Company registration number 10219126 (England and Wales)
PERFECT CIRCLE JV LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
PERFECT CIRCLE JV LTD
COMPANY INFORMATION
Directors
Ms V J Brambini
Mr J C Enever
Mr D C Green
Mr A J Hamilton
Mr R S Whitehead
Mr D M Staniforth
Mr S A Green
Company number
10219126
Registered office
Halford House
Charles Street
Leicester
LE1 1HA
Auditor
MHA
80 Mosley Street
Manchester
M2 3FX
PERFECT CIRCLE JV LTD
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 24
PERFECT CIRCLE JV LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
Principal activities
Perfect Circle JV Ltd is a unique partnership between property and construction consultants Pick Everard, Gleeds Cost Management Ltd and AECOM Infrastructure & Environment UK Ltd. The Company aims to offer the broadest range and highest quality of built environment consultancy services available to the public sector delivered in collaboration with the public sector procurement experts Scape Procure. The expertise and experience of the Company’s professional and technical resource also makes it ideally suited to the provision of consultancy services on major projects led by the private sector.
Review of the business
The Company saw a 15% increase in Turnover year on year, as predicted due to the build-up of work under the new generation Scape framework, which is supported by the growth in our total secured orderbook from £751.8m to £945.3m.
The Company’s operating profit for the year was £4,499,020 (2023: £4,056,388), increasing by 11%, in line with the increase in Turnover but mitigated by the increased cost of operating the new generation frameworks. The Company continues to drive forward the performance of the business and secure work with existing Scape framework clients, new public sector and private sector clients.
The Company continues to have a strong net asset position of £613,505 (2023: £718,185) and a strong cash position of £3,804,355 (2023: £1,437,956). The Company’s working capital is managed closely to balance paying our suppliers in accordance with the Fair Payment Scheme and any debtor risk from our clients, by limiting the cash paid to shareholders as and when needed. Despite the increased turnover, trade debtors and amounts owed by joint venture partners have reduced by £934,138 compared to the previous year, reflecting an improvement in the businesses credit control performance. An increase in trade creditors is due to the ongoing transition to a framework whereby the Company deals directly with its suppliers, with cashflow management dealt through the support of our JV partners, as outlined in Note 2 of the accounts.
The Company operates and maintains robust, well established business systems to support all aspects of its operation. It undertakes staff training across its delivery partners and supply chain, and initiates business development and marketing plans. Scape Procure has in excess of 1000 public sector clients who have each signed an access agreement to enable the use of frameworks operated by Scape Procure. Having resecured appointments in 2020 to the current generation of Scape Frameworks, now extended until 2027, and following success in securing a leading position on Scape's new utilities framework, the business has managed to secure major commissions over this timeframe and can continue to access new public and private sector clients to maximise performance in line with its 5 year plan.
PERFECT CIRCLE JV LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Principal risks and uncertainties
The Scape Procure frameworks allow direct appointment of framework holders on any appropriate public funded or part-funded project that demands UK compliant procurement. Perfect Circle JV’s initial framework appointment expired in 2020, and it was successful in securing two major follow-on frameworks for consultancy services in England Wales and Northern Ireland for buildings and Infrastructure. The two frameworks have a combined limit of £600m and following an extension, will now run until 2027. In addition, Perfect Circle has now secured a position as one of two appointees to Scape’s new Utilities framework. These frameworks underpin the Company’s current activities and failure to re-secure a framework for a further term is the principal risk to the Company’s trading position.
The appointment in 2020 to the two major framework lots with Scape Procure, whilst being a major success for the Company, involved the appointment of competitor firms in Scotland and for feasibility works across the UK. Whilst the company’s new appointments represent a substantial increase in potential value and term, work types and geography now have limitations, the introduction of new consultants to Scape Procure present uncertainty for Perfect Circle JV Ltd. The introduction of new competitor firms has however given the Company the remit to seek opportunities out with the Scape procurement route, and appointment to Scape’s new Utilities framework provides further future opportunities.
In managing all of the above, the skills, experience and commitment of the directors is vital to the continued success and the Company continues to strengthen its management team as the order book continues to grow, particularly in Business Development and Client Management.
Financial risk management
With the vast majority of the Company’s clients being publicly funded, the Company’s revenues are influenced by variations in UK government spending programmes. Significant reductions in central and local government spending could have an adverse effect on the business, with a risk of contracts being deferred or cancelled. UK government support for construction and infrastructure does however appear secure and the commitment to reform planning laws and boost housebuilding are encouraging. By maintaining a balanced portfolio of work across all publicly funded sectors we seek to mitigate the risk of a significant downturn in spending.
