Company registration number 02605319 (England and Wales)
FICHTNER CONSULTING ENGINEERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
FICHTNER CONSULTING ENGINEERS LIMITED
COMPANY INFORMATION
Directors
Dr E J Weatherby
Mr P M Eddy
Mr S M Othen
Mr D S Abernethy
Mr R J Hawcutt
Mrs E L Edgley
Mr T Herzig
Mr M Wilfer
Dr J Agnew
Secretary
Mrs E L Edgley
Company number
02605319
Registered office
Kingsgate
Wellington Road North
Stockport
Cheshire
SK4 1LW
Auditor
Simpson Wood Limited
Bank Chambers
Market Street
Huddersfield
HD1 2EW
FICHTNER CONSULTING ENGINEERS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
FICHTNER CONSULTING ENGINEERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

2023 was a very strong year with a record turnover of £31,204,038. This was expected due to the strong sales performance at the end of 2022. A key success was the growth of business in Ireland which is now established with several large projects and development of a strong client base. We have also significantly diversified the business so that whilst waste and power projects remain a large part of our business, energy transition work in a number of different sectors such as hydrogen, carbon capture, pumped storage and grid strengthening is now very significant. Our renewables team continued with numerous solar projects and is now integrated with battery storage as colocation of solar and batteries is a growing area.

 

We had a higher staff turnover than normal, but due to significant recruitment, our staff numbers have grown as we planned. The regional offices in Belfast, Glasgow and Dublin are now well established allowing us to service local markets more easily. We also did more work with Fichtner Group companies than ever before.

 

We continue to invest in our business. During 2023 we significantly improved our IT data storage systems to make them more secure. We are transitioning our accounts software from a dated Sage system to a more flexible Microsoft Business Central system with a planned switch over in April 2024. We also expanded our Stockport offices with a new wing which we refurbished with a much more modern approach to improve team networking more in line with the changing working practices. As an engineering company we are convinced that cooperative working in an office environment is an essential part of the development and learning of our staff, but have combined this with more flexible working to suit our employees. We remain a carbon neutral company aiming to reduce our carbon footprint and buying offsets to compensate unavoidable carbon dioxide emissions from heating and travel.

 

We are very positive with regards to 2024 with the growth of energy transition and the need for the UK and Ireland to modify its infrastructure to achieve carbon reduction targets. Our strategy is to continue to grow long term and diversify into new business sectors, with a focus on zero carbon sectors which require our core engineering skills.

 

On behalf of the board

Dr E J Weatherby
Director
12 February 2024
FICHTNER CONSULTING ENGINEERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company in the year under review was that of technical consultants to the process, power, renewables and industrial sectors.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £4,256,346. The directors do not recommend payment of a final dividend.

Directors

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

Dr E J Weatherby
Mr P M Eddy
Mr S M Othen
Mr D S Abernethy
Mr R J Hawcutt
Mrs E L Edgley
Mr T Herzig
Mr M Wilfer
Dr J Agnew
Auditor

In accordance with the company's articles, a resolution proposing that Simpson Wood Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Dr E J Weatherby
Director
12 February 2024
FICHTNER CONSULTING ENGINEERS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

 

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

 

 

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

FICHTNER CONSULTING ENGINEERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FICHTNER CONSULTING ENGINEERS LIMITED
- 4 -
Opinion

We have audited the financial statements of Fichtner Consulting Engineers Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

FICHTNER CONSULTING ENGINEERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FICHTNER CONSULTING ENGINEERS LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

FICHTNER CONSULTING ENGINEERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FICHTNER CONSULTING ENGINEERS LIMITED (CONTINUED)
- 6 -
The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining and understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

FICHTNER CONSULTING ENGINEERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FICHTNER CONSULTING ENGINEERS LIMITED (CONTINUED)
- 7 -
Mark Fielding FCA
Senior Statutory Auditor
For and on behalf of Simpson Wood Limited
12 February 2024
Chartered Accountants
Statutory Auditor
Bank Chambers
Market Street
Huddersfield
HD1 2EW
FICHTNER CONSULTING ENGINEERS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
31,204,038
23,450,205
Cost of sales
(4,221,334)
(2,281,675)
Gross profit
26,982,704
21,168,530
Administrative expenses
(19,143,115)
(15,873,247)
Other operating income
339,312
262,886
Operating profit
4
8,178,901
5,558,169
Interest receivable and similar income
8
112,656
28,865
Change in fair value of fixed asset investments
9
100,526
(565,033)
Profit before taxation
8,392,083
5,022,001
Tax on profit
10
(2,044,360)
(933,488)
Profit for the financial year
6,347,723
4,088,513

The profit and loss account has been prepared on the basis that all operations are continuing operations.

