Company registration number 05961514 (England and Wales)
PERKINS+WILL UK, LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PERKINS+WILL UK, LIMITED
COMPANY INFORMATION
Directors
P Harrison
C Campbell
J Wright
(Appointed 7 August 2023)
Secretary
B Stephens
Company number
05961514
Registered office
150 Holborn
London
United Kingdom
EC1N 2NS
Auditor
Azets Audit Services
5 Yeomans Court
Ware Road
Hertford
Hertfordshire
United Kingdom
SG13 7HJ
PERKINS+WILL UK, LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 34
PERKINS+WILL UK, LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present their strategic report of the company and the group for the year ended 31 December 2023.

 

The group has chosen, in accordance with section 414C of the Companies Act 2006, to set out in the Strategic Report information which would otherwise be required to appear in the Directors' Report.

FAIR REVIEW OF THE BUSINESS

The business continues to benefit from the expanding global presence of Perkins and Will, Inc. and its associated companies enabling continued further expansion into new geographical markets and clients.

 

London (Perkins&Will UK, Limited)

Performance in the year ended 2023 remained affected by operational changes such as the move to new offices in February 2023 coupled with the longer lasting impact of Covid-19 on some areas of the business. However, 2023 also saw signs of recovery with a substantial reduction in losses compared to prior year and efforts from the management team to build strong foundations to sustain long-term growth. While Corporate Interiors was still the largest income stream in 2023, the business also experienced the recovery of other income streams and started capitalising on its expansion into Architecture through the acquisition of Penoyre & Prasad in 2019.

 

Dublin (Perkins&Will Ireland, Limited)

Set up in June 2020, the Group’s Irish arm focuses on Corporate Interiors in Ireland and geographical representation of Perkins and Will. After a strong performance in 2022, the Irish entity suffered a small loss due to the nature of the projects undertaken. The Irish entity has the full financial support of the UK parent.

 

Portland Design Associates Limited

Longer lasting impacts of Covid-19 have been experienced by the business in 2023, resulting in difficulties in growing areas of the business and resourcing larger projects post-Covid. A lower operating profit was recorded in 2023 while the business is in consolidation phase to build strong foundations for long-term financial stability. The company is a design company providing branding and commercial wayfinding and signage, particularly in the retail sector.

 

Dubai (Pringle Brandon Middle East Design LLC)

As reported in previous Strategic Reports, the decision was made to wind down Pringle Brandon Middle East Design LLC and the business was formally closed in Q4 2022.

 

DISABILITY POLICY

The group is an Equal Opportunity Employer. We conduct all employment-related activities without regards to sex, race, colour, religion, national origin, ancestry, age, medical condition, disability, sexual orientation, familial status, marital status or veteran status. The group welcomes diversity in the workplace and the group makes reasonable accommodation in the application process for applicants with disability. The group takes all reasonable steps to ensure that individuals are treated equally and fairly and that decisions on recruitment, selection, training, promotion and career development are based solely on objective and job-related criteria. The group will support any employees who become disabled during the course of employment and make reasonable adjustments including providing alternative working arrangements and ensuring that employees are not disadvantaged by their disability.

 

EMPLOYEE INVOLVEMENT

The group actively encourages employee involvement with regular staff meetings held in all locations to enable office leadership to provide office and business updates, to discuss both past performance and future plans, and also encourage staff feedback by means of answering questions and providing suggestions for business improvement. The group operates a discretionary bonus scheme which encourages employee involvement in the group's financial performance.

 

PERKINS+WILL UK, LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
PRINCIPAL RISKS AND UNCERTAINTIES

The group's parent company, Perkins and Will, Inc. has the following :

 

Risk Management Committee comprising Chief Executive Officer, General Counsel, Chief Operating Officer and Chief Financial Officer.

 

Risk Management Policy which covers the group and the purpose of the policy is to minimise legal, operational, financial and reputational risk. The policy applies to the global business of Perkins and Will including Perkins +Will UK, Limited.

