The directors present the strategic report for the year ended 30 April 2024.
Ryder works across the UK from offices in Newcastle, London, Liverpool, Glasgow, Manchester and Bristol, in ASEAN from Hong Kong through a license agreement with Ryder (Asia) Limited, in Canada through Ryder Architecture (Canada) Inc and elsewhere internationally through an alliance community. We are commissioned on projects ranging in value up to £1bn across many sectors. Design services include everything from strategic briefing and placemaking consultancy to interior design and an increasing portfolio of commissions in digital construction consultancy, safety and sustainability.
Our broad portfolio of sectors involves us working with a wide range of clients - private businesses, developers, construction contractors, national and local government bodies. The success of these sectors requires a strong economy, stable political climate and a positive investment and planning environment, all of which have been lacking in the UK throughout recent years although they appear to be stabilising since the general election in July 2024. Commissions for the next 12 months remain strong across all sectors, although timing is a concern as clients assess the viability of projects within the context of ongoing uncertainty in the economy. We seek to manage and mitigate these risks through a diversified sector, client and geographical portfolio. The level of future commissions are constantly monitored and classified against agreed profitability criteria and benchmarks to identify areas of potential risk.
Many of our projects were recognised with design awards last year and we were also crowned UK Architectural Practice of the Year in the prestigious Building awards 2024. We are focused on delivering an excellent client experience. This was once again endorsed with an overall client satisfaction rating of over 90% in our 2024 client survey. We continue to be committed to all our established sectors while pursuing a number of overseas opportunities. Okana, our new built environment consultancy including a community of likeminded practices, continued to deliver with new commissions in North and South America, the Far East, Middle East and Australia.
Group turnover for the year ended 30 April 2024 was £31,589,982, £1,401,455 (4.6%) more than 2023. Total costs, excluding sub consultants, increased by 1.5%. Group profit before tax for 2024 increased by £914,576 (60.2%) to £2,433,340 (2023: £1,518,764).
Annual goals and targets are collectively agreed, assessed and monitored under our four pillars of excellence:
People - continuous assessment through Best Companies to Work For;
Clients - continue to be a trusted adviser monitored through our annual client survey;
Architecture - continue to be recognised as a leading responsible business as Architectural Practice of the Year and several design awards; and
Finance - return profits to invest in our people and the communities in which we work.
Environmental
We are committed to becoming net zero carbon through reducing our emissions in line with Science Based Targets initiative (SBTi). This requires a reduction of carbon emissions by a minimum of 46% by 2030 and 90% by 2050, with residual emissions offset. Our energy and carbon report is included in the Directors' Report.
Given the challenging economic circumstances, the directors are satisfied with the financial performance in the period. Despite this, we exceeded our community impact target which supports charities and good causes in the communities in which we work.
We are optimistic for the ongoing and sustained development of Ryder, subject to the aforementioned geopolitical uncertainties.
Our ethos is to at all times promote the success of Ryder for the benefit of its members as a whole, covering the requirements of S172(1) of the Act:
the likely consequences of any decision in the long term;
the interests of the Company's employees;
the need to foster the Company's business relationships with suppliers, customers and others;
the impact of the Company's operations on the community and the environment;
the desire of the Company to maintain a reputation for high standards of business conduct; and
the need to act fairly between members of the Company.
Employee matters
Our people bring the very best in knowledge, creative thinking and capability. We believe that attracting, nurturing and retaining talented people is key to our success. Our ethos promotes empowerment, creativity and teamwork. We are extremely proud to once again be recognised as one of the leading employers in the UK through our listing in the Best Companies to Work For rankings. We aim to be recognised as a superb place to work with exceptional opportunities for personal growth, with everyone empowered to develop in an ethos of challenge and exploration that is respectful to everyone. We continue to publish data showing the gender salary differences across ranks, roll out unconscious bias training across the practice and monitor our inclusivity demographics. We are an equal opportunities employer and actively support human rights and all equality legislation. Our approach to Equity, Diversity and Inclusion (EDI) enhances existing protocols, ensuring we support our people by acknowledging our visible and non visible differences.
