Company registration number 02800215 (England and Wales)
SCOTT BROWNRIGG LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
SCOTT BROWNRIGG LIMITED
COMPANY INFORMATION
Directors
D E Comber
A M Olliff
R J McCarthy
I Williamson
Secretary
I Williamson
Company number
02800215
Registered office
77 Endell Street
London
WC2H 9DZ
Auditor
Forvis Mazars LLP
30 Old Bailey
London
EC4M 7AU
SCOTT BROWNRIGG LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -
The directors present the strategic report for the year ended 31 January 2024.
Business Overview
We are a global design leader ranked within the Global Top 100 and within the UK Top 20 of architectural practices. We have the vision to be recognised for transforming the industry and enriching lives through the built environment to create a better world.
We provide architecture, interior design, master planning and urbanism, design strategy and delivery, design management and safety, digital technology, conservation, and technical advice across all major sectors. We have a strong presence in advanced technologies, aviation, business space, defence & security, hospitality, digital culture media & sport, education, health, rail, and residential and mixed-use schemes.
Our studios are positioned to place us at the forefront of service delivery across the UK in London, Guildford, Cardiff, and Edinburgh, and international studios in New York, Singapore, Amsterdam, and the Kingdom of Saudi Arabia. These together with strategic alliances in the Middle East, Turkey, and Vietnam enable us to serve our growing international client and project base.
We are 100% employee-owned and transitioned into an Employee Ownership Trust in November 2021. Our design excellence is not transient but is underpinned by critical analysis, rigorous research, and commercial intelligence enabling us to have created inspirational environments for over 114 years. Through collaboration across all our services, sectors, and studios, we aim to ensure that each project makes a positive and lasting impact. We strive for opportunities to achieve a more diverse, sustainable, and culturally richer world and push ourselves, creatively, in business and as one global team.
Significant Achievements
The company has continued to adapt to take advantage of hybrid working, driving efficiencies in delivering global projects and ensuring collaboration across each service, sector and studio.
We continued to drive a diverse portfolio of projects, broadened our service offer, and grew our international presence. We have a longstanding history of advising on technical and safety design and have become the go-to architect on matters relating to the Building Safety Act – legislation that will continue to impact and shape the profession for many years to come.
With numerous live projects across the Oxford–Cambridge Arc, and the redevelopment of retail and office buildings into laboratories in both Cambridge and London underway, our work and reputation within the Life Sciences Sector continues to grow.
This year our Education Sector celebrated the completion of Epping Wellness Centre; a glulam timber-framed building which provides New City College and the wider community with state-of-the-art facilities for sport, fitness and wellbeing, and acts a gateway to a new residential development and public park in Essex.
We have seen a range of UK and international projects celebrated on the global stage again this year, including 1-21 Cambridge Science Park which reached the finalist stage at the BCO Regional Awards, and CABI Headquarters which reached the finalist stage at the BCO National Awards.
Milltimber School in Scotland was a finalist at the Scottish Design Awards, highly commended at the Learning Places Scotland Awards, and was awarded an Aberdeen Society of Architects (ASA) Education Design Award which celebrates high-quality design and creates a showcase for the profession. Istanbul Airport continues to be recognised within the industry, this year winning ‘The Accessible Airport’ Award at the Airport Honour Awards.
These awards are recognition of our commitment to design quality, innovation, and people, and demonstrate the breadth of expertise across our studios and practice.
Our Interior Design service celebrates its 25th Anniversary in 2024, looking back on an impressive portfolio of award-winning workplace, residential, and hospitality interior design projects developed over the years.
SCOTT BROWNRIGG LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
Significant Achievements (continued)
As part of our commitment to inclusion and encouraging wider access to the profession, we continue to build on our ‘Future Talent Programme’ which brings together initiatives intended to reach a diverse range of people, particularly those from disadvantaged backgrounds or under-represented in architecture.
In 2023 we celebrated the first of our apprentices, who were among the first in the country, to qualify as architects through the architectural apprenticeship route after joining our pilot apprenticeship programme in 2018.
Our Scott Brownrigg Alumni Network, launched during the year, continues to grow; allowing for the exchange of ideas, experiences, and knowledge within our network and across the company.
As an Employee Ownership Trust, there is a greater opportunity for all staff to participate in the success of the Group whilst also creating effective channels of communication that ensures all employees have a voice to contribute to our future.
Financial Performance
The company’s performance against key performance indicators (“KPI’s) during the year ended 31 January 2024 can be summarised as follows:
Turnover at £20,613,852 (2023: £20,067,370) increased by 3% in comparison to the prior year. The company delivered a strong first half of the year, exceeding budgeted targets, following a number of projects entered into in the prior financial year going live. The second quarter of the year was impacted by the growing uncertainty due to increasing inflation, cost of living impacts and market confidence declining within the UK economy. A number of projects were paused or placed on hold, and most projects re-engaging in the fourth quarter only.
Total comprehensive income for the year is £2,875,027 (2023: £2,466,530).
Average Technical headcount remained steady at 140 (2023: 155)
Other operating charges of £6,016,245 (2023: £5,929,134) which includes administration expenses, increased marginally by 1%. Professional Indemnity insurance premiums following the industry impact of cladding claims and software licencing costs continued to increase year-on-year.