 

To manage these risks, we monitor our clients and their individual projects on a monthly basis and remain agile to responding to their requirements. Key risks which are reviewed and monitored monthly include:

 

-Work In Progress and Accounts Receivable

-Backlog, and staffing levels against backlog

-Resourcing requirements

-Cash flow forecasting

-Margins and Profitability

-Marketing Pipeline

 

Appropriate mitigating action is taken, if in the opinion of the directors, it is required in order to maintain both a profitable business and to maintain the business as a going concern.

The London office is ISO 9001 (Quality Management) accredited and we are committed to delivering services by continual improvement, which we apply to systems, processes and products.

 

PARENT COMPANY GUARANTEE AND SHARE CAPITAL

The directors have received confirmation from the directors of Perkins and Will, Inc., Perkins + Will UK, Limited's parent company that Perkins and Will, Inc. will provide adequate financial support for the foreseeable future. On 3 December 2013 (March 2024), Perkins and Will, Inc. provided a parent company guarantee which assures the proper performance of all contractual and legal obligations, duties, undertakings and covenants assumed by the company in the course and scope of its business operations to any third party, government body, bank or creditor.

 

FUTURE DEVELOPMENTS OF THE BUSINESS

The London business has been founded on commercial interiors work, where we are a leading company. The acquisition of the assets and liabilities of Penoyre & Prasad LLP in 2019 has expanded our services in Architecture and the directors anticipate significant growth in turnover in Architecture.

As reported in previous Strategic Reports, the decision was made to wind down Pringle Brandon Middle East Design LLC and the business was formally closed in 2022. Although Pringle Brandon Middle East Design LLC has closed, the business will continue to service both clients and projects based in the Middle East from London, a geographical area in which we continue to see substantial growth.

Looking ahead, the directors welcome with cautious optimism the substantial reduction in losses from 2022 to 2023, which signals the start of financial recovery. Under Jo Wright’s leadership who joined the business in January 2023 bringing over 30 years of experience of leading design and delivery of projects across a wide range of sectors, the directors have the confidence that the business will see a full recovery and a return to profitability in 2024.

 

PERKINS+WILL UK, LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
KEY PERFORMANCE INDICATORS

Year ended 31st December

2023

2022

Turnover

£24.0m

£23.9m

Gross Profit

£10.7m

£10.9m

Gross Profit /(loss)%

44.6%

45.6%

Net profit/(loss) before tax

2.5m)

4.2m)

 

 

Employee satisfaction and retention is monitored by means of diversity and inclusion focus employee groups, annual reviews, monitoring employee retention and turnover and by means of exit interviews.

FINANCIAL INSTRUMENTS

Due to the nature of the industry it can take several months to collect trade debtor balances which has a significant impact on the group's working capital position. The group manages this by utilising the finance available from its parent company, Perkins and Will, Inc.

 

 

On behalf of the board

J Wright
Director
29 November 2024
PERKINS+WILL UK, LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

Principal activities

Perkins + Will UK, Limited is a design firm which provides architectural, interior design, healthcare planning, workplace consultancy, graphic design and related services.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a dividend.

Directors

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

P Harrison
C Campbell
M Rowe
(Resigned 31 January 2024)
J Wright
(Appointed 7 August 2023)
Statement of disclosure to auditor

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

On behalf of the board
J Wright
Director
29 November 2024
PERKINS+WILL UK, LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PERKINS+WILL UK, LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PERKINS+WILL UK, LIMITED
- 6 -
Opinion

We have audited the financial statements of Perkins+Will UK, Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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.

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

PERKINS+WILL UK, LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PERKINS+WILL UK, LIMITED
- 7 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent 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.

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

PERKINS+WILL UK, LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PERKINS+WILL UK, LIMITED
- 8 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

