Company registration number: 03025947
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COMPANY INFORMATION
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CONTENTS
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STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
Program Planning Professionals Limited trades as MIGSO-PCUBED ®.
MIGSO-PCUBED is a management consulting firm focused on PMO, portfolio and change management. MIGSO-PCUBED has access to a global network of more than 3,300 employees, based in over 40 offices worldwide to optimally serve its clients' needs. The core capabilities of MIGSO-PCUBED are:
∙PMO & Project Delivery
∙Project Management Improvement
∙Digital Dashboards
∙Project Management as a Service (PMaaS)
∙Portfolio Management
∙Business Agility
∙Change Management
∙Lean Innovation
∙PPM Solutions & Services
B. Certifications and awards
Standards & security MIGSO-PCUBED is ISO 9001 (quality management), ISO 14001 (environmental management), ISO 27001 (information security management) and Cyber Essentials PLUS (internet facing infrastructure) certified and will continue to maintain these certifications. APM Project Management Awards - 2022 finalist In 2023 MIGSO-PCUBED was nominated for the 'Project Management Company of the Year' award which is the highest professional accolade for a project management consultancy from the chartered body for the project profession.
In 2023 MIGSO-PCUBED delivered revenue of £45.8m (Vs £41.6m in 2022).
And the top 10 clients accounted for 77% of the total revenue (vs 77% for 2022).
Company KPIs
2023 2022 2021 Year on year turnover growth +10% +39% +45% Net current assets £10.932m £9.214m £4.306m Headcount at end of year 357 315 245
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The management of the business and the execution of the Company’s strategy are subject to a number of risks. The key business risks affecting the Company are considered to relate to delivery, staff recruitment and competition from the major consultancy firms.
From a liquidity standpoint, the Company ended the year with £+7.9m (2022: £+2.4m) net cash available. In addition, the Company is part of the cash-pooling facility of the Alten Group to cover any unforeseen liquidity issues. Aged debt is reviewed on a bi-weekly basis.
Inflation and the recent spike in overall costs of living is impacting all employees at all levels financially, impacting their overall wellbeing and work life balance. These risks impact their job satisfaction and can lead to reduced productivity. This increases pressure on salaries and may lead to employees seeking alternative job opportunities to cope with financial pressures. We are addressing these challenges through competitive salaries, comprehensive health and wellbeing programmes, and a clearly defined hybrid working policy to balance the needs of our clients, our company, and our employees. This aims to retain talent and foster our supportive culture and values throughout the uncertain economic fluctuations.
Growing innovation and rapid technology advancement is accelerating the sophistication of cybercriminals. We are continually reviewing our standards, policy, process, procedures, and awareness training to maintain a strong information security awareness and culture. We require and manage robust cybersecurity measures and protocols, regular system updates, employee training on controls and sharing of information spotlights. Our information security standards and certifications have continuous monitoring and proactive response strategies that are essential to safeguarding data and maintaining client trust in the our business and services.
Our UK strategy, objectives and key results framework is aligned to our MIGSO-PCUBED worldwide group and unique positioning in the marketplace. The group business model design enables growth by seamlessly working with international clients across all their countries, whilst also adapting to local and national UK programmes and organisations. Achieving our UK growth targets, and ambition contributes to the success of the MIGSO-PCUBED Group.
