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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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PASCALL + WATSON LIMITED
CONTENTS
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PASCALL + WATSON LIMITED
COMPANY INFORMATION
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PASCALL + WATSON LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The company directors present their strategic report for the year ended 31 December 2024.
Pascall+Watson is an Architecture company with comprehensive experience of providing services internationally at all design stages and is a recognised expert in designing and executing complex buildings.
In 2024, the company has continued to enjoy a pipeline of architectural design activities and opportunities across an array of sector types, design stages, client bodies, consultants, contractors, and project partners. Pascall+Watson has cultivated and maintains long standing relationships and frameworks across all its sectors. The company’s head office is based in London in the UK, with branch offices in Limerick and Dublin in Ireland, and Abu Dhabi in the UAE. In addition to the primary Architecture offering, the company has recognised expertise in Airport Planning, Design Management, and Interior Design. Furthermore, the company collaborates with a range of partners and specialist sub consultants to provide best value and offer for Clients and coordinated design outcomes. Pascall+Watson is renowned as a creative and reliable project partner; the company listens to its clients, interprets their ideas and designs buildings and outcomes that embody project aspirations and requirements. Similarly, at the latter stages of design, there is significant expertise in technical design, construction information, support on site, and handover. Pascall+Watson seeks to Understand; Transform; and Achieve. The company strengthened its pipeline of significant architectural projects throughout the year. In 2024, the Company revenues rose to £33.0m (2023: £31.9m). Revenue performance was improved due to:
∙Sustained growth and project footprint enlargement at the UAE office. The ability to service and be competitive at larger commercial, leisure and hospitality projects has been enhanced by a mature and robust BIM outsourcing regime.
∙A strong UK aviation portfolio in conjunction with an ever-growing international aviation workload. The aviation industry growth trajectory means Pascall+Watson has been able to engage with a high number of projects at airport enhancement, transformation and expansion programmes.
∙An increase in Rail workload and Ports design capabilities.
∙Stability and growth generally in the markets in which the Company operates.
∙Continued and enlarged involvement in Frameworks opportunities.
∙Notable starts on significant scale projects.
The company achieved a pre-tax profit of £2.0m (2023: profit of £0.5m).
Pascall+Watson is ARB Registered and an RIBA Chartered Practice. The company holds ISO9001 (Quality Management), ISO14001 (Environmental Management), ISO45001 (Operational Health and Safety), ISO19650 (BIM Management) certifications and PAS2060 (Carbon Neutrality) verification. The company continues to operate an integrated management system and policies to ensure a high-quality level of service and continual improvement. The market sectors where the company has significant portions of work includes Aviation, Rail and Ports, Workplace, Commercial, Education and Leisure and Hospitality. The diverse portfolio of projects worked on by the firm in 2024 are grouped by sector below.
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PASCALL + WATSON LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Aviation
Pascall+Watson has an unrivalled track record in aviation with a large past and current portfolio of domestic and international aviation projects. It is currently completing design work for the UK major airports – Heathrow, Gatwick, Manchester, Stansted, London City and Bournemouth. In addition, there is design activity internationally – Dublin airport in Ireland and airports in the Middle East. Also, increased aviation prospect and bid activity has been marked in 2024; we expect that some of these opportunities will become live in 2025. Rail and Ports The company has sustained a portfolio of rail projects primarily in the UK and Ireland. Network Rail and TfL frameworks have been maintained. The company maintains a strong relationship with Irish Rail. Albeit variety in UK national Rail project opportunities have been restricted in previous years, we continue to track and pursue all opportunities. The company maintains workload at the Port of Dover and is seeking workload growth opportunities. The company considers that there are design approach and philosophy correlations with other sectors in that the solution types are related due to complex people and vehicle processes alongside security considerations and operational environment drivers. Education, Workplace and Commercial Pascall+Watson has a healthy reputation for design delivery in the Higher Education sector and continues to grow a portfolio of opportunities and projects. It has maintained a consistent workload in recent years and the company is currently on university frameworks and preferred supplier lists. Areas of focus in period have been retrofit and decarbonisation. This has been concentrated on multiple projects across Kingston University London, Thanet District Council and Queen Mary University of London where we have recently completed the “Green Energy Hub”. Furthermore, the Company’s appointment on to the GLA Zero Carbon Accelerator Framework provides a platform to define how Clients meet their Net Zero goals. Leisure, Cultural and Hospitality The company has increased its current and forecasted workload on significant projects, thereby capitalising on sector investment and a reputation for providing services at delivery stage. Pascall+Watson has ongoing projects at hotel and villa projects, sport leisure schemes and at cultural building projects. The company currently continues to support onsite design delivery across multiple schemes in the UAE. Healthcare Pascall+Watson has specialist knowledge and expertise in small and medium sized Healthcare projects, especially in Ireland. The company has achieved a successful track record in providing creative design solutions for staff and patient focused facilities. In addition to project activities in 2024, Pascall+Watson has developed and actioned enhancements in the following areas:
∙Design competition activity and early-stage design and digital explorations. In year, the company has invested in an increased number of speculative design competitions, pursuits and creative developments.
