Caseware UK (AP4) 2023.0.135 2023.0.135 2024-04-302023-05-222023-05-222024-04-302024-04-300false2023-05-01No description of principal activity0falsefalsefalse 10356194 2023-05-01 2024-04-30 10356194 2022-05-01 2023-04-30 10356194 2024-04-30 10356194 2023-04-30 10356194 2022-05-01 10356194 c:Director1 2023-05-01 2024-04-30 10356194 c:Director2 2023-05-01 2024-04-30 10356194 c:Director3 2023-05-01 2024-04-30 10356194 c:Director4 2023-05-01 2024-04-30 10356194 c:Director4 2024-04-30 10356194 c:Director5 2023-05-01 2024-04-30 10356194 c:Director6 2023-05-01 2024-04-30 10356194 c:Director6 2024-04-30 10356194 c:Director7 2023-05-01 2024-04-30 10356194 c:Director7 2024-04-30 10356194 c:Director8 2023-05-01 2024-04-30 10356194 c:Director8 2024-04-30 10356194 c:Director9 2023-05-01 2024-04-30 10356194 c:Director9 2024-04-30 10356194 c:RegisteredOffice 2023-05-01 2024-04-30 10356194 c:Agent1 2023-05-01 2024-04-30 10356194 d:Buildings d:LongLeaseholdAssets 2023-05-01 2024-04-30 10356194 d:Buildings d:ShortLeaseholdAssets 2023-05-01 2024-04-30 10356194 d:MotorVehicles 2023-05-01 2024-04-30 10356194 d:Goodwill 2023-05-01 2024-04-30 10356194 d:CurrentFinancialInstruments 2024-04-30 10356194 d:CurrentFinancialInstruments 2023-04-30 10356194 d:Non-currentFinancialInstruments 2024-04-30 10356194 d:Non-currentFinancialInstruments 2023-04-30 10356194 d:CurrentFinancialInstruments d:WithinOneYear 2024-04-30 10356194 d:CurrentFinancialInstruments d:WithinOneYear 2023-04-30 10356194 d:OtherMiscellaneousReserve 2023-05-01 2024-04-30 10356194 d:RetainedEarningsAccumulatedLosses 2023-05-01 2024-04-30 10356194 d:RetainedEarningsAccumulatedLosses 2024-04-30 10356194 d:RetainedEarningsAccumulatedLosses 2023-04-30 10356194 d:RetainedEarningsAccumulatedLosses 2022-05-01 10356194 c:FRS102 2023-05-01 2024-04-30 10356194 c:Audited 2023-05-01 2024-04-30 10356194 c:FullAccounts 2023-05-01 2024-04-30 10356194 c:CompanyLimitedByGuarantee 2023-05-01 2024-04-30 10356194 d:Subsidiary1 2023-05-01 2024-04-30 10356194 d:Subsidiary1 1 2023-05-01 2024-04-30 10356194 d:Subsidiary2 2023-05-01 2024-04-30 10356194 d:Subsidiary2 1 2023-05-01 2024-04-30 10356194 d:Subsidiary3 2023-05-01 2024-04-30 10356194 d:Subsidiary3 1 2023-05-01 2024-04-30 10356194 d:Subsidiary5 2023-05-01 2024-04-30 10356194 d:Subsidiary5 1 2023-05-01 2024-04-30 10356194 d:Subsidiary6 2023-05-01 2024-04-30 10356194 d:Subsidiary6 1 2023-05-01 2024-04-30 10356194 d:Subsidiary8 2023-05-01 2024-04-30 10356194 d:Subsidiary8 1 2023-05-01 2024-04-30 10356194 d:Subsidiary9 2023-05-01 2024-04-30 10356194 d:Subsidiary9 1 2023-05-01 2024-04-30 10356194 d:Subsidiary10 2023-05-01 2024-04-30 10356194 d:Subsidiary10 1 2023-05-01 2024-04-30 10356194 d:Subsidiary11 2023-05-01 2024-04-30 10356194 d:Subsidiary11 1 2023-05-01 2024-04-30 10356194 d:Subsidiary12 2023-05-01 2024-04-30 10356194 d:Subsidiary12 1 2023-05-01 2024-04-30 10356194 d:Subsidiary13 2023-05-01 2024-04-30 10356194 d:Subsidiary13 1 2023-05-01 2024-04-30 10356194 d:Subsidiary14 2023-05-01 2024-04-30 10356194 d:Subsidiary14 1 2023-05-01 2024-04-30 10356194 d:Subsidiary15 2023-05-01 2024-04-30 10356194 d:Subsidiary15 1 2023-05-01 2024-04-30 10356194 d:Subsidiary17 2023-05-01 2024-04-30 10356194 d:Subsidiary17 1 2023-05-01 2024-04-30 10356194 d:Subsidiary18 2023-05-01 2024-04-30 10356194 d:Subsidiary18 1 2023-05-01 2024-04-30 10356194 d:Subsidiary19 2023-05-01 2024-04-30 10356194 d:Subsidiary19 1 2023-05-01 2024-04-30 10356194 d:Subsidiary20 2023-05-01 2024-04-30 10356194 d:Subsidiary20 1 2023-05-01 2024-04-30 10356194 c:Consolidated 2024-04-30 10356194 c:ConsolidatedGroupCompanyAccounts 2023-05-01 2024-04-30 10356194 6 2023-05-01 2024-04-30 10356194 e:PoundSterling 2023-05-01 2024-04-30 iso4217:GBP xbrli:pure
Company registration number: 10356194







