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Registered number: 07388211 (England and Wales)














NORR CONSULTANTS LIMITED


DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023


 
NORR CONSULTANTS LIMITED
 

 
COMPANY INFORMATION


Directors
B Gerstmar 
J Hughes 
J Baird 
B O'Donnell 
D Shields 




Company secretary
C Soule



Registered number
07388211



Registered office
Percy House, 8th Floor
Percy Street

Newcastle

United Kingdom

NE1 4PW




Independent auditors
ZEDRA Corporate Reporting Services (UK) Limited






 
NORR CONSULTANTS LIMITED
 


CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Notes to the Financial Statements
 
12 - 24



 
NORR CONSULTANTS LIMITED
 

 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present the Strategic Report and financial statements for the year ended 31 December 2023.

Principal Activity
 
The Company is part of the NORR Group of Companies and is an established UK practice that provides intelligent architectural and related services to clients across multiple private and public sectors.

Business review
 
NORR Consultants Limited ("the Company") is dedicated to making a positive sustainable impact within the built environment for our clients, project stakeholders and communities that our projects serve. 
The Company performed better than the anticipated operating plan for 2023. The benefits of the previous year’s planning and focus on core sectors saw turnover increasing by 18.31% (from £9,272,698 to £10,970,422) and profit before tax increasing by 956.97% compared with 2022 (from £98,381 to £1,039,862). 
The Company’s net liability has improved from (£377,545) in 2022 to a net asset of £2,705,470 by the end of 2023. In parallel, cash has increased by 61.36% (from £1,434,610 to £2,314,846). 
Corporate Social Responsibility
We understand our wider duty to Society and conduct our business in line with our corporate social responsibility values and policies. 
We continue to support and promote our NORRForward program that aims to create more resilient communities for future generations and encourages equity, diversity and inclusion at every level of our business. 
We actively promote environmental responsibility and sustainability to our clients and seek to reduce our own direct impact on the environment. We are accredited to ISO 14001 for Environmental Management, and we employ an external, independent consultant to measure our annual carbon footprint and advise on practical carbon reduction measures.
The Company is committed to recording and reviewing our emissions and aims to improve them wherever possible. 

Principal risks and uncertainties
 
The Building Safety Act 2022 (BSA)
The Building Safety Act 2022 has been described as a major regulatory shake-up of the construction industry (in England), with secondary legislation coming into effect on October 1st, 2023. In anticipation of the change in regulation we enlisted ‘third party accredited fire engineers’ to deliver specific fire safety training for our design staff and have planned for a continuation of Principal Designer and BSA training by the Royal Institute of British Architects courses throughout 2024. 
UK General Election
The change in government as a result of the 2024 General election presents a risk to the Company by way of disruption to opportunities, anticipated project timelines, and funding of public sector contracts. Our multi sector approach spanning both public and private clients helps reduce this risk with less reliance on single sources of workload. Our regular forecasting monitors anticipated revenues and allows for corrective action where necessary. 



 
Page 1


 
NORR CONSULTANTS LIMITED
 


STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Enterprise Resource Planning
The Company currently utilises a purpose-built Enterprise Resource Planning (ERP) software programme. The software relied in parts on Microsoft Internet Explorer, which was retired by Microsoft. As of January 1st, 2024, The Company migrated to a new ERP process.  With this comes a risk of disruption to our project planning, monitoring and reporting. To mitigate this risk, we have undergone training exercises for our key project delivery staff, Studio Managers and Senior Management.   
Financial Risks
The Company has exposure to a variety of financial risks, which are managed with the purpose of minimising any potential adverse effect. The Company has policies for managing these risks which are summarised below.
 
The Company adopts a prudent approach to liquidity management. Our cash balance continues to strengthen.  With access to a bank overdraft facility and support from its related party and ultimate parent company, NORR International Inc., The Company is in a solid position to meet its obligations, as required. 
Appropriate credit management policies and procedures are in place to mitigate the risk deriving from business and private sector organisations. 