Whilst the market pressure on fees driven by market uncertainty may remain for some time, the company has been able to successfully navigate through market volatility through intentional geographical diversification and operational efficiencies during the year, generating an operating profit of £3,155,439 (2023: £3,079,732), an increase of 2% on prior year.
UK and International markets were impacted by rising costs of living, inflation, rising construction costs as well as the continued political uncertainty currently being faced by Europe and Gaza. The impact had resulted in decreased pipeline activity during the second and third quarter of 2023, not dissimilar to the prior year in which projects were delayed and restarted in the new financial year. Project conversion at the start of the 2024 financial year has been strong. The company continues to invest in its international strategy with important hubs established in the USA, Singapore, Amsterdam and the Kingdom of Saudi Arabia, with the aim of business development within these regions.
Through control efficiencies and a collaborative approach cross-practice to on-boarding of new projects, debtor days and cash collection targets remained robust throughout the year, and the risk of long outstanding debt and disputes well mitigated. This has enabled the company to build a strong Net Asset Value, along with bank loans secured in 2020.
SCOTT BROWNRIGG LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
Strategic Initiatives
We are continuously building upon our 5 Year Plan that will not only transform the practice, but will also ensure that we build a sustainable design focussed business with embedded resilience for the future. This has been evidenced in the delivery of a new ownership structure, which has been in place for just over one year. The new structure not only ensures continuity of the Scott Brownrigg brand – but fundamentally allows all staff to drive the future of the company and share in its successes.
We continue to invest in our international strategy. Design Management Unit (DMU) together with our other services like Design Delivery Unit (DDU), Safety Design Unit (SDU) and Digital Twin Unit (DTU) places the company in a unique client service offering. This expertise positions us well as the UK industry transitions to accommodate the requirements of the new Building Safety Act.
Our specific sector expertise, market-leading technical knowledge and our Design Research Unit (DRU) supports and influences all the leading architecture research across the group.
We continue to invest into the applied and fundamental research topics, incorporating sustainability and also work in partnership with the RIBA, to disseminate knowledge, utilising various communication platforms.
Principal Risks and Uncertainties
The risks facing the company continue to be managed at group level through our Strategic Board and Operations Board. The principal risks and uncertainties can be summarised as follows:
Economic Uncertainty
Several economic factors continue to impact the company, including cost of living increases, inflation and interest rate rises. These differ in each of the regional locations in which we operate. We continue to diversify our business across territories, markets and sectors to reduce volatility.
The change to the operating model, implemented in 2021, effectively enables teams to work on projects not constrained to their physical location. This has allowed for improved collaboration, global engagement, and sector utilisation of our staff and ensuring optimal profit generation.
Regional Conflicts
The outbreak of conflict in Ukraine/Russia impacted projects and pipelines in the impacted regions. All project work has been ceased and the impacts have been managed through the diversification of our portfolios. Extensive checks are performed on contracting parties to ensure relevant sanction compliance.
Cash flow management and late payments
Liquidity and funding risk is managed by maintaining appropriate levels of working capital and finance (short and long-term) to ensure the company has sufficient funds available for its operations and short-term investment plans, with cash flow projections reviewed by management every month.
Credit risk
Additional safeguarding measures have been put in place to ensure the credit health of all existing clients are reviewed monthly and full credit and compliance checks are performed on all new and potential clients, to mitigate any exposure to defaults on contracted terms. Any long outstanding debt is flagged for management review and action every month.
Technology systems, sensitive data and cyber risk
We continue to invest in our technology infrastructure and have introduced several advanced virtual interfaces during the year that continue to ensure our systems and data are secure from external threats.
SCOTT BROWNRIGG LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 4 -
Principal Risks and Uncertainties (continued)
Foreign exchange volatility
There has been a degree of currency fluctuation particularly as the impact of rising costs of living and political uncertainties unfolded during the half of the financial year. We are managing currency risk by matching revenue and expenditure to minimise the company’s net exposure. Any other significant transactions are hedged if revenue and expenditure cannot be matched.
Continuing to attract and retain highly skilled international staff
As a global design-focussed business we are reliant on the skills and diversity that international staff bring to all of our studios. We are monitoring the changes in UK immigration rules closely and are encouraged that our profession has been recognised and is included on the Shortage Occupation List. We also work hard to provide opportunities for staff to gain experience working in each of our international studios.
Downward price pressure on fees
We are constantly evaluating our cost base to ensure this is in line with forecasted income levels and are investing in technologies that improve the quality and efficiency of our work. We monitor fee proposals and agreements carefully to ensure we are offering the appropriate level of service requested by our clients.
Business interruption and infrastructure
We have robust Business Continuity Plans for each of our studios and a Disaster Recovery Plan that outlines how our digital systems are backed up. These plans are reviewed and revised regularly.
We manage all these risks through a process of policies and controls which are set by the Strategic Board and implemented and managed by the Operations Board. All risks are assigned to owners and are reviewed regularly to further assess the extent and effectiveness of the controls.
The company seeks to diversify risks wherever possible, particularly through developing work in new business sectors and geographical areas. This is especially important for the coming years given the continued uncertainty over the UK economy.