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 APRIL 2024


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
(A Company Limited by Guarantee)


































img4c60.png                        

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
COMPANY INFORMATION


Directors
A T Goldthorpe 
R M Kaminski 
D C McDonald 
B Somner 
L Bezerra (appointed 22 May 2023)
A Budihardjo (appointed 6 June 2024)
A Mcmillin (appointed 27 June 2024)




Registered number
10356194



Registered office
Holmes House
4 Pear Place

London

England

SE1 8BT




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

Lynton House

7-12 Tavistock Square

London

WC1H 9LT




Bankers
HSBC
2-4 St Ann's Square

Manchester

M2 7HD





 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 



CONTENTS



Page
Group Strategic Report
1 - 3
Directors' Report
4 - 6
Independent Auditors' Report
7 - 10
Consolidated Income Statement
11
Consolidated Statement of Comprehensive Income
12
Consolidated Statement of Financial Position
13
Company Statement of Financial Position
14
Consolidated Statement of Changes in Equity
15 - 16
Company Statement of Changes in Equity
17
Consolidated Statement of Cash Flows
18 - 19
Consolidated Analysis of Net Debt
20
Notes to the Financial Statements
21 - 41


 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024

Introduction
 
The directors present their Annual Report and financial statements for the year ended 30 April 2024.
Broadway Malyan Employee Ownership Trustees Limited was formed in September 2016 as a corporate trustee for the Broadway Malyan Employee Ownership Trust. The Trust acquired a majority ownership of Broadway Malyan Holdings Limited and its subsidiary companies on 30 November 2016. The beneficiaries of the trust are all of the employees of the Broadway Malyan group of companies. 

This report has been prepared by the directors in accordance with the requirements of section 414 of the Companies Act 2006. The Company's independent auditor is required by law to report on whether the information given in the Strategic Report is consistent with the financial statements. The auditor's report is set out further in the document.

Principal activities
 
The Trustees fulfil the role of majority shareholder on behalf of the beneficiaries of the Broadway Malyan Employee Ownership Trust. 
The Broadway Malyan group is at the forefront of international architecture, urbanism and design. The company was formed in 1958 and employed 324 people at 30 April 2024 across twelve studios in the UK, Europe, Middle East and Asia.
The principal focus of our business is major public and commercial projects both within the UK and internationally across the mixed use, residential, workplace, retail, education and hospitality sectors. We have an established expertise in tall building design, in urban planning and masterplanning internationally.

Principal risks and uncertainties
 
The principal risks associated with the execution of the group's strategy relate to:

The impact of the economies and competition in the markets in which the group operates.
The exposure to fluctuations in foreign exchange rates arising from the translation of results and monetary assets and liabilities denominated in foreign currencies into sterling.
The financial position of our clients and their continued ability to obtain funding.
The ability of the business to attract and retain suitably qualified staff to meet client needs.

Financial key performance indicators
 
The key financial performance indicators during the year were as follows: 

2024
2023
Change
      £'000s
      £'000s
        £
Turnover


40,340

37,610
 
7.3%
 
Gross profit


15,380

13,517
 
13.8%
 
Profit / (loss) before tax


835

264
 
216.3%
 
Cash & cash equivalents


2,959

508
 
481.9%
 

Page 1

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 



GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024

Turnover for the group increased by 7.3% year on year with total revenue at £40.3m (2023: £37.6m). This was a welcome improvement as the Group continued to recover post-pandemic. 
The first half of the year delivered a flat performance across the Group. However, the second half year delivered growth as most of our geographies and sectors performed well with a real strength in master planning work coming from the Middle East. 
Turnover from UK projects located in the UK was flat year on year. The UK team did however undertake significant projects contracted via our Middle East operations. The UK was profitable (prior year loss of £0.5m) as a result of international projects, completion of historical loss making architecture jobs and the addition of Will + Partners. Profit margins were weaker comparative to other territories, however, due to the continued inflationary impacts to wages and overheads.  
Our European operations continued to deliver a strong performance throughout the year, and turnover from projects in Europe increased by 11.2% to £9.9m (2023: £8.9m). As a proportion of the Group, fees from European projects now account for 24.3% of the Group’s turnover, consistent with prior year. 
Middle East and Asia turnover grew by 15.6% year on year to £17.4m. Performance from the Group’s operations in the Middle East and India was strong throughout the financial year, with continuing demand for the Group’s services, particularly in master planning. Strong growth was achieved in Singapore as a result of delivering master planning work won in the Middle East. China has been impacted by the country’s covid policy and then the economic downturn with market uncertainty adversely impacting on business performance during FY24. 
After making distributions and contingencies the Group delivered a profit before tax of £835k which was a material improvement on the previous  year.
Through this year the Trustee directors have continued to challenge the leadership of the business to respond substantively and significantly to drive improved business performance and ensure business resilience in the face an external trading environment that continues to be highly challenging. 
Trustee directors have welcomed actions the business has taken through the year to remain constantly agile and strategically responsive to forecast and unforeseen challenges in different territories.  
Trustee directors have continued to seek reassurance that risks are being effectively managed, and that the Board of Broadway Malyan Holdings Ltd ensures the voice of colleagues is routinely heard, considered and responded to in business decisions, and the motivation, morale and wellbeing of colleagues remains a consistent priority. 