Financial key performance indicators
 Analysis using key performance indicators compared to previous year (2022) include:
 

2023
2022
Increase (Decrease)
Turnover
£10,970,422
£9,272,698
18.31%
Wages and salaries (% of turnover)
45.75%
52.86%
(7.11%)
Occupancy costs (% of turnover)
3.04%
3.82%
(0.78%)
Direct costs (% of turnover)
23.37%
23.22%
0.15%
Profit margin before tax
9.48%
1.06%
8.42%

Other key performance indicators
 
The directors consider there to be no other key performance indicators.


This report was approved by the board and signed on its behalf.


J Baird
Director

Date: 26 September 2024

Page 2


 
NORR CONSULTANTS LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023. In accordance with s414c (11) of the Companies Act 2006, certain information that is required to be included in the Directors' Report has been otherwise included in the Strategic Report.

Directors

The directors who served during the year were:

B Gerstmar 
J Hughes 
A James (resigned 31 March 2024)
J Baird 
B O'Donnell (appointed 1 December 2023)
D Shields (appointed 1 December 2023)

Results and dividends

The profit for the year, after taxation, amounted to £3,083,015 (2022 - £130,712).

The directors do not recommend the payment of a dividend (2022: £Nil).

Future developments

The strong results of 2023 will see efforts directed to consolidating our involvement in the key sectors whilst managing the above risks prevalent within the industry. We will remain focused on improving our service to clients and continue to increase our collaboration and involvement with the wider NORR Group of Companies throughout 2024. 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 3


 
NORR CONSULTANTS LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no adjusting or non-adjusting events occurring between the end of the reporting period and the date these financial statements were approved.

This report was approved by the board and signed on its behalf.
 


J Baird
Director

Date: 26 September 2024
Page 4


 
NORR CONSULTANTS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORR CONSULTANTS LIMITED

Opinion


We have audited the financial statements of NORR Consultants Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


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 Auditors' 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.


Page 5


 
NORR CONSULTANTS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORR CONSULTANTS LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the 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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.


Page 6


 
NORR CONSULTANTS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORR CONSULTANTS LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

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:

the responsible individual ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the Company through discussions with directors and other management, and from our commercial knowledge and experience;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006 and taxation legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

We identified that fraud risk in relation to revenue recognition is a significant risk in line with ISA 240 and designed and implemented appropriate audit procedures in this area. Audit procedures included but were not limited to substantive testing from customer contracts, labour reports and performing appropriate year end cut off testing.

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

performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

 

Page 7


 
NORR CONSULTANTS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NORR CONSULTANTS LIMITED (CONTINUED)

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

agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC and the Company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.


Dominic King FCA (Senior Statutory Auditor)
for and on behalf of
ZEDRA Corporate Reporting Services (UK) Limited
Chartered Accountants and Statutory Auditors
Birchin Court
5th Floor
19-25 Birchin Lane
London
United Kingdom
EC3V 9DU

 
Date: 
26 September 2024
Page 8


 
NORR CONSULTANTS LIMITED
 

 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 3 
10,970,422
9,272,698

Cost of sales
  
(5,821,259)
(5,502,961)

Gross profit
  
5,149,163
3,769,737

Administrative expenses
  
(4,109,599)
(3,671,391)

Operating profit
 4 
1,039,564
98,346

Interest receivable and similar income
  
298
35

Profit before tax
  
1,039,862
98,381

Tax on profit
 7 
2,043,153
32,331

Profit for the financial year
  
3,083,015
130,712

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 12 to 24 form part of these financial statements.

