Company registration number SC241155 (Scotland)
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
COMPANY INFORMATION
Directors
W S Henderson
M J Horner
Company number
SC241155
Registered office
Cornerstone
60 South Gyle Crescent
Edinburgh
EH12 9EB
Auditors
MHA
Chartered Accountants
6 St Colme Street
Edinburgh
EH3 6AD
Bankers
Bank of Scotland
38 St Andrew Square
Edinburgh
EH2 2YR
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 24
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -

The directors present the strategic report for the year ended 31 January 2024.

Fair review of the business

The directors report a profit before tax for the year of £650,649 after deducting one off reorganisation costs of £23,802 which they consider to be a satisfactory result considering the competition in the Construction Sector and the current economic conditions.

 

During the year there was an increase in cash and cash equivalents of £1,434,680 resulting from positive cash flows.

 

The directors focus is on developing the Edinburgh and Glasgow operations. The directors continue to review business operations to ensure that operational costs match future revenues.

 

Given the nature of the business, the directors are of the opinion that analysis using key performance indicators is not necessary for an understanding of the development, performance and position of the business.

 

Principal risks and uncertainties

The company is continuing with its strategy of diversifying into different markets in order to maintain its resilience to current unpredictable market conditions.

 

The directors monitor risk to assist in the development and improvement of its systems and operations. This will ensure that the Company continues to meet its contractual commitments, improve health and safety standards and deliver increasing levels of service to its clients.

 

Appropriate and prudent provisions in respect of the potential impairment of trade debtors and unbilled amounts due on contracts are applied.

 

Development and performance

The directors' main objective is to develop the business by offering services to a wide range of clients in existing and different market sectors.

 

The directors are confident that their strategy will deliver continuing profitability and generate the required cash flow to finance its future operations.

 

By order of the board

M J Horner
Director
16 August 2024
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -

The directors present their report and financial statements for the year ended 31 January 2024.

Principal activities

The principal activity of the company continued to be that of civil, structural, mechanical and electrical engineering consultancy and the provision of services to clients on all aspects and types of construction work.

Directors

The following directors have held office since 1 February 2023:

W S Henderson
M J Horner
Results and dividends

The results for the year are set out on page 7.

The directors do not recommend payment of a dividend.

Auditor

Geoghegans resigned as auditors following their merger with MHA on 1 February 2024, MHA were subsequently appointed as auditors. In accordance with the company's articles, a resolution proposing that MHA be reappointed as auditors of the company will be put at a General Meeting.

Statement of directors' responsibilities

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.

BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
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.

On behalf of the board
M J Horner
Director
16 August 2024
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
- 4 -
Opinion

We have audited the financial statements of Blyth & Blyth Consulting Engineers Limited (the 'company') for the year ended 31 January 2024 which comprise the Profit And Loss Account, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows 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 FRS 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:

BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BLYTH & BLYTH 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BLYTH & BLYTH CONSULTING ENGINEERS LIMITED (CONTINUED)
- 6 -

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.