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

Alison Nayler BSc FCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
29 November 2024
Chartered Accountants
Statutory Auditor
5 Yeomans Court
Ware Road
Hertford
Hertfordshire
United Kingdom
SG13 7HJ
PERKINS+WILL UK, LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
as restated
Notes
£
£
Turnover
4
24,015,383
23,894,409
Cost of sales
(13,363,183)
(12,990,795)
Gross profit
10,652,200
10,903,614
Administrative expenses
(13,433,462)
(13,870,510)
Other operating income
47,278
415,849
Exceptional items
3
437,840
(1,231,025)
Operating loss
6
(2,296,144)
(3,782,072)
Interest receivable and similar income
8
207,890
-
0
Interest payable and similar expenses
10
(460,577)
(467,826)
Loss before taxation
(2,548,831)
(4,249,898)
Tax on loss
11
-
0
-
0
Loss for the financial year
24
(2,548,831)
(4,249,898)
Loss for the financial year is all attributable to the owner of the parent company.
PERKINS+WILL UK, LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
12
1,567,780
1,958,757
Tangible assets
13
611,754
285,335
2,179,534
2,244,092
Current assets
Debtors
16
14,348,209
10,348,951
Cash at bank and in hand
9,144,184
7,537,383
23,492,393
17,886,334
Creditors: amounts falling due within one year
17
(31,583,050)
(23,354,878)
Net current liabilities
(8,090,657)
(5,468,544)
Total assets less current liabilities
(5,911,123)
(3,224,452)
Creditors: amounts falling due after more than one year
18
(13,820,105)
(13,520,105)
Provisions for liabilities
Provisions
20
875,680
1,313,520
(875,680)
(1,313,520)
Net liabilities
(20,606,908)
(18,058,077)
Capital and reserves
Called up share capital
23
400,000
400,000
Profit and loss reserves
24
(21,006,908)
(18,458,077)
Total equity
(20,606,908)
(18,058,077)
The financial statements were approved by the board of directors and authorised for issue on 29 November 2024 and are signed on its behalf by:
29 November 2024
J Wright
Director
Company registration number 05961514 (England and Wales)
PERKINS+WILL UK, LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
12
1,208,161
1,409,521
Tangible assets
13
601,148
270,811
Investments
14
3,076,574
3,076,574
4,885,883
4,756,906
Current assets
Debtors
16
9,449,986
10,154,575
Cash at bank and in hand
8,802,276
5,378,850
18,252,262
15,533,425
Creditors: amounts falling due within one year
17
(27,348,636)
(22,288,256)
Net current liabilities
(9,096,374)
(6,754,831)
Total assets less current liabilities
(4,210,491)
(1,997,925)
Creditors: amounts falling due after more than one year
18
(13,820,105)
(13,520,105)
Provisions for liabilities
Provisions
20
875,680
1,313,520
(875,680)
(1,313,520)
Net liabilities
(18,906,276)
(16,831,550)
Capital and reserves
Called up share capital
23
400,000
400,000
Profit and loss reserves
24
(19,306,276)
(17,231,550)
Total equity
(18,906,276)
(16,831,550)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £2,074,726 (2022 - £4,352,043 restated loss).

The financial statements were approved by the board of directors and authorised for issue on 29 November 2024 and are signed on its behalf by:
29 November 2024
J Wright
Director
Company registration number 05961514 (England and Wales)
PERKINS+WILL UK, LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
400,000
(14,208,179)
(13,808,179)
Year ended 31 December 2022:
Loss and total comprehensive income
-
(4,249,898)
(4,249,898)
Balance at 31 December 2022
400,000
(18,458,077)
(18,058,077)
Year ended 31 December 2023:
Loss and total comprehensive income
-
(2,548,831)
(2,548,831)
Balance at 31 December 2023
400,000
(21,006,908)
(20,606,908)
PERKINS+WILL UK, LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
400,000
(13,204,456)
(12,804,456)
Prior period adjustments
-
324,949
324,949
As restated
400,000
(12,879,507)
(12,479,507)
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(4,352,043)
(4,352,043)
Balance at 31 December 2022
400,000
(17,231,550)
(16,831,550)
Year ended 31 December 2023:
Profit and total comprehensive income
-
(2,074,726)
(2,074,726)
Balance at 31 December 2023
400,000
(19,306,276)
(18,906,276)
PERKINS+WILL UK, LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
2,214,690
1,559,216
Interest paid
(460,577)
(467,826)
Net cash inflow from operating activities
1,754,113
1,091,390
Investing activities
Purchase of tangible fixed assets
(655,202)
(227,519)
Interest received
207,890
-
0
Net cash used in investing activities
(447,312)
(227,519)
Financing activities
Proceeds from borrowings
300,000
-
Net cash generated from/(used in) financing activities
300,000
-
Net increase in cash and cash equivalents
1,606,801
863,871
Cash and cash equivalents at beginning of year
7,537,383
6,673,512
Cash and cash equivalents at end of year
9,144,184
7,537,383
PERKINS+WILL UK, LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Perkins+Will UK, Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 150 Holborn, London, United Kingdom, EC1N 2NS.

