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Registered number:
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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COFFEY GEOTECHNICS LIMITED
COMPANY INFORMATION
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COFFEY GEOTECHNICS LIMITED
CONTENTS
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COFFEY GEOTECHNICS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The directors present their strategic report for the year ended 30th September 2024.
Coffey, a Tetra Tech Company is a ground engineering design consultancy, delivering technical excellence to manage complex risks for our clients – providing value throughout the asset lifecycle in the transport and property infrastructure, water, energy and resources sectors.
We provide all aspects of ground engineering consultancy services for clients both in the UK and across the globe with access to thousands of specialists worldwide. Coffey and Tetra Tech have been relied on for more than five decades to successfully deliver programmes in partnership with our clients, major contractors and other professional service providers. We operate from three locations in the UK, being Manchester, Harrogate and Reading. The 2024 financial year continued the strong post-pandemic performance of the business. Whilst the gross revenue dropped by 11% this was primarily due to a reduction in subcontractor costs. Revenue net of subcontractor costs remained in line with 2023 at £6.2m. Increased costs of staff & technical software led to a reduction in operating profit to £810,000, a fall of 12% when compared to 2023, but remained a strong performance representing a 13% return on net revenue. Key to our success is our focus on technical excellence and the continued satisfaction of our customers. We monitor customer satisfaction through our accredited Integrated Management System, acting on all feedback received. We are working on alternative methods of monitoring customer satisfaction to ensure that we continually improve our service offering.
•Employee recruitment & retention – the employment market remains fiercely competitive in the sector, which has led to difficulties in both recruiting & retaining staff. This has also driven an upward pressure on employee costs and reduced operating profit in the year.
• Reduction in government spending on infrastructure – HS2 has been our largest source of revenue for the last 4 financial years. With the anticipated reduction in workflow from this, and other road & rail projects in the UK, the business has worked to mitigate this by exploring different market segments which are showing growth. • Reputational risk – the company has built a solid client base through our focus on technical excellence. This is maintained through extensive training and mentoring of junior staff by some of the foremost experts in the field. • Liquidity risk – the risk that the business would be unable to meet our working capital commitments. This is mitigated by extensive cashflow forecasting which are managed by the Group treasury department. There are currently substantial sums of excess cash from operations held by Group treasury, which the business can access when required. • Credit risk – this includes bank deposits & trade receivables, and the primary risk is with trade receivables. This is closely monitored to ensure that exposure is limited, and credit checks are undertaken on clients on an ongoing basis. The figures in the balance sheet are net of allowances for doubtful receivables. • Environmental & health & safety risk – the business faces increased regulatory requirements in both environmental reporting and health & safety laws. This is managed & mitigated through our Integrated Management System which is ISO 9001/14001/45001 accredited.
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COFFEY GEOTECHNICS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
No significant changes to the way the business operates are expected in the near future, although rebranding to match our parent company will be considered further as part of ongoing strategy developments.
The annual operating plan for the company forecast a similar return for the financial year 2025 as achieved in 2024. The primary obstacle to achieving this will be staff recruitment & retention and the wider market conditions. Whilst the most recent government budget indicates a reduction in spending on infrastructure there remain areas with significant growth, which the company have focused our business development activities on. This has provided strong growth in 2024 in the energy & water market. We are currently designing the first new reservoir to be built in the UK for 40 years and with several more planned this puts us in a strong position for the future. This project is the largest the company has ever undertaken and is forecast to provide substantial revenue for the next 5 years.
We aim to provide stakeholders with an overview of our environmental, social, and governance performance. We also aim to highlight key initiatives, outcomes, and areas for improvement. We note that we do not meet the ESG reporting threshold (companies that are publicly 'quoted' or 'listed', whose annual turnover exceeds £500 million, or who have more than 500 employees), however, we actively follow the principles of ESG and have Environment & Sustainability and Social Value Policies.
