Piercy & Company London Limited
Annual Report and Financial Statements
For the year ended 31 January 2024
Company Registration No. 03913978 (England and Wales)
Piercy & Company London Limited
Company Information
Director
S Piercy
Company number
03913978
Registered office
101 New Cavendish Street
1st Floor South
London
United Kingdom
W1W 6XH
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
Piercy & Company London Limited
Contents
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Balance sheet
10
Notes to the financial statements
11 - 17
Piercy & Company London Limited
Strategic Report
For the year ended 31 January 2024
Page 1
The director presents the strategic report for the year ended 31 January 2024.
Strategy and Business Model
In the Year Ended January 2024 we have not only continued to deliver on major projects but have also implemented a number of strategic improvements to our internal structure and processes. 2023 was the first full year operating as an Employee Ownership Trust (EOT), following its commencement in December 2022. This shift in ownership, with its objective of laying the groundwork for a sustainable future for the organisation, has empowered our employees to be more engaged in practice governance, creating a shared sense of ownership and responsibility. The transition to an EOT model is a core part of our long-term succession planning, and is ultimately fundamental to the long term strength and resilience of the practice.
In addition to reinforcing our internal capabilities, throughout 2023 we strategically focused on expanding the scale and scope of our projects. New projects secured in the second part of the year were crucial in shoring up the project pipeline into 2024.
Year Ending 31 January 2024
The organisation experienced sustained revenue growth across the year with a Year on Year growth from YE Jan 2023 of 13%. A high volume of projects at RIBA Stages 2 to 3 (much of it secured in Q3 and Q4 of 2022) and an appetite from clients to progress projects rapidly contributed to the growth in turnover.
Projects
Our project portfolio spans commercial (new build, retrofit and fit-out), residential, cultural and life sciences. Over recent years, we have been developing a strong portfolio and expertise based around the re-use of existing buildings. This covers a broad range of interventions, from deep back-to-frame retrofits to light touch refurbishments across a diverse set of building stock, from Georgian to late twentieth century. The re-use of existing building stock is an essential part of the built environment sector’s response to the climate crisis, and this is also reflected in the changing planning system where retro-first is increasingly entering planning policy.
Sustainability and the drive to meet net zero targets is integral across our work. In 2023 planning consent was secured for one of our most innovative architectural projects which, when built, will be the largest all timber structure office building in the UK.
In 2023 we also grew our work in a number of related sectors. Occupier fit-outs and Head Quarters offer the exciting design challenge of working directly with organisations to shape their environments in response to their values. Continued work on HQs for international fashion and publishing brands were key projects in this sector in 2023.
Life sciences projects in both architecture and interior design progressed and were won in 2023, reflecting the industry’s level of enthusiasm for this sector.
Profile in the Industry
Our commitment to excellence continues to be recognized within the industry. We are grateful to our clients for their continued collaboration, which is reflected in the levels of repeat business.
Our leadership team, including directors and associate directors, actively promote the practice through public lectures, teaching engagements, and industry events, ensuring that Piercy & Company remains at the forefront of innovative design and thought leadership.
Piercy & Company London Limited
Strategic Report (Continued)
For the year ended 31 January 2024
Page 2
Principal Risks and Uncertainties
Our strategy remains focused on diversifying our service offerings, geographic reach and expanding into new sectors, while maintaining the high standards of quality that our clients expect. One of our key areas of focus is Life Sciences buildings, where we are leveraging our experience on lab-related projects to further grow in this sector. We continue to emphasize the importance of a robust quality management system to protect the reputation of the company. Our ISO 14001 (environmental) and 9001 (quality assurance) certifications remain a cornerstone of our operations.
Review of the business and Key Performance Indicators
This year has been a year of revenue growth for the practice with a Turnover of £11,146,782 representing a 13% increase from last year (£9,864,627). Our key financial metrics reflect this through the Fee per earner KPI increasing up to £128,954 (compared to £116,238 in the prior year), showing improved productivity. We have maintained a healthy gross margin of 49% (slightly reduced compared to the previous year's 51%.), which is a strong result against the prevailing economic conditions. Our current ratio stands at 1.93, reflecting a solid financial position.
| | |
| | |
| | |
Gross margin (% of turnover) | | |
| | |
Employment Policies
We remain committed to offering equal opportunities to all employees, promoting a culture of diversity, and ensuring a working environment that fosters merit-based progression. Our employee development programs are central to our operations, and we continue to support the professional growth of our team members.
