REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2023 |
for |
NIRAS Group (UK) Ltd |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2023 |
for |
NIRAS Group (UK) Ltd |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 9 |
Income Statement | 13 |
Other Comprehensive Income | 14 |
Balance Sheet | 15 |
Statement of Changes in Equity | 16 |
Notes to the Financial Statements | 17 |
NIRAS Group (UK) Ltd |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
823 Salisbury House |
29 Finsbury Circus |
London |
EC2M 5QQ |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
UK Food & Beverage |
- In January 2023, activities of Integrated Food Projects and Structural Design Associates were transferred to NIRAS Group UK to create a single UK F&B business unit, leading to significant growth in this part of the business year on year. As well as this improved collaboration, a number of significant contract wins at the end of 2022 contributed to a strong result in terms of revenue and profitability. |
UK Marine Structures |
- Following the internal structural changes made to this department in 2022, the Marine Structures business unit delivered a strong profit in the year having been loss-making for a number of years. The team continues to work closely with colleagues across the global business unit on projects across the world, and this is proving to be a very successful strategy. |
UK International Consulting |
- 2023 was the first full year of One UK NIC consisting of the Marine Environment business unit and the International Consulting activities formerly carried out by LTS International. The Marine Environment team expanded in the year, delivering a strong performance in terms of revenue and profit. However, the International Consulting department made a loss in the year. |
Overall |
- Following the transfer of activities of LTS International to NIRAS Group UK in November 2022, and of Integrated Food Projects and Structural Design Associates with effect from 1st January 2023, management focus this year has been on consolidating the combined business, particularly in terms of building an optimised and efficient Business Support structure, and developing the NIRAS identity and profile in the UK. |
The consolidated business turnover year on year increased in 2023 to £43,124,499 due to volume increase as a result of the merger of the UK companies and the gross profit margin decreased by 2% to 21% mainly due to the nature of the projects undertaken during the year. Operating profit was £1,119,238 compared to £284,266 in the previous year, whilst the profit on ordinary activities before taxation was £1,254,275 compared to £305,808 in the previous year. Profit for the financial year after tax was £975,873 compared to £345,747 in 2022. |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Strategic Report |
for the Year Ended 31 December 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties facing the company are competitive and financial risks. |
Project delivery risks |
As part of the NIRAS Group, the company operates with a risk model within project delivery where every project is evaluated prior to, and after, the signing of the contract based on five risk drivers: Market; Stakeholders and Organisation; Delivery; Contract Terms; Time and Project Economy. The evaluation is documented in a risk log, which is a central tool in managing project delivery risks. |
As part of NIRAS Fundamentals, all issues and challenges are addressed openly across functions and disciplines. Identified risk drivers are assessed by the project owner and project manager, and projects are categorised within risk class 1-4, where category 4 is designated for projects with the highest risk. |
Assessments are made of the projects in the company to establish a portfolio risk overview. In 2023, 3 projects were classified as category 4 projects and 11 projects as category 3. |
Documenting risks in a log makes risks and preventative actions transparent and enables the organisation to take calculated risks and plan mitigation. The risk assessment and mitigating actions for each project are evaluated regularly by project management and updated in the project file. Projects in category 4 have an assigned steering committee that meets regularly. |
Mitigation at Group level includes ongoing upgrade of project processes and templates, and project management training. |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Strategic Report |
for the Year Ended 31 December 2023 |
Economic risk |
Trading is influenced by the macro economic environment in the UK. Demand in the market is sensitive to economic conditions generally including economic growth, interest rate movements, inflation, unemployment and demographic trends. |
Exposure credit and liquidity |
Company policies are aimed at minimizing credit risk and require that deferred terms are only granted to customers who demonstrate and appropriate payment history and satisfy credit worthiness procedures. The company always evaluates debtors' credit references to minimise the credit risk. |
Currency risk |
The company monitors currency risk on an ongoing basis by transferring Sterling funds into Euros in order to mitigate exchange risk appropriately. |
Competition risk |
The company monitors its own performance and that of its main competitors. A regular dialogue is maintained with clients to understand their requirements and obtain feedback on the company's performance. Business development emphasises the quality of the company's services and the experience of the company in delivering those services. Where necessary pricing is adjusted to reflect market conditions. |
Reputation risk |
The company responds promptly to complaints and endeavours to understand the root cause of any negative feedback. The company has implemented an integrated Quality Management System (accredited to ISO 9001) to improve the consistent quality of its services and this includes procedures for managing customer feedback. |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Strategic Report |
for the Year Ended 31 December 2023 |
KEY PERFORMANCE INDICATORS |
The company considers its main key performance indicators to be revenue growth and profitability. Profitability and growth are measured based on own production revenue net of external project costs, as gross turnover can vary significantly as a result of the mix of turnkey and fee only work undertaken during the period. |
The actual performance against these indicators is shown with prior year comparatives. |
2023 | 2022 |
