Company registration number 04472743 (England and Wales)
ROBERT BIRD & PARTNERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
ROBERT BIRD & PARTNERS LIMITED
COMPANY INFORMATION
Directors
J Beutel
H Poologasundram
D Seel
T Dobbins
G Grant
Secretary
A McColl
Company number
04472743
Registered office
First Floor
Harling House
Great Suffolk Street
London
SE1 0BS
Auditor
Verallo
Century House
Wargrave Road
Henley-on-Thames
Oxfordshire
RG9 2LT
ROBERT BIRD & PARTNERS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10 - 11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 35
ROBERT BIRD & PARTNERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Review of the business
2024 saw some restructuring of the UK business leadership as part of the wider Surbana Jurong (SJ) group transformation which will see all businesses working more closely together, both in terms of sharing resources and also enhancing opportunities for work winning. We successfully moved to a sponsorship model for our business functions teams whereby each team follows a global line management structure with collaborative support at operational and strategic levels from the UK leadership team. This is in support of the new SJ Operating Model which is working successfully. Consequently, we have optimised overheads in the region, while improving operational performance.
Revenue and head count grew in line with business plan expectations, but the impact of reduced consultancy fees on several major projects weighed upon gross margin. Results were also impacted by challenges in agreeing additional fees for changes and prolongation on a major European stadium project.
A key development for the year is our new regional branch office in Saudi Arabia opening in March 2024. This office constitutes a key component of the Robert Bird Group’s (RBG) growth strategy and will provide local support for servicing our existing clients in the region, while also allowing us to build on strengthening relationships in this high growth market.
Significant progress continues to be made with the implementation of the company’s sustainability and carbon strategies, including working towards our Science Based Targets goal through the Business Ambition 1.5 framework. We are committed to reducing embodied carbon in our designs, targeting a reduction of 50% by 2030. Strategic investment continued throughout the year in the development of key digital tools, such as our carbon assessment tool – Magpie, and the furtherance of knowledge sharing processes with a focus on sustainability and low embodied carbon design approaches.
The business leadership restructure included an enhanced focus on work winning with the Director of New Business, a new role, leading this. Strategic growth to achieve sector and geographic diversification has been successful, with our High-Tech Manufacture sector yielding strong results. Ongoing flow of revenue continues from our three HS2 framework appointments, our Network Rail framework, and other infrastructure commissions. The energy sector, including Hinkley Point Power Station has also yielded high margin work showing further sector diversification and the resilience that this will bring into 2025. Securing new work from UK private sector clients remained challenging with fewer projects awarded and/or progressing into detailed design, and competitive pricing in the residential sector. Building on our refurb and reuse strengths and portfolio will be key to continuing to be successful in these sectors. This includes an important project win for 2025 with the conversion of one of the most high-profile repurposing projects in the UK, being an important outcome from this strategy. International markets generated some significant opportunities in the Middle East region with the Industralised Construction Consultant scope won on Neom - The Line and ongoing scopes on Trojena continuing to provide a good flow of revenue into the UK. The year finished with a healthy work in hand position and a broad pipeline of opportunities for 2025.
The company's core principles in managing the volatility of financial risk faced by the business remain conservative in nature including maintaining flexibility within our workforce, ability to share work/resources within our wider global group of companies, and growth funded by retaining profits within the company.
Key performance indicators
ROBERT BIRD & PARTNERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Position of the business
Confirmed workload and pipeline opportunities remained steady to year end, underpinned by sectorial and geographic diversity and ongoing workload from infrastructure frameworks and established building sector clients. It is pleasing to see the continuation of high-quality city office sector project opportunities where our approach to engineering and focus on designing low embodied carbon developments is providing value to our clients. We continue our strategy of further diversification through growth into the High-Tech Manufacture sector, Defence and Life Science sectors. We are targeting geographic growth in the UK, including having secured major projects in Manchester and Scotland, and into continental Europe.
RBG continues to offer a full range of Structural & Civil Engineering consultancy services for permanent and temporary works, as well as Construction Engineering, Geotechnical Engineering and Advanced Technical Services and Pre-Construction Solutions (PCS). The diverse skill sets within the company enable an agile response to changing market trends, and to manage its risks while working with top tier developers, asset owners, and contractors across a variety of urban building and infrastructure sectors.
The Directors are forecasting 2025 as the first of several years of increasing profitability underpinned by organic growth in target markets.
Principal risks and uncertainties
The principal risks facing the Company are set out below together with the procedures and controls to mitigate them:
Project delivery risk – technical risks are managed with well-established design, review and check procedures, developed and certified to relevant ISO accreditations, and supported by ongoing staff training and development. The organisational reporting structure, amended for 2024, continues to provide enhanced clarity regarding leadership roles and risk management accountability, while responding to the evolving Group structure to facilitate closer working relationships with related entities and supporting future growth.
