 23

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:

2023
2022
£
£
Profit before taxation
2,591,617
2,238,589
Expected tax charge based on the standard rate of corporation tax in the UK of 24% (2022: 19%)
609,548
425,332
Tax effect of expenses that are not deductible in determining taxable profit
7,622
4,986
Adjustments in respect of prior years
8,517
5,531
Group relief
(636,106)
(240,260)
Permanent capital allowances in excess of depreciation
(2,410)
-
0
Research and development tax credit
2,381
(16,855)
Fixed asset differences
21,689
(1,638)
Deferred tax
(2,055)
4,949
Taxation charge for the year
9,186
182,045
10
Dividends
2023
2022
£
£
Final paid
-
0
1,500,000
Pell Frischmann Consultants Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 24
11
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2023
489,943
208,630
1,218,533
1,917,106
Additions
80,486
76,716
218,164
375,366
Disposals
-
0
(8,280)
-
0
(8,280)
At 31 December 2023
570,429
277,066
1,436,697
2,284,192
Depreciation and impairment
At 1 January 2023
177,134
70,189
577,401
824,724
Depreciation charged in the year
136,360
61,897
286,859
485,116
Eliminated in respect of disposals
-
0
(2,933)
-
0
(2,933)
At 31 December 2023
313,494
129,153
864,260
1,306,907
Carrying amount
At 31 December 2023
256,935
147,913
572,437
977,285
At 31 December 2022
312,809
138,441
641,132
1,092,382
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
5,693,494
3,517,952
Accrued income
3,962,310
2,331,617
Corporation tax recoverable
166,021
146,493
Amounts owed by group undertakings
4,487,565
4,037,531
Other debtors
84,153
83,107
Prepayments
1,178,114
936,095
15,571,657
11,052,795
Pell Frischmann Consultants Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 25
13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,393,942
739,530
Amounts owed to group undertakings
781,760
652,667
Corporation tax
114,315
14,230
Other taxation and social security
1,673,421
990,364
Other creditors
252,998
302,620
Accruals and deferred income
4,641,698
3,491,539
8,858,134
6,190,950
14
Provisions for liabilities
2023
2022
£
£
Dilapidations
301,489
212,148
Other provisions
75,000
75,000
376,489
287,148
Movements on provisions:
Dilapidations
Other provisions
Total
£
£
£
At 1 January 2023
212,148
75,000
287,148
Additional provisions in the year
96,000
-
96,000
Utilisation of provision
(6,659)
-
(6,659)
At 31 December 2023
301,489
75,000
376,489

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.

Pell Frischmann Consultants Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 26
15
Deferred taxation

The following are the major deferred tax liabilities recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
139,641
180,804
Short term timing differences
(24,215)
(27,332)
115,426
153,472
2023
Movements in the year:
£
Liability at 1 January 2023
153,472
Credit to profit or loss
(38,046)
Liability at 31 December 2023
115,426

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.

16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,580,617
1,364,824

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.

17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
8,000
8,000
8,000
8,000
Pell Frischmann Consultants Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 27
18
Reserves
Foreign exchange reserve
This reserve contains any exchange differences captured on retranslation of foreign branches.
Profit and loss account
The profit and loss account contains all transfers from share premium and all current and prior period retained earnings, net of dividends paid.
Other reserve
Other reserves arose on the waiver of an intercompany debt.
19
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
334,311
557,783
Between one and five years
193,997
281,707
528,308
839,490
20
Financial commitments, guarantees and contingent liabilities

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.

21
Related party transactions

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.

Pell Frischmann Consultants Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 28
22
Ultimate controlling party

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.

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