∙BIM and digital technology knowledge, skillsets, capabilities and awareness. ISO19650 BIM Management certification has been achieved in year and is demonstration of the company’s commitment to quality in digital workflows.
∙AI adoption. Pascall+Watson’s goal is to enable the strategic adoption of AI to optimize workflows and foster innovation while safeguarding the integrity, privacy, and security of the company, our work, and our clients’ information. The company ensures that responsible, ethical, and compliant use of AI technology is utilised for all projects.
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PASCALL + WATSON LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
∙Continued focus on Sustainability credentials and capabilities. Further to the company’s Carbon Neutral status, it strives to assess, design and realise Net Zero buildings; it’s investing in its capability to support the urgent need to decarbonise the industry and achieve global environmental targets.
∙Development of integrated marketing and communications strategies intended to strengthen company presence. In 2024, the company has amplified its brand content, design identity, digital coverage and expects future benefit from this.
∙People. The number of employees has increased in year, enabling the company to secure new talent and skills for ongoing and future projects. The company has cultivated a creativity mindset that thrives in flexible, collaborative and enjoyable working environments.
Corporate Social Responsibility:
Pascall+Watson recognizes that businesses have a fundamental responsibility to operate ethically, sustainably, and with a commitment to social impact. The company is dedicated to fostering a culture of accountability, transparency, and continuous improvement, ensuring that business decisions benefit its employees, shareholders, suppliers, clients and the communities in which it operates. Pascall+Watson is committed to embedding responsible business practices into its corporate culture and operations by focusing on:
∙Ethical Business Conduct and Economic responsibilities: Upholding the highest standards of integrity, anti-corruption, and transparency fair treatment of staff, stakeholders and customers in its operational and project activities.
∙Ensuring the Board reviews its financial decisions carefully to maintain positive impacts on the environment, people and society.
∙Labour & Human Rights: Ensuring fair treatment, equal opportunities, and safe working conditions.
∙Environmental responsibility: Minimising environmental footprint and promoting sustainable practices.
∙Community Engagement and Philanthropic responsibilities: Supporting social causes and initiatives that enhance the well-being of communities. The Company continues to operate a programme of charitable support.
∙Diversity, Equity and Inclusion: Creation of a workplace culture that values and respects differences.
∙Supply Chain responsibility: Ensuring our suppliers and partners adhere to ethical and sustainable standards.
Pascall+Watson recognises that the built environment has a significant impact on the climate and the natural world. The company is committed to improving the sustainability of the built environment and achieving the global goal of Net Zero Carbon by 2050. The company is a signatory of the RIBA Climate Challenge initiative and have published it’s Carbon Reduction Plan aligned with UK Government’s Procurement Policy Note 06/21.
Environmental responsibility and sustainability are at the core of the practice. The company strives to deliver design with net-zero solutions. It champions Modern Methods of Construction, retrofit and circular economy methodologies. Pascall+Watson looks to pioneer innovative sustainability approaches and design methodologies for the benefit of all project outcomes. The Company operates as a Carbon Neutral company (PAS 2060 verified) and progressively reduce emissions year on year. It is committed to a carbon reduction of 46% reduction by 2030 (from a 2019 base year) and a 90% reduction by 2040, with an aim to be fully Net Zero without the need for offsetting by 2050. Pascall+Watson’s targets are verified by the Science Based Target Initiative (SBTi).