Iain Binnie
(Senior Statutory Auditor)
for and on behalf of MHA, Statutory Auditor
Edinburgh, United Kingdom
16 August 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
14,780,219
12,235,513
Cost of sales
(10,667,532)
(9,161,453)
Gross profit
4,112,687
3,074,060
Administrative expenses
(3,455,746)
(2,635,962)
Operating profit
4
656,941
438,098
Interest receivable and similar income
7
10,545
904
Interest payable and similar expenses
8
(16,837)
(14,792)
Profit before taxation
650,649
424,210
Taxation
9
(149,870)
(102,646)
Profit for the financial year
500,779
321,564
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
306,697
186,918
Current assets
Debtors
11
7,546,489
7,376,915
Cash at bank and in hand
2,622,212
1,187,532
10,168,701
8,564,447
Creditors: amounts falling due within one year
12
(6,227,805)
(4,996,073)
Net current assets
3,940,896
3,568,374
Total assets less current liabilities
4,247,593
3,755,292
Creditors: amounts falling due after more than one year
13
(256,209)
(200,579)
Provisions for liabilities
16
-
0
(151,829)
Net assets
3,991,384
3,402,884
Capital and reserves
Called up share capital
20
114,446
114,446
Capital redemption reserve
85,554
85,554
Employee Benefit Trust reserve
21
(177,937)
(177,937)
Equity share option reserve
21
210,615
122,894
Profit and loss reserve
3,758,706
3,257,927
Total equity
3,991,384
3,402,884
The financial statements were approved by the board of directors and authorised for issue on 16 August 2024 and are signed on its behalf by:
M J Horner
Director
Company Registration No. SC241155
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 9 -
Share capital
Capital redemption reserve
Employee Benefit Trust reserve
Equity share option reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 February 2022
114,446
85,554
(177,937)
49,314
2,936,363
3,007,740
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
-
-
-
321,564
321,564
Equity share option reserve movement
-
-
-
73,580
-
73,580
Balance at 31 January 2023
114,446
85,554
(177,937)
122,894
3,257,927
3,402,884
Year ended 31 January 2024:
Profit and total comprehensive income for the year
-
-
-
-
500,779
500,779
Equity share option reserve movement
-
-
-
87,721
-
87,721
Balance at 31 January 2024
114,446
85,554
(177,937)
210,615
3,758,706
3,991,384
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
24
1,719,738
(323,810)
Interest paid
(16,837)
(14,792)
Taxation paid
(111,146)
(50,819)
Net cash inflow/(outflow) from operating activities
1,591,755
(389,421)
Investing activities
Purchase of tangible fixed assets
-
0
(462)
Interest received
10,545
904
Net cash generated from investing activities
10,545
442
Financing activities
Repayment of bank loans
(70,000)
(70,000)
Repayment of finance lease obligations
(97,620)
(77,358)
Net cash used in financing activities
(167,620)
(147,358)
Net increase/(decrease) in cash and cash equivalents
1,434,680
(536,337)
Cash and cash equivalents at beginning of year
1,187,532
1,723,869
Cash and cash equivalents at end of year
2,622,212
1,187,532
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 11 -
1
Accounting policies
Company information

Blyth & Blyth Consulting Engineers Limited is a private company limited by shares incorporated in Scotland. The registered office is Cornerstone, 60 South Gyle Crescent, Edinburgh, EH12 9EB.

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 on 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 are confident 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
Tangible fixed assets

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

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

Leasehold improvements
Term of the lease
Office equipment
25-100% per annum
Fixtures and fittings
20% per annum
Computer equipment
33% per annum

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.

1.4
Impairment of fixed assets

The carrying value of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

1.5
Contract accounting

The profit on contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the period end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Full provision is made for losses on all contracts in the period in which they are foreseen.

BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 12 -
1.6
Financial assets

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.

Debtors

Debtors with no stated interest rate or receivable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account.

 

1.7
Financial liabilities

Creditors with no stated interest rate and payable within one year are recorded at transaction price.

 

All interest bearing loans and borrowings which are basic financial instruments are initially recorded at the present value of cash payable. After initial recognition they are measured at amortised cost.

1.8
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.

1.9
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 is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date.

A net deferred tax asset is regarded as recoverable and therefore recognised only when, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits against which to recover carried forward tax losses and from which the future reversal of underlying timing differences can be deducted.

Deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing differences are expected to reverse, based on the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured on a non-discounted basis.
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 13 -
1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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.

The company operates a defined contribution pension scheme. The pension costs charged to the financial statements represent the contributions payable by the company during the year in accordance with FRS 102 (section 28).

1.11
Share-based payments

The company grants equity-settled share based payments to certain employees and directors through the issuing of share options.

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using an appropriate pricing model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

 

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

1.12
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

1.13
Employee Share Ownership Plan

The company established on 10 November 2004 the Blyth & Blyth Consulting Engineers Limited Employee Benefits Trust (EBT) for the purpose of encouraging or facilitating the holding of shares or debentures in the company by or for the benefit of employees of the company.

