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REGISTERED NUMBER: 02965414 (England and Wales)






















Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2024

for

Simpsonhaugh Architects Limited

Simpsonhaugh Architects Limited (Registered number: 02965414)






Contents of the Financial Statements
for the year ended 31 March 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Notes to the Financial Statements 11


Simpsonhaugh Architects Limited

Company Information
for the year ended 31 March 2024







DIRECTORS: R J Haugh
I R Simpson





SECRETARY: R J Haugh





REGISTERED OFFICE: Riverside
4 Commercial Street
Manchester
Lancashire
M15 4RQ





REGISTERED NUMBER: 02965414 (England and Wales)





AUDITORS: Bennett Brooks & Co Limited
Chartered Accountants
& Statutory Auditors
St George's Court
Winnington Avenue
Northwich
Cheshire
CW8 4EE

Simpsonhaugh Architects Limited (Registered number: 02965414)

Strategic Report
for the year ended 31 March 2024

The directors present their strategic report for the year ended 31 March 2024.

REVIEW OF BUSINESS
Management are pleased to report that the business has retained its trading levels in the current year despite challenges in the UK economy and the resultant impact on the construction industry. This stability has been achieved by continued and sustained hard work which has resulted in winning new key clients and projects, maintaining good relationships with ongoing clients and achieving repeat projects and continuing to sustain and further build the reputation and profile of the business.

Strategy

While the success of its completed work and strong reputation for design quality and integrity has allowed the practice to expand, Rachel and Ian remain personally involved in each project. Consequently, the inspiration in design and the attention to detail in construction that have stimulated the achievements of the practice so far will continue to guide the ambition and quality of its schemes in the future.

The company's success is dependent on the proper selection, pricing, and ongoing management of the risks it accepts. The directors believe it is important to retain a diversified portfolio of risks to achieve maximum resilience and profitability in this highly competitive marketplace.

The company always aims to improve efficiency in all areas of operation through effective project management. The financial statements report a gross profit of £6.1m (2023: £5.8m) and a profit before tax of £1.9m (2023: £1.5m). Turnover and gross margins are in line with expectations.

PRINCIPAL RISKS AND UNCERTAINTIES
The process of risk acceptance and risk management is addressed through a rigorous framework of policies, procedures, and internal controls. All policies are subject to board approval and ongoing review by the management team.

Compliance with regulations, legal and ethical standards is a high priority for the company and the finance department takes on an important oversight role in this regard, to ensure that a proper internal control framework exists to manage financial risks and that controls operate effectively.

The company has developed an effective framework for identifying the risks and their impact on economic capital.

The principal risks arising from our business activities relate to
1. Inaccurate pricing
2. Ineffective time cost management
3. Inadequate management of foreign exchange risk
These risks are discussed in the directors' reports within the section dealing with financial instruments and risk management.

ON BEHALF OF THE BOARD:





R J Haugh - Director


26 March 2025

Simpsonhaugh Architects Limited (Registered number: 02965414)

Report of the Directors
for the year ended 31 March 2024

The directors present their report with the financial statements of the company for the year ended 31 March 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the provision of architectural services.

DIVIDENDS
No dividends will be distributed for the year ended 31 March 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report.

R J Haugh
I R Simpson

FINANCIAL INSTRUMENTS
Treasury operations and financial instruments
The company has in place a risk management programme that seeks to limit adverse effects on the financial performance of the company by monitoring all foreseeable potential impacts.

Given the size of the company, the directors have delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance function. The directors have however instigated the establishment of a finance board which sits alongside them, and which may, in time, take over this function.

The company's financial instruments comprise borrowings, some cash and liquid resources and various items such as trade debtors and trade creditors, that arise directly from its operations. The main purpose of these financial instruments is to provide working capital facilities to the company.

The company is exposed to a variety of financial risks that include the effects of general changes in the state of the UK economy in debt market prices, credit risk, liquidity risk and interest rate risk.

Liquidity risk
The company's policy is to finance its operations and expansion through working capital.

Interest rate risk
The company monitors its interest rate risk primarily through rigorous cash flow forecasting and resultant limited borrowing at the best rates achievable.

Foreign currency risk
The company enters into transactions with a limited number of international suppliers and is therefore exposed to low foreign exchange risk arising from limited currency exposure. Foreign exchange risk arises from commercial transactions, in relation to the provision of services.