Social and community
We place community impact at the heart of everything we do. It is rooted in our heritage and embedded in our people focused culture. We take a holistic approach to monitoring, tracking, and reporting our community impact through a clearly defined strategy. This involves examining our impact at three different levels: practice wide, individual teams, and on our projects. At the practice level, we evaluate our business activities that contribute to positive change in our communities including our responsible business strategy, our commitment to net zero carbon, and advocating best practice. Our aim of providing opportunities for people seeking entry into built environment careers, particularly in underrepresented communities, is embedded through our pioneering and award winning PlanBEE apprenticeship programme.
At the people level, we monitor all our colleagues engagement in fundraising, volunteering, and community activities. At the projects level, we use qualitative and quantitative metrics to track community benefits. Increasingly, we use third party frameworks like the Social Value Portal to track our social value commitments. We are also active members of Business in the Community.
Business relationships with suppliers
Collaboration is central to how we work. We value our supply chain partners and their continued success is in turn a benefit to Ryder. Finding likeminded organisations and nurturing relationships, with prompt payment, is core to our success. Where we have the opportunity, we are always happy to recommend our supply chain partners if we believe they have the skills and capacity to deliver the right service to our clients.
On behalf of the board
The directors present their annual report and financial statements for the year ended 30 April 2024.
The results for the year are set out on page 12.
Ordinary dividends were paid amounting to £438,076. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Delivering pioneering architectural and design services across a diverse portfolio necessitates overcoming scientific/technological uncertainties in the pursuit of scientific/technological advances.
Transparent communication and visible leadership have always been core to our success but have become increasingly vital as our people adapted to new ways of working and interacting during and post pandemic. Our internal intranet platform hosts regular updates from across the practice, including monthly leadership headlines detailing outcomes from the board across people, clients, projects and financial position.
The Ryder360 board was established in the 1990s and represents a cross section of the practice - each team has its own board member. The board meets to discuss suggestions for improvements on how we deliver Excellence to our people, with a focus on personal development, wellbeing and community impact. The board establishes its aims and goals through dialogue with their individual teams, and plays an instrumental role in providing a voice and the opportunity for everyone to contribute to the direction of the business.
The Ryder360 Learning programme delivers a variety of core and additional topics through Open House events, including professional obligations, as well as personal skills training for everyone.
In addition to our leadership and Ryder360 boards, we also establish task and finish groups to develop initiatives in particular areas as and when the need arises, such as community impact, inclusivity, climate emergency and quality.
Our annual Blueprint summit is held in the spring. The whole practice comes together to review the past year and discuss goals for the year ahead. These are formalised in an annual statement of our aims and ambitions, evolving year to year, and establishes the framework for the development of the practice. Progress against these goals is addressed regularly throughout the year.
Engagement is also monitored through various surveys, in particular Best Companies to Work For.
Employee engagement
Ryder is committed to creating an environment in which everyone feels comfortable providing feedback on what is effective, what is desired and what could be improved. Everyone can do this through their mentors, team leaders or Ryder360.
Disclosure in relation to engagement with employees, suppliers and others has been included within the "Promoting the success of the Company" section of the Strategic Report.