 

The group consists of Perkins+Will UK, Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

PERKINS+WILL UK, LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Perkins+Will UK, Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 December 2023.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

The directors have prepared and reviewed forecasts and projections for the group and, taking into account the economic conditions and possible changes in trading performance, alongside the facts noted above, they have a reasonable expectation that the group has adequate resources to continue in operational existence for the 12 months from the approval of these financial statements. The group therefore continues to adopt the going concern basis in preparing its financial statements.

 

The directors have received confirmation from the directors of Perkins + Will Inc ('PWI'), Perkins + Will UK, Limited's parent company, that PWI will provide adequate financial support to the group for the foreseeable future. On 3 December 2013 (updated March 2024), PWI provided a parent company guarantee which assures the proper performance of all contractual and legal obligations, duties, undertakings and covenants assumed by the group in the course and scope of its business operations to any third party, governmental body, bank or creditor.

1.5
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.

 

Where the outcome of a contract can be estimated reliably, revenue is recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

PERKINS+WILL UK, LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business 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 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.

1.7
Tangible fixed assets

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

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

Leasehold improvements
Over term of the lease
Fixtures and fittings
33% on cost and 10-20% on cost
Computers
33% on cost and 25% on cost

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 recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

PERKINS+WILL UK, LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

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

 

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

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

1.10
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.

1.11
Trade and other debtors

Trade and other debtors are measured at transaction price less any impairment unless the arrangement constitutes a financing transaction in which case the transaction is measured at the present value of the future receipts discounted at the prevailing market rate of interest . Loans are initially measured at fair value and are subsequently measured at amortised cost using the effective interest method less any impairment.

1.12
Trade and other creditors

Trade and other creditors are measured at their transaction price unless the arrangement constitutes a financing transaction in which case the transaction is measured at present value of future payments discounted at prevailing market rate of interest. Other financial liabilities are initially measured at fair value net of their transaction costs. They are subsequently measured at amortised cost using the effective interest method.

1.13
Taxation

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

Current tax

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

PERKINS+WILL UK, LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Deferred tax

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

 

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

1.14
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group 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
Employee benefits

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

 

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

 

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

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

PERKINS+WILL UK, LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

 

Amount recoverable on contracts is a significant estimate. Management use a bespoke software package which assists in calculating the balances based on a percentage completion method.

 

With the exception of the estimate described above, the directors consider that there are no other significant judgements or estimates in the preparation of these financial statements

 

3
Exceptional item
2023
2022
£
£
Expenditure/(Income)
Elimination of group company loans and balances
-
(82,495)
(Unwinding of provision in respect of onerious lease costs)/Onerous lease costs
(437,840)
1,313,520
(437,840)
1,231,025
4
Turnover
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
15,655,653
15,667,657
Europe
2,968,819
5,698,537
Middle East
4,627,340
1,712,571
Asia
667,084
301,441
America
96,487
464,134
Africa
-
50,069
24,015,383
23,894,409

All turnover is attributable to the one principal activity of the group.

PERKINS+WILL UK, LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
5
Auditor's remuneration
2023
2022
Fees payable to the group's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
42,240
32,000
Audit of the financial statements of the company's subsidiaries
11,240
10,500
53,480
42,500
For other services
Taxation compliance services
2,660
1,900
All other non-audit services
7,360
5,000
10,020
6,900
6
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange losses/(gains)
228,862
(306,578)
Depreciation of owned tangible fixed assets
328,783
1,428,167
Amortisation of intangible assets
390,977
397,516
Operating lease charges
1,849,557
2,408,335
7
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Direct labour
172
159
140
142
Admin Staff
16
19
14
14
Total
188
178
154
156
PERKINS+WILL UK, LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Employees
(Continued)
- 22 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
11,488,313
10,739,934
9,197,255
8,792,192
Social security costs
1,273,232
1,235,945
1,003,161
1,000,804
Pension costs
325,042
272,782
218,791
207,135
13,086,587
12,248,661
10,419,207
10,000,131
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
207,890
-
9
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
366,152
327,961
Company pension contributions to defined contribution schemes
10,475
9,853
376,627
337,814
10
Interest payable and similar expenses
2023
2022
£
£
Intercompany loan interest
460,142
461,452
Other interest
435
6,374
Total finance costs
460,577
467,826
PERKINS+WILL UK, LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
11
Taxation