Credit risk
The company's credit risk is primarily linked to its trade debtors. The amounts presented in the balance sheet are net of any allowances for doubtful debt as estimated by the directors. The company has no significant concentration of credit risk, with exposure spread over a wide range of client bodies.

GOING CONCERN
The Directors regularly review turnover, profitability and cash flows across the short, medium and longer term. In assessing the appropriateness of adopting the going concern basis in the preparation of these financial statements, the Directors have prepared cash flow forecasts and projections for the next 12 months from the signing of these financial statements.

Based on this, the Directors are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the Company financial statements.

DIRECTORS' INTERESTS
The Company has indemnified its directors against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third-party indemnity provision was in place during the year and is in force at the date of approving the financial statements.


Simpsonhaugh Architects Limited (Registered number: 02965414)

Report of the Directors
for the year ended 31 March 2024

DISCLOSURE IN THE STRATEGIC REPORT
Future developments, principal risks and uncertainties and financial instrument risks are disclosed in the Strategic Report.

The company has chosen in accordance with section 414(c) of the Companies Act 2006 (Strategic and Directors Report) Regulations 2013 to set out in the company’s Strategic Report information required by schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulations 2008.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
During the year, Alexander & Co LLP resigned as auditors and Bennett Brooks & Co Limited were appointed. Bennett Brooks & Co Limited have indicated their willingness to continue in office and a resolution concerning their reappointment will be proposed at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





R J Haugh - Director


26 March 2025

Report of the Independent Auditors to the Members of
Simpsonhaugh Architects Limited

Opinion
We have audited the financial statements of Simpsonhaugh Architects Limited (the 'company') for the year ended 31 March 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 March 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.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors 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 or the Report of the Directors.

We have nothing to report in respect of the following matters where 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 directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Report of the Independent Auditors to the Members of
Simpsonhaugh Architects Limited


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

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.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to UK tax legislation and regulations which govern the preparation of financial statements, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's
incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue, through management bias in manipulation of accounting estimates or accounting for significant transactions outside the normal course of business. Audit procedures performed included:

- Enquiry of management around actual and potential litigation and claims and instances of non-compliance with laws and regulations;
- Auditing the risk of management override of controls, through testing journal entries and other adjustments for appropriateness, testing accounting estimates (because of the risk of management bias), and evaluating the business rationale of significant transactions outside the normal course of business;
- Reviewing financial statement disclosures and agreeing to supporting documentation to assess compliance with applicable laws and regulations.

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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Simpsonhaugh Architects Limited


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 a Report of the Auditors 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.




George Wood BA ACA (Senior Statutory Auditor)
for and on behalf of Bennett Brooks & Co Limited
Chartered Accountants
& Statutory Auditors
St George's Court
Winnington Avenue
Northwich
Cheshire
CW8 4EE

26 March 2025

Simpsonhaugh Architects Limited (Registered number: 02965414)

Statement of Comprehensive
Income
for the year ended 31 March 2024

2024 2023
Notes £ £

TURNOVER 4 10,751,379 10,383,537

Cost of sales (4,631,731 ) (4,612,522 )
GROSS PROFIT 6,119,648 5,771,015

Administrative expenses (4,167,703 ) (4,209,836 )
1,951,945 1,561,179

Other operating income 5 59,919 3,916
OPERATING PROFIT 7 2,011,864 1,565,095

Interest receivable and similar income 9,533 1,939
Interest payable and similar expenses 8 (72,407 ) (68,784 )
PROFIT BEFORE TAXATION 1,948,990 1,498,250

Tax on profit 9 (422,369 ) (177,653 )
PROFIT FOR THE FINANCIAL YEAR 1,526,621 1,320,597

Other comprehensive income - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,526,621

1,320,597

Simpsonhaugh Architects Limited (Registered number: 02965414)

Balance Sheet
31 March 2024

2024 2023
Notes £ £
FIXED ASSETS
Intangible assets 11 2,820,801 3,192,775
Tangible assets 12 185,784 291,424
3,006,585 3,484,199

CURRENT ASSETS
Debtors 13 5,002,090 2,749,764
Cash at bank and in hand 1,934,221 2,488,701
6,936,311 5,238,465
CREDITORS
Amounts falling due within one year 14 (3,909,601 ) (3,977,792 )
NET CURRENT ASSETS 3,026,710 1,260,673
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,033,295