Attracting and retaining talent - staff retention and recruitment are key to achieving planned growth. The Robert Bird Group has a reputation for innovation and the foundation of this is its people. The future success of the business is dependent on positive staff engagement built on a strong culture of shared purpose and values. Recruitment and retention are key focal points, supported by learning and development (L&D) strategies including the RBG graduate training programme and leadership development programme. The leadership team is committed to building an engaged workforce based on shared purpose, identity and values.
Work winning - strategic diversification of sectors and geographic regions continues to facilitate growth and build business resilience. The global business is committed to actively sharing workload providing further mitigation of risks associated with regional market volatility. Client care initiatives are focused on maintaining quality existing client relationships and repeat business, while our growth strategy focusses on securing new work with targeted efforts centred on new clients, broadening market share, strategic sectors, and geographic regions. RBG’s unique selling proposition (USP) continues to generate new work based on a reputation of technical excellence and the approach of designing for delivery. Company activities remain socially responsible and environmentally sustainable, and looking forward there will be further efforts in applying engineering expertise to the design of low carbon developments.
D Seel
Director
16 April 2025
ROBERT BIRD & PARTNERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of consulting civil, structural and geotechnical engineers.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £1,000,000 (2023: £1,000,000). The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J Beutel
H Poologasundram
D Seel
T Dobbins
G Grant
Supplier payment policy
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from https://www.cbi.org.uk/media/6080/cbi-code-of-conduct-for-suppliers.pdf).
The company's current policy concerning the payment of trade creditors is to:
settle the terms of payment with suppliers when agreeing the terms of each transaction;
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the company's contractual and other legal obligations.
Trade creditors of the company at the year-end were equivalent to 30 days purchases, based on the average daily amount invoiced by suppliers during the year.
Political donations
The company made no political donations or incurred any political expenditure in the year.
Financial instruments
Risks relating to financial instruments have been identified as the following:
Liquidity risk
The company has funded its growth through the retention of profit, operating cash flows and an overdraft facility with its banking partner. Financial risk is managed conservatively by ensuring sufficient liquidity is available to meet forecast cash flows.
Credit risk
The primary credit risk arises from recovery of trade debtors. Management of this risk is on-going and is governed by management's delegation of authority.
Research and development
Whilst the company does not undertake specific research and development activities, some of the company's expenditure qualifies as research and development for taxation purposes and therefore attracts government grants.
ROBERT BIRD & PARTNERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Going concern
The directors have prepared the financial statements on a going concern basis for the following reasons. The company is generally providing services to customers which are operating large well-funded projects and financial resilience remains a key consideration whenever entering new business relationships. The company recorded a profit after tax for the year ended 31 December 2024 of £1.8m and held cash of £6.4m at that date. Confirmed projects and pipeline have strengthened since the year end and the company continues to deliver services to its customers. The company has recorded a profit before tax for the first two months subsequent to the year end and had cash of £5.8m as at 28 February 2025.
Forecast revenue for the 2025 financial year is £33.5m the majority of which has already been secured. The company has no external debt or capital commitments as at the year end and 28 February 2025. The directors have prepared detailed cash flow forecasts for the period ended March 2026 on both a base case and downside scenario to reflect the impact any additional delay in customer receipts and potential loss of revenue.
The base case forecast and downside scenario forecast, described in the paragraph above, indicate that the company will have sufficient funds to meet its liabilities as they fall due for the forecast period. The directors are therefore confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company's continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present.
Post reporting date events
There are no post-reporting date events.
Future developments
The directors are optimistic that the business can retain its market share and are forecasting organic growth during 2025 based on confirmed projects and known opportunities. This is discussed further in the strategic report. The directors are confident that the business will deliver favourable results to all stakeholders.
Auditor
The auditor, Verallo, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
ROBERT BIRD & PARTNERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS101 Reduced Disclosure Framework.
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;
state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
assess the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
use the going concern basis of accounting unless they either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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 responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have a general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities.
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.
On behalf of the board
D Seel
Director
16 April 2025
ROBERT BIRD & PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ROBERT BIRD & PARTNERS LIMITED
- 6 -
Opinion
We have audited the financial statements of Robert Bird & Partners Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS101 'Reduced Disclosure Framework ' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the accompanying financial statements in all material respects:
give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the financial statements, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements themselves or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
ROBERT BIRD & PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ROBERT BIRD & PARTNERS LIMITED
- 7 -
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 directors' report.