Corporate Social Responsibility (CSR)
Our commitment to corporate social responsibility is strong, with an ongoing focus on supporting the wider community and promoting diversity within our industry. We are proud of our work with organizations such as Academy of Real Assets, BelEve, the Yorkshire Sculpture Park, and the University of Westminster, as well as our involvement in mentoring aspiring architects through our work experience programs.
Conclusion
The year ended 31 January 2024 has included many achievements - both organisational and project related. We look forward to continuing our journey with renewed purpose and shared ownership.
S Piercy
Director
13 February 2025
Piercy & Company London Limited
Director's Report
For the year ended 31 January 2024
Page 3
The director presents his annual report and financial statements for the year ended 31 January 2024.
Principal activities
The principal activity of the company continued to be that of architectural activities, including designing buildings and structures, providing architectural consultancy services, and overseeing construction projects.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
S Piercy
Auditor
Moore Kingston Smith LLP were appointed as auditors to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
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 company’s auditor 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 company’s auditor is aware of that information.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
S Piercy
Director
13 February 2025
Piercy & Company London Limited
Director's Responsibilities Statement
For the year ended 31 January 2024
Page 4
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Piercy & Company London Limited
Independent Auditor's Report
To the Members of Piercy & Company London Limited
Page 5
Opinion
We have audited the financial statements of Piercy & Company London Limited (the 'company') for the year ended 31 January 2024 which comprise the Profit and Loss Account, the Balance Sheet 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 January 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The director is 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.
Piercy & Company London Limited
Independent Auditor's Report (Continued)
To the Members of Piercy & Company London Limited
Page 6
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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the director's report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the director's report.
Responsibilities of director
As explained more fully in the Director's Responsibilities Statement, the director is 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 director determines 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Piercy & Company London Limited
Independent Auditor's Report (Continued)
To the Members of Piercy & Company London Limited
Page 7
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.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
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. 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.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Piercy & Company London Limited
Independent Auditor's Report (Continued)
To the Members of Piercy & Company London Limited
Page 8
Explanation as to what extent 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, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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.
Robert Kersse
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
13 February 2025
Chartered Accountants
Statutory Auditor
6th Floor
9 Appold Street
London
EC2A 2AP
Piercy & Company London Limited
Profit and Loss Account
For the year ended 31 January 2024
Page 9
2024
2023
£
£
Turnover
11,146,782
9,864,627
Cost of sales
(5,721,289)
(4,811,326)
Gross profit
5,425,493
5,053,301
Administrative expenses
(3,167,339)
(3,037,756)
Other operating income
1,600
Operating profit
2,259,754
2,015,545
Interest receivable and similar income
124
28,953
Interest payable and similar expenses
(2,764)
(321)
Profit before taxation
2,257,114
2,044,177
Tax on profit
(192,251)
(127,138)
Profit for the financial year
2,064,863
1,917,039
Piercy & Company London Limited
Balance Sheet
As at 31 January 2024
Page 10
Restated
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
402,353
495,529
Current assets
Debtors
4
2,343,877
2,681,330
Cash at bank and in hand
2,402,932
640,414
4,746,809
3,321,744
Creditors: amounts falling due within one year
5
(2,439,455)
(1,717,963)
Net current assets
2,307,354
1,603,781
Total assets less current liabilities
2,709,707
2,099,310
Provisions for liabilities
(165,345)
(65,345)
Net assets
2,544,362
2,033,965
Capital and reserves
Called up share capital
6
91,371
91,371
Capital redemption reserve
10,000
10,000
Profit and loss reserves
2,442,991
1,932,594
Total equity
2,544,362
2,033,965
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 13 February 2025
S Piercy
Director
Company Registration No. 03913978
Piercy & Company London Limited
Notes to the Financial Statements
For the year ended 31 January 2024
Page 11
1
Accounting policies
Company information
Piercy & Company London Limited is a private company limited by shares incorporated in England and Wales. The registered office is:
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 as applicable to companies subject to the small companies regime.
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.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Management have assessed the future sales pipeline, applying sensitivity to potential new work, and concluded operations will continue for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Research and development expenditure
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.
Piercy & Company London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
Page 12
1.5
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 the period of the lease
Fixtures and fittings
25% on reducing balance method
Computers
33% on straight-line method
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
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.
1.7
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.
Piercy & Company London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
Page 13
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Piercy & Company London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
Page 14
1.10
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 when the company has 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.