FICHTNER CONSULTING ENGINEERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
6,347,723
4,088,513
Other comprehensive income
-
-
Total comprehensive income for the year
6,347,723
4,088,513
FICHTNER CONSULTING ENGINEERS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
751,542
102,333
Investments
13
2,625,593
2,525,067
3,377,135
2,627,400
Current assets
Stocks
15
1,164,853
874,747
Debtors
16
6,667,876
3,946,039
Cash at bank and in hand
8,824,858
8,092,545
16,657,587
12,913,331
Creditors: amounts falling due within one year
17
(8,858,005)
(6,644,391)
Net current assets
7,799,582
6,268,940
Total assets less current liabilities
11,176,717
8,896,340
Provisions for liabilities
Deferred tax liability
18
204,000
15,000
(204,000)
(15,000)
Net assets
10,972,717
8,881,340
Capital and reserves
Called up share capital
20
315,000
315,000
Share premium account
97,500
97,500
Profit and loss reserves
10,560,217
8,468,840
Total equity
10,972,717
8,881,340

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 12 February 2024 and are signed on its behalf by:
Dr E J Weatherby
Director
Company registration number 02605319 (England and Wales)
FICHTNER CONSULTING ENGINEERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
315,000
97,500
8,126,632
8,539,132
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
4,088,513
4,088,513
Dividends
11
-
-
(3,746,305)
(3,746,305)
Balance at 31 December 2022
315,000
97,500
8,468,840
8,881,340
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
6,347,723
6,347,723
Dividends
11
-
-
(4,256,346)
(4,256,346)
Balance at 31 December 2023
315,000
97,500
10,560,217
10,972,717
FICHTNER CONSULTING ENGINEERS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
7,541,775
6,849,598
Taxes paid
(1,933,790)
(1,351,584)
Net cash inflow from operating activities
5,607,985
5,498,014
Investing activities
Purchase of tangible fixed assets
(731,982)
(508)
Proceeds from disposal of investments
-
0
6,987
Interest received
104,207
19,265
Dividends received
8,449
9,600
Net cash (used in)/generated from investing activities
(619,326)
35,344
Financing activities
Dividends paid
(4,256,346)
(3,746,305)
Net cash used in financing activities
(4,256,346)
(3,746,305)
Net increase in cash and cash equivalents
732,313
1,787,053
Cash and cash equivalents at beginning of year
8,092,545
6,305,492
Cash and cash equivalents at end of year
8,824,858
8,092,545
FICHTNER CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Fichtner Consulting Engineers Limited is a private company limited by shares incorporated in England and Wales. The registered office is Kingsgate, Wellington Road North, Stockport, Cheshire, SK4 1LW.

1.1
Accounting convention

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

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

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

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

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 other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

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

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

1.4
Research and development expenditure

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

1.5
Tangible fixed assets

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

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

Leasehold improvements
in accordance with the property
Fixtures and fittings
10% - 20% reducing balance

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

FICHTNER CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.6
Impairment of fixed assets

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Work in progress is valued at the lower of cost and net realisable value.

 

Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

1.8
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.

1.9
Financial instruments

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

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

FICHTNER CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

FICHTNER CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.10
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.

1.11
Taxation

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

Current tax

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

Deferred tax

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

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

FICHTNER CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.12
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

 

1.13
Employee benefits

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

 

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

 

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

1.14
Retirement benefits

The company operates a defined contribution pension scheme. Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
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.

1.16
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 are included in the profit and loss account for the period.

 

The monetary items of the overseas branch have been translated into sterling from their functional currency at the rate of exchange ruling at the balance sheet date. The results of the overseas branches are translated at an average rate.

2
Judgements and key sources of estimation uncertainty

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

 

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

 

Significant judgements and estimates are made in arriving at the valuation of work in progress and accrued expenses. These are applied on a consistent basis.

FICHTNER CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
3
Turnover and other revenue
2023
2022
£
£
Other revenue
Interest income
104,207
19,265
Dividends received
8,449
9,600
R&D tax credit
339,312
262,886
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Exchange losses
28,912
26,489
Depreciation of owned tangible fixed assets
82,773
34,542
Operating lease charges
866,464
608,871
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
12,331
8,435
For other services
All other non-audit services
17,706
12,245
6
Employees

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

2023
2022
Number
Number
Technical, management and sales
140
127
Administration
17
17
Total
157
144

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
13,280,570
11,101,030
Social security costs
1,687,099
1,473,454
Pension costs
740,786
607,414
15,708,455
13,181,898
FICHTNER CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
1,003,936
875,067
Company pension contributions to defined contribution schemes
34,851
77,268
1,038,787
952,335