4,744,872

CREDITORS
Amounts falling due after more than one year 15 (392,714 ) (798,971 )

PROVISIONS FOR LIABILITIES 18 (60,621 ) (69,007 )
NET ASSETS 5,579,960 3,876,894

CAPITAL AND RESERVES
Called up share capital 19 2 2
Other reserves 176,445 -
Retained earnings 5,403,513 3,876,892
5,579,960 3,876,894

The financial statements were approved by the Board of Directors and authorised for issue on 26 March 2025 and were signed on its behalf by:





R J Haugh - Director


Simpsonhaugh Architects Limited (Registered number: 02965414)

Statement of Changes in Equity
for the year ended 31 March 2024

Called up
share Retained Other Total
capital earnings reserves equity
£ £ £ £
Balance at 1 April 2022 2 3,698,797 - 3,698,799

Changes in equity
Profit for the year - 1,320,597 - 1,320,597
Total comprehensive income - 1,320,597 - 1,320,597
Dividends - (1,142,502 ) - (1,142,502 )
Total transactions with owners,
recognised directly in equity

-

(1,142,502

)

-

(1,142,502

)
Balance at 31 March 2023 2 3,876,892 - 3,876,894

Changes in equity
Profit for the year - 1,526,621 - 1,526,621
Total comprehensive income - 1,526,621 - 1,526,621
Credit related to equity settled
share-based payments

-

-

167,000

167,000
Deferred tax on share-based payments - - 9,445 9,445
Total transactions with owners,
recognised directly in equity

-

-

176,445

176,445
Balance at 31 March 2024 2 5,403,513 176,445 5,579,960

Simpsonhaugh Architects Limited (Registered number: 02965414)

Notes to the Financial Statements
for the year ended 31 March 2024

1. STATUTORY INFORMATION

Simpsonhaugh Architects Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
The Directors regularly review turnover, profitability and cash flows across the short, medium and longer term. In assessing the appropriateness of adopting the going concern basis in the preparation of these financial statements, the Directors have prepared cash flow forecasts and projections for the next 12 months from the signing of these financial statements.

Based on this, the Directors are satisfied that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the Company financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirement of paragraph 33.7.

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

Turnover
Turnover is the amount of revenue derived from the provision of services falling within the company's ordinary activities after deduction of trade discounts and value-added tax.

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.

Goodwill
Goodwill represents the excess of the cost of acquisition on unincorporated business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purpose of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairments at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Simpsonhaugh Architects Limited (Registered number: 02965414)

Notes to the Financial Statements - continued
for the year ended 31 March 2024

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Leasehold improvements- over the period of the lease being 15 years on cost
Office equipment- 20% on cost
Fixtures and fittings- 15% on reducing balance

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Short term debtors and creditors
Short term debtors and creditors with no stated interest rate are recorded at transaction price. Any losses arising from impairment are recognised in the income statement.

Share capital
Ordinary shares are classed as equity.

Distributions to equity holders
Dividends are recognised as a liability in the financial statements in the period in which the dividends are approved by the company's shareholders. These amounts are recognised in the statement of changes in equity.

Cash and cash equivalents
Cash and cash equivalents includes cash in hand, cash held with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Interest receivable/payable
Interest income and expense are recognised in the financial statements on an accrual basis using the effective interest rate (EIR) method. Interest income is recognised when it is probable that the economic benefits will flow to the entity and the amount can be reliably measured. Interest expenses on financial liabilities, are recorded as expenses in the period they accrue.

Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

Simpsonhaugh Architects Limited (Registered number: 02965414)

Notes to the Financial Statements - continued
for the year ended 31 March 2024

2. ACCOUNTING POLICIES - continued

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 mount 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 ending 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 the profit or loss in the period which it arises.

Financial instruments
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities are offset and the net amount reported in the statement of financial position if, and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle basis, or to realise the assets and settle the liabilities simultaneously.

Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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.

Simpsonhaugh Architects Limited (Registered number: 02965414)

Notes to the Financial Statements - continued
for the year ended 31 March 2024

2. ACCOUNTING POLICIES - continued

Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of the ownership to the leases. 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 tested as consisting of capital and interest elements. The interest is charged to the profit or loss to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under the operating leases, including any lease incentives received, are charged to the profit and 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 are consumed.

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.