Future outlook
 
Financial recovery has been a key focus for the directors over the financial year. However, as an employee-owned business, we continue to drive forward initiatives that will improve the working agenda for all our colleagues and clients.
 
Sustainability and ESG initiatives are high priorities, both internally as a responsible business, and also for our clients in the design work we deliver. Improvement in business performance means the Group is also able to make strategic investments in the year ahead with a focus on IT, Marketing and Communications and Operating and Finance systems. 
The Group has taken huge steps to become more agile as an international and geographically diverse business, and this work is continuing to ensure that it remains able to respond to the requirements of our clients and also to mitigate market risk. 

Page 2

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 



GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024


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



D C McDonald
Director

Date: 17 October 2024

Page 3

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024

The Directors present their report and the financial statements for the year ended 30 April 2024.

Directors' responsibilities statement

The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

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


select suitable accounting policies for the Group'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 Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation and minority interests, amounted to £233,844 (2023 - loss £22,575).

No dividends have been proposed or recommended in the current or prior year.

Directors

The Directors who served during the year were:

A T Goldthorpe 
R M Kaminski 
D C McDonald 
S Mishra (resigned 6 June 2024)
B Somner 
M Bik (resigned 12 April 2024)
L Bezerra (appointed 22 May 2023)

Future developments

Our aim is to provide the practice with a stable management and ownership structure, and a robust business platform that can respond to the market changes and deliver future innovation, growth and profitability. Our Business Strategy which sets out core aims around design leadership, value-add, efficiency, investment in people and new territories is imperative to our future success, so maintaining financial sustainability and a proactive approach to cost management giving us the continued ability to invest at this point in the practice's cycle are also key to long-term plans.

Page 4

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED

(A Company Limited by Guarantee)
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024

Risks

Financial instrument risks - the Group has established a risk and financial management framework whose primary objective is to protect the group from events that hinder the achievement of the group's performance objectives. The objectives aim to limit undue exposure, ensure sufficient working capital exists and monitor the management of risk at a business unit level.
Foreign currency risks - the company routinely contracts in currencies other than sterling. Liabilities relating to such contracts are denominated in the same currencies to minimise the company's net exposure.
Credit risk - all new clients are subject to appropriate credit checks before substantive work commences. Further checks are made as appropriate as work progresses. The frequency and depth of credit checks has been increased to ensure the risk of payment default or delay due to coronavirus is identified at an early stage.
Liquidity risk - the company maintains appropriate levels of working capital and long term finance to ensure that it has sufficient funds available for its operations and short-term investment plans.

Going concern

The Group’s business activities, together with the factors likely to affect its future development, its financial position, financial risk management objectives, details of its financial instruments and exposures to financial risk are described above.  Note 2.4 also describes the going concern position of the Group.
The Group has appropriate financial resources, together with long-term contracts with customers across different geographical areas and industry sectors.  As a consequence, the directors believe that the Group is well placed to manage its business risks successfully, despite the current uncertain economic outlook.

Research and development activities

Broadway Malyan undertakes a range of research and development projects including technical materials and specifications, sustainability, and IT infrastructure research. Subsidiaries of the group also undertake R&D activities in the context of the projects they are delivering.

Matters covered in the Group Strategic Report

The Company has chosen in accordance with Section 414C(II) of the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 to set out within the Company’s Strategic Report, the information required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties.

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 and the Group'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 and the Group's auditors are aware of that information.

Post balance sheet events

There are no post balance sheet events to report.

Page 5

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED

(A Company Limited by Guarantee)
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024

Auditors

The auditorsMenzies LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





D C McDonald
Director
Date: 17 October 2024

Page 6

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 

img58a9.png
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED

Opinion


We have audited the financial statements of Broadway Malyan Employee Ownership Trustees Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 April 2024, which comprise the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company 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 Group's and of the parent Company's affairs as at 30 April 2024 and of the Group's 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 Group 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 Group's or the parent 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.


Page 7

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED

(A Company Limited by Guarantee)


img088e.png
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED (CONTINUED)

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 ReportOur 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.


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 Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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 4, 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 8

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED

(A Company Limited by Guarantee)


img3155.png
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES 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 Group 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:

The Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant:

The Companies Act 2006;
Financial Reporting Standard 102;
General Data Protection Regulations; and
UK tax legislation.

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

We understood how the Group is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures.

The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.

We assessed the susceptibility of the Group financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

Identifying and assessing the measures management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
Challenging assumptions and judgments made by management in its significant accounting estimates; and
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

The use of management override of controls to manipulate results, or to cause the Group to enter into transactions not in its best interests; or
Posting of unusual journals and complex transactions.


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.


Page 9

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED

(A Company Limited by Guarantee)


img298b.png
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED (CONTINUED)

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.