Employee Relations
We are 100% employee-owned and on 12 November 2021, transitioned from an Employee Benefit Trust to an Employee Ownership Trust. This transition not only allows for all staff to share in the success of the group but also enables effective succession planning. We have a number of channels through which we communicate to staff. These include regular communications from the CEO, monthly Townhall meetings in each Studio, the Employee Ownership Committee, internal roadshows, and our company intranet. Our Annual Business Plan is shared with all staff and discussion is encouraged on all aspects of the business’s performance.
Our people are our business and it is essential to ensure equality of pay and opportunity to all within an inclusive and supportive environment. Our gender pay gap is improving year on year, with the median decreasing from 17% to 14%.
We measure the levels of staff engagement through regular staff surveys and results have shown an increase in engagement across a number of key metrics.
As an industry mentor and the only major Architectural practice to be nominated as one of the 9 Industry mentors by the RIBA, we collaborate with universities to clear a path for the next generation of designers. Raw talent and fresh perspectives are what keep design relevant. We have worked with ‘Blueprint for All’ (formerly the Stephen Lawrence Charitable Trust) since 2010.
We have also increased the number of trainee apprentices again during the year, demonstrating our commitment to developing talent.
Staff from across studios regularly support local charity groups, through fund raising activities, but also through company-sponsored time available to all staff during the year.
SCOTT BROWNRIGG LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 5 -
Future Outlook
Despite the ongoing challenges in relation to the cost of living crisis as well as the political uncertainty Europe/Gaza still faces, we remain positive about the future and with a very strong financial base that has grown year-on-year, we continue to focus on providing excellence in design and technical service to our clients and those who interact with the buildings and environments we create.
Management continues to focus on the future, completing existing projects and seeking new opportunities in new markets, mitigating exposure in the regions in which we operate.
We are very focused on the urgent need to decarbonise and work towards a carbon-neutral environment. We have signed up to several climate pledges and are determined to make a difference through reducing embodied carbon and ongoing energy requirements in all of our projects.
We are also determined to make a difference in construction Health and Safety and using our international footprint we aim to raise awareness of this issue to ensure that all projects we are involved in are designed, constructed, and maintained safely.
Finally, we continue to invest heavily in technology across all aspects of our business. This ranges from embracing virtual interfaces and cloud-based technology – allowing for a truly global collaborative environment across disciplines and teams, and enhancing the quality and speed of our state-of-the-art software that allows our clients to better experience and interact with the design process at a very early stage. We are continuously striving to automate systems and processes, thereby improving our accuracy and efficiency and allowing us to dedicate more time to being creative.
D E Comber
Director
1 August 2024
SCOTT BROWNRIGG LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 6 -
The directors present their annual report and financial statements for the year ended 31 January 2024.
Principal activities
The principal activity of the company is to provide architectural, planning, interior design, project management and property development consultancy services.
Results and dividends
During the financial year ended 31 January 2024 the company distributed dividends to its ultimate parent company amounting to £2.25m (2023: £185k).
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
D E Comber
A M Olliff
R J McCarthy
I Williamson
N L McOmish
(Resigned 7 February 2023)
Post reporting date events
Post year-end, the company paid a dividend distribution to its parent company amounting to £2.5m on 19 March 2024.
Matters of strategic importance
Exposure to risks, financial risk management and future developments; this information is disclosed within the Strategic Report under the section “Strategic management and future developments” in accordance with section 414C(11) of the Companies Act 2006.
Going concern
The directors consider that the going concern basis for the preparation of the group’s financial statements remains appropriate, see accounting policy laid out on page 17.
Directors’ liability insurance
Qualifying third party indemnity provision is in place for the benefit of all directors of the company.
Auditor
The auditor, Forvis Mazars LLP, has indicated its willingness to continue in office.
Statement of disclosure to auditor
The directors who were in office on the date of approval of these financial statements have confirmed that, as far as they are aware, there is no relevant audit information of which the auditor is unaware. The directors have confirmed that they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.
SCOTT BROWNRIGG LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 7 -
On behalf of the board
D E Comber
Director
1 August 2024
SCOTT BROWNRIGG LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
SCOTT BROWNRIGG LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SCOTT BROWNRIGG LIMITED
- 9 -
Opinion
We have audited the financial statements of Scott Brownrigg Limited (the 'company') for the year ended 31 January 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 January 2024 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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.
SCOTT BROWNRIGG LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCOTT BROWNRIGG LIMITED
- 10 -
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 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, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
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.
Based on our understanding of the company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation and anti-money laundering regulation..
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.
SCOTT BROWNRIGG LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCOTT BROWNRIGG LIMITED
- 11 -
Auditor’s responsibilities for the audit of the financial statements (continued)
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.
In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition (which we pinpointed to the cut off assertion, and significant one-off or unusual transactions.
Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
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 auditor’s report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Gareth Jones
Senior Statutory Auditor
For and on behalf of Forvis Mazars LLP
1 August 2024
Chartered Accountants
Statutory Auditor
30 Old Bailey
London
EC4M 7AU
SCOTT BROWNRIGG LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 12 -
2024
2023
Notes
£
£
Turnover
3
20,613,852
20,067,370
Other operating income
6,768
20,530
Staff costs
8
(10,946,712)
(10,594,861)
Depreciation of tangible fixed assets and other amounts written off tangible and intangible fixed assets
6
(224,113)
(174,426)
Impairment adjustment to intercompany loan
6
(220,574)
(251,429)
Amortisation of goodwill, website and in-house development
6
(57,537)
(58,318)
Other operating charges - administrative expenses
(6,016,245)
(5,929,134)
Operating profit
6
3,155,439
3,079,732
Interest receivable and similar income
4
30,409
7,021
Interest payable and similar charges
5
(206,982)
(258,536)
Profit for the financial period
2,978,866
2,828,217
Taxation
10
(92,589)
(411,437)
Profit on ordinary activities after taxation and profit for the financial period
2,886,277
2,416,780
Other comprehensive income net of taxation
Actuarial (loss)/gain on defined benefit pension scheme
(15,000)
133,000
Defined benefit pension scheme surplus
(50,000)
Tax relating to other comprehensive income
3,750
(33,250)
Total comprehensive income for the year
2,875,027
2,466,530
The results of 2024 are derived solely from continuing operations.
The notes on 15 to 36 form part of these financial statements.
SCOTT BROWNRIGG LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 JANUARY 2024
31 January 2024
- 13 -
2024
2023
Notes
£
£
Fixed assets
Goodwill
12
100,002
150,003
Other intangible assets
12
25,347
32,883
Total intangible assets
125,349
182,886
Tangible assets
13
2,554,297
2,512,441
Investments
14
5,289,314
5,289,314
7,968,960
7,984,641
Current assets
Debtors
16
9,791,473
10,446,726
Cash at bank and in hand
5,417,231
6,141,121
15,208,704
16,587,847
Creditors: amounts falling due within one year
17
6,655,943
7,978,236
Net current assets
8,552,761
8,609,611
Total assets less current liabilities
16,521,721
16,594,252
Creditors: amounts falling due after more than one year
18
(3,092,263)
(3,757,607)
Provisions for liabilities
Provisions
21
(40,055)
(40,039)
Deferred tax liability
21
(201,392)
(234,212)
Defined benefit pension liability
22
(5,000)
Net assets
13,183,011
12,562,394
Capital and reserves
Called up share capital
23
8,697
8,697
Revaluation reserve
272,537
272,537
Capital redemption reserve
1,303
1,303
Other reserves
(2,644,676)
(2,640,266)
Profit and loss reserves
15,545,150
14,920,123
Total equity
13,183,011
12,562,394
The financial statements were approved by the board of directors and authorised for issue on 1 August 2024 and are signed on its behalf by:
D E Comber
Director
Company Registration No. 02800215
SCOTT BROWNRIGG LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 14 -
Share capital
Revaluation reserve
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 February 2022
8,697
272,537
1,303
(2,640,266)
12,638,462
10,280,733
Year ended 31 January 2023:
Profit for the year
-
-
-
-
2,416,780
2,416,780
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
-
133,000
133,000
Defind benefit pension sceheme (deficit) / surplus
-
-
-
-
(50,000)
(50,000)
Tax relating to other comprehensive income
-
-
-
-
(33,250)
(33,250)
Total comprehensive income for the year
-
-
-
-
2,466,530
2,466,530
Dividends
11
-
-
-
-
(157,774)
(157,774)
EOT distribution to staff
-
-
-
-
(27,095)
(27,095)
Balance at 31 January 2023
8,697
272,537
1,303
(2,640,266)
14,920,123
12,562,394
Year ended 31 January 2024:
Profit for the year
-
-
-
-
2,886,277
2,886,277
Other comprehensive income:
Actuarial loss on defined benefit plans
-
-
-
-
(15,000)
(15,000)
Tax relating to other comprehensive income
-
-
-
-
3,750
3,750
Total comprehensive income for the year
-
-
-
-
2,875,027
2,875,027
Dividends
11
-
-
-
-
(2,250,000)
(2,250,000)
Restructure Reserve
-
-
-
(4,410)
-
(4,410)
Balance at 31 January 2024
8,697
272,537
1,303
(2,644,676)
15,545,150
13,183,011
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 15 -
1
Accounting policies
Company information
Scott Brownrigg Limited is a private company limited by shares incorporated in England and Wales. The registered office is 77 Endell Street, London, WC2H 9DZ.
The principal activity of the company is to provide architectural, planning, interior design, project management and property development consultancy services.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006, including the provisions of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.
The financial statements are prepared in sterling, which is the functional currency of the group.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties at fair value.
The principal accounting policies adopted are set out below.
In accordance with FRS 102, the Company has taken advantage of the exemptions from the
following disclosure requirements;
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues‘ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income; and
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The company’s subsidiary undertakings have not been consolidated by Scott Brownrigg Limited as permitted by S401 of the Companies Act 2006 as they are consolidated in the financial statements of Scott Brownrigg Group Limited. These consolidated financial statements are available from its registered office, 77 Endell Street, London, WC2H 9DZ.
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 16 -
1.2
Going concern
The directors consider that the going concern basis for the preparation of the group’s financial statements remains appropriate. In arriving at this conclusion, they have taken into consideration the results for the year ended 31 January 202true4, together with current results and cash flow forecasts for 12 months from the date of signing of the financial statements. Post year end the directors have been carefully monitoring cash flow and the cost base of the group, ensuring strict payment terms are adhered to and discretionary spend is contained to the budgets set at the beginning of the new financial year.