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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to 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; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management. Our approach was as follows: We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), the policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (IFRS and the Companies Act 2006) and the relevant tax compliance regulations in the UK; We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
|
ROBERT BIRD & PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ROBERT BIRD & PARTNERS LIMITED
- 8 -
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company’s member 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 member, those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Michelle Hewitt-Dutton (Senior Statutory Auditor)
For and on behalf of Verallo
Statutory Auditor
Century House
Wargrave Road
Henley-on-Thames
Oxfordshire
RG9 2LT
16 April 2025
ROBERT BIRD & PARTNERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Revenue
4
36,677,987
32,515,280
Cost of sales
(25,382,329)
(22,500,707)
Gross profit
11,295,658
10,014,573
Administrative expenses
(9,530,689)
(7,675,915)
Other operating income
199,203
105,913
Operating profit
5
1,964,172
2,444,571
Investment income
9
41,222
17,576
Finance costs
10
(225,854)
(80,427)
Profit before taxation
1,779,540
2,381,720
Tax on profit
11
(452,929)
(745,363)
Profit for the financial year
1,326,611
1,636,357
Other comprehensive income:
Items that may be reclassified to profit or loss
Currency translation differences:
- Translation gain arising in the year
3,053
Total items that may be reclassified to profit or loss
3,053
Total other comprehensive income for the year
3,053
Total comprehensive income for the year
1,329,664
1,636,357
The income statement has been prepared on the basis that all operations are continuing operations.
The notes on pages 14 to 35 form part of these financial statements.
ROBERT BIRD & PARTNERS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Non-current assets
Intangible assets
13
17,481
66,509
Property, plant and equipment
14
243,895
40,412
Right-of-use assets
14
1,840,111
1,310,627
Deferred tax asset
22
90,801
109,079
2,192,288
1,526,627
Current assets
Trade and other receivables
16
10,726,696
8,768,143
Cash and cash equivalents
6,351,773
4,007,818
17,078,469
12,775,961
Current liabilities
Trade and other payables
20
8,815,687
5,404,466
Current tax liabilities
207,394
Other taxation and social security
1,301,483
944,239
Lease liabilities
21
587,792
615,521
10,912,356
6,964,226
Net current assets
6,166,113
5,811,735
Total assets less current liabilities
8,358,401
7,338,362
Non-current liabilities
Lease liabilities
21
1,102,624
398,139
(1,102,624)
(398,139)
Provisions for liabilities
Other provisions
23
(214,234)
(228,344)
Net assets
7,041,543
6,711,879
Equity
Called up share capital
25
100
100
Currency translation reserve
26
3,053
-
Retained earnings
7,038,390
6,711,779
Total equity
7,041,543
6,711,879
The notes on pages 14 to 35 form part of these financial statements.
ROBERT BIRD & PARTNERS LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 16 April 2025 and are signed on its behalf by:
D Seel
Director
Company registration number 04472743 (England and Wales)
ROBERT BIRD & PARTNERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Currency translation reserve
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 January 2023
100
-
6,075,422
6,075,522
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
1,636,357
1,636,357
Transactions with owners:
Dividends
12
-
-
(1,000,000)
(1,000,000)
Balance at 31 December 2023
100
-
6,711,779
6,711,879
Year ended 31 December 2024:
Profit
-
-
1,326,611
1,326,611
Other comprehensive income:
Currency translation differences
-
3,053
3,053
Total comprehensive income
-
3,053
1,326,611
1,329,664
Transactions with owners:
Dividends
12
-
-
(1,000,000)
(1,000,000)
Balance at 31 December 2024
100
3,053
7,038,390
7,041,543
The notes on pages 14 to 35 form part of these financial statements.
ROBERT BIRD & PARTNERS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
4,688,880
5,276,719
Interest paid
(208,552)
(74,339)
Income taxes paid
(451,474)
(1,042,148)
Net cash inflow from operating activities
4,028,854
4,160,232
Investing activities
Purchase of intangible assets
(3,536)
(89,440)
Purchase of property, plant and equipment
(287,868)
(24,730)
Interest received
41,222
17,576
Net cash used in investing activities
(250,182)
(96,594)
Financing activities
Payment of lease liabilities
(438,609)
(604,457)
Dividends paid
(1,000,000)
(1,000,000)
Net cash used in financing activities
(1,438,609)
(1,604,457)
Net increase in cash and cash equivalents
2,340,063
2,459,181
Cash and cash equivalents at beginning of year
4,007,818
1,548,637
Effect of foreign exchange rates
3,892
Cash and cash equivalents at end of year
6,351,773
4,007,818
The notes on pages 14 to 35 form part of these financial statements.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
1
Accounting policies
Company information
Robert Bird & Partners Limited (04472743) is a private company limited by shares incorporated in England and Wales. The registered office is First Floor, Harling House, Great Suffolk Street, London, SE1 0BS. The company's principal activities and nature of its operations are disclosed in the directors' report.