Ralph Mitchison FCA (Senior Statutory Auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
Lynton House
7-12 Tavistock Square
London
WC1H 9LT

17 October 2024
Page 10

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024

2024
2023
Note
£
£

  

Turnover
 4 
40,339,514
37,609,719

Cost of sales
  
(24,959,457)
(24,092,305)

Gross profit
  
15,380,057
13,517,414

Administrative expenses
  
(14,372,551)
(13,153,928)

Other operating income
 5 
739
107,047

Operating profit
 6 
1,008,245
470,533

Interest receivable and similar income
 10 
114,672
4,349

Interest payable and similar expenses
 11 
(288,233)
(210,605)

Profit before tax
  
834,684
264,277

Tax on profit
 12 
(533,916)
(241,341)

Profit for the financial year
  
300,768
22,936

Profit for the year attributable to:
  

Non-controlling interests
  
66,924
45,511

Owners of the parent
  
233,844
(22,575)

  
300,768
22,936

The notes on pages 21 to 41 form part of these financial statements.

Page 11

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024

2024
2023
Note
£
£


Profit for the financial year

  

300,768
22,936

Other comprehensive income
  


Currency translation differences
  
(225,114)
(94,527)

Total comprehensive income for the year
  
75,654
(71,591)

Profit for the year attributable to:
  


Non-controlling interest
  
66,924
45,511

Owners of the parent Company
  
233,844
(22,575)

  
300,768
22,936

Total comprehensive income attributable to:
  


Non-controlling interest
  
(5,690)
7,492

Owners of the parent Company
  
81,344
(79,083)

  
75,654
(71,591)

The notes on pages 21 to 41 form part of these financial statements.

Page 12

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
  
(A Company Limited by Guarantee)
REGISTERED NUMBER:10356194



CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 13 
380,616
793,559

Tangible assets
 14 
644,646
800,825

  
1,025,262
1,594,384

Current assets
  

Debtors: amounts falling due after more than one year
 16 
178,198
190,844

Debtors: amounts falling due within one year
 16 
15,653,169
13,583,105

Cash at bank and in hand
 17 
2,959,164
1,285,214

  
18,790,531
15,059,163

Creditors: amounts falling due within one year
 18 
(11,404,974)
(11,725,420)

Net current assets
  
 
 
7,385,557
 
 
3,333,743

Total assets less current liabilities
  
8,410,819
4,928,127

Creditors: amounts falling due after more than one year
 19 
(1,014,750)
-

Other provisions
 23 
(2,445,000)
-

Total provisions
  
 
 
(2,445,000)
 
 
-

Net assets
  
4,951,069
4,928,127


Capital and reserves
  

Reserve for own shares
 24 
(2,008,041)
(2,017,829)

Profit and loss account
 24 
2,080,328
2,053,437

Equity attributable to owners of the parent Company
  
72,287
35,608

Non-controlling interests
  
4,878,782
4,892,519

  
4,951,069
4,928,127


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



D C McDonald
Director
Date: 17 October 2024

The notes on pages 21 to 41 form part of these financial statements.
Page 13

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
  
(A Company Limited by Guarantee)
REGISTERED NUMBER:10356194



COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 15 
4,262,224
4,262,224

  
4,262,224
4,262,224

  

Creditors: amounts falling due within one year
 18 
(193,529)
(158,358)

Net current liabilities
  
 
 
(193,529)
 
 
(158,358)

Total assets less current liabilities
  
4,068,695
4,103,866

  

  

Net assets
  
4,068,695
4,103,866


Capital and reserves
  

Profit and loss account brought forward
  
4,103,866
4,103,866

Loss/(profit) for the year
  
(35,171)
-

Profit and loss account carried forward
  
4,068,695
4,103,866

  
4,068,695
4,103,866


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




D C McDonald
Director
Date: 17 October 2024

The notes on pages 21 to 41 form part of these financial statements.

Page 14


 
BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024



Reserve for own shares
Profit and loss account
Attributable to parent
Non-controlling interests
Total equity


£
£
£
£
£



At 1 May 2022
(2,369,253)
2,133,886
(235,367)
4,883,661
4,648,294





Profit for the year
-
(22,575)
(22,575)
45,511
22,936


Currency translation differences
-
(56,508)
(56,508)
(38,019)
(94,527)

Total comprehensive income for the year
-
(79,083)
(79,083)
7,492
(71,591)


Partial disposal/(acquisition) of subsidiary undertaking
-
(1,366)
(1,366)
1,366
-


Net acquisition of own shares held
351,424
-
351,424
-
351,424



Total transactions with owners
351,424
(1,366)
350,058
1,366
351,424





At 1 May 2023
(2,017,829)
2,053,437
35,608
4,892,519
4,928,127





Profit for the year
-
233,844
233,844
66,924
300,768


Currency translation differences
-
(152,500)
(152,500)
(72,614)
(225,114)

Total comprehensive income for the year
-
81,344
81,344
(5,690)
75,654


Partial disposal/(acquisition) of subsidiary undertaking
-
(54,453)
(54,453)
(8,047)
(62,500)


Net acquisition of own shares held
9,788
-
9,788
-
9,788



Total transactions with owners
9,788
(54,453)
(44,665)
(8,047)
(52,712)



At 30 April 2024
(2,008,041)
2,080,328
72,287
4,878,782
4,951,069



Page 15


 
BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED

(A Company Limited by Guarantee)


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024

The notes on pages 21 to 41 form part of these financial statements.