The continued political uncertainty in Europe and conflict in Gaza at the date of signing, the directors have taken action to protect the business and react to the changing economic and social environment. These actions have included adhering to guidelines directed by local governments and maintaining flexible working practices to ensure staff can remain working in a form as near to business as usual as possible from any location; diversifying project portfolios to mitigate potential exposures in countries impacted by the political uncertainties; as well as providing resilience training to staff.
The revenue pipeline is monitored on a weekly basis by management, and no material deviations from the budget set for 2024 are expected.
Based on these forecasts and action plans the directors consider it is appropriate for the financial statements to be prepared on the going concern basis. The financial statements do not include any adjustments that would result in the going concern basis of preparation not to be appropriate. In the event that this basis is not appropriate provisions may be required and assets may need to be written down to recoverable amounts.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Turnover from contracts for the provision of architectural and other services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total estimated costs. Where the outcome cannot be estimated reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable. The amount by which turnover exceeds payments on account is classified as "amounts recoverable on contracts" and included in debtors; to the extent that payments on account exceed relevant turnover and long term contract balances, the excess is classified as “payments received in advance” and included as a creditor.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 to 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 17 -
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Website Development
3 years
In-House Development
3 years
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land and buildings, at rates calculated to write off the cost or valuation of each asset to its estimated residual value on a straight line basis over its expected useful life, as follows:
Freehold land and buildings
Fair value
Fixtures and fittings
10 years
Office machinery and equipment
3 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Fixed asset investments
In the separate accounts of the company, interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 18 -
Impairment of fixed assets (continued)
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Any impairment loss recognised for goodwill is not reversed. For fixed assets other than goodwill, recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 20 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the current tax expense and deferred tax expense. Current tax assets are recognised when tax paid exceeds the tax payable.
Current tax
Current tax is based on taxable profit for the year. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting date.
1.13
Deferred tax
Deferred tax is calculated at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled based on tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax liabilities are recognised in respect of all timing differences that exist at the reporting date.
Timing differences are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in different years from their recognition in the financial statements. Deferred tax assets are recognised only to the extent that it is probable that they will be recovered by the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is recognised on income or expenses from subsidiaries that will be assessed to or allow for tax in a future year except where the Company is able to control the reversal of the timing difference and it is probable that the timing difference will not reverse in the foreseeable future.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination and the amounts that can be deducted or assessed for tax. The deferred tax recognised is adjusted against goodwill.
Current and deferred tax is charged or credited in profit or loss, except when it relates to items charged or credited to other comprehensive income or equity, when the tax follows the transaction or event it relates to and is also charged or credited to other comprehensive income, or equity.
Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 21 -
1.14
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.15
Retirement benefits
For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.
The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.
The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the year in which they arise.
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the year as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the year in which they occur and are not reclassified to profit and loss in subsequent years.
The defined net benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 22 -
1.17
Foreign exchange
Transactions in currencies other than the functional currency (foreign currency) are initially recorded at the exchange rate prevailing on the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction, or, if the asset or liability is measured at fair value, the rate when that fair value was determined.
All translation differences are taken to profit or loss, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Long term contracts
Estimates are made in respect of establishing the stage of completion of long term contracts. In determining the stage of completion the directors estimate costs to complete, and compare costs incurred as a proportion of total expected costs. The methods of estimation used are discussed in the turnover accounting policy on page 17.
Defined benefit pension
The fair value of the defined net benefit pension scheme liability is determined by way of a third party actuarial valuation. The actuarial assumptions used in the calculation of the valuation of the plan assets and liabilities are set out in note 22.
Freehold land and buildings
Estimates are made in respect of determining the carrying value of the freehold land and buildings which are stated at fair value. The directors have valued the company’s freehold land and buildings having regard to local market conditions and informal advice received from external professional valuers. However, the valuation of the company’s freehold land and buildings is inherently subjective as it is made on the basis of valuation assumptions which may in future not prove to be accurate (see note 13).
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 23 -
3
Turnover
An analysis of the group’s turnover is as follows:
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
17,220,953
16,378,360
Other European Countries
1,455,697
494,302
Rest of World
1,937,202
3,194,708
20,613,852
20,067,370
The company’s turnover was entirely derived from its principal activity.
4
Interest receivable and similar income
2024
2023
£
£
Bank interest
30,409
7,021
5
Interest payable and similar charges
2024
2023
£
£
Loan interest
206,982
258,536
6
Profit on ordinary activities before taxation
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Foreign exchange loss/(gains)
334,258
(482,403)
Depreciation of leased tangible fixed assets
27,970
38,352
Depreciation of owned tangible fixed assets
196,143
136,074
Impairment of intercompany loan
220,574
251,429
Loss on disposal of tangible fixed assets
8,879
2,555
Amortisation of goodwill
50,001
50,001
Amortisation of in-house development
673
Amortisation of website
7,536
7,644
Operating lease rentals:
449,043
415,179
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 24 -
2024
2023
Fees payable to Mazars LLP and its associates in respect of both audit and non-audit services
£
£
Audit services
Statutory audit
56,350
58,500
Other services
Taxation compliance services
9,800
9,000
8
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Technical
140
155
Administration
29
25
Total
169
180
2024
2023
Staff costs for the above persons:
£
£
Wages and salaries
9,064,459
8,798,225
Social security costs
1,006,987
1,056,320
Defined contribution pension cost
875,266
740,316
10,946,712
10,594,861
9
Directors' remuneration
2024
2023
£
£
Aggregate emoluments
746,880
714,500
Company contributions to money purchase pension schemes
45,240
40,000
2024
2023
Highest paid director:
£
£
Aggregate emoluments
208,750
195,000
Company pension contributions to defined contribution schemes
10,000
10,000
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
9
Directors' remuneration
(Continued)
- 25 -
Retirement benefits are accruing to 4 directors (2023: 4) under money purchase pension schemes.