Revenue (gross) | 43,124,499 | 16,074,027 |
Revenue (net) | 13,940,968 | 5,774,850 |
Growth in own production | 141.4% | 12.2% |
Organic growth in own production | 61.6% | 1.6% |
EBITA | 1,119,238 | 284,266 |
EBITA margin (net) | 8.0% | 4.9% |
ON BEHALF OF THE BOARD: |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of designers, engineers, consultants and project managers to the Food & Beverage, Marine Structures, Marine Environment, and International Development industries. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
FUTURE DEVELOPMENTS |
UK Food & Beverage - The recent acquisition of NIRAS Lorien Engineering Solutions by the group is a positive development for the UK F&B business unit. The pipeline is strong and we expect to see good growth in this business unit in 2024. |
UK Marine Structures - The business unit is expecting to build on the strong performance of this year with the team expected to grow as the wider global business unit looks to further develop its international portfolio. |
UK International Consulting - The UK International Development business unit is looking to turn around the performance following last year's loss and has made a positive start to the year so far in 2024. Following a global restructure in NIC the Marine Environment team will report to a new International Environment business unit from January 2024 and is expecting to see strong growth in the year. |
Overall - NIRAS has an ambitious growth plan in the UK and we will continue to consolidate and develop our existing sectors, build our brand identity, and look for opportunities for innovation. We will also focus on realising synergies and ensure that effective support structures are in place to allow the business to achieve its ambitions. The directors remain confident that the company is in a strong position for business growth with a good pipeline of opportunities across both existing and new clients. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Report of the Directors |
for the Year Ended 31 December 2023 |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Report of the Directors |
for the Year Ended 31 December 2023 |
AUDITORS |
Krogh & Partners Limited, Chartered Accountants & Registered Auditors were appointed as auditors and have |
signified their willingness to continue in office. A resolution to re-appoint them will be proposed at the Annual |
General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Opinion |
We have audited the financial statements of NIRAS Group (UK) Ltd (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 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 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. |
Report of the Independent Auditors to the Members of |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Responsibilities of directors |
As explained more fully in the Directors' Responsibilities Statement set out on page seven, 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 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. |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- | we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge of the business; |
- | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, and anti-bribery; |
- | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
Report of the Independent Auditors to the Members of |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | enquiring of management as to actual and potential litigation and claims; |
- | reviewing correspondence with HMRC and relevant regulators |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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 |
823 Salisbury House |
29 Finsbury Circus |
London |
EC2M 5QQ |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Income Statement |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
6 |
1,305,540 | 312,411 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Other Comprehensive Income |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 345,530 |
CURRENT ASSETS |
Debtors | 10 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 13 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
NIRAS Group (UK) Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
On 1 January 2023 the net assets and trading activities of Structural Design Associates Ltd., Integrated Food Projects Limited and Peal Management Holdings Limited were acquired by NIRAS Group (UK) Limited. The companies are all wholly-owned by NIRAS Gruppen A/S (incorporated in Denmark). |
The group reconstruction has been accounted for by using a hybrid method of accounting (hive-across) and, accordingly, comparative figures have not been restated. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows. |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover represents the amounts charged to customers for goods and services supplied and is recognised when the goods are delivered or as services are supplied, net of value added tax, except in respect of long term contracts where turnover represents the sale value of work done in the period. |
Contracts are assessed on a contract by contract basis and reflected in the profit and loss account by recording turnover and related costs as contract activity progresses. Turnover is ascertained in a manner appropriate to the stage of completion of the contract, and credit taken for profit earned to date when the outcome of the contract can be assessed with reasonable certainty. The amount by which turnover exceeds payments on account is classified as "work in progress" and included in debtors; to the extent that payments on account exceed relevant turnover and contract balances, the excess is included as a creditor. |
Provisions are made for losses which are foreseen. |
Project expenses |
Project expenses include expenses directly attributable to projects excluding salaries and including travel |
expenses, external expenses as well as other expenses. |
External expenses |
External expenses include administrative expenses, office expenses, marketing expenses as well as other |
expenses. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Interest and similar income and charges |
Interest and similar income and charges are recognised in the profit and loss account over the term of such |
instruments at a constant rate on the carrying amount. |
Financial instruments |
The company only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade and other debtors and creditors are initially recognised at transaction value and subsequently measure at their settlement value. |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Current tax and deferred taxation, including UK corporation tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred taxation is provided in full on an undiscounted basis, on all timing differences which result in an |