Page 16


 
BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED

(A Company Limited by Guarantee)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024



Profit and loss account
Total equity


£
£



At 1 May 2022
4,103,866
4,103,866





At 1 May 2023
4,103,866
4,103,866





Loss for the year
(35,171)
(35,171)

Total comprehensive income for the year
(35,171)
(35,171)



At 30 April 2024
4,068,695
4,068,695



The notes on pages 21 to 41 form part of these financial statements.

Page 17

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 



CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
300,768
22,936

Adjustments for:

Amortisation of intangible assets
411,497
340,303

Depreciation of tangible assets
222,945
61,636

Loss on disposal of tangible assets
7,101
-

Interest payable
288,233
210,605

Interest receivable
(114,672)
(4,349)

Taxation charge
533,916
241,341

(Increase)/decrease in debtors
(1,694,795)
40,429

Increase/(decrease) in creditors
1,914,239
(737,661)

Increase in provisions
820,000
-

Corporation tax received/(paid)
491,029
(549,843)

Foreign exchange
(204,375)
(40,958)

Interest paid
(282,067)
(201,610)

Net cash generated from operating activities

2,693,819
(617,171)


Cash flows from investing activities

Purchase of intangible fixed assets
-
(9,479)

Purchase of tangible fixed assets
(88,549)
(189,338)

Acquisition of subsidiary less cash acquired
-
(100,001)

Interest received
114,672
4,349

HP interest paid
(6,166)
(8,995)

Increase of shares held in subsidiary
(62,500)
-

Net cash from investing activities

(42,543)
(303,464)

Cash flows from financing activities

Sale of ordinary shares
291,352
378,183

Purchase of ordinary shares
(141,841)
(182,741)

New bank loans
1,385,755
1,391,387

Repayment of loans
(1,757,110)
(1,848,953)

Repayment of/new finance leases
21,236
(205,631)

Net cash used in financing activities
(200,608)
(467,755)
Page 18

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 



CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024


2024
2023

£
£



Net increase/(decrease) in cash and cash equivalents
2,450,668
(1,388,390)

Cash and cash equivalents at beginning of year
508,496
1,896,886

Cash and cash equivalents at the end of year
2,959,164
508,496


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,959,164
1,285,214

Bank overdrafts
-
(776,718)

2,959,164
508,496


The notes on pages 21 to 41 form part of these financial statements.

Page 19

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 



CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 APRIL 2024





At 1 May 2023
Cash flows
Other non-cash changes
At 30 April 2024
£

£

£

£

Cash at bank and in hand

1,285,214

1,673,950

-

2,959,164

Bank overdrafts

(776,718)

776,718

-

-

Debt due after 1 year

-

471,097

(1,485,847)

(1,014,750)

Debt due within 1 year

(1,982,957)

(99,742)

1,485,847

(596,852)

Finance leases

(175,784)

(21,236)

-

(197,020)


(1,650,245)
2,800,787
-
1,150,542

The notes on pages 21 to 41 form part of these financial statements.

Page 20

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

1.


General information

Broadway Malyan Employee Ownership Trustees Limited is a private company limited by guarantee, incorporated in England and Wales. The Registered Office is Holmes House, 4 Pear Place, London SE1 8BT.
The nature of the group's operations and its principal activities are set out in the Strategic Report.

2.Accounting policies

 
2.1

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 Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Income Statement in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Income Statement from the date on which control is obtained. They are deconsolidated from the date control ceases.

  
2.3

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 11.41(b), 11.41(c), 11.41(e), 11.41(f), 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.

Page 21

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.4

Going concern

Following the Grenfell Tower tragedy, the insurance market has tightened with reduced cover for fire and cladding related claims. Broadway Malyan is subject to possible claims (note 26) which it is defending. The directors have reviewed scenarios resulting from material claims being brought, which may result in provision and payment of insurance excess or payment of legal defence costs for each of the claims. The directors have also considered scenarios where multiple claims are brought which have limited or no insurance cover due to their fire-related nature, and where the claims are of an intermediate size and the possible liability is shared. If these scenarios were to occur, the group’s finances could come under pressure in the short and medium-term but would expect to remain within the terms and conditions of its banking facilities.
The directors have also considered circumstances where a greater portion of the liability could be attributed to the group; even though the probability of such outcome is small and unlikely to crystallise within the subsequent reporting year (if at all) given the prolonged nature of the legal process. In the event of such worsened circumstances, however, Broadway Malyan expects to have sufficient time and notice to take action to try to mitigate the impact of a large claim on the group’s finances by, for example, conserving cash and negotiating a realistic payment plan with stakeholders, ensuring the group continues to operate within the terms and conditions of its financing facilities.
The directors therefore conclude by making informed judgements from the data compiled, that the group is a going concern as at the date of approval of these financial statements and looking 12 months forward and continue to adopt a going concern basis in preparing the financial statements.

 
2.5

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.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 22

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.6

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. 
Rendering of services
Revenue for consultancy and other services is recognised by reference to the stage of completion.  Stage of completion is measured by reference to labour hours and related costs incurred to date as a percentage of total estimated labour hours and other related costs for each contract.  Where the contract outcome cannot be measured reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.  
Where contracts are expected to have outturn losses, the losses are recognised in full immediately as onerous contracts.