 

The company sponsors and controls the Employee Benefit Trust (EBT). All the assets and liabilities of the EBT are accounted for in accordance with FRS 102 (section 9).

BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 14 -
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.

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.

Recoverability of trade debtors

Recoverability of trade debtors are evaluated and provisions for doubtful debts are made where appropriate. Provisions are based on experience, the age of debt, customer relations and payment history. The actual level of debt collected may differ from the estimated level of recovery and can therefore impact future operating results.

Valuation of amounts due from contract customers

The directors assess the stage of completion of each contract to reflect the proportion of work carried out and turnover and profit on each contract is accounted for as contract activity progresses. Provision is made in full for any contracts which are estimated to result in a loss, as soon as the loss is forecast. Stage of completion and contract progress is measured based on experience. The actual stage of completion may differ from the estimated stage of completion.

3
Turnover analysed by geographical market

An analysis of the company's turnover is as follows:

2024
2023
£
£
United Kingdom
14,780,219
12,235,513
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
17,775
16,200
Depreciation of owned tangible fixed assets
57,463
63,927
Depreciation of tangible fixed assets held under finance leases
79,554
81,176
Share-based payments
87,721
73,580
Operating lease charges
236,509
213,442
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 15 -
5
Employees

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

2024
2023
Number
Number
Office and administration
10
10
Other
79
75
89
85

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
4,735,941
4,229,065
Social security costs
572,782
550,958
Pension costs
944,480
696,787
6,253,203
5,476,810

In addition, the company engaged the services of, on average, 2 (2023 - 2) contract staff members during the year.

Remuneration of key management personnel

The remuneration of key management personnel, which also includes directors, is as follows.

2024
2023
£
£
Aggregate remuneration
2,239,038
2,231,339
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
200,891
232,432
Company pension contributions to defined contribution schemes
65,593
26,826
266,484
259,258

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

The number of directors who were entitled to receive shares under long term incentive schemes during the year was 1 (2023 - 1).

BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
6
Directors' remuneration
(Continued)
- 16 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
170,647
202,342
Company pension contributions to defined contribution schemes
65,593
26,826

 

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
10,545
904
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
15,573
12,496
Interest on finance leases and hire purchase contracts
1,264
2,296
16,837
14,792
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
193,114
115,000
Adjustments in respect of prior periods
(3,802)
-
0
Total current tax
189,312
115,000
Deferred tax
Origination and reversal of timing differences
(39,442)
(12,354)
Total tax charge
149,870
102,646
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
9
Taxation
(Continued)
- 17 -

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:

2024
2023
£
£
Profit before taxation
650,649
424,210
Expected tax charge based on the standard rate of corporation tax in the UK of 24.03% (2023: 19.00%)
156,351
80,600
Tax effect of expenses that are not deductible in determining taxable profit
33,249
19,523
Adjustments in respect of prior years
(3,802)
-
0
Share based payment charge
(41,019)
-
0
Deferred tax adjustments in respect of prior years
(1,530)
-
0
Other tax adjustments
6,621
2,523
Taxation charge for the year
149,870
102,646
10
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Office and computer equipment
Total
£
£
£
£
Cost
At 1 February 2023
340,188
119,143
594,118
1,053,449
Additions
-
0
-
0
256,796
256,796
At 31 January 2024
340,188
119,143
850,914
1,310,245
Depreciation and impairment
At 1 February 2023
232,189
106,778
527,564
866,531
Depreciation charged in the year
48,077
8,248
80,692
137,017
At 31 January 2024
280,266
115,026
608,256
1,003,548
Carrying amount
At 31 January 2024
59,922
4,117
242,658
306,697
At 31 January 2023
107,999
12,365
66,554
186,918

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases. The depreciation charge in respect of such assets amounted to £79,554 (2023 - £81,176) for the year.