1.1
Accounting convention
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.
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 £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below and have, unless otherwise stated, been applied consistently to all periods presented in these financial statements and in preparing an opening FRS101 balance sheet at 1 January 2019 for the purposes of the transition to FRS101.
As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:
inclusion of an explicit and unreserved statement of compliance with IFRS;
disclosure of the objectives, policies and processes for managing capital;
disclosure of key management personnel compensation;
comparative period reconciliations for property, plant and equipment;
disclosure of the categories of financial instrument and the nature and extent of risks arising on these financial instruments;
the effect of financial instruments on the statement of comprehensive income;
comparative narrative information;
for financial instruments, investment property and biological assets measured at fair value and within the scope of IFRS 13, the valuation techniques and inputs used to measure fair value, the effect of fair value measurements with significant unobservable inputs on the result for the period and the impact of credit risk on the fair value; and
related party disclosures for transactions with the parent or wholly owned members of the group.
Where required, equivalent disclosures are given in the group accounts of Surbana Jurong Holdings (Australia) Pty Ltd. These can be obtained as set out in note 28.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.2
Going concern
The directors have prepared the financial statements on a going concern basis for the following reasons. The company is generally providing services to customers which are operating large well-funded projects and financial resilience remains a key consideration whenever entering new business relationships. The company recorded a profit after tax for the year ended 31 December 202true4 of £1.8m and held cash of £6.4m at that date. Confirmed projects and pipeline have strengthened since the year end and the company continues to deliver services to its customers. The company has recorded a profit before tax for the first two months subsequent to the year end and had cash of £5.8m as at 28 February 2025.
Forecast revenue for the 2025 financial year is £33.5m the majority of which has already been secured. The company has no external debt or capital commitments as at the year end and 28 February 2025. The directors have prepared detailed cash flow forecasts for the period ended March 2026 on both a base case and downside scenario to reflect the impact any additional delay in customer receipts and potential loss of revenue.
The base case forecast and downside scenario forecast, described in the paragraph above, indicate that the company will have sufficient funds to meet its liabilities as they fall due for the forecast period. The directors are therefore confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
1.3
Revenue
Revenue represents the value of work carried out on contracts during the year, including amounts invoiced, assessed by reference to the extent to which work has been completed and where it is known that an invoice will be rendered in due course. Revenue accrued on contracts in progress at the end of the year end is shown in debtors. Revenue excludes VAT.
Long term contracts
Long term contracts are assessed on a contract by contract basis and are reflected in the statement of comprehensive income by recording revenue and related costs as contract activity progresses. Where the outcome of each long term contract can be assessed with reasonable certainty before its conclusion, the attributable profit is recognised in the statement of comprehensive income as the difference between the reported revenue and related costs for that contract.
Contract assets and liabilities
When revenue recognised is more than amounts invoiced on account, a contract asset is recognised.
When fees are rendered in advance of work being carried out at the period end, the amount of income is excluded from revenue and is treated as deferred income. This is shown in the balance sheet as contract liabilities.
1.4
Intangible assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.5
Property, plant and equipment
Property, plant and equipment 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 property
over the lease term
Leasehold improvements
over the lease term
Fixtures and fittings
20% straight line
Computer equipment
33% straight line
Assets residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
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 tangible assets
At each reporting 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.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
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 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.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.8
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Financial assets at fair value through profit or loss
When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
Impairment of financial assets
Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.
The company assesses impairment at the end of the reporting year by evaluating conditions specific to the company and wider group that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed by determining fair value less cost of disposal or value-in-use calculations which incorporate various key assumptions.
The value of the provision for impairment of receivables at the end of the reporting period was calculated based on expected loss rate which is calculated on the average of actual losses over the past four financial periods applied against the current year balance of the receivables. The level of provision is assessed by taking into account the recent experience of the specific debtor, the ageing of the debt, historical collection rates and specific knowledge of the individual debtor's financial position.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.9
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
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 income statement 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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 income statement, 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.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.12
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event and 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 a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
1.13
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 inventories or non-current 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.
1.14
Retirement benefits
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid, the company has no further payment obligations.
The contributions are recognised as an expenses in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
1.15
Leases
At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
1.16
Grants
Government grants are recognised when there is reasonable assurance that the grant conditions will be met and the grants will be received.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Adoption of new and revised standards and changes in accounting policies
The following amendments are effective for the period beginning 1 January 2024:
Lease Liability in a Sale and Leaseback (IFRS 16)
Classification of Liabilities as Current or Non-current (IAS 1)
Supplier finance arrangements (IAS7 and IFRS 7)
International tax reform - Pillar Two model rules (IAS 12)
These amendments to various IFRS standards are mandatorily effective for reporting periods beginning on or after 1 January 2024. See the applicable notes for further details on how the amendments affected the company.