| Current reporting year 2023-2024 | Comparison reporting year 2022-2023 | ||
| UK and offshore | Global (excluding UK and offshore) | UK and offshore | Global (excluding UK and offshore) |
Emissions from combustion of gas tCO2e (Scope 1) | 31.94 | 0 | 31.60 | 0 |
Emissions from combustion of fuel for transport purposes (Scope 1) | 12.25 | 0 | 13.21 | 0 |
Emissions from business travel in rental cars or employee-owned vehicles where company is responsible for purchasing the fuel (Scope 3) | 21.21 | 0.88 (Pro rata for 13 FTEs) | 17.84 | 0.98 (Pro rata for 17 FTEs) |
Emissions from purchased electricity (Scope 2, location-based) | 76.38 | 7.62 | 63.98 | 6.67 |
Total gross CO2e based on above | 141.78 | 8.50 | 126.63 | 7.65 |
Energy consumption used to calculate emissions: /kWh | 630,952 kWh | 40,418 kWh | 576,260 kWh | 38,484 kWh |
Optional to provide separate figures for gas, electricity, transport fuel and other energy sources | Natural gas: 174,593 kWh
UK National Grid electricity: 368,871 kWh
By mileage - Cars (by size) - Unknown fuel – Average: 87,488.03 kWh | UK National Grid electricity: 36,807 kWh (Proxy data used)
By mileage - Cars (by size) - Unknown fuel – Average: 3,610.62 kWh (Pro rata for 13 FTEs)
| Natural gas: 173,086 kWh
UK National Grid electricity: 330,856 kWh
By mileage - Cars (by size) - Unknown fuel – Average: 72,318.33 kWh | UK National Grid electricity: 34,505 kWh (Proxy data used)
By mileage - Cars (by size) - Unknown fuel – Average: 3,978.68 kWh (Pro rata for 17 FTEs) |
Intensity ratio: tCO2e gross figure based from mandatory fields above / FTE | 0.45 | 0.65 | 0.41 | 0.45 |
Ryder UK has adopted an operational control approach to establishing the boundary. The methodology adopted in line with the Greenhouse Gas Protocol1 and the BEIS Environmental Reporting Guidelines2. The calculations were completed on the SmartCarbonTM Calculator3 using the UK Government emissions factors4.
CO2e is the universal unit of measurement to indicate the global warming potential (GWP) of Greenhouse Gases (GHGs), expressed in terms of the GWP of one unit of carbon dioxide. There are seven main GHGs that contribute to climate change, as covered by the Kyoto Protocol: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3). Different activities emit different gases. Using CO₂e allows all greenhouse gases to be measured on a like-for-like basis.
For National grid electricity consumption, Ryder UK has included factors for the transmission and distribution of electricity (T&D) losses, which occur between the power station and site(s). The emissions from T&D has been accounted for in Scope 3. As with other Scope 3 impacts, reporting T&D is voluntary but is recommended standard practice by UK Government2.
The baseline and previous years’ emissions have been recalculated to reflect efforts to improve data accuracy, and to reflect adjustments to the structure of Ryder offices within the wider practice. These include:
In the past year Ryder has bought out a Bristol based company which has become the Bristol office within Ryder’s operational control. The emissions from this office are now added as well as historic data from the Bristol office, in order to update our baseline
Where estimated, proxy, or pro-rata data has been used in calculations, we continue to seek primary data to improve our data accuracy. Therefore increased amounts of primary data have been used within this years calculation of previous years’ calculations
We have worked with our landlords to determine where we can affect change to out Scope 1 gas use. Following this review of the boundary, some of our Scope 1 gas consumption has been placed into Scope 3 Category 8. Glasgow, London, Liverpool, and Manchester CO2 emissions from gas usage is Scope 3, Cat 8, not Scope 1, as we do not have operational control over this
Ryder operates an office outside the UK. This office is in Vancouver, Canada. Without accurate data for this office electricity emissions, we have used the Liverpool office data, since the office size is comparable and the FTE count is similar, though this applies a more conservative total. The gas usage is within Scope 3, Category 8, given this is centralised within the Vancouver office building. When it comes to Scope 3 (Emissions from business travel in rental cars or employee-owned vehicles where company is responsible for purchasing the fuel) pro-rata data is used based on FTEs.