Page 9


 
NORR CONSULTANTS LIMITED
REGISTERED NUMBER:07388211


BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 9 
252,921
394,996

  
252,921
394,996

Current assets
  

Debtors: amounts falling due after more than one year
 10 
1,816,141
-

Debtors: amounts falling due within one year
 10 
3,265,044
4,409,639

Cash at bank and in hand
  
2,314,846
1,434,610

  
7,396,031
5,844,249

Creditors: amounts falling due within one year
 11 
(4,522,495)
(6,149,255)

Net current assets/(liabilities)
  
 
 
2,873,536
 
 
(305,006)

Total assets less current liabilities
  
3,126,457
89,990

Creditors: amounts falling due after more than one year
 12 
(78,305)
(139,449)

Provisions for liabilities
  

Provisions
 15 
(342,682)
(328,086)

  
 
 
(342,682)
 
 
(328,086)

Net assets/(liabilities)
  
2,705,470
(377,545)


Capital and reserves
  

Called up share capital 
  
10,242,264
10,242,264

Profit and loss account
  
(7,536,794)
(10,619,809)

  
2,705,470
(377,545)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 

J Baird
Director

Date: 26 September 2024

The notes on pages 12 to 24 form part of these financial statements.
Page 10


 
NORR CONSULTANTS LIMITED
 


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
10,242,264
(10,750,521)
(508,257)


Comprehensive income for the year

Profit for the year
-
130,712
130,712



At 1 January 2023
10,242,264
(10,619,809)
(377,545)


Comprehensive income for the year

Profit for the year
-
3,083,015
3,083,015


At 31 December 2023
10,242,264
(7,536,794)
2,705,470


The notes on pages 12 to 24 form part of these financial statements.

Page 11

 
NORR CONSULTANTS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.Accounting policies

 
1.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

  
1.2

Going concern

The Company's directors expect the Company to continue making positive cashflows for the foreseeable future. In the year ended 31 December 2023, the Company has reported a profit before tax of £1,039,862. The directors are pleased with the underlying operational profitability of the Company, calculated as EBITDA (Earnings before interest, tax, depreciation and amortisation), amounting to £1,228,073.
The Company is in a net asset position, and the NORR Group of Companies have indicated their continued financial support of the Company should it be required. Based on this and the Company's future secured workload, the directors conclude that the Company will continue to operate for the foreseeable future and therefore continue to prepare the financial statements on the going concern basis.

 
1.3

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of The NORR Group of Companies as at 31 December 2023 and these financial statements may be obtained from https://find-and-update .company-information .service.gov.uk /company/07388247/filing -history.

Page 12


 
NORR CONSULTANTS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.Accounting policies (continued)

 
1.4

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

More specifically, turnover is derived from consulting services and fixed fee contracts and is based on the percentage-of-completion method. This method is used because management considers expended costs to be the best available measure of progress on these contracts. Contract turnover and costs are adjusted to reflect change orders that have been approved as to both price and scope. 
For change orders that have not been approved as to price, contract turnover is recognised to a maximum of costs incurred or, if lower, to the extent to which recovery is probable. Profit on change orders is not recognised until pricing has been agreed. A provision is made for estimated losses on individual contracts when they become apparent. 
Turnover recognised and not yet billed is classified as unbilled contract turnover and accrued income. Unbilled contract turnover is accrued on the basis of the percentage complete against the agreed fixed billing schedule as per the contract, and is not in excess of realisable value. Fees billed in advance of services being provided are classified as advanced billings and deferred income.

 
1.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 13


 
NORR CONSULTANTS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.Accounting policies (continued)


1.5
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

Leasehold improvements
-
over lease term
Fixtures and fittings
-
5 years
Computer equipment
-
3 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
1.6

Debtors

Debtors are measured at transaction price, less any impairment. Amounts owed by group undertakings are intercompany loans measured at cost. These loans are unsecured, interest free and repayable on demand.

 
1.7

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions.

 
1.8

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Investments in non-convertible preference shares and in non-puttable ordinary and preference shares are measured:
at fair value with changes recognised in the Statement of Comprehensive Income if the shares are publicly traded or their fair value can otherwise be measured reliably;
at cost less impairment for all other investments.

Financial assets that are measured at cost and amortised cost are assessed at the end of each
Page 14


 
NORR CONSULTANTS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.Accounting policies (continued)


1.8
Financial instruments (continued)

reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

  
1.9

Creditors

Short term creditors are measured at the transaction price. Amounts owed to group undertakings are intercompany loans measured at cost. These loans are unsecured, interest free and repayable on demand.