 
2.7

Operating leases: the Group as lessee

Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the group, and hire purchase contracts are capitalised in the balance sheet and are depreciated over the shorter of the lease term and the assets' useful lives.
A corresponding liability is recognised for the lower of the fair value of the leased asset and the present value of the minimum lease payments in the balance sheet.
Lease payments are apportioned between the reduction of the lease liability and finance charges in the income statement so as to achieve a constant rate of interest on the remaining balance of the liability.
Rentals payable under operating leases are charged to the income statement on a straight-line basis over the lease term. Lease incentives are recognised over the lease term on a straight-line basis.

 
2.8

Research and development

Research and development expenditure is written off in the period in which it is incurred.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 23

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.10

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.11

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 reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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 reporting date.

Page 24

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.12

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Income Statement over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Amortisation is provided on the following basis:
Goodwill - 3 years straight line
Software - 3 years straight line

 
2.13

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.

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.

Depreciation is provided on the following basis:

Leasehold improvements
-
Over the lease term
Fixtures, fittings & equipment
-
2-5 years
Motor vehicles
-
4 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.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 25

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.16

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument.

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

 
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 26

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported in revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those judgements. 
Accrued and deferred income 
Revenue recognition includes estimations that are susceptible to management's estimations of the cost to complete, any additional fees and the stage of completion of the job. 
Impairment of trade receivables 
The Group endeavours to undertake work only for clients who have the financial strength to complete projects. Problems with financing can on occasion unfortunately lead to clients being unable to pay their debts either on a temporary or more permanent basis. The Group monitors receipts from clients closely and undertakes a range of actions if there are indications a client is experiencing funding problems. The Group makes impairment allowances if it is considered there is a significant risk of non- payment. The factors assessed when considering an impairment allowance include the general financial strength of the client and the length of time likely to be necessary to resolve the funding problems. 
Onerous contracts 
Where the unavoidable costs of a contract substantially exceed the expected economic benefit derived from it, the contract will be treated as onerous, Estimation of the necessary provision is susceptible to management's estimation of the cost to complete, any additional fees and the stage of completion of the job.

Professional indemnity claims
In common with comparable professional service practices, the Group is involved in a number of disputes in the ordinary course of business which may give rise to claims. The Group defends such claims where appropriate and such claims are provided for in the financial statements where and to the extent that any liability is likely to arise and they meet the criteria specified in the provision for liabilities accounting policy.  For such provisions the Group recognises the expected full claim value within provisions and expected reimbursements from professional indemnity insurance within debtors with any insurance excess taken through the P&L.  Amounts provided for are based on management's assessment of the specific circumstances in each case based on information known at the time of signing the accounts.

Page 27

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

4.


Turnover

Turnover represents the amounts derived from the provision of goods and services which fall within the group's ordinary activities.

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
11,482,722
12,034,412

Rest of Europe
6,429,088
8,857,425

Middle East and Asia
21,161,759
16,229,026

Rest of the world
1,265,945
488,856

40,339,514
37,609,719



5.


Other operating income

2024
2023
£
£

Other government grants
739
107,047

739
107,047



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Research & development charged as an expense
-
900,000

Exchange differences
108,140
109,175

Operating leases - Land and buildings
806,172
456,940

Operating leases - Plant and machinery
96,013
81,754


7.


Auditors' remuneration

2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
9,850
9,750

Page 28

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

8.


Employees

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


Group
Group
2024
2023
£
£


Wages and salaries
19,425,948
15,575,326

Social security costs
2,224,041
2,057,877

Cost of defined contribution scheme
505,944
451,198

22,155,933
18,084,401


The company operates a stakeholder defined contribution pension scheme for the benefit of employees and directors. The assets of the scheme are administered by an independent pensions provider. Contributions outstanding as at the year end amounted to £40,844 (2023: £48,323) and were included in creditors.

The average monthly number of employees, including the Directors, during the year was as follows:


        2024
        2023
            No.
            No.







Client facing
280
300



Support
44
53

324
353

The Company has no employees other than the Directors, who did not receive any remuneration from the Company (2023 - £NIL).  Directors are paid by other group entities.

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
569,516
481,693

Group contributions to defined contribution pension schemes
30,509
13,719

600,025
495,412


During the year retirement benefits were accruing to 3 Directors (2023 - 3) in respect of defined contribution pension schemes.

The highest paid Director received remuneration of £220,701 (2023 - £152,670).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £17,438 (2023 - £4,587).

Page 29

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

10.


Interest receivable

2024
2023
£
£


Other interest receivable
114,672
4,349

114,672
4,349


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
262,196
197,840

Other loan interest payable
19,871
3,775

Finance leases and hire purchase contracts
6,166
8,990

288,233
210,605


12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
-
(267,872)

Adjustments in respect of previous periods
235,353
(8,671)


235,353
(276,543)

Foreign tax


Foreign tax on income for the year
290,528
574,020

290,528
574,020

Total current tax
525,881
297,477

Deferred tax


Origination and reversal of timing differences
8,035
(56,136)

Total deferred tax
8,035
(56,136)


Taxation on profit on ordinary activities
533,916
241,341
Page 30

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
834,684
264,277


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
208,671
50,213

Effects of:


Non-tax deductible amortisation of goodwill and impairment
62,606
23,790

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
25,363
15,147

Capital allowances for year in excess of depreciation
48,783
(42,188)

Difference in overseas tax rates
(191,877)
218,916

Adjustments to tax charge in respect of prior periods
235,353
(8,671)

Changes to tax rates used on deferred tax
-
(4,989)

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
-
(129,150)

Unrelieved tax losses carried forward
145,017
118,273

Total tax charge for the year
533,916
241,341


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 31

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

13.