We believe the synergies created inside the MIGSO-PCUBED Group have given the UK entity a platform for scalable and sustainable growth, making an active contribution to achieve a global target of 5,000 consultants in the next 3 years. We take pride and hold ourselves accountable at every level to lead by example through our group culture, values, and ways of working that facilitate open collaboration and knowledge sharing to deliver competitive advantage. Our UK ambition and contribution to the overall group strategy for growth has been shaped by our market insights, the emerging trends in our clients, and through employee engagement and feedback. We calibrate our approach to our clients’ priorities in order to deliver immediate value, and adapt to their culture and resources, taking into account the latest technologies and best practices available. Our corporate experience, expertise, and ability to execute is unrivalled. We pragmatically apply experience gained in one sector to another; providing knowledge that delivers results. We are also investing in transforming our corporate knowledge and experience into scalable, repeatable offerings targeted on the cross-industry challenges faced by our clients. The development of our service lines and solution components is important in building sustainable, revenue-rich relationships, as well as sharpening our ability to break into new accounts.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Regarding the UK energy consumption for the data year ending on 31 December 2023, the following information is provided while adhering to the SECR reporting guidelines:
∙Gas Usage: No kilowatt-hours (Ot CO2e emissions)
∙Electricity Usage: 160,236 kilowatt-hours (33.18t CO2e emissions)
∙Transportation, including personal cars for business purposes: 62.55t CO2e emissions.
The associated greenhouse gas emissions for the year ending on 31 December 2023, amounted to 95.73t CO2e.
For the previous year (data year ending on 31 December 2022), the energy consumption in the UK was as follows:
∙Gas Usage: No kilowatt-hours (Ot CO2e emissions)
∙Electricity Usage: 161,776 kilowatt-hours (31.3t CO2e emissions)
∙Transportation, including personal cars for business purposes: 90.4t CO2e emissions.
The intensity ratio for the data year ending on 31 December 2023, is as follows:
∙Tonnes of CO2 per Full-Time Equivalent (FTE) for the year ending in December 2023: 0.27t CO2e
∙In 2023, we increased our head count from 315 employees at the end of 2022 to 357 at the end of 2023.
Our energy efficiency and carbon emissions reduction actions taken during 2023 included:
∙We began a mixed source 100% renewable energy Power Purchase Agreement with our electricity provider covering electricity from 09/23 onwards
∙We made an electric vehicle scheme available to employees, to support reductions in our business travel emissions
∙We ended the use of the company car in 09/2023
∙We opened a new office in Manchester which should support reduced business travel emissions through locally-based consultants
∙We updated our travel and expenses policy to encourage replacing flights with trains where possible
∙We ran a ‘Sustainability September’ month of employee education and awareness events to share knowledge of how to minimise / reduce emissions
∙We improved the labelling of our recycling and waste bins in our London office, to support recycling rates and hence reduce waste emissions
We retained our ISO14001: 2015 accreditation for our environmental management system in 2023.
The methodology employed for calculating emissions involved an internal CSR assessment aligned with ISO 14064 and the GHG Reporting Protocol. Relevant conversion factors were applied in the calculations.
For electricity, while recognising the mixed source 100% renewable PPA which began in 09/23, we applied the 2023 UK government conversion factor to the entire 160,236kWh consumption since the PPA is mixed source and hence we do not have any information whether this PPA provides additional renewable capacity nor the age of the facilities.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
MIGSO-PCUBED is a specialised subsidiary operating independently within the ALTEN Group.
A global company uniquely focused on Project, Programme and Portfolio Management delivery, Data & Project Controls, Change and Transformation, continuing to support the ALTEN Group strategy by:
∙Pioneering PPM and PMO services and solutions,
∙Designing the organisation to enable sustainable growth,
∙Expanding into new geographical centres.
The wider MIGSO-PCUBED Group target communicated in 2020 (more than 3,000 employees by the end of 2023) has been exceeded.
Thanks to its organisation and sound financial structure, the MIGSO-PCUBED Group globally is in a position to:
∙strengthen its positioning in the PPM and PMO marketplace by reaching a critical size,
∙generate scalable and sustainable revenues across UK and Europe, North America, Canada, Australia and Southeast Asia.
In the UK, MIGSO-PCUBED will continue to focus on delivering value and productivity by:
∙evolving as a leading and pioneering PPM Consultancy by; establishing trusted relationships with international clients and UK programmes of national significance; being recognised for our culture, values, expert people, learning and career development; and growing our brand and reputation.