Share based payments
Equity-settled arrangements are measured at fair value at the date of the grant by reference to the fair value of the equity instruments granted using the Black-Scholes Merton model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

The expense in relation to options over the parent company's shares granted to employees is recognised as a capital contribution, and is presented as an increase in the parent company's investment in this company.

Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Simpsonhaugh Architects Limited (Registered number: 02965414)

Notes to the Financial Statements - continued
for the year ended 31 March 2024

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on 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.

Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Deferred and accrued income
Turnover is recognised as per the turnover accounting policy.

This policy requires forecasts to be made of the outcomes of long term contracts which require assessments and judgements to be made on recovery of pre-contract costs, changes in the scope of work, contract programmes, maintenance and defects liabilities and changes in costs. This is recorded as accrued and deferred income in the financial statements. Deferred income arises on contracts in which the stage of completion is calculated to be lower than the percentage of the fees requested when compared to the total overall fees. In the opposite case, accrued income arises. There are a small number of long-term and complex projects which have required judgements over contractual entitlements. The range of potential outcomes as a result of uncertain future events could result in a materially positive or negative swing to profitability and cash flow.

Share-Based Payments
The company operates a share-based payment scheme, under which certain employees receive equity-settled awards. The charge recognised in the financial statements is based on the fair value of the awards at the grant date, which involves significant judgement in the following areas:

Valuation Model & Key Inputs
The company uses the Black-Scholes Merton model to determine fair value. Key inputs include the expected option life, dividend yield, and grant-date share price. These require judgment in assessing assumptions that best reflect expected future conditions.

Vesting Conditions
The directors assess the likelihood of meeting performance and service conditions attached to the awards. Judgements are made regarding future company performance and employee retention, which impact the proportion of awards expected to vest.

Changes in these assumptions could materially affect the share-based payment charge recognised in the financial statements.

Bad debt provision
The company assesses trade debtors for impairment at each reporting date. A provision for bad debts is recognised against trade debtors when there is objective evidence that the company will not be able to collect all amounts due under the original terms of the receivable.

Onerous contract provision
An onerous contract provision is recognised when the unavoidable costs of fulfilling a contract exceed the expected economic benefits. The provision is measured at the lower of the cost of fulfilling the contract and the cost of terminating it. Costs used in assessing an onerous contract provision are based on actual expected costs rather than internal charge-out rates. The provision is reviewed at each reporting date and adjusted as necessary.

Goodwill amortisation
Goodwill is amortised over its finite life and impaired if necessary. In some circumstances the accounting standard imposes an upper limit of a 10 year finite life for goodwill. Whilst the standard would not impose the upper limit for the company, the directors consider 10 years to be a reasonable estimate for when any goodwill resulting from the combination is expected to cease. This has been arrived at by considering the length of projects that the company undertakes.

Simpsonhaugh Architects Limited (Registered number: 02965414)

Notes to the Financial Statements - continued
for the year ended 31 March 2024

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024 2023
£ £
Project fees 10,706,913 10,263,734
Sub consultant fees 10,555 111,066
Recharge income 33,911 8,737
10,751,379 10,383,537

An analysis of turnover by geographical market is given below:

2024 2023
£ £
United Kingdom 9,175,426 9,643,267
Rest of the world 1,575,953 740,270
10,751,379 10,383,537

5. OTHER OPERATING INCOME

Other income

20242023
£   £   
Rent received55,479-
Service charge recharges4,4403,916
Deposit account interest8,3141,939
68,2335,855

6. EMPLOYEES AND DIRECTORS
2024 2023
£ £
Wages and salaries 4,817,582 4,589,301
Social security costs 461,274 492,589
Other pension costs 214,831 187,639
5,493,687 5,269,529

The average number of employees during the year was as follows:
2024 2023

Professional staff 101 105

Included within wages and salaries is £167,000 (2023: £Nil) relating to share-based payment charges. See note 22 for more details.

Key management personnel are considered to be the directors only.