Lease liability in a Sale and Leaseback - Amendments to IFRS 16
The amendments in IFRS 16 specify the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain or losses that relates to the right of use it retains.
The amendments had no impact on the company's financial statements.
Classification of Liabilities as Current or Non-Current - Amendments to IAS 1
Amendments to paragraphs 69 to 76 of IAS 1 to specify the requirements for classifying liabilities as current or non-current.
The amendments had no impact on the company's financial statements.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Adoption of new and revised standards and changes in accounting policies
(Continued)
- 21 -
Supplier finance arrangements - Amendments to IAS 7 and IFRS 7
Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments Disclosures to clarify the characteristics of supplier finance arrangements and require additional disclosure of such arrangements.
The amendments had no impact on the company's financial statements.
Standards which are in issue but not yet effective
At the date of authorisation of these financial statements, the following Standards and Interpretations, which have not yet been applied in these financial statements, were in issue but not yet effective (and in some cases had not yet been adopted by the UK):
Currency exchangeability (IAS 21)
Classification and measurement of financial instruments (IFRS7 and IFRS9)
Presentation and disclosure in financial statements (IFRS 18)
Subsidiaries without public accountability disclosures (IFRS19)
IAS 21 - Lack of Exchangeability
Amendments IAS 21 to add requirements to help entities to determine whether a currency is exchangeable into another currency, and the spot exchange rate to use when exchangeability is temporarily lacking, but not what to do when lack of exchangeability is not temporary.
IFRS 7 & IFRS 9 - Classification and measurement of financial instruments
The amendments:
a. Clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;
b. Clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI)criterion,
c. Add new disclosures for certain instruments with contractual terms that can change cash flows (such as some financial instruments ewith features linked to the achievement of environment, social and governance tartgets,
d. Update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI).
The amendments in (b) are most relevant to financial institutions, but the amendments in (a), (c) and (d) are relevant to all entities.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Adoption of new and revised standards and changes in accounting policies
(Continued)
- 22 -
IFRS 18 - Presentation and disclosure in financial statements
This new standard replaces IAS 1.
The new key concepts introduced in the standard relate to:
- The structure of the statement of profit or loss with defined subtotals,
- Requirement to determine the most useful structure summary for presenting expenses in the statement of profit or loss,
- Required disclosures in a single note within the financial statements for certain profit or loss performance measures that are reported outside an entity's financial statements (that is, management-defined performance measures), and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.
IFRS 19 - Subsidiaries without public accountability disclosures
This new standard enables an eligible subsidiary to apply the requirements in other IFRS Accounting Standards except for the disclosure requirements, and it applies instead the reduced disclosure requirements in IFRS19.
A subsidiary is eligible if it does not have public accountability and it has an ultimate or intermediate parent that produces consolidated financial statements available for public use that comply with IFRS Accounting Standards.
The application of such IFRS's has been reviewed and are not considered to have a significant effect on the company's accounting policies or financial statements.
3
Critical accounting estimates and judgements
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Critical judgements
Impairment of tangible fixed assets
In determining whether there are any indicators of impairment of the company's tangible fixed assets, the directors consider the economic viability and expected future financial performance.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Critical accounting estimates and judgements
(Continued)
- 23 -
Bad debt allowance
In determining whether there are any circumstances regarding a customer's inability to meet its financial obligation and whether a provision is required against the debt, the directors consider factors such as potential prevailing economic conditions in the industry and their potential impact on customers.
Right-of-use assets and lease liabilities
In determining the lease term the company assesses whether it is reasonably certain to exercise, or not to exercise, options to extend or terminate a lease. This assessment is made at the start of the lease and is re-assessed if significant events or changes in circumstances occur that are within the lessee's control.
Assets and liabilities arising from a lease are initially measured on a present value basis. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be determined, or the company's incremental borrowing rate if not. The company used a rate of 5.92% (2023: 2.73%) for its office leases and 5.78% (2023: 3.35%) for its equipment leases in the calculations based on the estimated rate of interest that they have to pay to borrow over a similar term, and with similar security, the funds necessary to obtain assets of similar value to the right-of-use assets in a similar economic environment.
Contract assets and liabilities
Management exercise their judgement and make use of estimates to determine the performance and position of long-term contracts. This involves the value of work performed to date, work to be performed still, costs to complete and the impact of variation in the scope of work. These judgements may affect the amount of the revenue to be recognised and the related contract assets and liabilities.