Intangible assets

Group 





Computer software
Goodwill
Total

£
£
£



Cost


At 1 May 2023
915,249
751,269
1,666,518


Foreign exchange movement
(1,954)
-
(1,954)



At 30 April 2024

913,295
751,269
1,664,564



Amortisation


At 1 May 2023
747,747
125,212
872,959


Charge for the year on owned assets
161,074
250,423
411,497


Foreign exchange movement
(508)
-
(508)



At 30 April 2024

908,313
375,635
1,283,948



Net book value



At 30 April 2024
4,982
375,634
380,616



At 30 April 2023
167,502
626,057
793,559



The Company has no intangible fixed assets.
The net book value of computer software includes amounts of £Nil (2023: £156,931) in respect of amounts held under finance leases and hire purchase contracts.

Page 32

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

14.


Tangible fixed assets

Group






Short-term leasehold property
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 May 2023
1,495,251
148,988
3,298,513
4,942,752


Additions
26,369
-
62,180
88,549


Disposals
-
-
(29,054)
(29,054)


Exchange adjustments
(12,657)
(4,550)
(56,856)
(74,063)



At 30 April 2024

1,508,963
144,438
3,274,783
4,928,184



Depreciation


At 1 May 2023
983,830
116,280
3,041,817
4,141,927


Charge for the year on owned assets
132,075
11,143
79,727
222,945


Disposals
-
-
(21,953)
(21,953)


Exchange adjustments
(11,735)
(2,922)
(44,724)
(59,381)



At 30 April 2024

1,104,170
124,501
3,054,867
4,283,538



Net book value



At 30 April 2024
404,793
19,937
219,916
644,646



At 30 April 2023
511,421
32,708
256,696
800,825



Page 33

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 May 2023
4,262,224



At 30 April 2024
4,262,224




Page 34

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Broadway Malyan Holdings Limited
Holmes House, 4 Pear Place, London SE1 8BT
Ordinary
59.78%
Broadway Malyan Limited *
Holmes House, 4 Pear Place, London SE1 8BT
Ordinary
100%
Broadway Malyan Trustee Limited *
Holmes House, 4 Pear Place, London SE1 8BT
Ordinary
100%
Nexus Planning Limited *
Holmes House, 4 Pear Place, London SE1 8BT
Ordinary
62.85%
Broadway Malyan International Limited *
Holmes House, 4 Pear Place, London SE1 8BT
Ordinary
100%
Broadway Malyan Portugal Arquitectos e Designers Limitada *
Estacao do Rossio, Largo Duque de Cadaval, 17-1ºE, 1200- 160 Lisboa, Portugal
Ordinary
100%
Broadway Malyan Projectos e Design Ltda. *
Av. Paulista, 1079-8º Andar, 01311-200 Sao Paulo, Brazil
Ordinary
100%
Broadway Malyan Arquitectos & Designers SL *
Edifico Treviso, Calle Julian Camarillo, 42- 4a Pta ., 28037 Madrid , Spain
Ordinary
100%
Broadway Malyan Chile Arquitectos & Designers *
Av. Andres Bello No. 2711, Oficina 16601, Santiago Limitada, Chile
Ordinary
100%
Broadway Malyan Polska Architeckci Projektanci Sp.zo.o *
ul. Emilii Plater 28, 00-688 Warszawa, Poland
Ordinary
100%
Broadway Malyan India Pvt. Ltd *
604 Naman Centre, G-Block, Bandra Kurla Complex, Mumbai 400051, India
Ordinary
100%
Broadway Malyan Asia Pte. *
152 Beach Road #27-01/04, The Gateway East, Singapore, 189721
Ordinary
100%
Broadway Malyan (Shanghai) Company Limited *
Suite 1205 -1206 K.WAH Centre, 1010 Huaihai Middle Road, Shanghai 200031, Peoples Republic of China
Ordinary
100%
Broadway Malyan Mimarlik ve Sehir Planlama Hiz.Ltd. Ste *
c/o BDO Denet Yonetim Danismanligi, Eski Buyudere Cad No 14, 34398 Maslak, Istanbul, Turkey
Ordinary
100%
Will + Partners Limited*
Holmes House, 4 Pear Place, London SE1 8BT
Ordinary
100%
Will + Partners Architecture Limited*
Holmes House, 4 Pear Place, London SE1 8BT
Ordinary
100%
Re-Made (Partnerships) UK Ltd*
Holmes House, 4 Pear Place, London SE1 8BT
Ordinary
62.85%

* Held indirectly - The percentage shown for each holding is the amount held by the subsidiary company.  The group level of ownership of each indirect subsidiary is diluted by the 59.78% holding within Broadway Malyan Holdings Limited.
All group entities have a year end of 30 April, with the exception of Broadway Malyan (Shanghai) Company Limited which follows the Chinese convention for a 31 December year end, Broadway Malyan Chile Arquitectos & Designers which follows the Chilean convention for a 31 December year end, Broadway Malyan India Pvt. Ltd which has a 31 March year end following Indian convention and Broadway Malyan Limited Employee Benefit Trust with follows the relevant UK tax year to 5 April.