 
1.10

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
1.11

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 15


 
NORR CONSULTANTS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.Accounting policies (continued)

 
1.12

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
1.13

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
1.14

Interest income

Interest income is recognised in the profit or loss as it is received.

 
1.15

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

 
1.16

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Page 16


 
NORR CONSULTANTS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.Accounting policies (continued)


1.16
Current and deferred taxation (continued)

Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


2.


Judgements in applying accounting policies and key sources of estimation uncertainty

The Company makes estimates and assumptions concerning the future. Management are also required to exercise judgement in the process of applying the Company's accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are addressed below. The accounting policies have been applied consistently with the prior year other than where new policies have been adopted.
Turnover - Stage of Completion
Turnover is recognised on a percentage completion basis which involves some estimation uncertainty. At the start of a project management and the directors will determine an expected cost for the project, which on a monthly basis they then use as a benchmark to calculate the turnover based on actual hours spent. This may result in fluctuations in the recognition of turnover through the life of a revenue contract which may have a material effect on these financial statements.
Deferred Tax
Management have determined that the Company’s expected future performance is sufficient enough to recognise a deferred tax asset for the Company’s carried forward, unrelieved tax losses. Management have considered the uncertainty in relation to the expected timing of the utilisation of losses but believes based on the Company’s current and forecast growth that the Company will obtain the benefit of tax relief available to them. This is a significant judgement.
Insurance Claim Provision
This provision is in respect to excess of several insurance claims raised by the Company for which settlement is yet to be reached, although the outflow of resources is deemed probable and its value can be estimated reliably. The directors have provided for this based on their expectation of the cash outflows, however, the timing of these is uncertain and may cause material changes to these financial statements.

Page 17

 
NORR CONSULTANTS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Turnover

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
10,946,999
9,165,403

Rest of the World
23,423
107,295

10,970,422
9,272,698


The Company provides intelligent architectural and related services to clients.


4.


Operating profit

The operating profit is stated after charging/(crediting):

2023
2022
£
£

Auditors remuneration
21,500
21,000

Exchange differences
(31,112)
51,999

Operating lease rentals
259,304
252,070

Non-operating leases
34,283
34,907

Depreciation
188,509
216,195


5.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
5,019,371
4,901,773

Social security costs
490,258
497,400

Cost of defined contribution scheme
185,728
179,529

5,695,357
5,578,702


The average monthly number of employees, including directors, during the year was 108 (2022 - 110).

Page 18

 
NORR CONSULTANTS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
235,154
227,391

Company contributions to defined contribution pension schemes
9,003
8,240

244,157
235,631


During the year, retirement benefits were accruing to four directors (2022 - two) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £116,700 (2022 - £116,387).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £4,360 (2022 - £4,120).

During the year, several directors of NORR Consultants Limited were paid by other group entities. Management determine that the share of remuneration relevant to the services performed in their capacity as directors of NORR Consultants Limited to be immaterial.


7.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
(46,535)
(32,331)


Total current tax
(46,535)
(32,331)

Deferred tax


Origination and reversal of timing differences
(1,996,618)
-

Total deferred tax
(1,996,618)
-


Tax on profit
(2,043,153)
(32,331)
Page 19

 
NORR CONSULTANTS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
7.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,039,862
98,381


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
244,576
18,692

Effects of:


Expenses not deductible for tax purposes
2,319
1,446

Utilisation of tax losses
(266,529)
-

Other timing differences leading to an increase (decrease) in taxation
(2,043,153)
(54,610)

Changes in tax rates
15,773
-

Other differences leading to an increase (decrease) in the tax charge
3,861
2,141

Total tax charge for the year
(2,043,153)
(32,331)


Factors that may affect future tax charges

During the year, the main rate of UK corporation tax changed from 19% to 25% with effect from 1 April 2023.


8.