∙continuously improving, innovating and sharing experience-based know-how, services and solutions,
∙enabling a diverse and inclusive culture through shared values, thanks to the contribution of each and every one in the business,
∙make an active contribution towards a better, fairer, safer and sustainable future for all.
The profit for the year, after taxation, amounted to £4,467,933 (2022 - £4,189,978).
Dividends
In 2023 a dividend of £Nil (2022 - £1,500,000) was paid by MIGSO-PCUBED to ALTEN SA, its ultimate parent entity.
The directors who served during the year were:
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Management have prepared forecasts to 31 December 2024 (the ‘going concern period') and documented their assessment as to whether it is appropriate to prepare these financial statements on a going concern basis based on those forecasts. Based on the comprehensive review of our projections, considering potential variations in performance, particularly in consultant headcount and utilisation rates, as well as the knowledge available for the going concern period, the directors consider that MIGSO-PCUBED is able to operate within existing facilities during the going concern period, which is more than 12 months from the approval of these financial statements.
With a history of profitable operations and no liquidity concerns, we maintain our confidence in the sustainability of our operations. We have assessed the situation and have no substantial doubts about our ability to continue as a going concern. Accordingly, the Group continues to adopt the going concern basis in the preparation of its consolidated financial statements. On the 8 October 2018, MIGSO-PCUBED became part of the Alten Group's cash-pooling facility, a collaborative arrangement designed to centralise cash management within the Group. This setup allows for the efficient management of both treasury deficits and surpluses in the economic interest of all involved parties. Each entity under this agreement retains the right to request the return of any funds held by the Group based on a weekly forecast provided, ensuring swift recovery of funds if required. Importantly, any centralised company can easily withdraw from this arrangement through a straightforward and cost-free process. Despite the current economic uncertainty, our revenues have not deviated from expected levels to date. To account for potential risks, we have diligently conducted sensitivity analysis and a reverse stress test on our forecasts. These tests included rigorous assessments of key assumptions concerning revenues, our cost structure, and cash flows. We have also outlined various mitigating actions that could be employed in managing our cost structure and cash flows should the need arise. Our stress-testing procedures have fortified our confidence that, even under the most severe scenarios, we possess the capability to take appropriate mitigating actions to ensure an adequate cash reserve remains accessible throughout the forecasted period. Consequently, the results of our stress-testing efforts provide strong support for our assessment of continued operation as a going concern for the going concern period.
In 2022, MIGSO-PCUBED UK extended its operations to Manchester to enhance local engagement. Throughout 2023, our attention remained on developing the Manchester hub, without opening additional locations. Looking forward to 2024, we plan to establish a new hub in Birmingham to further strengthen our local presence and support our clients in the region. Additionally, discussions regarding potential expansion into Ireland are underway, albeit in preliminary stages, with implementation not expected within the next 12 to 18 months.
In 1999, a Branch was established in Hong Kong by Program Planning Professionals Limited trading as MIGSO-PCUBED UK. The Branch’s address of principle place of business in Hong Kong is Rooms 901-4, 9/F, Hang North Point Building, 341 King’s Road, North Point, Hong Kong. The principal activities of the Branch are to provide services to clients by using a collective knowledge of programmes and project management disciplines to help business deliver strategies and achieve objectives whatever they may be.
The financial results of the Hong Kong branch are included in the consolidated financial statements of MIGSO-PCUBED.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The Company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic report and Directors' report) Regulations 2013 to set out the Company's Strategic report information required by schedule 7 of the Large and Medium sized Companies and Groups (Accounts and Reports) Regulations 2008. This includes information that would have been included in the business review.
There were no post balance sheet events.
KPMG Ireland is the appointed auditor for the financial year ending 31 December 2023 in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors are responsible for preparing the directors’ report, strategic report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.
Under Company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgements and estimates that are reasonable and prudent;
∙state whether applicable Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
∙assess the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
∙use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal controls as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
This report was approved by the board and signed on its behalf.