Frequent assessments and reviews are performed on each contract and regular forecasts are produced on their expected outcome. As part of these assessments and forecast, estimates are made with the regards to the recoverability of amounts due from the client and other contractual parties, liabilities arising and the requirements for any provisions against contract losses.
Supplier contract provisions
In determining provisions for contracted services, an amount is recognised as a best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks, probability, and uncertainties surrounding the obligation.
Key sources of estimation uncertainty
Global minimum top-up tax
The Group is subject to the global minimum top-up tax under Pillar Two Tax Legislation. Under the Pillar Two model rules, the Pillar Two Effective Tax Rate (“ETR”) is assessed on a jurisdictional basis and top-up tax is payable if the jurisdictional ETR is below 15%. Transitional Country-by-Country Safe Harbour rules (“TCSH”) have also been developed to provide temporary relief from compliance obligations during the initial implementation period. Under the TCSH, the top-up tax for such jurisdiction is deemed to be zero if certain tests can be met for the selected jurisdiction.
Certain jurisdictions where the Group operates have implemented the Pillar Two legislation with effect from 1 January 2024. As of 31 December 2024, the Group has assessed on a high-level basis that these jurisdictions have either met the tests under TCSH rules or did not require material top up tax in Australia. Accordingly, no material tax provision has been recognised for the financial year ended 31 December 2024.
The Group continues to monitor and evaluate the domestic implementation of the Pillar Two rules in the jurisdictions in which it operates. The implementation of legislation that is enacted or substantively enacted but not yet in effect is not expected to have a material impact on the Group’s global effective tax rate for FY 2024. The Group has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
4
Revenue
2024
2023
£
£
Revenue analysed by class of business
Revenue from contracts with customers
32,805,938
30,677,213
Revenue from fees to group
3,872,049
1,838,067
36,677,987
32,515,280
2024
2023
£
£
Other operating income
RDEC credits received
199,203
105,913
199,203
105,913
2024
2023
£
£
Revenue analysed by geographical market
UK
25,106,196
30,677,213
Middle East
10,263,070
1,041,188
Australia and New Zealand
341,047
598,961
Rest of the world including USA
967,674
197,918
36,677,987
32,515,280
5
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
182,332
98,990
Government grants - RDEC
(199,203)
(105,913)
Depreciation of property, plant and equipment
670,266
732,222
Amortisation of intangible assets (included within administrative expenses)
52,563
22,931
Impairment loss recognised on trade receivables
(2,334)
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
34,700
30,630
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
7
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Technical
202
206
Administration
62
27
Total
264
233
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
16,049,656
13,223,479
Social security costs
2,392,350
1,471,871
Pension costs
982,725
761,270
19,424,731
15,456,620
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
664,913
580,274
Company pension contributions to defined contribution schemes
34,699
32,024
699,612
612,298
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
452,185
363,877
Company pension contributions to defined contribution schemes
22,944
19,807
9
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
41,222
17,576
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
10
Finance costs
2024
2023
£
£
Interest on other financial liabilities:
Interest on lease liabilities
208,552
74,339
Other finance costs:
Unwinding of discount on provisions
17,302
6,088
Total finance costs
225,854
80,427
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
459,900
513,105
Adjustments in respect of prior periods
(7,391)
22,135
Double taxation relief
(110,464)
(96,246)
Total UK current tax
342,045
438,994
Foreign taxes and reliefs
92,606
279,327
434,651
718,321
Deferred tax
Origination and reversal of temporary differences
18,278
27,042
Total tax charge
452,929
745,363
An increase in the UK corporation tax rate from 19% to 25% (effective from 1 April 2023) was substantively enacted on 10 June 2021.The increase in the rate will apply to companies with profits over £250k. Also announced in the Budget on 3 March 2021 was the introduction of small profits rate of 19% to apply to profits under £50k with a tapered rate to apply on profits above this threshold but under £250k.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Taxation
(Continued)
- 27 -
The charge for the year can be reconciled to the profit per the income statement as follows:
2024
2023
£
£
Profit before taxation
1,779,540
2,381,720
Expected tax charge based on a corporation tax rate of 25.00% (2023: 23.50%)
444,885
559,704