The directors remuneration disclosed above represents the total remuneration of the company's key management personnel (excluding employers' National Insurance contributions).
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax
440,806
454,694
Adjustments for prior years
(319,147)
(95,000)
Total current tax
121,659
359,694
Deferred tax
Origination and reversal of timing differences
12,385
15,501
Adjustment for prior years
(41,455)
31,347
Effect of change in tax rate
-
4,895
Total deferred tax
(29,070)
51,743
Total tax charge
92,589
411,437
The tax charge for the year is lower than the standard rate of corporation tax in the UK (19%). The differences are explained below.
The charge for the year can be reconciled to the profit per the income statement as follows:
2024
2023
£
£
Profit on ordinary activities before tax
2,978,866
2,828,217
Profit on ordinary activities multiplied by the effective rate of Corporation tax in the UK of 24% (2023: 19%)
715,821
537,361
Items not allowable for tax purposes
81,460
60,386
Adjustments for previous years - current tax
(319,147)
(95,000)
Adjustments for previous years - deferred tax
(41,455)
31,347
Fixed asset timing differences
43,120
24,968
Change in tax rates - deferred tax
480
4,895
Additional deduction for R&D expenditure
(387,690)
(152,520)
Tax charge for the year
92,589
411,437
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 26 -
11
Dividends
2024
2023
£
£
Distribution of reserves
2,250,000
27,095
EOT distribution to staff
-
157,774
2,250,000
184,869
The group transitioned to a new ownership structure with the Scott Brownrigg Employee Ownership Trustee becoming the ultimate parent company of the group on 12 November 2021. A distribution was made by means of a dividend to the employee ownership trust. No dividend per share was declared.
12
Intangible fixed assets
Goodwill
Website Development
In-House Development
Total
£
£
£
£
Cost
At 1 February 2023 and 31 January 2024
1,236,874
161,312
24,665
1,422,851
Amortisation and impairment
At 1 February 2023
1,086,871
152,421
673
1,239,965
Amortisation charged for the year
50,001
7,536
57,537
At 31 January 2024
1,136,872
159,957
673
1,297,502
Carrying amount
At 31 January 2024
100,002
1,355
23,992
125,349
At 31 January 2023
150,003
8,891
23,992
182,886
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 27 -
13
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Office machinery and equipment
Total
£
£
£
£
Cost
At 1 February 2023
2,100,000
845,441
1,281,314
4,226,755
Additions
16,994
262,109
279,103
Disposals
(56,480)
(243,608)
(300,088)
At 31 January 2024
2,100,000
805,955
1,299,815
4,205,770
Depreciation and impairment
At 1 February 2023
636,467
1,077,847
1,714,314
Depreciation charged in the year
49,711
174,402
224,113
Eliminated in respect of disposals
(52,860)
(234,094)
(286,954)
At 31 January 2024
633,318
1,018,155
1,651,473
Carrying amount
At 31 January 2024
2,100,000
172,637
281,660
2,554,297
At 31 January 2023
2,100,000
208,974
203,467
2,512,441
The net book value of office equipment includes £11,654 (2023: £39,624) in respect of assets held under finance leases.
The historic cost of freehold land and buildings was £1,827,463 (2023: £1,827,463) which includes land with a cost of £990,258 (2023: £990,258). Freehold land and buildings are stated at fair value (see page 18) which is not depreciated.
Freehold Land and buildings
Movements in the year:
£
Fair value at 1 February 2023 and 31 Janaury 2024
2,100,000
The fair value of the company's investment property at 31 January 2024 has been arrived at by the directors having regard to informal valuation advice provided by third party commercial property experts on an open market value basis. The valuation was determined by reference to rental yields and market evidence of transaction prices for similar properties within Guildford.
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 28 -
14
Fixed asset investments
Investment in subsidiary undertakings
£
Cost
At 1 February 2023
5,539,316
Provisions for impairment
At 1 February 2023
250,002
At 31 January 2024
250,002
Carrying amount
At 31 January 2024
5,289,314
At 31 January 2023
5,289,314
A review of the company's investments has indicated that the investments' carrying amount exceeded their recoverable amount and consequently no impairment was required. .