The corporation tax rate increased to 25% from 1 April 2023, affecting companies with profits of £250,000 and over.

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

2023
2022
£
£
Loss before taxation
(2,548,831)
(4,249,898)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(637,208)
(807,481)
Tax effect of expenses that are not deductible in determining taxable profit
(49,760)
272,445
Unutilised tax losses carried forward
714,786
544,531
Effect of change in corporation tax rate
38,232
-
Permanent capital allowances in excess of depreciation
(163,800)
-
0
Other permanent differences
97,750
27,498
Effects of restatement
-
(36,993)
Taxation charge
-
-
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
5,151,620
Amortisation and impairment
At 1 January 2023
3,192,863
Amortisation charged for the year
390,977
At 31 December 2023
3,583,840
Carrying amount
At 31 December 2023
1,567,780
At 31 December 2022
1,958,757
PERKINS+WILL UK, LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Intangible fixed assets
(Continued)
- 24 -
Company
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
2,013,602
Amortisation and impairment
At 1 January 2023
604,081
Amortisation charged for the year
201,360
At 31 December 2023
805,441
Carrying amount
At 31 December 2023
1,208,161
At 31 December 2022
1,409,521
13
Tangible fixed assets
Group
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2023
234,980
3,117,424
1,604
3,354,008
Additions
610,972
-
0
44,230
655,202
Disposals
(234,980)
(2,786,787)
-
0
(3,021,767)
At 31 December 2023
610,972
330,637
45,834
987,443
Depreciation and impairment
At 1 January 2023
231,063
2,836,006
1,604
3,068,673
Depreciation charged in the year
45,885
274,592
8,306
328,783
Eliminated in respect of disposals
(234,980)
(2,786,787)
-
0
(3,021,767)
At 31 December 2023
41,968
323,811
9,910
375,689
Carrying amount
At 31 December 2023
569,004
6,826
35,924
611,754
At 31 December 2022
3,917
281,418
-
0
285,335
PERKINS+WILL UK, LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Tangible fixed assets
(Continued)
- 25 -
Company
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2023
-
0
3,067,195
1,605
3,068,800
Additions
610,972
-
0
40,180
651,152
Disposals
-
0
(2,786,787)
-
0
(2,786,787)
At 31 December 2023
610,972
280,408
41,785
933,165
Depreciation and impairment
At 1 January 2023
-
0
2,796,384
1,605
2,797,989
Depreciation charged in the year
41,968
270,811
8,036
320,815
Eliminated in respect of disposals
-
0
(2,786,787)
-
0
(2,786,787)
At 31 December 2023
41,968
280,408
9,641
332,017
Carrying amount
At 31 December 2023
569,004
-
0
32,144
601,148
At 31 December 2022
-
0
270,811
-
0
270,811
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
3,076,574
3,076,574
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
3,076,574
Carrying amount
At 31 December 2023
3,076,574
At 31 December 2022
3,076,574
PERKINS+WILL UK, LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
15
Subsidiaries

Pringle Brandon Middle East Design LLC was dissolved during the year and the investment was fully written down in previous years.