We are a leading geotechnical design consultant and provide expertise in a range of disciplines including geotechnical engineering, engineering geology, mining, and hydrogeology. We recognise our obligation to manage the impact of our services on the environment. We endeavour to limit our impact where possible by complying with all relevant environmental legislation. The Company is committed to reducing its carbon footprint arising from carbon emissions in the workplace and from business travel as well as considering the wider impact of our technical designs. We are committed to achieving Net Zero emissions by 2050. We have a Carbon Reduction Plan aligned to the Science Based Targets (SBTi) committed to by the overarching Tetra Tech group. The commitment is to reduce absolute Scope 1, 2 and 3 GHG emissions 50% by 2030 from a 2021 baseline year, and that 60% of suppliers by spend covering purchased goods and services will have science-based targets by 2027. We monitor Scope 1, 2 & 3 emissions for our three operational locations. All offices are leased but we work with our landlords towards reducing emissions. We comply with all relevant environmental legislation including the Energy Saving Opportunities Scheme (ESOS). Due to our operational size, our ESOS data is submitted as part of an aggregated submission of the smaller Tetra Tech entities in the UK. We have undertaken energy surveys within our offices to better understand the feasibility for delivering energy savings through optimisation, retro-fit, plant upgrade, and renewable generation and are monitoring our progress against our submitted ESOS Action Plan. We will review measures to reduce carbon emissions and save energy alongside review of our progress towards the targets we have established. Social Value is important to us and to our key clients, and we strive actively to support the profession and the wider community, especially local to our offices and key projects. We record the initiatives we’re involved in on a variety of portals, to demonstrate Social Value to our clients and to feed into our sustainability reporting. The governance of ESG initiatives sits under our accredited IMS system and leadership at the highest level. As a business we continue to learn and respond to ESG requirements both legislated and to meet the needs of the company, our clients, and wider supply chain.
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COFFEY GEOTECHNICS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
This report was approved by the board and signed on its behalf.
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COFFEY GEOTECHNICS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The directors present their report and the financial statements for the year ended 30 September 2024.
The directors who served during the year were:
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
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;
∙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.
The loss for the year, after taxation, amounted to £61k (2023 - profit £907 k).
The directors are satisfied with the performance of the company during this period. The directors do not recommend a final dividend (2023: £Nil).
Details of future developments can be found in the Strategic Report on pages 1 to 4.
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COFFEY GEOTECHNICS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
There have been no significant events affecting the Company since the year end.
The auditor, James Cowper Kreston Audit, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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COFFEY GEOTECHNICS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COFFEY GEOTECHNICS LIMITED
We have audited the financial statements of Coffey Geotechnics Limited (the 'Company') for the year ended 30 September 2024, which comprise 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.
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.
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COFFEY GEOTECHNICS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COFFEY GEOTECHNICS LIMITED (CONTINUED)
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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COFFEY GEOTECHNICS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COFFEY GEOTECHNICS LIMITED (CONTINUED)
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.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
∙Enquiry of management and those charged with governance around actual and potential litigation and claims;
∙Enquiry of management and those charged with governance to identify any material instances of non-compliance with laws and regulations;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
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 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 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 member for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants and Statutory Auditor
Reading Bridge House
George Street
Berkshire
RG1 8LS
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COFFEY GEOTECHNICS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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COFFEY GEOTECHNICS LIMITED
REGISTERED NUMBER: 06328315
BALANCE SHEET
AS AT 30 SEPTEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 12 to 22 form part of these financial statements.
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COFFEY GEOTECHNICS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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COFFEY GEOTECHNICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Coffey Geotechnics Limited is a private company limited by share capital and incorporated in England and Wales. The principal activity of the company is that of specialist consultancy services in geo-technical, environmental, mining and civil engineering. The registered office is 1 Northfield Road, Reading, RG1 8AH. The principal place of trading is Atlantic House, Atlas Business Park, Wythenshawe, Manchester M22 5PR.
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 (FRS 102) and the Companies Act 2006.
The directors have a reasonable expectation that the Company has adequate resource to continue in operational existence for at least 12 months from the date of approval of the financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. 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 following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Tetra Tech Inc as at 30 September 2024 and these financial statements may be obtained from their website at https://investor.tetratech .com..
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COFFEY GEOTECHNICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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COFFEY GEOTECHNICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
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COFFEY GEOTECHNICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
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.
Key sources of estimation uncertainty Long-term projects The directors have to estimate the costs to completion on long-term projects. The progress on all projects is actively reviewed with project managers and directors during the monthly and quarterly forecasting cycle. Subsequent results achieved are measured against these forecasts to ensure the process is robust, and the annual impairment review of goodwill is based on the same projections.
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COFFEY GEOTECHNICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The whole of the turnover is attributable to rendering the services which are the one principal activity of the
company.
Analysis of turnover by country of destination:
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COFFEY GEOTECHNICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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COFFEY GEOTECHNICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
9.Taxation (continued)
There were no material factors that may affect future tax charges.
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COFFEY GEOTECHNICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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COFFEY GEOTECHNICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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COFFEY GEOTECHNICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the Company to the scheme and amounted to £133,083 (2023: £119,287)
As at 30 September 2024 contributions amounting to £31,418 (2023: £24,873) were payable to the scheme and are included in creditors.
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COFFEY GEOTECHNICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The company is a subsidiary undertaking of
The largest group in which the results of the Company are consolidated is that headed by
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