Registered number
03873802
Powell Dobson Architects Limited
Report and Unaudited Accounts
30 September 2023
Powell Dobson Architects Limited
Report and accounts
Contents
Page
Company information 1
Directors' report 2
Accountants' report 4
Profit and loss account 5
Balance sheet 6
Statement of changes in equity 7
Notes to the accounts 8
Powell Dobson Architects Limited
Company Information
Directors
Ms A Smale
Mr A M Nixon
Ms B J Kinsella
Mr A Davies
Mrs V Kimber (resigned 31 July 2023)
Secretary
Ms A Smale (appointed 31 July 2023)
Mrs V Kimber (resigned 31 July 2023)
Accountants
GSPW Limited
137 Heol y Deri
Cardiff
CF14 6UH
Registered office
Suite 1F, Building One
Eastern Business Park
Wen Fawr Lane, Old St Mellons
Cardiff
CF3 5EA
Registered number
03873802
Powell Dobson Architects Limited
Registered number: 03873802
Directors' Report
The directors present their report and accounts for the year ended 30 September 2023.
Principal activities
The principal activity of the company continued to be that of the provision of architectural services.
Directors
The following persons served as directors during the year:
Ms A Smale
Mr A M Nixon
Ms B J Kinsella
Mr A Davies
Mrs V Kimber (resigned 31 July 2023)
Results and dividends
2023 has been a challenging year as the UK construction industry battles with tough economic conditions alongside trying to recover from the major disruptions of the past few years. One of the key legislative changes is the Building Safety Act, which sets out greater accountability and responsibility for fire and structural safety issues throughout the life cycle of buildings within a new regulatory framework for building safety. 
Many projects have been impacted by rising construction costs as a result of rising material prices; this has either led to project delays as a result of brief changes to reduce the programme and value engineer the scheme, or to projects being put on hold where budgets are under greater pressure. The rise in mortgage rates and low consumer confidence have also led to a downturn in the private residential sector, which has significantly affected the industry and the number of development opportunities. The business has considerable experience in public sector housing and this is a sector that has seen continued growth and opportunities.
Despite the challenges being faced by the industry, the Directors feel positive about the results achieved by the business.
The financial statements of Powell Dobson Architects Limited should be read in conjunction with the accounts of Powell Dobson LLP.
The Powell Dobson Group results are summarised below:
2023 2022
£ £
Turnover 5,127,199 5,776,821
(Loss)/profit for the year - Powell Dobson Architects Limited (299,438) 452,585
Profit for the year - Powell Dobson LLP and Group 537,059 1,131,480
The directors are pleased with the results for the year given the economic conditions.
Small company provisions
This report has been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.
This report was approved by the board on 28 March 2024 and signed on its behalf.
Ms A Smale
Director
Powell Dobson Architects Limited
Chartered Accountants' report to the board of directors on the preparation of the unaudited statutory accounts of Powell Dobson Architects Limited for the year ended 30 September 2023
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Powell Dobson Architects Limited for the year ended 30 September 2023 which comprise of the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at
www.icaew.com/en/members/regulations-standards-and-guidance
This report is made solely to the Board of Directors of Powell Dobson Architects Limited, as a body, in accordance with the terms of our engagement letter dated 20 December 2020. Our work has been undertaken solely to prepare for your approval the accounts of Powell Dobson Architects Limited and state those matters that we have agreed to state to the Board of Directors of Powell Dobson Architects Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Powell Dobson Architects Limited and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that Powell Dobson Architects Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and loss of Powell Dobson Architects Limited. You consider that Powell Dobson Architects Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the accounts of Powell Dobson Architects Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.
GSPW Limited
Chartered Accountants
137 Heol y Deri
Cardiff
CF14 6UH
28 March 2024
Powell Dobson Architects Limited
Profit and Loss Account
for the year ended 30 September 2023
2023 2022
£ £
Turnover 5,127,199 5,776,821
Cost of sales (659,944) (878,063)
Gross profit 4,467,255 4,898,758
Administrative expenses (4,831,487) (4,434,563)
Operating (loss)/profit (364,232) 464,195
Interest receivable 1,311 195
Interest payable (33,921) (18,169)
(Loss)/profit before taxation (396,842) 446,221
Tax on (loss)/profit 97,404 6,364
(Loss)/profit for the financial year (299,438) 452,585
Powell Dobson Architects Limited
Registered number: 03873802
Balance Sheet
as at 30 September 2023
Notes 2023 2022
£ £
Fixed assets
Tangible assets 4 214,429 125,834
Current assets
Debtors 5 1,579,454 1,773,182
Cash at bank and in hand 119,161 278,347
1,698,615 2,051,529
Creditors: amounts falling due within one year 6 (524,790) (456,140)
Net current assets 1,173,825 1,595,389
Total assets less current liabilities 1,388,254 1,721,223
Creditors: amounts falling due after more than one year 7 (240,773) (293,348)
Provisions for liabilities (49,024) (24,980)
Net assets 1,098,457 1,402,895
Capital and reserves
Called up share capital 1 1
Profit and loss account 1,098,456 1,402,894
Shareholders' funds 1,098,457 1,402,895
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Ms A Smale
Director
Approved by the board on 28 March 2024
Powell Dobson Architects Limited
Statement of Changes in Equity
for the year ended 30 September 2023
Share Profit Total
capital and loss
account
£ £ £
At 1 October 2021 1 960,309 960,310
Profit for the financial year - 452,585 452,585
Dividends - (10,000) (10,000)
At 30 September 2022 1 1,402,894 1,402,895
At 1 October 2022 1 1,402,894 1,402,895
Loss for the financial year - (299,438) (299,438)
Dividends - (5,000) (5,000)
At 30 September 2023 1 1,098,456 1,098,457
Powell Dobson Architects Limited
Notes to the Accounts
for the year ended 30 September 2023
1 Accounting policies
Company information
Powell Dobson Architects Limited is a private company limited by shares incorporated in England and Wales. The registered office is Suite 1F, Building One, Eastern Business Park, Wern Fawr Lane, Old St Mellons, CARDIFF, UK, CF3 5EA.