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 29 -
15
Subsidiaries
The company's subsidiary undertakings are as follows:
Country of
Ordinary
incorporation of
shares
Nature of
Name
registration
held %
business
Claremorris Properties Limited
England and Wales
100
Property investment
Scott Brownrigg Trustees Limited
England and Wales
100
Dormant
Scott Brownrigg (Chiswick) Limited
England and Wales
100
Dormant
GMW Architects International Limited
England and Wales
100
Dissolved 17/10/2023
The registered address for the above subsidiaries is: 77 Endell Street, London, WC2H 9DZ
Scott Brownrigg South East Asia Pte Ltd
Singapore
100
Architects
Scott Brownrigg Singapore Pte Limited
Singapore
100
Architects
Registered address: 150 Beach Road, #20-03/04 Gateway West, Singapore 189720
Scott Brownrigg B.V.
Netherlands
100
Architects
Registered address: Vijzelstraat 68, Amsterdam, 1017 HL
Scott Brownrigg Inc.
USA
100
Interior Designers
(previously Design Delivery Unit Inc.)
Registered address: Wall Street Plaza 88 Pine Street Suite 3220 New York NY 10005
GMW Architects International W.L.L.*
Qatar
90
Dormant
Registered address: Level 15, Commercial Bank Plaza, West Bay, Doha, Qatar
16
Debtors
2024
2023
£
£
Trade debtors
3,062,131
4,385,215
Amounts recoverable on contracts
1,144,442
498,373
Corporation tax
250,517
Amounts owed by group undertakings
4,393,116
4,475,503
Other debtors
20,795
65,432
Prepayments and accrued income
920,472
1,022,203
9,791,473
10,446,726
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
16
Debtors
(Continued)
- 30 -
Amounts due from group undertakings are non-interest bearing and are shown as falling due within one year as there are no formal agreements in place to defer payment. However, it is not anticipated that these balances will be called unless sufficient funds are available in the relevant group undertakings to enable repayment to be made.
Management have made a provision of £121,008 (2023: £152,096) against trade debts, which were overdue and there was uncertainty over their recovery, however continue to pursue these debts and expect to fully recover them.
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loan
19
608,172
552,841
Finance lease obligations
20
6,723
26,869
Payments received in advance
2,185,880
2,912,512
Trade creditors
725,278
853,132
Amounts owed to group undertakings
2,037,765
1,742,076
Corporation tax
357,998
Other tax and social security
513,710
849,354
Other creditors
40,391
241,458
Accruals
538,024
441,996
6,655,943
7,978,236
The bank loan comprises a loan which is secured by a fixed and floating charge on all the assets of the company and UK group including the property and assets of its UK subsidiary company.
In February 2022, the bank loan was refinanced as a £3.2m 5-year term loan.
Amounts owed to group undertakings are interest free and repayable on demand.
18
Creditors: amounts falling due after more than one year
2024
2023
Borrowings:
Notes
£
£
Bank loan
19
3,092,263
3,750,885
Finance lease obligations
6,722
3,092,263
3,757,607
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 31 -
19
Loans and overdrafts
2024
2023
The bank loan is made up as follows:
£
£
Due within one year
608,172
552,841
Due within two to five years
3,092,263
3,750,885
3,700,435
4,303,726
The bank loan comprises a loan which is secured by a fixed and floating charge on all the assets of the company and the UK group including the property and assets of its trading UK subsidiary companies.
Interest is payable on the loan at 2.45% over Base Rate. The loan is repayable by equal monthly instalments with a final instalment due in March 2025, estimated at £2.5m.
20
Finance lease and hire purchase contracts
Obligations under finance leases and hire purchase contracts are secured by the related assets and bear finance charges at rates ranging from 0% to 0.55% per annum (2022: ranging from 0% to 0.55% per annum).
2024
2023
Future minimum lease payments due under finance leases:
£
£
Less than one year
6,723
26,869
Between two and five years
6,722
6,723
33,591
Finance lease payments represent rentals payable by the Company for certain items of plant and machinery. Leases include purchase options at the end of the lease year, and no restrictions are placed on the use of the assets. The average lease term is 4 years (2023: 4 years). All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The Company's obligations under finance leases are secured by the lessor's charge over the leased assets. The net book value of secured assets is disclosed in note 13.
21
Provisions for liabilities
Deferred Tax
Claims
Total
£
£
£
Balance at 1 February 2023
234,212
40,039
274,251
Provision in the year
(32,820)
16
(32,804)
31 January 2024
201,392
40,055
241,447
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
21
Provisions for liabilities
(Continued)
- 32 -
The company has received claims in the normal course of business. It is not possible to predict the timing of future payments in settlement of the claims that have been provided in these financial statements.
The deferred tax liabilities recognised by the company are as follows:
2024
2023
£
£
Accelerated capital allowances
250,958
200,784
Short term timing differences
(79,066)
(22,143)
Other movements
29,500
55,571
201,392
234,212
Deferred taxation
Movements in the year:
£
Liability at 1 February 2023
234,212
Charge to profit or loss
(29,070)
Charge to other comprehensive income
(3,750)
Liability at 31 January 2024
201,392
22
Retirement benefit schemes
Defined contribution schemes
The company operates a defined contribution pension scheme for all qualifying employees in the United Kingdom. The assets of the scheme are held separately from those of the company in an independently administered fund. The contributions payable by the company charged to profit or loss amounted to £875,266 (2023: £740,316). Included in accruals are amounts for pension contributions outstanding of £nil (2023: £64,198).