1.11
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Piercy & Company London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
Page 15
1.14
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 leases asset are consumed.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
104
92
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 February 2023
269,501
902,582
1,172,083
Additions
21,137
77,102
98,239
At 31 January 2024
290,638
979,684
1,270,322
Depreciation and impairment
At 1 February 2023
80,894
595,660
676,554
Depreciation charged in the year
70,895
120,520
191,415
At 31 January 2024
151,789
716,180
867,969
Carrying amount
At 31 January 2024
138,849
263,504
402,353
At 31 January 2023
188,607
306,922
495,529
Piercy & Company London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
Page 16
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,951,101
2,029,286
Amounts owed by group undertakings
65,250
Other debtors
81,258
78,450
Prepayments and accrued income
311,518
508,344
2,343,877
2,681,330
5
Creditors: amounts falling due within one year
Restated
2024
2023
£
£
Trade creditors
262,613
206,140
Corporation tax
190,930
91,325
Other taxation and social security
550,177
446,575
Other creditors
141,968
176,824
Accruals and deferred income
1,293,767
797,099
2,439,455
1,717,963
6
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
"A" Ordinary shares of £1 each
90,000
90,000
90,000
90,000
"B" Ordinary shares of £1 each
1,371
1,371
1,371
1,371
91,371
91,371
91,371
91,371
7
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
1,687,544
2,152,581
Piercy & Company London Limited
Notes to the Financial Statements (Continued)
For the year ended 31 January 2024
Page 17
8
Related party transactions
An amount of £65,250 was advanced by Piercy and Company to the ultimate controlling parent company. This loan was provided to cover the payment of stamp duties related to the purchase of shares and has been provided for in the period.
During the year, the company made a non-dividend distribution of £1,554,463 to the company's ultimate controlling party.
9
Parent company
The company is controlled by Piercy & Company Trustees Limited.
10
Prior period adjustment
It was identified that in earlier periods, rent free periods on the property leases held had been recognised in the period of the benefit instead of being spread over the term of the lease. Therefore, the resulting error has ben accounted for as a prioer year adjustment by accruing the benefit and adjusting for the resulting impact on retained earnings. The proit effect for the year ended 31 January 2023 is an increase to profit of £84,168.
Reconciliation of changes in equity
1 February
31 January
2022
2023
£
£
Adjustments to prior year
Rent expense
193,429
277,597
Equity as previously reported
4,174,838
1,756,368
Equity as adjusted
4,368,267
2,033,965
Analysis of the effect upon equity
Profit and loss reserves
(193,429)
(227,596)
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Rent expense
84,168
Profit as previously reported
1,832,871
Profit as adjusted
1,917,039
2024-01-312023-02-01falsefalsefalseCCH SoftwareCCH Accounts Production 2024.301S Piercy039139782023-02-012024-01-3103913978bus:Director12023-02-012024-01-31039139782024-01-31039139782022-02-012023-01-31039139782023-01-3103913978core:LandBuildings2024-01-3103913978core:OtherPropertyPlantEquipment2024-01-3103913978core:LandBuildings2023-01-3103913978core:OtherPropertyPlantEquipment2023-01-3103913978core:ShareCapital2024-01-3103913978core:ShareCapital2023-01-3103913978core:CapitalRedemptionReserve2024-01-3103913978core:CapitalRedemptionReserve2023-01-3103913978core:RetainedEarningsAccumulatedLosses2024-01-3103913978core:RetainedEarningsAccumulatedLosses2023-01-3103913978core:ShareCapitalOrdinaryShares2024-01-3103913978core:ShareCapitalOrdinaryShares2023-01-3103913978core:LeaseholdImprovements2023-02-012024-01-3103913978core:FurnitureFittings2023-02-012024-01-3103913978core:ComputerEquipment2023-02-012024-01-3103913978core:LandBuildings2023-01-3103913978core:OtherPropertyPlantEquipment2023-01-31039139782023-01-3103913978core:LandBuildings2023-02-012024-01-3103913978core:OtherPropertyPlantEquipment2023-02-012024-01-3103913978core:CurrentFinancialInstruments2024-01-3103913978core:CurrentFinancialInstruments2023-01-3103913978bus:PrivateLimitedCompanyLtd2023-02-012024-01-3103913978bus:FRS1022023-02-012024-01-3103913978bus:Audited2023-02-012024-01-3103913978bus:FullAccounts2023-02-012024-01-31xbrli:purexbrli:sharesiso4217:GBP