G J P Duval
Director
Date: 9 April 2024
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROGRAM PLANNING PROFESSIONALS LIMITED
Opinion
We have audited the financial statements of Program Planning Professionals Limited (‘the Company’) for the year ended 31 December 2023 set out on pages 12 to 31, which comprise the Statement of Profit or Loss and Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, and related notes, including the summary of significant accounting policies set out in note 4. The financial reporting framework that has been applied in their preparation is UK Law and UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.
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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.
The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Company or to cease its operations, and as they have concluded that the Company’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).
In our evaluation of the directors' conclusions, we considered the inherent risks to the Company’s business model and analysed how those risks might affect the Company’s financial resources or ability to continue operations over the going concern period.
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.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROGRAM PLANNING PROFESSIONALS LIMITED (CONTINUED)
Conclusions relating to going concern (continued)
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 the date 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.
However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditor's report is not a guarantee that the Company will continue in operation. Detecting irregularities including fraud
We identified the areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements and risks of material misstatement due to fraud, using our understanding of the entity's industry, regulatory environment and other external factors and inquiry with the directors. In addition, our risk assessment procedures included: inquiring with the directors as to the Company’s policies and procedures regarding compliance with laws and regulations and prevention and detection of fraud; inquiring whether the directors have knowledge of any actual or suspected non-compliance with laws or regulations or alleged fraud; inspecting the Company’s regulatory and legal correspondence; and reading Board minutes.
We discussed identified laws and regulations, fraud risk factors and the need to remain alert among the audit team.
The Company is subject to laws and regulations that directly affect the financial statements including companies and financial reporting and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items, including assessing the financial statement disclosures and agreeing them to supporting documentation when necessary.
The company, is not subject to other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements.
Auditing standards limit the required audit procedures to identify non-compliance with these non-direct laws and regulations to inquiry of the directors and inspection of regulatory and legal correspondence, if any. These limited procedures did not identify actual or suspected non-compliance.
We assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. As required by auditing standards, we performed procedures to address the risk of management override of controls. On this audit we do not believe there is a fraud risk related to revenue recognition. We did not identify any additional fraud risks.
In response to risk of fraud, we also performed procedures including: identifying journal entries to test based on risk criteria and comparing the identified entries to supporting documentation; evaluating the business purpose of significant unusual transactions; assessing significant accounting estimates for bias, and assessing the disclosures in the financial statements.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROGRAM PLANNING PROFESSIONALS LIMITED (CONTINUED)
The directors are responsible for the other information presented in the Annual Report together with the financial statements. The other information comprises the information included in the strategic report and the directors’ report. The financial statements and our auditor’s report thereon do not comprise part of the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work we have not identified material misstatements in the other information.
Based solely on our work on the other information undertaken during the course of the audit:
∙we have not identified material misstatements in the directors' report or the strategic report;
∙in our opinion the information given in the directors' report and the strategic report is consistent with the financial statements;
∙in our opinion, the directors' report and the strategic report have been prepared in accordance with the Companies Act 2006.
Under the Companies Act 2006 we are required to report to you if, in our opinion:
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROGRAM PLANNING PROFESSIONALS LIMITED (CONTINUED)
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 auditors' report. 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, other irregularities 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.
A fuller description of our responsibilities is provided on the FRC's website at: www.frc.org.uk/auditorsresponsibilities.
Our 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 auditors' 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.
for and on behalf of
1 Stokes Place
St. Stephen's Green
D02 DE03
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PROFIT AND LOSS ACCOUNT AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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BALANCE SHEET
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 15 to 31 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Program Planning Professionals Limited ('the Company’) is a private company limited by shares and incorporated in England and Wales. Its registered head office is located at 3-5 Crutched Friars, London, EC3N 2HT.
The financial statements of Program Planning Professionals Limited have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, “The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland” (“FRS 102") and the Companies Act 2006.