The defined boundary for Scope 1 emissions are:
Those emissions from assets where we own or have an operating lease (Appendix A of GHGP Value Chain (Scope 3) standard)
Where we (the lessee) has the authority to introduce and implement operating policies (p.18 of GHG protocol)
With fugitive emissions, we take the view that even if the maintenance is under the control of the lessor, we control use, and are in a position to report damage which may cause leakage
Where Gas and fuel consumption is outside this boundary it is considered Scope 3 Category 8
The defined boundary for Scope 2 emissions are:
Those emissions from assets where we own or have an operating lease (Appendix A of GHGP Value Chain (Scope 3) standard)
Where we (the lessee) has the authority to introduce and implement operating policies (p.18 of GHG protocol)
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per staff member, the recommended ratio for the sector.
Ryder has introduced a practice wide behavioural change programme, Green Initiatives, aimed at empowering our teams to reduce emissions across the practice. We have undertaken a detailed study of our largest office, Cooper's Studios, and developed a programme of works to reduce its operational emissions, including the introduction of sub metering to allow the impact of works to be monitored. The works to Cooper's will inform future projects on other Ryder sites.
We have audited the financial statements of Ryder Architecture Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 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, the company statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
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:
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.
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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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.
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.
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:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. Inflo data analytics software was used to select journals from throughout the year to be tested, by assigning risk ratings to various characteristics of transactions based on our understanding of the entity and its environment.
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.
The primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,930,724 after tax (2023 - £1,120,958 profit after tax).
Ryder Architecture Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Cooper's Studios, 14-18 Westgate Road, Newcastle Upon Tyne, Tyne And Wear, United Kingdom, NE1 3NN.
The group consists of Ryder Architecture Limited and all of its subsidiaries, associates and joint ventures.
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. The principal accounting policies adopted are set out below.
The consolidated financial statements incorporate those of Ryder Architecture Limited, all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits) and associated companies and joint ventures. Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 30 April 2024. The accounting period of The Bush Consultancy Limited was shortened on acquisition to 30 April 2024 in line with the group.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
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.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised at the fair value of the consideration.
Contracts are assessed on an individual basis. When the outcome and fair value of the right to consideration of a contract can be assessed with reasonable certainty, the attributable profit/loss is recognised in the profit and loss account as the difference between the reported turnover and related costs for that contract.
Where there are contracts which are gradually performed over time, revenue is recognised by reference to an assessment of the fair value of the services provided as a proportion of the total fair value of the contract. Where there is uncertainty as to whether fees will be received for a particular stage of a project, then the fair value of that stage is determined to be nil. When considering the total fair value of the contract, a review of potential success fees on a contract is undertaken. Success fees may be payable on the achievement of certain milestones within a contract, such as the next stage of a project being commissioned or the receipt of planning permission. The fair value of success fees is taken as nil unless certainty has been achieved at or around the year end.
In accordance with FRS 102, Section 23, the amount by which recorded turnover is in excess of payments on account is classified as 'gross amounts due from contract customers' and separately disclosed within debtors. The balance of payments on account, in excess of amounts matched with turnover, and offset against long term contract balances, is classified 'gross amounts owed to contract customers' and separately disclosed within creditors. The amount by which the accrual for foreseeable losses exceeds the costs incurred after transfers to cost of sales is included within creditors.
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
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.
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, associates and jointly controlled entities 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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
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.
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.
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
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.
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.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.
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 group after deducting all of its 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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group 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 group.
The tax expense represents the sum of the tax currently payable and deferred 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.
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.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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 balance sheet 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 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.
Functional currency and presentation currency
The individual financial statements of each group entity are presented in the currency of the primary economic environment in which the entity operates (its functional currency). For the purposes of the consolidated financial statements, the results and financial position are presented in Sterling (£).
Transactions and balances
In preparing the financial statements of individual entities, transactions in currencies other than the functional currency of the individual entities (foreign currencies) are recognised at the spot rate at the dates of the transactions, or at an average rate where this rate approximates the actual rate at the date of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences are recognised in profit or loss in the period in which they arise. However, in the consolidated financial statements exchange differences arising on monetary items that form part of the net investment in a foreign operation are recognised in other comprehensive income and are not reclassified to profit and loss.