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Portland Design Associates Limited
The White Chapel Building, 10 Whitechapel High Street, London E1 8QS
Commercial design
Ordinary
100.00
Perkins and Will, Ireland Limited
14 Fitzwilliam Square, Dublin, D02 W298
Architectural services
Ordinary
100.00
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,757,790
4,809,760
3,076,512
4,523,782
Amounts recoverable on contracts
3,335,389
4,271,954
2,995,062
4,098,354
Amounts owed by group undertakings
4,664,051
413,508
1,937,091
716,305
Other debtors
214,845
140,889
88,056
128,123
Prepayments and accrued income
1,098,285
434,991
1,087,182
421,928
14,070,360
10,071,102
9,183,903
9,888,492
Deferred tax asset (note 21)
11,766
11,766
-
0
-
0
14,082,126
10,082,868
9,183,903
9,888,492
Amounts falling due after more than one year:
Other debtors
266,083
266,083
266,083
266,083
Total debtors
14,348,209
10,348,951
9,449,986
10,154,575
PERKINS+WILL UK, LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Payments received on account
3,102,231
1,906,755
2,739,156
1,821,039
Trade creditors
1,521,401
707,285
572,329
622,725
Amounts owed to group undertakings
24,259,259
18,447,341
21,623,535
17,785,895
Other taxation and social security
590,853
569,184
518,203
531,937
Other creditors
107,151
114,756
65,214
76,110
Accruals and deferred income
2,002,155
1,609,557
1,830,199
1,450,550
31,583,050
23,354,878
27,348,636
22,288,256
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Other borrowings
19
13,820,105
13,520,105
13,820,105
13,520,105
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Loans from group undertakings
13,820,105
13,520,105
13,820,105
13,520,105
Payable after one year
13,820,105
13,520,105
13,820,105
13,520,105

These loans are unsecured with no fixed repayment date. The interest charged to the company is based on the floating rate paid on the parent's own line of credit with its banks. The weighted average interest rate charged is 3.4% (2022: 3.4%).

PERKINS+WILL UK, LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
20
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Lease costs
875,680
1,313,520
875,680
1,313,520
Movements on provisions:
Lease costs
Group
£
At 1 January 2023
1,313,520
Reversal of provision
(437,840)
At 31 December 2023
875,680
Lease costs
Company
£
At 1 January 2023
1,313,520
Reversal of provision
(437,840)
At 31 December 2023
875,680

During the year, the company and group have recognised a provision for contractual lease costs that are considered onerous as no ecomonic benefit is derrived from the lease.

 

The provision covers the remaining life of the lease which at the latest will end in the year ending 31st December 2025.

 

PERKINS+WILL UK, LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
21
Deferred taxation

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

Assets
Assets
2023
2022
Group
£
£
Tax losses
11,766
11,766
There were no deferred tax movements in the year.

Deferred tax is not recognised in respect of tax losses of £13,720,472 (Company £13,463,314) as it is not probable that they will be recovered against future taxable profits in the forseeable future.

22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
325,042
272,782

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

 

At the year end, contributions to the scheme of £67,529 (2022: £49,539) were payable to the scheme.

23
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
400,000
400,000
400,000
400,000
PERKINS+WILL UK, LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
24
Profit and loss reserves
Group
Company
2023
2022
2023
2022
as restated
as restated
£
£
£
£
At the beginning of the year
(18,415,294)
(14,208,179)
(17,419,885)
(13,204,456)
Prior year adjustment
(42,783)
-
188,335
324,949
As restated
(18,458,077)
(14,208,179)
(17,231,550)
(12,879,507)
Loss for the year
(2,548,831)
(4,249,898)
(2,074,726)
(4,352,043)
At the end of the year
(21,006,908)
(18,458,077)
(19,306,276)
(17,231,550)
25
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
1,304,315
570,079
1,297,781
543,722
Between two and five years
3,323,308
1,008,638
3,323,308
1,002,105
In over five years
2,620,744
-
2,620,744
-
7,248,367
1,578,717
7,241,833
1,545,827
26
Events after the reporting date

Post year end, leases that were recognised as an onerous lease at the year end 31 December 2023 were partially offset by income from subletting.

27
Related party transactions

The company has taken advantage of exemption, under the term of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the ultimate group.

 

The directors are considered to be the only key management personnel. Directors' remuneration is disclosed in note 9.

28
Controlling party

Perkins + Will UK Limited is a wholly owned subsidiary of Perkins + Will Inc, which is incorporated in the United States. The directors regard Dar Al-Handasah Consultants Shair & Partners Holdings Limited as the ultimate holding company and ultimate controlling party. This company is registered in Dubai.