The principal accounting policies applied in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
4.Accounting policies
FRS 102 allows a qualifying entity certain disclosure exemptions, subject to conditions. The Company has taken advantage of the following exemptions in its individual financial statements:
∙from preparing a statement of cash flows, on the basis that it is a qualifying entity and the consolidated statement of cash flows, includes the Company’s cash flows;
∙from the financial instrument disclosures, required under FRS 102 paragraphs, 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A, as the information is provided in the consolidated financial statement disclosures;
∙from disclosing share-based payment arrangements, required under FRS 102 paragraphs 26.18(b), 26.19 to 26.21 and 26.23, concerning its own equity instruments, as the Company financial statements are presented with the consolidated financial statements and the relevant disclosures are included therein.
The financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value.
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in Note 5. The Company's financial statements are presented in Sterling and all values are rounded to the nearest pound (£) except when otherwise stated.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
4.Accounting policies (continued)
Management have prepared forecasts to 31 December 2024 (the ‘going concern period’) and documented their assessment as to whether it is appropriate to prepare these financial statements on a going concern basis based on those forecast. Based on the comprehensive review of our projections, considering potential variations in performance, particularly in consultant headcount and utilisation rates, as well as the knowledge available for the going concern period, the directors consider that Program Planning Professionals LTD is able to operate within existing facilities during the going concern period, which is more than 12 months from the approval of these financial statements.
With a history of profitable operations and no liquidity concerns, we maintain our confidence in the sustainability of our operations. We have assessed the situation and have no substantial doubts about our ability to continue as a going concern. Accordingly, the Group continues to adopt the going concern basis in the preparation of its consolidated financial statements. On the 8 October 2018, Program Planning Professionals LTD became part of the Alten Group's cash-pooling facility, a collaborative arrangement designed to centralise cash management within the Group. This setup allows for the efficient management of both treasury deficits and surpluses in the economic interest of all involved parties. Each entity under this agreement retains the right to request the return of any funds held by the Group based on a weekly forecast provided, ensuring swift recovery of funds if required. Importantly, any centralised company can easily withdraw from this arrangement through a straightforward and cost-free process. Despite the current economic uncertainty, our revenues have not deviated from expected levels to date. To account for potential risks, we have diligently conducted sensitivity analysis and a reverse stress test on our forecasts. These tests included rigorous assessments of key assumptions concerning revenues, our cost structure, and cash flows. We have also outlined various mitigating actions that could be employed in managing our cost structure and cash flows should the need arise. Our stress-testing procedures have fortified our confidence that, even under the most severe scenarios, we possess the capability to take appropriate mitigating actions to ensure an adequate cash reserve remains accessible throughout the forecasted period. Consequently, the results of our stress-testing efforts provide strong support for our assessment of continued operation as a going concern for the going concern period.
The Company is a wholly owned subsidiary of Alten SA, its ultimate parent company. It is included in the consolidated financial statements of Alten SA which are publicly available and have been filed with Companies House. Therefore the Company is exempt by virtue of section 400 of the Companies Act 2006 from the requirement to prepare consolidated financial statements.
The Company discloses transactions with related parties which are not wholly owned with the same group. It has taken exemption from disclosing transactions with members of the same group that are wholly owned.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
4.Accounting policies (continued)
Transactions in currencies other than the functional currency of the Company (foreign currencies) are recognised at the spot rate at the dates of the transactions, or at an average rate where this rate approximates the actual rate at the date of the transaction.
At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences are recognised in profit or loss in the period in which they arise. Depending on the needs of the client and the opportunities given to the Company, those services are provided differently. The different delivery methods are Time & Material, Globalisation, Work Package and Fixed Rate. The delivery method and the sales conditions have an impact on the method used for revenue recognition. Rendering of services Turnover from the rendering of services can be recognised on a time and material basis or by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
Short-term benefits
Short-term benefits and contributions to defined contribution plans are recognised as an expense in the period in which they are incurred.