Effect of expenses not deductible in determining taxable profit
743
(962)
Income not taxable
(24,890)
Double tax relief
(110,464)
(96,246)
Permanent capital allowances in excess of depreciation
6,295
Under provided in prior years
(7,391)
22,135
Effect of foreign taxes and reliefs
92,606
279,327
Unrelieved foreign taxes
32,550
-
Taxation charge for the year
452,929
745,363
12
Dividends
2024
2023
2024
2023
Amounts recognised as distributions:
per share
per share
Total
Total
£
£
£
£
Ordinary A shares
Interim dividend paid
20,000.00
20,000.00
1,000,000
1,000,000
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
13
Intangible fixed assets
Software
£
Cost
At 31 December 2023
89,440
Additions - purchased
3,536
At 31 December 2024
92,976
Amortisation and impairment
At 31 December 2023
22,931
Charge for the year
52,563
At 31 December 2024
75,495
Carrying amount
At 31 December 2024
17,481
At 31 December 2023
66,509
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
14
Property, plant and equipment
Leasehold property
Leasehold improvements
Fixtures and fittings
Computer equipment
Total
£
£
£
£
£
Cost
At 1 January 2024
3,122,106
418,106
476,024
4,016,236
Additions
192,895
20,719
74,254
287,868
Disposals
-
(36,663)
(36,663)
Revaluation increase
1,115,365
1,115,365
At 31 December 2024
4,237,471
192,895
402,162
550,278
5,382,806
Accumulated depreciation and impairment
At 1 January 2024
1,818,604
399,813
446,780
2,665,197
Charge for the year
585,019
32,626
23,069
29,552
670,266
Eliminated on disposal
(36,663)
(36,663)
At 31 December 2024
2,403,623
32,626
386,219
476,332
3,298,800
Carrying amount analysed between owned assets and right-of-use assets
At 31 December 2024
Owned assets
-
160,269
9,680
73,946
243,895
Right-of-use assets
1,833,848
-
6,263
-
1,840,111
1,833,848
160,269
15,943
73,946
2,084,006
At 31 December 2023
Owned assets
-
-
11,168
29,244
40,412
Right-of-use assets
1,303,502
-
7,125
-
1,310,627
1,303,502
18,293
29,244
1,351,039
Property, plant and equipment includes right-of-use assets, as follows:
Right-of-use assets
2024
2023
£
£
Net values at the year end
Property
1,833,848
1,303,502
Fixtures and fittings
6,263
7,125
1,840,111
1,310,627
Total additions in the year
17,333
-
Depreciation charge for the year
Property
585,019
669,118
Fixtures and fittings
18,196
12,210
603,215
681,328
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
Property, plant and equipment
(Continued)
- 30 -
On 14 July 2022, the company signed a new lease contract to execute a lease extension based on the existing make good obligation (per previous lease signed on 20 November 2017) for the Harling House London office. The modification to the lease term was for the period of 25 December 2022 to 24 December 2027, with a break clause on 25 July 2025. At 31 December 2024 the directors concluded the company is now reasonably certain it will not evoke the break clause. The right of use asset has been adjusted accordingly to represent this position.
15
Contracts with customers
2024
2023
2023
Year end
Year end
Year start
£
£
£
Contracts in progress
Contract assets
1,892,786
1,065,226
642,122
Contract liabilities
(2,858,902)
(1,494,606)
(2,400,424)
The contract assets primarily relate to the company's rights to consideration for work completed but not billed at the reporting date. The contract assets are transferred to receivables when the rights become unconditional. Contract liabilities primarily relate to the advance consideration received from customers.
16
Trade and other receivables
2024
2023
£
£
Trade receivables (note 17)
7,255,131
6,299,791
Allowance for bad and doubtful debts (note 17)
(310,872)
(359,075)
6,944,259
5,940,716
Contract assets (note 15)
1,892,786
1,065,226
Corporation tax recoverable
466,961
242,744
Amounts owed by fellow group undertakings
466,158
752,308
Other receivables
346,175
137,857
Prepayments and accrued income
610,357
629,292
10,726,696
8,768,143
Amounts owed by group undertakings are repayable on demand and are interest free.
17
Trade receivables - credit risk
Fair value of trade receivables
The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.
No significant receivable balances are impaired at the reporting end date.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
17
Trade receivables - credit risk
(Continued)
- 31 -
Movement in the allowances for impairment of trade receivables
2024
2023
£
£
Balance at 1 January 2024
359,075
279,866
Additional allowance recognised
283,997
79,209
Amounts written off as uncollectible
(2,334)
-
Allowance reversed
(329,866)
-
Balance at 31 December 2024
310,872
359,075
Allowances for impairment of trade receivables is made up of specific allowances of £198,167 (2023: £344,075) and expected credit losses of £112,705 (2023: £15,000).
18
Liabilities
2024
2023
Notes
£
£
Trade and other payables
20
8,815,687
5,404,466
Taxation and social security
1,508,877
944,239
10,324,564
6,348,705
19
Fair value of financial liabilities
The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.
Trade payables and other payables are classified as financial liabilities and are held at amortised cost.