2024 2023
£ £
Directors' remuneration - -

Simpsonhaugh Architects Limited (Registered number: 02965414)

Notes to the Financial Statements - continued
for the year ended 31 March 2024

7. OPERATING PROFIT

20242023
£   £   
Depreciation - owned assets20,93859,138
Depreciation - under finance lease86,67095,855
Goodwill amortisation371,974371,974
Auditors remuneration23,50016,250
Auditors remuneration for non audit work5,243-
Foreign exchange differences(8,708)21,634
Operating lease charges521,000526,042
Impairment of trade debtors(338)179,982

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£ £
Bank interest 49,709 42,064
Hire purchase interest 22,698 26,720
72,407 68,784

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£ £
Current tax:
UK corporation tax 567,275 163,361
Overprovision in prior year (107,077 ) -
Foreign taxation 27,080 32,711
Total current tax 487,278 196,072

Deferred tax (64,909 ) (18,419 )
Tax on profit 422,369 177,653

Tax on items charged to equity
2024 2023
£ £
Deferred tax on share-based payments (9,445 ) -

Simpsonhaugh Architects Limited (Registered number: 02965414)

Notes to the Financial Statements - continued
for the year ended 31 March 2024

9. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£ £
Profit before tax 1,948,990 1,498,250
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 -
19%)

487,248

284,668

Effects of:
Expenses not deductible for tax purposes 11,068 8,354
Adjustments to tax charge in respect of previous periods (107,077 ) -
Depreciation on assets not qualifying for tax allowance - 735
Amortisation on assets not qualifying for tax allowances 92,994 70,675
Research and development tax credit (47,648 ) (197,071 )
Effects of change in corporation tax rate on deferred tax - 10,292
Group relief claimed (14,216 ) -
Total tax charge 422,369 177,653

10. DIVIDENDS

20242023
£   £   
Ordinary share of £1 each
Interim-1,142,502

11. INTANGIBLE FIXED ASSETS
Goodwill
£
COST
At 1 April 2023
and 31 March 2024 3,719,738
AMORTISATION
At 1 April 2023 526,963
Amortisation for year 371,974
At 31 March 2024 898,937
NET BOOK VALUE
At 31 March 2024 2,820,801
At 31 March 2023 3,192,775

The goodwill relates to the purchase of the trade and assets of SimpsonHaugh and Partners Group LLP, which is being amortised over the directors' estimate of its useful economic life of 10 years.

Simpsonhaugh Architects Limited (Registered number: 02965414)

Notes to the Financial Statements - continued
for the year ended 31 March 2024

12. TANGIBLE FIXED ASSETS
Fixtures
Leasehold Office and
improvements equipment fittings Totals
£ £ £ £
COST
At 1 April 2023 40,854 661,812 559,240 1,261,906
Additions - 1,969 - 1,969
Disposals (2,731 ) (24,331 ) (26,568 ) (53,630 )
At 31 March 2024 38,123 639,450 532,672 1,210,245
DEPRECIATION
At 1 April 2023 18,390 429,994 522,098 970,482
Charge for year 2,541 99,211 5,856 107,608
Eliminated on disposal (2,731 ) (24,330 ) (26,568 ) (53,629 )
At 31 March 2024 18,200 504,875 501,386 1,024,461
NET BOOK VALUE
At 31 March 2024 19,923 134,575 31,286 185,784
At 31 March 2023 22,464 231,818 37,142 291,424

The net carrying value of tangible fixed assets include the following in respect of assets held under finance lease of hire purchase.

20242023
£   £   
Office equipment130,184216,854

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Trade debtors 2,380,009 1,519,875
Other debtors 1,402 6,067
Due from group undertakings 1,562,057 70,662
Deferred tax asset 31,471 -
Prepayments & accrued income 1,027,151 1,153,160
5,002,090 2,749,764

Deferred tax asset
2024
£
Accelerated capital allowances (24,094 )
Share-based payments 51,195
Other timing differences 4,370
31,471

Included within trade debtors, is a bad debt provision amounting to £985,269 (2023: £985,608) for amounts which management have assessed to be irrecoverable.

Amounts due from group undertakings are unsecured, interest free and repayable upon demand.

Simpsonhaugh Architects Limited (Registered number: 02965414)

Notes to the Financial Statements - continued
for the year ended 31 March 2024

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Bank loans and overdrafts (see note 16) 199,992 199,992
Hire purchase contracts (see note 17) 206,287 531,532
Trade creditors 237,471 245,135
Corporation tax payable 539,671 244,053
Social security & other taxes 115,891 124,799
VAT 184,092 201,081
Other creditors 64,974 40,963
Accruals & deferred income 2,361,223 2,390,237
3,909,601 3,977,792

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£ £
Bank loans (see note 16) 350,026 550,018
Hire purchase contracts (see note 17) 42,688 248,953
392,714 798,971

16. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£ £
Amounts falling due within one year or on demand:
Bank loans 199,992 199,992

Amounts falling due between two and five years:
Bank loans - 1-5 years 350,026 550,018

The company entered into a mortgage debenture dated 8 November 2011 in favour of The Royal Bank of Scotland PLC ("RBS") in respect of all monies due to or becoming due to RBS on any account whatsoever.