Page 35

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

16.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Due after more than one year

Deferred tax asset (note 22)
178,198
190,844
-
-

178,198
190,844
-
-


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Due within one year

Trade debtors
8,241,258
8,338,860
-
-

Other debtors
2,451,429
729,464
-
-

Prepayments and accrued income
1,126,239
1,003,584
-
-

Amounts recoverable on long-term contracts
3,759,259
2,186,482
-
-

Tax recoverable
74,984
1,324,715
-
-

15,653,169
13,583,105
-
-



17.


Cash and cash equivalents

Group
Group
2024
2023
£
£

Cash at bank and in hand
2,959,164
1,285,214

Less: bank overdrafts
-
(776,718)

2,959,164
508,496


Broadway Malyan Employe Ownership Trustees Limited participates in the group banking facilities and arrangements within the Broadway Malyan Group which provide day to day financing throughout the group of companies controlled by Broadway Malyan Holdings Limited.

Page 36

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

18.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank overdrafts
-
776,718
-
-

Bank loans
596,852
1,982,957
-
-

Payments received on account
613,472
599,727
-
-

Trade creditors
2,407,840
1,968,358
-
-

Amounts owed to group undertakings
-
-
170,539
158,358

Corporation tax
51,718
284,539
-
-

Other taxation and social security
1,131,601
1,132,707
-
-

Obligations under finance lease and hire purchase contracts
197,020
175,784
-
-

Other creditors
2,077,436
2,125,777
-
-

Accruals and deferred income
4,329,035
2,678,853
22,990
-

11,404,974
11,725,420
193,529
158,358


Loans and overdrafts are secured by various debentures providing fixed and floating charges over certain assets of the Broadway Malyan group of companies. Banking facilities comprise a committed facility for a six year period to July 2027.


19.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loans
1,014,750
-
-
-

1,014,750
-
-
-




Page 37

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

20.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2024
2023
£
£

Amounts falling due within one year

Bank loans
596,852
1,982,957


596,852
1,982,957

Amounts falling due within 1 and 5 years

Bank loans
1,014,750
-


1,611,602
1,982,957


In the prior year the loan was been reclassified as a current liability due to a breached banking covenant in a single quarter during the reporting year. The company's bankers have confirmed their ongoing support for the company and group. 


21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2024
2023
£
£

Within one year
-
175,784

-
175,784

Page 38

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

22.


Deferred taxation


Group



2024


£






At beginning of year
190,844


Charged to profit or loss
(8,035)


Utilised in year
(4,611)



At end of year
178,198

Company


2024





At beginning of year
-



At end of year
-
Group
Group
2024
2023
£
£

Accelerated capital allowances
172,573
190,818

Pension surplus
5,625
26

178,198
190,844


23.


Provisions


Group



Provisions

£





Charged to profit or loss
2,445,000



At 30 April 2024
2,445,000

The above is the gross provision for claims, of which there is an offsetting amount with in other debtors in note 16, which are amounts due from insurance policies.

Page 39

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

24.


Reserves

Reserves for own shares

This reserve records amounts held in relation to shares held by the Employee Benefit Trust and Employee Ownership Trust.

Profit and loss account

This reserve records retained earnings and accumulated losses.



25.


Company status

The Company is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation.


26.


Contingent liabilities

The Group is in receipt of a number of professional indemnity claims which at this point in time the likelihood of the
outcome and the amount of any potential settlement cannot be reliably estimated. The claims are being robustly defended.


27.


Commitments under operating leases

At 30 April 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Not later than 1 year
1,025,995
1,036,261

Later than 1 year and not later than 5 years
4,649,011
3,775,999

Later than 5 years
699,549
699,549

6,374,555
5,511,809
The Company has no commitments under non-cancellable operating leases at the reporting date.

Page 40

 


BROADWAY MALYAN EMPLOYEE OWNERSHIP TRUSTEES LIMITED
 
(A Company Limited by Guarantee)
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

28.


Related party transactions

The Group has taken advantage of FRS 102 33.1A, not to disclose transactions with wholly owned parties within the Broadway Malyan Holdings Limited group of entities.
Nexus Planning Limited 
Nexus Planning Limited is a partly owned direct subsidiary undertaking of Broadway Malyan Limited, a company incorporated in England and Wales. 
During the year Nexus Planning Limited made sales to Broadway Malyan Limited of £26,521 (2023: £9,473). As at 30 April 2024 Nexus Planning Limited owed Broadway Malyan Limited £1,496 (2023: £55,777) in respect of group loans. 
During the year to 30 April 2024 Broadway Malyan Holdings Limited made charges of £247,853 (2023: £152,794) to Nexus Planning Limited. As at 30 April 2024 Broadway Malyan Holdings Limited was owed from Nexus Planning Limited £165,790 (2023: £152,794 due to Nexus) in respect of group loans. 
Key Management Personnel
Key management personnel includes all directors and a number of senior managers across the group who together have authority and responsibility for planning, directing and controlling the activities of the group.  The total compensation paid to key management personnel during the year was £3,250,522 (2023 - £4,270,806).

 
Page 41