PERKINS+WILL UK, LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
29
Cash generated from group operations
2023
2022
£
£
Loss for the year after tax
(2,548,831)
(4,249,898)
Adjustments for:
Finance costs
460,577
467,826
Investment income
(207,890)
-
0
Amortisation and impairment of intangible assets
390,977
397,516
Depreciation and impairment of tangible fixed assets
328,783
1,428,167
(Decrease)/increase in provisions
(437,840)
1,313,520
Movements in working capital:
(Increase)/decrease in debtors
(3,999,257)
731,221
Increase in creditors
8,228,171
1,470,864
Cash generated from operations
2,214,690
1,559,216
30
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
7,537,383
1,606,801
9,144,184
Borrowings excluding overdrafts
(13,520,105)
(300,000)
(13,820,105)
(5,982,722)
1,306,801
(4,675,921)
PERKINS+WILL UK, LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
31
Prior period adjustment

During the preparation of the 2023 accounts, the group discovered significant transactions that were incorrectly reported in prior periods. The details of the impact on the financial statements are as follows:

Changes to the balance sheet - group
As previously reported
Adjustment
As restated at 31 Dec 2022
£
£
£
Creditors due within one year
Taxation
(568,017)
(1,167)
(569,184)
Other creditors
(22,744,078)
(41,616)
(22,785,694)
Net assets
(18,015,294)
(42,783)
(18,058,077)
Capital and reserves
Profit and loss reserves
(18,415,294)
(42,783)
(18,458,077)

The amount of the correction for each line item of the consolidated statement of comprehensive income affected was:

Changes to the profit and loss account - group
As previously reported
Adjustment
As restated
Period ended 31 December 2022
£
£
£
Cost of sales
(12,260,894)
(729,901)
(12,990,795)
Administrative expenses
(14,795,488)
924,978
(13,870,510)
Interest payable and similar expenses
(467,451)
(375)
(467,826)
Loss after taxation
(4,444,600)
194,702
(4,249,898)
Reconciliation of changes in equity - group
1 January
31 December
2022
2022
£
£
Adjustments to prior year
Subsidiary adjustment
-
(42,783)
Equity as previously reported
(13,808,179)
(18,015,294)
Equity as adjusted
(13,808,179)
(18,058,077)
Analysis of the effect upon equity
Profit and loss reserves
-
(42,783)
PERKINS+WILL UK, LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
31
Prior period adjustment
(Continued)
- 33 -
Reconciliation of changes in loss for the previous financial period
2022
£
Adjustments to prior year
Reclassification of foreign exchange
237,485
Subsidiary adjustment
(42,783)
Total adjustments
194,702
Loss as previously reported
(4,444,600)
Loss as adjusted
(4,249,898)
Changes to the balance sheet - company
As previously reported
Adjustment
As restated at 31 Dec 2022
£
£
£
Fixed assets
Investments
3,076,573
1
3,076,574
Current assets
Debtors due within one year
9,991,851
162,724
10,154,575
Creditors due within one year
Taxation
(557,548)
25,611
(531,937)
Other creditors
(21,756,318)
(1)
(21,756,319)
Net assets
(17,019,885)
188,335
(16,831,550)
Capital and reserves
Profit and loss reserves
(17,419,885)
188,335
(17,231,550)
Changes to the profit and loss account - company
As previously reported
Adjustment
As restated
Period ended 31 December 2022
£
£
£
Turnover
21,159,768
(1,099,745)
20,060,023
Administrative expenses
(13,187,754)
1,200,616
(11,987,138)
Loss after taxation
(4,452,914)
100,871
(4,352,043)
Notes to reconciliation
Reclassification of foreign exchange

In the prior period a presentational adjustment of £237,485 has been processed to reclassify the company's foreign exchange from other comprehensive income to the administrative expense. There is no net impact on closing equity or reserves.

PERKINS+WILL UK, LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
31
Prior period adjustment
(Continued)
- 34 -
Subsidiary adjustment

During the year it was identified that subsidiary transactions with a net loss of £42,783 in year ended 31 December 2022 and a net loss of £324,949 relating to years prior to this had been incorrectly included withinin the company's financial statements. This adjustment restates the company's profit and loss by removing all of the subsidiaries transactions.

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