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PASCALL + WATSON LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Principal risks and uncertainties
Local and Global economic volatility and uncertainty The company is wary of the compound effects of inflation, current economic volatility, climate shock and uncertainties around new US economic policies. However, there continues to be growth activity and buoyant investment in the market sectors in which the firm operates. It is therefore reasonable to be confident about the short to medium term outlook for the company. Recruitment and retention of skilled staff is a major factor in the success of Pascall+Watson. The company continues to invest in students, new talent and the strength of its workforce. Financial risk The treasury function is managed centrally to support the company's operating activities. Its primary role is to ensure that adequate resources are available to meet the funding requirements on a day-to-day basis and that financial risk arising from underlying operations is effectively identified and managed. Credit risk The directors assess the company's exposure to credit risk by considering the credit rating of any new client and by monitoring the accumulated trading balances with existing clients. The credit risk associated with our trade debtors balance is considered to be moderate as our clients are mainly companies who we have been trading with for many years and with high credit ratings. Liquidity risk The directors monitor the company's ability to meet its liabilities as they fall due on at least a monthly basis by reviewing budgets and cash flow forecasts. Steps are taken as appropriate to accelerate asset recoveries and manage outstanding commitments where possible so that any risk is minimised.
In 2025, there appears to be sufficient evidence to be optimistic about workload and pipeline of future projects. Workload is increasing across the business, and it continues to actively recruit in all offices.
Pascall+Watson’s analysis and forecasting indicates that there is headroom for growth and opportunity in all its market sectors. The continued trajectory of the aviation market is particularly exciting. As always, the Company explores realistic opportunities for diversification - both from a sector and geographic perspective. Looking ahead and to maintain strength and market competitiveness for future revenue, Pascall+Watson is focused upon the Objective categories: Securing new opportunities: Pascall+Watson has a strong workload and is committed to delivering a high-quality service for clients. It continues to be actively focused on securing new clients and projects. The company plans further grow the core sectors by servicing them in more locations and with a broader range of services. Furthermore, the company is optimistic about securing significant sized projects that would present opportunity for marked growth in company size and revenue. Prioritising design and sustainability: The Company is passionate about great architecture being at the core of the business. It’s sustainability agenda and pathway are a major priority. Pascall+Watson intends to complement its Carbon Neutral status with a sustainable and creative design reputation. The company values uniqueness and know that every project and place require specific solutions.
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PASCALL + WATSON LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Evolving our people and workplace:
Because we fully appreciate that staff abilities and fulfilment is key to delivering successful projects, Pascall+Watson seeks to improve staff member’s skillsets and their satisfaction in its workplaces, whilst attracting new talent and skill types. The company is committed to developing an enjoyable and vibrant workplace; it continues to monitor office utilisations, suitable updates and adjustment for the benefit its employees. Progressing the practice: The Company continues to operate and seeks to improve efficient and effective business practices to maintain financial resilience, effectiveness and profitability. Pascall+Watson has remained resilient and continues to plan for growth whilst seeking to ensure robust operations and an overall ability to deliver projects in a dynamic industry. Pascall+Watson is committed to the prevention of injury and ill health and ensuring employee welfare by providing and maintaining zero accident or incident working environments.
The company measures the business in a number of different ways using key performance indicators (KPIs) at various levels across the organisation. The highest level financial KPIs are:
∙Turnover
∙Current asset position
∙Gross profit margin
In 2024 the performance against these KPIs was as follows:
Turnover Turnover for the year was £33,009,689 (2023: £31,865,152). Turnover for the year rose significantly as growth continued in our core sectors and Middle East operations. Current asset position The company's net current assets at the end of 2024 are £11,737,531 (2023: £10,677,743), due to the company's results and distributions made during the year. Gross profit margin Gross profit margin in the year has been 24% (2023: 22%). Gross profit margin is reliant on the projects recognised in the period.