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2022 - 6).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
210,192
221,009
Company pension contributions to defined contribution schemes
10,000
10,000
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
67,903
12,250
Other interest income
36,304
7,015
Total interest revenue
104,207
19,265
Other income from investments
Dividends received
8,449
9,600
Total income
112,656
28,865
9
Change in fair value of fixed asset investments
2023
2022
£
£
Loss on disposal of investments held at fair value
(85,710)
(278,467)
Increase in value of investments held at fair value
186,236
(286,566)
100,526
(565,033)
FICHTNER CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,855,360
1,080,901
Adjustments in respect of prior periods
-
0
3,587
Total current tax
1,855,360
1,084,488
Deferred tax
Origination and reversal of timing differences
189,000
(151,000)
Total tax charge
2,044,360
933,488

The corporation tax rate increased from 19% to 25% from 1 April 2023. As a result, the effective corporation tax rate for this year is 23.5%.

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
8,392,083
5,022,001
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
1,972,140
954,180
Tax effect of expenses that are not deductible in determining taxable profit
(74,042)
122,280
Tax effect of income not taxable in determining taxable profit
(79,937)
(50,688)
Adjustments in respect of prior years
166,822
53,536
Dividend income
(1,986)
-
0
Capital allowances in excess of depreciation
(127,637)
5,180
Deferred tax movement
189,000
(151,000)
Taxation charge for the year
2,044,360
933,488
11
Dividends
2023
2022
£
£
Interim paid
4,256,346
3,746,305
FICHTNER CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
12
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2023
609,524
502,228
1,111,752
Additions
409,805
322,177
731,982
At 31 December 2023
1,019,329
824,405
1,843,734
Depreciation and impairment
At 1 January 2023
526,197
483,222
1,009,419
Depreciation charged in the year
39,803
42,970
82,773
At 31 December 2023
566,000
526,192
1,092,192
Carrying amount
At 31 December 2023
453,329
298,213
751,542
At 31 December 2022
83,327
19,006
102,333
13
Fixed asset investments
2023
2022
£
£
Listed investments
2,625,593
2,525,067
Fixed asset investments revalued

Financial assets are measured at quoted market price in an active market.

Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 January 2023
2,525,067
Additions
3,226,912
Valuation changes
186,236
Income reinvested
9,297
Fund charges
(19,140)
Disposals
(3,302,779)
At 31 December 2023
2,625,593
Carrying amount
At 31 December 2023
2,625,593
At 31 December 2022
2,525,067
FICHTNER CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
14
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
2,625,593
2,525,067

Financial assets are measured at quoted market price in an active market.

15
Stocks
2023
2022
£
£
Contract work in progress
1,164,853
874,747
16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
5,782,971
3,219,381
Corporation tax recoverable
220,817
142,387
Amounts owed by group undertakings
35,065
42,805
Other debtors
444
-
0
Prepayments and accrued income
628,579
541,466
6,667,876
3,946,039
17
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
239,894
50,442
Taxation and social security
1,460,063
1,159,733
Other creditors
1,180,548
704,673
Accruals and deferred income
5,977,500
4,729,543
8,858,005
6,644,391
FICHTNER CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
18
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
173,000
9,000
Revaluations
31,000
6,000
204,000
15,000
2023
Movements in the year:
£
Liability at 1 January 2023
15,000
Charge to profit or loss
189,000
Liability at 31 December 2023
204,000
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
740,786
607,414

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

At the balance sheet date the company had a commitment in respect of payments to the defined contribution pension scheme of £98,582 (2022 - £74,814).

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
315,000
315,000
315,000
315,000
FICHTNER CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
21
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
426,985
359,320
Between two and five years
756,824
614,500
In over five years
540,377
-
0
1,724,186
973,820
22
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Purchases
2023
2022
2023
2022
£
£
£
£
Entities with control, joint control or significant influence over the company
215,948
270,956
917,548
260,344
Fellow subsidiaries
66,234
33,794
35,949
94,569

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Fichtner Employee Benefit Trust - A shareholder of the entity
1,170,914
583,480

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
35,065
42,805
23
Ultimate controlling party

The ultimate controlling party is Fichtner GmbH & Co KG.

 

This is a company incorporated in Germany.

FICHTNER CONSULTING ENGINEERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
24
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
6,347,723
4,088,513
Adjustments for:
Taxation charged
2,044,360
933,488
Investment income
(112,656)
(28,865)
Depreciation and impairment of tangible fixed assets
82,773
34,542
Other gains and losses
(100,526)
565,033
Movements in working capital:
Increase in stocks
(290,106)
(139,670)
Increase in debtors
(2,643,407)
(16,379)
Increase in creditors
2,213,614
1,412,936
Cash generated from operations
7,541,775
6,849,598
25
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
8,092,545
732,313
8,824,858
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