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover
Turnover represents amounts receivable for services net of VAT and trade discounts, together with movements in amounts recoverable on contracts. Turnover for services is recognised as the service is provided.
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 are recoverable.
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 provided 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 Straight line over the life of the lease
Plant and machinery 10 - 25% reducing balance
Fixtures, fittings, tools and equipment 10 - 25% reducing balance
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.
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).
Recoverable amount is the higher of fair value less costs to sell and value in use.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset 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.
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.
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial instruments
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.
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.
Classification of financial 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.
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.
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
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 profit and loss account, 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.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
Amounts recoverable on long term contracts
A number of the long-term contracts included within the financial statements have completion dates that differ from the year end. The measurement of revenue and costs is affected by a variety of uncertainties that depend upon future events. Under long-term contracts, the estimates of contract revenue and costs often need to be revised as events occur and uncertainties are resolved.
Therefore, contract revenue and costs are allocated to the accounting periods in which the work is performed. In cases where the outcome of a long-term contract can be estimated reliably, the contract revenue and costs are recognised by reference to the stage of completion at the end of the reporting period. Estimation of the contract outcome is based upon the stage of completion, future cost and the collectability of contract billings.
In cases where the outcome of a long-term contract cannot be estimated reliably, contract costs are recognised in the profit and loss account as an expense in the period in which they are incurred, and revenue is recognised only to the extent of contract costs incurred when it is considered probable that these will be recovered.
3 Employees 2023 2022
Number Number
Average number of persons employed by the company 0 0
4 Tangible fixed assets
Land and buildings Plant and machinery etc Total
£ £ £
Cost
At 1 October 2022 148,123 593,179 741,302
Additions - 177,370 177,370
At 30 September 2023 148,123 770,549 918,672
Depreciation
At 1 October 2022 100,145 515,323 615,468
Charge for the year 21,544 67,231 88,775
At 30 September 2023 121,689 582,554 704,243
Net book value
At 30 September 2023 26,434 187,995 214,429
At 30 September 2022 47,978 77,856 125,834
5 Debtors 2023 2022
£ £
Trade debtors 869,489 1,353,657
Corporation tax debtor 120,522 51,355
Other debtors 589,443 368,170
1,579,454 1,773,182
6 Creditors: amounts falling due within one year 2023 2022
£ £
Bank loans and overdrafts 51,249 50,320
Other loans 86,295 76,621
Obligations under finance lease and hire purchase contracts 49,734 -
Trade creditors 58,002 204,113
Taxation and social security costs - 28,522
Other creditors 279,510 96,564
524,790 456,140
7 Creditors: amounts falling due after one year 2023 2022
£ £
Bank loans 92,491 143,550
Other loans 63,503 149,798
Obligations under finance lease and hire purchase contracts 84,779 -
240,773 293,348
The bank loan is for 72 months and is repayable in monthly instalments which commenced in July 2021. Interest is fixed at 2% per annum.
The other loan is repayable in 36 equal instalments which commenced in May 2022. Interest is fixed at 11.95% but was subsidised fully for the first 12 months to May 2022 under the Government CBILS scheme.
The HP finance arrangement is repayable over 36 equal instalments which commenced in April 2023. Interest is charged at 10.23%.
8 Called up share capital 2023 2022
£ £
Ordinary share capital
Issued and fully paid
1 Ordinary share of £1 each 1 1
9 Other financial commitments 2023 2022
£ £
Total future minimum payments under non-cancellable operating leases 498,601 483,605
10 Related party transactions
During the year the company entered into the following transactions with related parties:
Purchases
2023 2022
£ £
Entities with control, joint control or significant influence over the company 3,760,250 3,445,925
The following amounts were due to related parties at the year end:
2023 2022
£ £
Entities with control, joint control or significant influence over the company 36,941 31,941
11 Other information
Powell Dobson Architects Limited is a private company limited by shares and incorporated in England. Its registered office is:
Suite 1F, Building One
Eastern Business Park
Wen Fawr Lane, Old St Mellons
Cardiff
CF3 5EA
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