Deferred taxation




2023


£






At beginning of year
45,854


Credited to profit or loss
1,996,618



At end of year
2,042,472

Page 20

 
NORR CONSULTANTS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
8.Deferred taxation (continued)

The deferred tax asset is made up as follows:

2023
2022
£
£


Tax losses carried forward
2,042,472
45,854

2,042,472
45,854


9.


Tangible fixed assets





Leasehold improvements
Fixtures and fittings
Computer equipment
Total

£
£
£
£



Cost or valuation


At 1 January 2023
421,756
63,679
778,655
1,264,090


Additions
4,468
3,380
41,564
49,412


Disposals
(5,788)
(11,354)
-
(17,142)



At 31 December 2023

420,436
55,705
820,219
1,296,360



Depreciation


At 1 January 2023
290,105
59,933
519,056
869,094


Charge for the year
39,667
2,185
146,657
188,509


Disposals
(3,064)
(11,100)
-
(14,164)



At 31 December 2023

326,708
51,018
665,713
1,043,439



Net book value



At 31 December 2023
93,728
4,687
154,506
252,921



At 31 December 2022
131,651
3,746
259,599
394,996

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Computer equipment
121,429
231,501

121,429
231,501

Page 21

 
NORR CONSULTANTS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Debtors

2023
2022
£
£

Due after more than one year

Deferred tax asset
1,816,141
-

1,816,141
-


2023
2022
£
£

Due within one year

Trade debtors
2,202,333
3,382,520

Amounts owed by group undertakings
166,276
171,790

Other debtors
86,029
71,380

Prepayments and accrued income
584,075
738,095

Deferred taxation
226,331
45,854

3,265,044
4,409,639



11.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
706,688
1,349,437

Amounts owed to group undertakings
514,029
1,799,979

Other taxation and social security
612,648
741,285

Obligations under finance lease and hire purchase contracts
50,914
100,534

Other creditors
9,893
13,137

Accruals and deferred income
2,628,323
2,144,883

4,522,495
6,149,255



12.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
49,013
95,495

Other creditors
29,292
43,954

78,305
139,449


Other creditors include a lease inducement which unwinds over the term of the lease, as descibed in note 16. The directors do not consider the effects of discounting to be material.

Page 22

 
NORR CONSULTANTS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
50,914
100,534

Between one to five years
49,013
95,495

99,927
196,029

Finance lease payments represent rental payments by the Company for certain items of computer equipment. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3.8 years (2022: 3.7 years). All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.


14.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets that are debt instruments measured at amortised cost
4,768,480
5,060,300


Financial liabilities


Financial liabilities measured at amortised cost
1,359,829
3,402,537


Financial assets measured at amortised cost comprise cash, trade debtors, other debtors and amounts owed by group companies.


Financial liabilities measured at amortised cost comprise trade creditors, other creditors, obligations under finance lease and hire purchase contracts and amounts owed to group companies.

Page 23

 
NORR CONSULTANTS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Provisions




Dilapidation provision
Insurance claim provision
Total

£
£
£





At 1 January 2023
78,086
250,000
328,086


Charged to profit or loss
23,346
-
23,346


Utilised in year
(8,750)
-
(8,750)



At 31 December 2023
92,682
250,000
342,682

Dilapidation provision
This provision is provided on a monthly basis using management's judgement based on previous experience and the current state of the properties. The provision is expected to be utilised upon vacation of the properties.
Insurance claim provision
This provision is in respect to excess of several insurance claims raised by the Company for which settlement is yet to be reached, although the outflow of resources is deemed probable and its value can be estimated reliably.


16.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than one year
188,247
200,638

Later than one year and not later than five years
355,395
497,701

543,642
698,339


17.


Controlling party

The NORR Group of Companies is the parent of the smallest group for which consolidated financial statements are drawn up of which the Company is a member. The registered office of the parent company is 175 Bloor Street East, North Tower, 15th Floor, Toronto, Ontario, M4W 3R8, Canada.


18.


Post balance sheet events

There have been no adjusting or non-adjusting events occurring between the end of the reporting period and the date these financial statements were approved.

 
Page 24