The company had one CBILS loan outstanding at the year end. The loan is repayable over 6 years from the date of drawdown (December 2020). The loan was interest only until December 2021 at which point capital repayments commenced. Interest is charged at 2.42% p.a. over the bank's base rate.

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£ £
Net obligations repayable:
Within one year 206,287 531,532
Between one and five years 42,688 248,953
248,975 780,485

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Net obligations under finance leases are secured by fixed charges over the assets which they relate.

Simpsonhaugh Architects Limited (Registered number: 02965414)

Notes to the Financial Statements - continued
for the year ended 31 March 2024

17. LEASING AGREEMENTS - continued

Non-cancellable
operating leases
2024 2023
£ £
Within one year 291,875 521,000
Between one and five years 158,000 449,875
449,875 970,875

At the reporting date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases.

18. PROVISIONS FOR LIABILITIES
2024 2023
£ £
Deferred tax
Deferred tax - 42,883

Other provisions
Onerous contract provision 60,621 26,124

Aggregate amounts 60,621 69,007

Deferred Onerous
tax contracts
£ £
Balance at 1 April 2023 42,883 26,124
(Credit)/charge to Statement of Comprehensive Income during year (64,909 ) 60,621
Utilised during year - (26,124 )
Charge to equity during year (9,445 ) -
Balance at 31 March 2024 (31,471 ) 60,621

Estimated costs to completion in respect of loss making contracts have been provided for in accordance with FRS 102 to ensure the profit and loss account incorporates the expected loss on all onerous contracts.

The company recognises deferred tax liabilities/(assets) for temporary differences arising between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. These deferred tax balances are expected to reverse over time as the temporary differences are settled.

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £ £
2 Ordinary £1 2 2
2 2

Ordinary shares each carry voting rights, have no restrictions on dividends declared and have full right on a capital contribution.

20. PENSION COMMITMENTS

The Company operates a company personal pension plan and makes contributions to this. The pension cost charge represents contributions payable by the Company and amounted to £214,831 (2023: £187,639). Contributions of £17,480 (2023: £16,742) were payable to the funds at the year end.

Simpsonhaugh Architects Limited (Registered number: 02965414)

Notes to the Financial Statements - continued
for the year ended 31 March 2024

21. ULTIMATE CONTROLLING PARTY

SimpsonHaugh Holding Company Limited is the ultimate parent company and immediate parent in which this company is consolidated. Consolidated financial statements are available from Companies House and may be obtained from the registered address which is Riverside, 4 Commercial Street, Manchester, United Kingdom, M15 4RQ.

The ultimate controlling parties are R J Haugh and I R Simpson.

22. SHARE-BASED PAYMENT TRANSACTIONS

On 5 September 2023 the company implemented an equity settled share-based payment plan. This is an Enterprise Management Incentive plan ("EMI plan") for the benefit of employees and directors. 2,560 options are granted with a fixed exercise price set at the date of grant as £197.53 per share. The contractual life of the options is 10 years from the date of grant. Exercise of an option is subject to continued employment with the company.

The share options are issued from the parent company, SimpsonHaugh Holding Company Limited, however the service received in relation to the share-based payment expense is received by SimpsonHaugh Architects Limited. As such, the share option reserve is recognised in the accounts of the parent company. The share-based payment expense is recognised by the company as an expense and capital contribution in other reserves.

The cost of the plan is spread proportionally over the vesting period, assuming a retention rate of 90%. The company recognised total expenses of £167,000 in the year ended 31 March 2024 in respect of the plan (2023: £Nil).

23. RELATED PARTY TRANSACTIONS

Transactions with related parties
As the company is a wholly owned subsidiary of SimpsonHaugh Holding Company Limited, the company has taken advantage of the exemption contained in Financial Reporting Standard 102 and therefore has not disclosed transactions or balances with wholly owned members of the group.

The company paid rent of £158,000 (2023: £158,000) to MJ Field SIPP, an entity connected to the directors.