Defined benefit schemes
The company operates a closed defined benefit plan for qualifying employees. As at 31 January 2024 the defined benefit plan is undergoing a 100% buy-out, managed by an independent third party Trustee, which will result in the complete transfer of both the assets and liabilities to a new insurer. This is expected to complete Q3 of 2024.
The principle assumptions used in the calculation of the valuation of the plan assets and the present value of the defined benefit obligation include:
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
22
Retirement benefit schemes
(Continued)
- 33 -
2024
2023
Key assumptions
%
%
Discount rate
4.41
4.12
Expected rate of increase of pensions in payment
2.13
2.03
Expected rate of inflation
2.97
2.82
Expected pension increases during deferment
2.37
2.22
Mortality assumptions
2024
2023
Assumed life expectations on retirement at age 65:
Years
Years
Retiring today
- Males
26.01
26.38
- Females
28.80
28.54
Retiring in 20 years
- Males
27.57
27.58
- Females
30.27
29.11
The amounts included in the statement of financial position arising from the company's obligations in respect of defined benefit plans are as follows:
2024
2023
£
£
Present value of defined benefit obligations
(466,000)
(487,000)
Fair value of plan assets
461,000
609,000
(Deficit) / Surplus in Scheme
(5,000)
122,000
Other amounts recognised on the statement of financial position
-
(122,000)
Total liability recognised
5,000
-
2024
2023
Movements in the present value of defined benefit obligations
£
£
Liabilities at 1 February 2023
487,000
663,000
Benefits paid
(55,000)
(56,000)
Actuarial loss/(gain)
15,000
(133,000)
Interest cost
19,000
13,000
At 31 January 2024
466,000
487,000
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
22
Retirement benefit schemes
(Continued)
- 34 -
Movements in the fair value of plan assets
£
£
Fair Value of Assets 1 February
609,000
735,000
Interest income
24,000
15,000
Return on plan assets (excluding amounts included in net interest)
(116,000)
(85,000)
Benefits paid
(56,000)
(56,000)
Closing plan assets
461,000
609,000
The actual return on plan assets (£92,000) (2023: (£70,000))
2024
2023
Fair value of plan assets at the reporting period end
%
%
Gilts and Bonds
-
90
Cash
1
10
Buy-in insurance policy
99
-
100
100
The defined benefit pension scheme was in a surplus position of £122,000 in 2023, and was not recognised. No adjustment was been made to the financial statements.
23
Share capital and reserves
2024
2023
Share capital
£
£
Allotted, issued and fully paid:
173,950 ordinary shares of 5p each
8,697
8,697
Ordinary share rights
The company's ordinary shares, which carry no right to fixed income, each carry the right to one vote at general meetings of the company.
Reserves
Reserves of the Company represent the following:
Profit and loss account
Cumulative profit and loss net of distributions to owners.
Capital redemption reserve
The nominal value of shares repurchased.
Revaluation reserve
The cumulative revaluation gains and losses in respect of land and buildings, except revaluation gains and losses recognised in profit or loss.
Other reserves
The investment value of EBT shares transferred to the EOT.
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 35 -
24
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Land and buildings
Other
Total
Land and buildings
Other
Total
2024
2024
2024
2023
2023
2023
Amounts due:
£
£
£
£
£
£
Less than one year
37,770
20,178
57,948
77,784
31,738
109,522
Between one and five years
-
-
-
155,136
-
155,136
After five years
-
-
-
24,820
-
24,820
37,770
20,178
57,948
257,740
31,738
289,478
25
Contingent liabilities
The company has given an overseas subsidiary, Design Delivery Unit Inc, the commitment that it will continue to extend financial support by providing sufficient funds to enable the company to pay its debts as they fall due for the foreseeable future. At 31 January 2024 the net liabilities of Design Delivery Unit Inc. were £2,230,794 (2023: £2,257,929), including amounts due to Scott Brownrigg Limited of £2,256,193 (2023: £2,287,440). Provisions have been recognised against amounts due to the company from Design Delivery Unit Inc. in these financial statements.
In addition, the company has provided against the amounts due by a subsidiary, Scott Brownrigg South East Asia PTE Limited. At 31 January 2024 the net liabilities of Scott Brownrigg South East Asia PTE Limited were £2,251,832 (2023: £2,022,972), which includes amounts owed to Scott Brownrigg Limited of £2,315,940 (2023: £2,232,263) and amounts provided for were £2,021,269 (2023: £1,722,943).
26
Related party transactions
The company has taken advantage of the exemptions provided by Section 33 of FRS 102 ‘Related Party Disclosures’ and has not disclosed transactions entered into between two or more members of a group, provided that any subsidiary undertaking which is party to the transaction is wholly owned by a member of that group.true
27
Ultimate controlling party
The company’s immediate parent company and controlling party is Scott Brownrigg Group Limited, a company incorporated in England and Wales.
The company’s ultimate parent is Scott Brownrigg EOT Trustee Limited, a company incorporated in England and Wales. Copies of the parent company’s accounts can be obtained from Companies House, Crown Way, Cardiff CF14 3UZ. Scott Brownrigg Group Limited, is the smallest and largest group of undertakings for which consolidated accounts are prepared.
SCOTT BROWNRIGG LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 36 -
28
Post balance sheet event
Post year-end, a dividend distribution to the company's ultimate parent company was made, amounting to £2.5m.
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