20
Trade and other payables
2024
2023
£
£
Trade payables
1,312
425,803
Contract liabilities (note 15)
2,858,902
1,494,606
Amounts owed to fellow group undertakings
4,018,070
1,756,004
Accruals and deferred income
873,238
890,222
Other payables
1,064,165
837,831
8,815,687
5,404,466
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
21
Lease liabilities
2024
2023
Maturity analysis
£
£
Within one year
587,792
615,521
In two to five years
1,102,624
398,139
Total undiscounted liabilities
1,690,416
1,013,660
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2024
2023
£
£
Current liabilities
587,792
615,521
Non-current liabilities
1,102,624
398,139
1,690,416
1,013,660
2024
2023
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
208,552
74,339
22
Deferred taxation
2024
2023
£
£
Deferred tax assets
(90,801)
(109,079)
(90,801)
(109,079)
Deferred tax assets are expected to be recovered after more than one year.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
22
Deferred taxation
(Continued)
- 33 -
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
Accelerated capital allowances
Retirement benefit obligations
Total
£
£
£
Asset at 1 January 2023
(106,221)
(29,900)
(136,121)
Deferred tax movements in prior year
Charge/(credit) to profit or loss
10,186
16,856
27,042
Asset at 1 January 2024
(96,035)
(13,044)
(109,079)
Deferred tax movements in current year
Charge/(credit) to profit or loss
23,439
(5,161)
18,278
Asset at 31 December 2024
(72,596)
(18,205)
(90,801)
23
Provisions for liabilities
2024
2023
£
£
Make good provision
214,234
228,344
Movements on provisions:
Make good provision
£
At 1 January 2024
228,345
Unwinding of discount
(14,111)
At 31 December 2024
214,234
The make-good provision includes amounts payable on termination of the company's property lease. No payment is expected for this amount until December 2027 when the lease ends.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 34 -
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
982,725
761,270
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Contributions totalling £140,642 (2023: £117,959) were payable to the fund at the balance sheet date and are included in other payables.
25
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
50
50
50
50
Ordinary B shares of £1 each
50
50
50
50
100
100
100
100
The A and B shares rank pari passu in all respects.
26
Currency translation reserve
2024
2023
£
£
At the beginning of the year
-
-
Translation gain arising in the year
3,053
At the end of the year
3,053
-
27
Events after the reporting date
28
Controlling party
In the opinion of the directors, Robert Bird Group Pty Limited, a company registered in Australia is the immediate parent company. Its registered office address is Level 8, 470 St. Pauls Terrace, Fortitude Valley, Brisbane, Queensland, 4006, Australia.
The parent undertaking of the smallest group of which the company is a member and consolidated financial statements are prepared is Surbana Jurong (Holdings) Australia Pty Limited, a company incorporated in Australia. The parent undertaking of the largest group of which the company is a member and consolidation financial statements are prepared is Temasek Holdings (Private) Limited, a company incorporated in Singapore. The consolidated financial statements of Surbana Jurong (Holdings) Australia Pty Limited are available from the Australian Securities & Investments Commission at www.asic.gov.au.
ROBERT BIRD & PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 35 -
29
Cash generated from operations
2024
2023
£
£
Profit for the year before taxation
1,779,540
2,381,720
Adjustments for:
Finance costs
225,854
80,427
Investment income
(41,222)
(17,576)
Amortisation and impairment of intangible assets
52,563
22,931
Depreciation and impairment of property, plant and equipment
670,266
732,222
Decrease in provisions
(31,412)
-
Movements in working capital:
Increase in contract assets
(827,560)
(423,104)
(Increase)/decrease in trade and other receivables
(906,776)
749,828
Increase/(decrease) in contract liabilities
1,364,296
(905,818)
Increase in trade and other payables
2,403,331
2,656,089
Cash generated from operations
4,688,880
5,276,719
30
Analysis of changes in net funds
1 January 2024
Cash flows
Other non-cash changes
Exchange rate movements
31 December 2024
£
£
£
£
£
Cash at bank and in hand
4,007,818
2,340,063
-
3,892
6,351,773
Obligations under finance leases
(1,013,660)
438,609
(1,115,365)
-
(1,690,416)
2,994,158
2,778,672
(1,115,365)
3,892
4,661,357
1 January 2023
Cash flows
Other non-cash changes
Exchange rate movements
31 December 2023
Prior year:
£
£
£
£
£
Cash at bank and in hand
1,548,637
2,459,181
-
-
4,007,818
Obligations under finance leases
(2,980,084)
604,457
1,361,967
-
(1,013,660)
(1,431,447)
3,063,638
1,361,967
-
2,994,158
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