 

2024
2023
£
£
Office and computer equipment
241,703
64,462
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 18 -
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,420,848
2,461,166
Gross amounts due from contract customers
1,939,400
2,517,081
Other debtors
1,746,530
1,956,394
Prepayments and accrued income
407,098
442,274
7,513,876
7,376,915
Deferred tax asset (note 17)
32,613
-
0
7,546,489
7,376,915
12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
70,000
70,000
Obligations under finance leases
15
94,873
61,327
Payments received on account
1,955,726
993,282
Trade creditors
1,473,543
1,424,625
Corporation tax
193,184
115,018
Other taxation and social security
610,502
544,267
Accruals and deferred income
1,829,977
1,787,554
6,227,805
4,996,073
13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
116,667
186,667
Obligations under finance leases
15
139,542
13,912
256,209
200,579
14
Loans and overdrafts
2024
2023
£
£
Bank loans
186,667
256,667
Payable within one year
70,000
70,000
Payable after one year
116,667
186,667
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
14
Loans and overdrafts
(Continued)
- 19 -

Bank loans above represent an unsecured bank loan from Bank of Scotland plc obtained through the Coronavirus Business Interruption Loan Scheme and was drawn down on 28 September 2020. The loan is repayable over six years with no repayments required in the first year, and carries interest at base rate plus 2.1% per annum. The first year of interest payments were covered by a government grant.

Bank of Scotland plc hold a bond and floating charge over the whole assets of the company together with a cross corporate guarantee with the company and a third party.

15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
94,873
61,327
In two to five years
139,542
13,912
234,415
75,239

Finance lease obligations are secured against the tangible fixed assets to which they relate.

16
Provisions for liabilities
2024
2023
Notes
£
£
Other
-
145,000
Deferred tax liabilities
17
-
0
6,829
-
0
151,829

Other provisions represent claims made against contracts in excess of amounts covered by professional indemnity insurance.

Movements on provisions apart from deferred tax liabilities:
£
At 1 February 2023
145,000
Release of provision
(145,000)
At 31 January 2024
-
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 20 -
17
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
-
19,685
(12,777)
-
Other timing differences
-
(12,856)
45,390
-
-
6,829
32,613
-
2024
Movements in the year:
£
Liability at 1 February 2023
6,829
Credit to profit and loss
(39,442)
Liability/(asset) at 31 January 2024
(32,613)

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so.

18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
944,480
696,787

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. The unpaid contributions outstanding at the period end, and included in creditors, amounted to £60,305 (2023 - £54,091).

19
Share-based payment transactions
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 February 2023
35,000
35,000
8.46
8.46
Granted
5,000
-
0
20.80
-
0
Exercised
(15,000)
-
0
6.62
-
0
Outstanding at 31 January 2024
25,000
35,000
14.49
8.46
Exercisable at 31 January 2024
-
0
-
0
-
0
-
0
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
19
Share-based payment transactions
(Continued)
- 21 -

The options outstanding at 31 January 2024 had an exercise price ranging from £10.29 to £20.80, and a remaining contractual life of 6 to 9 years.

The weighted average fair value of options granted was determined using the Black-Scholes option pricing model. The Black-Scholes model is considered to apply the most appropriate valuation method due to the relatively short contractual lives of the options and the requirement to exercise within a short period after the employee becomes entitled to the shares (the “vesting date”).

 

The expected life used in the model has been adjusted, based on management’s best estimate, for the effect of non-transferability, exercise restrictions, and behavioural considerations.

 

Non-vesting conditions and market conditions are taken into account when estimating the fair value of the option at grant date. Service conditions and non-market performance conditions are taken into account by adjusting the number of options expected to vest at each reporting date.

Liabilities and expenses

During the year, the company recognised total share-based payment expenses of £87,721 (2023 - £73,580) which related to equity settled share based payment transactions.

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
99,446
114,446
99,446
114,446
'A' ordinary shares of £1 each
15,000
-
15,000
-
114,446
114,446
114,446
114,446
BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
20
Share capital
(Continued)
- 22 -

On 12 January 2024 15,000 ordinary shares of £1 each were reclassified as 'A' ordinary shares.