Page 17
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
4.Accounting policies (continued)
Deferred tax is recognised in respect of ail timing differences at the reporting date, except as otherwise indicated.
Deferred tax assets are only 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.
If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed.
Deferred tax is calculated using the tax rates and laws that that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income).
Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. Deferred tax assets and deferred tax liabilities are offset only if:
−the entity had a legal enforceable right to set off current tax assets against current tax liabilities, and
−the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle liabilities simultaneously.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
The estimated useful lives range as follows:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income.
Page 18
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
4.Accounting policies (continued)
At each reporting date assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.
If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss. Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
Page 19
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
4.Accounting policies (continued)
The aggregate benefit of lease incentives are recognised as a reduction to the expense recognised over the lease term on a straight line basis.
Financial assets
Basic financial assets, including trade and other receivables, cash and bank balances are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial liabilities Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.
Page 20
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Impairment of investments The directors have diligently reviewed the status of the Company's investments for any signs of impairment. Specifically, with regards to the Company’s £5,173,079 investment in Program Planning Professionals PTY Limited (referred to as the ‘subsidiary’), it's noted that the subsidiary is currently undergoing integration following an acquisition in 2022 and is in a phase of growth. Consequently, it is experiencing losses, prompting a thorough assessment by the directors. To assess the potential impairment, cash forecasts were meticulously prepared and utilised to determine the value in use, which was then compared with the carrying value of the investment. While the value in use indicated a considerable buffer over the investment's carrying value, it heavily relies on projected revenue increases, which inherently carry a degree of uncertainty. A deviation of approximately 18.5% from the current forecasted gross margin increase would necessitate consideration of impairment. Furthermore, an EBIT multiple valuation method was employed to provide an additional perspective, given the absence of relevant market comparable. Again, this valuation demonstrated a favourable margin over the investment's carrying value. A decline of approximately 20% in the forecasted EBIT increase would cause an impairment. While the possibility of impairment cannot be entirely dismissed, the subsidiary's management team remains confident in the achievability of forecasted cash flows and EBIT. Considering the current circumstances, the directors consider the likelihood of impairment on the investment carrying value to be remote. Estimating percentage of completion We recognise revenue from open fixed-price contracts using the percentage-of-completion method, primarily based on milestones achieved and the extent to which deliverables have been delivered. These estimates are formed by considering the current scope of work, anticipated changes, and the most recent information available. We assess the progress of deliverables, comparing the completed work to the total work required. Any changes in milestone estimates, reflecting the evolving project status, are recognised in the period when they occur to maintain transparent revenue recognition.
Analysis of turnover by country of destination:
Page 21
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 22
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 23
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
There are no factors that affect future tax charges.
Page 24
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 25
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 26
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 27
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The Company provides key employees with an incentive plan. Amounts payable under the plan are dependent on the overall business performance over a four-year period (2020-2023) and individual’s personal targets. Employees are required to remain in employment with the group to receive the cash payment and the directors have assessed at this time that it is likely that all those intended to receive these benefits will remain in employment throughout this period. Official letters and communications have raised a valid expectation. The amount provided as of 31 December 2023 and related to the period 2020-2023 is now expected to be paid out between February 2024 and 30 June 2024. The overall amount accrued as of 31 December 2023 is £955,920 (2022: £2,392,323) and has been included in the accruals and deferred income balance.
During the year, the directors agreed that some of the amounts accrued within the incentive plan in the prior year would instead be used to provide all employees with enhanced remuneration for recognition and retention.
Page 28
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 29
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £1,549,064 (2022: £1,592,637). Contributions totalling £159,616 (2022: £146,169) were payable to the fund at the reporting date and are included in creditors.
The directors confirm that Alten SA is both the largest and smallest group undertaking for which group accounts are drawn up.
Page 30
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 31
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