Translation of group companies
For the purposes of presenting consolidated financial statements, the assets and liabilities of the group's foreign operations are translated from their functional currency to Sterling (£) using the closing exchange rate. Income and expenses are translated using the average rate for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising on the translation of group companies are recognised in other comprehensive income and are not reclassified to profit and loss.
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.
The following judgements have had the most significant effect on amounts recognised in the financial statements.
The group's revenue recognition policy for long term contracts is set out in accounting policies and is central to how the group values work performed in each financial period. Project managers provide the estimates required for the costs to completion based on their knowledge and understanding the work outstanding and the progression of the project to date, but this is overseen by the directors who have substantial experience in this field.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in other gains and losses in the profit or loss:
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Details of the company's subsidiaries at 30 April 2024 are as follows:
On 31 July 2023, Ryder Architecture Limited acquired the remaining 50% of the share capital of Okana Global Limited (previously known as BIM Academy (Enterprises) Limited) for consideration of £228,604, made up of £204,819 cash on acquisition and £23,785 deferred consideration plus legal costs of £1,143.
On 31 January 2024, Ryder Architecture Limited acquired 100% of the share capital of The Bush Consultancy Limited for consideration of £402,614, made up of £140,915 cash on acquisition and £261,699 deferred consideration plus legal costs of £16,066.
On 30 November 2023, Ryder Architecture Limited sold their 100% shareholding of Ryder (Asia) Limited.
On 30 August 2023, the 100% subsidiary Ryder Architecten (Nederlands) B.V. was dissolved.
Details of associates at 30 April 2024 are as follows:
Finance lease payments represent rentals payable by the company or group for certain items of computer equipment.
Bank loans were provided under the Coronavirus Business Interruption Loan Scheme whereby the Government guarantees 80% of the loans to the lender and pays interest and fees for the first 12 months.
The group had two CBILs loans outstanding at 30 April 2023:
Loan 1 was for a period of 5 years from September 2020 with an interest rate applied of 3.99% above base rate. The loan capital was repayable by 48 equal instalments of £3,646 commencing in September 2021.
Loan 2 was for a period of 6 years from June 2020 with an interest rate applied of 2.5%. The loan was repayable by 60 equal instalments of £833 commencing in June 2021.
Both loans were fully re-paid in the year.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The company deferred tax asset recognised at 30 April 2024 is expected to increase by £22,000 within the next financial year due to structures and buildings allowances at 3% resulting in depreciation exceeding capital allowances.
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.
The company has A ordinary and B ordinary share classes. Both share classes are entitled to the payment of dividends and return of capital. However A ordinary shareholders have full voting rights and B ordinary shareholders only have voting rights in respect of certain circumstances set out in the Articles of Association.
On 31 July 2023 the group acquired the remaining 50% of the issued share capital of Okana Global Limited (previously known as BIM Academy (Enterprises) Limited), taking the holding to 100% of the issued share capital.
On 31 January 2024 the group acquired 100% of the issued capital of The Bush Consultancy Limited.
On 31 August 2023 the group disposed of its 85% holding in Ryder Architecten (Nederlands) B.V.. Included in these financial statements are profits of £nil arising from the company's interests in Ryder Architecten (Nederlands) B.V. up to the date of its disposal.
On 30 November 2023 the group disposed of its 100% holding in Ryder (Asia) Limited. Included in these financial statements are losses of £148,372 arising from the company's interests in Ryder (Asia) Limited up to the date of its disposal.
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:
Amounts contracted for but not provided in the financial statements:
The remuneration of key management personnel is as follows.
During the year the group entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
The following amounts were outstanding at the reporting end date:
The company has taken exemption under paragraph 33.1A of FRS 102 of the requirement to disclose transactions with wholly owned subsidiaries of the company.
Dividends totalling £134,892 (2023 - £103,024) were paid in the year in respect of shares held by the company's directors.