 

The company has previously granted options to certain employees to subscribe for A ordinary shares and ordinary shares. Options in place are as follows:

 

Options to allow certain employees to purchase 10,000 A ordinary shares at an exercise price of £6.62. These options were fully exercised in the financial year (on 12 January 2024) by reclassifying 10,000 ordinary shares to 10,000 'A' ordinary shares and then issuing these shares to the option holders from the Employee Benefit Trust at an exercise value of £66,200.

 

Options to allow certain employees to purchase 5,000 A ordinary shares at an exercise price of £6.62. These options were fully exercised in the financial year (on 12 January 2024) by reclassifying 5,000 ordinary shares to 5,000 'A' ordinary shares and then issuing these shares to the option holders from the Employee Benefit Trust at an exercise value of £33,100.

 

Options to allow certain employees to purchase 15,000 A ordinary shares at an exercise price of £10.29. These options have a 10 year exercise period and expire on 4 March 2030. The exercise of these options is conditional upon the employees achieving satisfactory performance within the company. The options must be exercised within a prescribed period of meeting these conditions.

 

Options to allow certain employees to purchase 5,000 A ordinary shares at an exercise price of £20.80. These options have a 10 year exercise period and expire on 6 December 2032. The exercise of these options is conditional upon the employees achieving satisfactory performance within the company. The options must be exercised within a prescribed period of meeting these conditions.

 

In addition to the above options were granted on 13 February 2023 to allow certain employees to purchase 5,000 A ordinary shares at an exercise price of £20.80. These options have a 10 year exercise period and expire on 13 February 2033. The exercise of these options is conditional upon the employees achieving satisfactory performance within the company. The options must be exercised within a prescribed period of meeting these conditions.

 

As at the balance sheet date, options were outstanding in relation to 25,000 A ordinary shares (2023: 35,000 A ordinary shares). There are no outstanding options in place in relation to ordinary shares (2023: nil).

BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 23 -
21
Other reserves
Employee Benefit Trust Reserve

The company established on 10 November 2004 the Blyth & Blyth Consulting Engineers Limited Employee Benefits Trust (EBT) for the purpose of encouraging or facilitating the holding of shares or debentures in the company by or for the benefit of employees of the company.

Equity share option reserve

Share options are accounted for in accordance with FRS 102 Section 26 “Share based payments”. Equity-settled share based payment transactions include share options and long-term equity incentive plans where the overall outcome is that the employee receives shares. Fair value of issued share options are measured annually at each accounting reference date after the date of grant and any increase in price is charged to the profit and loss account over the vesting period and a corresponding entry is made to the equity share option reserve.

22
Financial commitments

At the balance sheet date the company had outstanding commitments for future minimum lease payments under operating leases, which fall due as follows:

Land and buildings
2024
2023
£
£
Within one year
173,304
241,330
Between two and five years
233,242
513,651
In over five years
-
0
60,171
406,546
815,152
23
Related party transactions

The directors are of the opinion that there are no related party transactions.

BLYTH & BLYTH CONSULTING ENGINEERS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 24 -
24
Cash generated from operations
2024
2023
£
£
Profit for the year
500,779
321,564
Adjustments for:
Taxation
149,870
102,646
Finance costs
16,837
14,792
Investment income
(10,545)
(904)
Depreciation and impairment of tangible fixed assets
137,017
145,103
Equity settled share based payment expense
87,721
73,580
(Decrease)/increase in provisions
(145,000)
145,000
Movements in working capital:
Increase in debtors
(136,961)
(2,142,364)
Increase in creditors
1,120,020
1,016,773
Cash generated from/(absorbed by) operations
1,719,738
(323,810)
25
Analysis of changes in net funds/(debt)
2024
£
Opening net funds/(debt)
Cash and cash equivalents
1,187,532
Loans
(256,667)
Obligations under finance leases
(75,239)
855,626
Changes in net funds/(debt) arising from:
Cash flows of the entity
1,602,300
New finance leases entered into
(256,796)
Closing net funds/(debt) as analysed below
2,201,130
Closing net funds/(debt)
Cash and cash equivalents
2,622,212
Loans
(186,667)
Obligations under finance leases
(234,415)
2,201,130
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