This report was approved by the board and signed on its behalf.
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PASCALL + WATSON LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The profit for the year, after taxation, amounted to £1,277,370 (2023 - £345,124).
The directors proposed and paid a dividend amounting to £360,997 during the year (2023: £1,020,000).
The directors who served during the year were:
As permitted by Section 414c(11) of the Companies Act 2006, the directors have elected to disclose information required to be in the director's report by Schedule 7 of the "Large and Medium Sized Companies and Groups (Accounts and Reports) Regulations 2008", in the strategic report.
This report was approved by the board and signed on its behalf.
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PASCALL + WATSON LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
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 the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The 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 to 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.
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PASCALL + WATSON LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PASCALL + WATSON LIMITED
FOR THE YEAR ENDED 31 DECEMBER 2024
We have audited the financial statements of Pascall + Watson Limited (the 'company') for the year ended 31 December 2024, which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
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.
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PASCALL + WATSON LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PASCALL + WATSON LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The other information comprises the information included in the Annual Report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
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PASCALL + WATSON LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PASCALL + WATSON LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
∙we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the architectural design sector.
∙we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, environmental and health and safety legislation;
∙we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
∙performed analytical procedures to identify any unusual or unexpected relationships;
∙reviewed the nominal ledger including testing journal entries to identify unusual transactions;
∙assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and
∙investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
∙agreeing financial statement disclosures to underlying supporting documentation;
∙reading the minutes of meetings of those charged with governance;
∙enquiring of management as to actual and potential litigation and claims; and
∙reviewing correspondence with HMRC and relevant regulators.
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PASCALL + WATSON LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PASCALL + WATSON LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can harder to detect than those that arise from error as they may involve deliberate concealment or 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 auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
16 Great Queen Street
Covent Garden
WC2B 5AH
19 May 2025
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PASCALL + WATSON LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
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PASCALL + WATSON LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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PASCALL + WATSON LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 35 form part of these financial statements.
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PASCALL + WATSON LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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PASCALL + WATSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The company's principal activity is that of architectural design.
The company is a private company limited by shares incorporated in England and Wales. Its principal place of business is The Warehouses, 10 Black Friars Lane, London, EC4V 6EJ. Its registered office is 16 Great Queen Street, Covent Garden, London, WC2B 5AH. The financial statements are presented in Sterling (£), which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102:
∙Section 3 Financial Statement Presentation paragraph 3.17(d) (inclusion of statement of cash flows);
∙Section 7 Statement of Cash Flows (inclusion of statement of cash flows);
∙Section 11 Financial Instruments paragraphs 11.41, 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c) (disclosures relating to financial instruments);
∙Section 26 Share based payments (disclosure of share based payments);
∙Section 33 Related Party Disclosures paragraph 33.7 (disclosures of key management personnel compensation).
The company is included in the consolidated financial statements of Roots Group UK Limited for the year ended 31 December 2024 and these financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.
The following principal accounting policies have been applied:
The directors continue to prepare and frequently revise their forecasts for the company. The directors are satisfied, based on all forecasted scenarios and on the sensitivity analysis which has been performed, that the company has adequate resources to forge ahead within its core business sectors and to continue its operations, in order to meet its liabilities, obligations and duties as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements have been approved. This will be supported by the strong cash position at the end of 2024. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.
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PASCALL + WATSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
The results of overseas operations in their functional currencies are translated into Sterling at rates approximating to those ruling when the transactions took place (the average rate). All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at average rate are recognised in other comprehensive income.
Page 18
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PASCALL + WATSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The company makes contributions into personal pension schemes of certain employees. Contributions are charged to the profit and loss account as they become payable.
The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet.
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.