obligation at the balance sheet date to pay more tax, or a right to pay less tax, at a future date, at rates expected to crystallised based on current tax rates and law. Timing differences arise from the inclusion of items of income and expenditure in tax computations in periods different from those in which they are included in the financial statements. |
Deferred tax assets are recognised where it is considered more likely than not that future profits will be |
available for offset. |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets held for the company's own use are stated at cost less accumulated depreciation and accumulated impairment losses. |
The basis of depreciation is calculated based on cost less estimated residual value after the end of useful life. Depreciation is calculated using the straight-line method over the following estimated useful lives of the individual assets: |
Short leasehold 5-10 years |
Fixtures and fittings 3-5 years |
Motor vehicles 4-5 years |
At each balance sheet date, the company reviews the carrying amounts of its fixed assets to determine whether there is any indication that any items of fixed assets have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
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. Impairment loss is recognised as an expense immediately. |
Debtors |
Debtors are valued individually and there are made provision according to this valuation. |
Creditors |
Creditors are carried at payment or settlement amounts. Where the time value of money is material, creditors |
are carried at amortized cost. |
Provisions |
Provisions are recognised when, as a consequence of an event before or on the balance sheet date, the company has a legal or constructive obligation and it is probable that economic benefits must be sacrificed to settle the obligation. |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Technical | 119 | 56 |
Management and administration | 30 | 12 |
Sales and marketing | 12 | 2 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2023 | 2022 |
£ | £ |
Interest bank |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Other interests |
Intercompany interest |
8. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Previous year | (2,801 | ) | (73,601 | ) |
Total current tax | ( |
) |
Deferred tax | ( |
) |
Tax on profit | ( |
) |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
8. | TAXATION - continued |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
Deferred tax movement | (21,000 | ) | - |
Total tax charge/(credit) | 278,602 | (39,939 | ) |
Factors that may affect future tax charges |
An increase in the main rate of UK corporation tax from 19 % to 25 % (effective 1 April 2023) was substantively enacted on 24 May 2021. Deferred tax has been calculated in compliance with aforementioned. |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
9. | TANGIBLE FIXED ASSETS |
Fixtures | Payments |
Short | and | Motor | on |
leasehold | fittings | vehicles | account | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
Transfer to ownership | - | 100,034 | - | 9,495 | 109,529 |
Reclassification/transfer | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Transfer to ownership | - | 67,747 | - | - | 67,747 |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Work in progress |
Other debtors |
Deferred tax asset |
Prepayments and accrued income |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued |
Deferred tax asset |
2023 | 2022 |
£ | £ |
Accelerated capital allowances | ( |
) |
Other timing differences | 38,000 | - |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Work in progress |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Social security and other taxes |
VAT | 1,423,610 | 339,537 |
Other creditors |
Accruals and deferred income |
12. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
13. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Other provisions | 150,000 | 21,000 |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
13. | PROVISIONS FOR LIABILITIES - continued |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 January 2023 |
Provided during year |
Credit to Income Statement during year | ( |
) |
Balance at 31 December 2023 | ( |
) |
Other provisions comprise dilapidation provisions for leases where the company will have an obligation to restore the leases according to the contractual requirements when the leases come to an end. The provisions are based on internal assessments, estimates from landlords and on the lifetime of each lease. There will be uncertainty to the actual outflow for dilapidation until leases in question have concluded and the space is formally assessed. The company has dilapidation obligations where £15 (2022: £0) thousand is due within 12 months from balance sheet date and £15 (2022: £21) thousand is due between one and five years. |
Other provisions further comprise expected costs regarding claims for closed projects. The provision of £120 (2022: £0) thousand is expected to materialise within one year. There is uncertainty about the amounts of these cash flows, as they rely on negotiations and potentially legal actions with counterparties. |
14. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | 1 | 5,000 | 5,000 |
15. | CONTINGENT LIABILITIES |
By virtue of its business operations, the company is a party to legal disputes that can be expected in the course of its business operations. The management keeps all such involvements under constant review and makes provision accordingly. |
As security for total exposure to the company's bank an active collateral of GBP 531,000 (2022: GBP 531,000) is in place. |
A payment guarantee of GBP 2,200,000 (2022: GBP 2,200,000) has been issued to third party related to payments received for contract work in progress. |
NIRAS Group (UK) Ltd (Registered number: 01250443) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
16. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
17. | ULTIMATE CONTROLLING PARTY |
The immediate parent company is NIRAS Gruppen A/S, a company incorporated in Denmark. |
NIRAS Gruppen A/S is the largest and smallest group to consolidate these financial statements and copies can be obtained from: |
NIRAS Gruppen A/S |
Sortemosevej 19 |
DK-3450 Allerød |
Denmark |
The ultimate parent undertaking is NIRAS ALECTIA Fonden, a foundation registered in Denmark. |