Company Registration No. 02390791 (England and Wales)
Thornton Tomasetti Defence Limited
Financial statements
for the year ended 31 December 2023
Pages for filing with the registrar
Thornton Tomasetti Defence Limited
Contents
Page
Statement of financial position
1
Statement of changes in equity
2
Notes to the financial statements
3 - 9
Thornton Tomasetti Defence Limited
Statement of financial position
As at 31 December 2023
31 December 2023
1
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
5
4,069
6,118
Tangible assets
6
853,389
931,260
857,458
937,378
Current assets
Debtors
7
4,801,037
4,096,578
Cash at bank and in hand
57,075
173,158
4,858,112
4,269,736
Creditors: amounts falling due within one year
8
(2,550,407)
(2,076,153)
Net current assets
2,307,705
2,193,583
Total assets less current liabilities
3,165,163
3,130,961
Provisions for liabilities
(105,021)
(108,569)
Net assets
3,060,142
3,022,392
Capital and reserves
Called up share capital
9
176,469
176,469
Share premium account
62,531
62,531
Profit and loss reserves
2,821,142
2,783,392
Total equity
3,060,142
3,022,392

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 18 July 2024 and are signed on its behalf by:
Phillip Thompson
Director
Company Registration No. 02390791
Thornton Tomasetti Defence Limited
Statement of changes in equity
For the year ended 31 December 2023
2
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
176,469
62,531
2,358,649
2,597,649
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
424,743
424,743
Balance at 31 December 2022
176,469
62,531
2,783,392
3,022,392
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
37,750
37,750
Balance at 31 December 2023
176,469
62,531
2,821,142
3,060,142
Thornton Tomasetti Defence Limited
Notes to the financial statements
For the year ended 31 December 2023
3
1
Accounting policies
Company information

Thornton Tomasetti Defence Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2nd Floor, 12-16 Clerkenwell Road, London, EC1M 5PQ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 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 certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

The financial statements are prepared on a going concern basis. The directors have taken into consideration forecasts produced that take into account the impact of the current economic climate on both the company and the sectors it operates in. The conclusion of the directors is that they still have a reasonable expectation the company will continue in operational existence for the foreseeable future. true

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and discounts.

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

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

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

Software
15% straight line
Thornton Tomasetti Defence Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
4
1.5
Tangible fixed assets

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

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

Leasehold improvements
Over length of lease
Plant and machinery
over 3 to 10 years
Motor vehicles
over 4 years

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

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.7
Cash at bank and in hand

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

1.8
Financial instruments

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

 

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

 

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

Basic financial assets

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

Classification of financial liabilities

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

Thornton Tomasetti Defence Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
5
Basic financial liabilities

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

 

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

 

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

1.9
Equity instruments

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

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax 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.

1.11
Employee benefits

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

 

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

 

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

Thornton Tomasetti Defence Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
6
1.12
Retirement benefits

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

1.13
Leases

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

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Critical accounting 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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Amounts recoverable on contracts

The key source of estimation uncertainty that has a significant effect on the amounts recognised in the financial statements is the calculation of amounts recoverable on contracts, which is defined in the turnover policy above.

Recoverability of intercompany debtors

The recoverability of intercompany debt remains a key area of judgement with the expectation being based on management's best estimate of recoverability.

Bad debt provision

The recoverability of debt remains a key area of judgement with the provision being based on management's best estimate of recoverability.

3
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
19,606
14,950
Thornton Tomasetti Defence Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
7
4
Employees

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

2023
2022
Number
Number
Total
37
35
5
Intangible fixed assets
Software
£
Cost
At 1 January 2023 and 31 December 2023
20,858
Amortisation and impairment
At 1 January 2023
14,740
Amortisation charged for the year
2,049
At 31 December 2023
16,789
Carrying amount
At 31 December 2023
4,069
At 31 December 2022
6,118
6
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
906,732
919,438
1,826,170
Additions
-
0
130,952
130,952
At 31 December 2023
906,732
1,050,390
1,957,122
Depreciation and impairment
At 1 January 2023
256,783
638,127
894,910
Depreciation charged in the year
88,433
120,390
208,823
At 31 December 2023
345,216
758,517
1,103,733
Carrying amount
At 31 December 2023
561,516
291,873
853,389
At 31 December 2022
649,949
281,311
931,260
Thornton Tomasetti Defence Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
8
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,128,380
899,009
Corporation tax recoverable
229,854
200,708
Amounts owed by group undertakings
2,663,517
2,082,209
Other debtors
779,286
914,652
4,801,037
4,096,578
8
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
441,902
235,438
Amounts owed to group undertakings
1,265,116
850,256
Taxation and social security
251,193
146,519
Other creditors
592,196
843,940
2,550,407
2,076,153
9
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
150,000 Ordinary A shares of £1 each
150,000
150,000
26,469 Ordinary B shares of £1 each
26,469
26,469
176,469
176,469
10
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Jamie Cassell
Statutory Auditors:
Saffery LLP
Thornton Tomasetti Defence Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
9
11
Operating lease commitments
Lessee

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

2023
2022
£
£
247,916
343,454
12
Related party transactions

The company has taken the exemption detailed in Section 33 of FRS 102 "Related Party Disclosures" to not disclose details of transactions undertaken between companies within a wholly owned group.

13
Parent company

The ultimate parent company is Thornton Tomasetti Inc, a company registered in the United States of America, with a registered address of 120 Broadway, New York, NY 10271, USA. This is the largest and smallest group to consolidate the company's financial statements.

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