Page 19
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PASCALL + WATSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
The 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.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Page 20
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PASCALL + WATSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Amounts recoverable on long term contracts, which are included in stocks and debtors, are stated at the net sales value of work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. The component parts of compound instruments issued by the company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangement. On initial recognition the financial liability component is recorded at its fair value. The fair value of the liability component is estimated using the prevailing market interest rate for a similar instrument without equity features. The equity component is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognised in equity and not subsequently remeasured. The company’s policies for its major classes of financial assets and financial liabilities are set out below. Financial assets Basic financial assets, including trade and other debtors, cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment. Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price, which excludes transaction costs for those financial assets that are subsequently measured at fair value through profit and loss. Such financial assets are subsequently measured at fair value through profit or loss, where they are
Page 21
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PASCALL + WATSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
publicly traded, or fair value can be measured reliably, for example by using a valuation technique. Where fair value cannot be measured reliably, the financial asset is measured at cost less impairment.
Financial liabilities Basic financial liabilities, including trade and other creditors, other loans and intercompany working capital balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Page 22
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PASCALL + WATSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Impairment of financial assets Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. Derecognition of financial assets and financial liabilities Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. If a transfer does not result in derecognition because the company has retained significant risks and rewards of ownership of the transferred asset, the company continues to recognise the transferred asset in its entirety and recognises a financial liability for the consideration received. The asset and liability are not offset. In subsequent periods, the company recognises any income on the transferred asset and any expense incurred on the financial liability. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Page 23
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PASCALL + WATSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Offsetting of financial assets and financial liabilities Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Ordinary shares are classified as equity.
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
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 following are the critical judgmental and estimations that the directors have made in the process of applying the group’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements: Revenue recognition The company enters into long term contracts with its customers for the provision of its services. Long-term contracts are accounted for under FRS 102. The ensuing accounting requires management judgement to determine the appropriateness of calculating the revenue and profit to be recognised. This includes estimating the total expected costs to complete each contract, the profitability of the contract and also the percentage of completion at the balance sheet date. The percentage of completion is calculated as the costs incurred in proportion to the estimated costs of the entire project. These judgements directly influence revenue and profit that can be recognised in relation to such contracts. Material changes in these estimates could affect the overall amounts recognised on individual contracts. Carrying amount of relevant assets: £1,751,222 (2023: £965,539). Carrying amount of relevant liabilities: £Nil (2023: £Nil).
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PASCALL + WATSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
3.Judgments in applying accounting policies (continued)
Bad debt provision Management review trade debtor balances on a periodic basis. In determining whether there is a need for a provision, management is required to determine their best estimate of future expected cash flows. In arriving at this estimate, management consider historical experience and current trends. The provision included within trade debtors at the year-end is £718,336 (2023: £2,357,094). Actual outcomes could be different to the assumptions used in determining the estimate.
The whole of the turnover is attributable to the principal activity of the company.
Analysis of turnover by country of destination:
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PASCALL + WATSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 26
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PASCALL + WATSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 27
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PASCALL + WATSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 28
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PASCALL + WATSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 29
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PASCALL + WATSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
14.Tangible fixed assets (continued)
Page 30
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PASCALL + WATSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 31
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PASCALL + WATSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 32
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PASCALL + WATSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 33
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PASCALL + WATSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The company has taken advantage of the exemption contained in FRS 102 section 33 "Related Party Disclosures" from disclosing transactions with entities which are a wholly owned part of the group.
Transactions with related parties are as follows:
Amounts owed to related parties are unsecured, interest free and due for repayment within one year.
Share premium account
Capital redemption reserve
Profit and loss account
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in independently administered funds. The pension cost charge represents contributions payable by the company to the fund and amounted to £530,533 (2023: £531,676). Contributions totalling £58,505 (2023: £26,199) were payable by the company, to the funds at the balance sheet date and are included in creditors.
Page 34
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PASCALL + WATSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The immediate controlling party is Areen Design Limited.
The parent undertaking of the smallest group of undertakings for which group financial statements are drawn up and which the company is a member is Roots Group UK Limited, whose registered office is at 16 Great Queen Street, Covent Garden, London, WC2B 5AH. Copies of these group financial statements are available to the public from Companies House, Crown Way, Cardiff, CF14 3UZ. The ultimate parent company is Roots Group UK Limited, a company incorporated in England. In the opinion of the directors there is no ultimate controlling party.
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