Key performance indicators
Turnover, gross profit and orderbook are key financial performance indicators for the Company and are as follows:
PERFECT CIRCLE JV LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Going concern
Under the Company’s business model, work is tendered by clients under Scape framework agreements and then let to individual joint-venture / preferred partners and supply chain subconsultants through the entity of Perfect Circle JV Ltd (the Company). The work for end-clients is undertaken by the relevant partner/supplier, who invoice the Company for work done and the Company then invoices end clients. Liabilities to joint-venture partners, who undertake much of the work, are only settled once end-clients have settled their balances with the Company. The Company has detailed visibility of its substantial order pipeline, albeit inevitably in the context of potentially significant capital projects, the exact timing of work undertaken by the JV partners and suppliers for the end-clients can fluctuate. However, regardless of the timing of such work the Company bears limited operational cashflow risk as it settles its obligations to the joint venture partners only when it has the cash to do so. By virtue of the Company’s business model as described, the directors have concluded that the Company can meet its obligations as they fall due for at least the 12 months following the date of approval of these financial statements, and have therefore prepared the financial statements on the basis that the Company is a going concern.
..............................................
Mr D C Green
Director
.........................
PERFECT CIRCLE JV LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Results and dividends
The profit for the year, after taxation, amounted to £3,360,420 (2023: £3,173,017).
Ordinary dividends were paid amounting to £3,465,000. 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:
Ms V J Brambini
Mr J C Enever
Mr D C Green
Mr A J Hamilton
Mr R S Whitehead
Mr D M Staniforth
Mr S A Green
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Post reporting date events
There are no significant post balance sheet events.
Future developments
The directors are pleased with the results for the year and are anticipating continuing success in the forthcoming year with further business growth.
Auditor
During the year, MHA were appointed in place of Grant Thornton UK LLP.
MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP. MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of Financial Risk management.
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.
PERFECT CIRCLE JV LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr D C Green
Director
24 June 2025
PERFECT CIRCLE JV LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -
The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
PERFECT CIRCLE JV LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PERFECT CIRCLE JV LTD
- 7 -
Opinion
We have audited the financial statements of Perfect Circle JV Ltd (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, 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 September 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 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 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 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.
PERFECT CIRCLE JV LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PERFECT CIRCLE JV LTD (CONTINUED)
- 8 -
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.
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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' 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 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. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:
Enquiry of management and those charged with governance around actual and potential litigation and claims;
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;
Reviewing minutes of meetings of those charged with governance;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
PERFECT CIRCLE JV LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PERFECT CIRCLE JV LTD (CONTINUED)
- 9 -
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.
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 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.
Russell Cooper BSc ACA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Manchester, United Kingdom
24 June 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
PERFECT CIRCLE JV LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
114,225,514
99,598,792
Cost of sales
(108,001,846)
(94,040,723)
Gross profit
6,223,668
5,558,069
Administrative expenses
(1,724,648)
(1,501,681)
Profit before taxation
4,499,020
4,056,388
Tax on profit
7
(1,138,600)
(883,371)
Profit for the financial year
3,360,420
3,173,017
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PERFECT CIRCLE JV LTD
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
9
181,755
43,333
Tangible assets
10
2,530
1,755
184,285
45,088
Current assets
Debtors
11
14,924,604
16,013,532
Cash at bank and in hand
3,804,355
1,437,956
18,728,959
17,451,488
Creditors: amounts falling due within one year
12
(18,253,668)
(16,778,491)
Net current assets
475,291
672,997
Total assets less current liabilities
659,576
718,085
Provisions for liabilities
Deferred tax liability
13
46,071
(46,071)
-
Net assets
613,505
718,085
Capital and reserves
Called up share capital
15
3
3
Profit and loss reserves
613,502
718,082
Total equity
613,505
718,085
The notes on pages 14 to 24 form part of these financial statements.
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 24 June 2025 and are signed on its behalf by:
Mr D C Green
Director
Company registration number 10219126 (England and Wales)
PERFECT CIRCLE JV LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
3
545,065
545,068
Year ended 30 September 2023:
Profit and total comprehensive income
-
3,173,017
3,173,017
Dividends
8
-
(3,000,000)
(3,000,000)
Balance at 30 September 2023
3
718,082
718,085
Year ended 30 September 2024:
Profit and total comprehensive income
-
3,360,420
3,360,420
Dividends
8
-
(3,465,000)
(3,465,000)
Balance at 30 September 2024
3
613,502
613,505
PERFECT CIRCLE JV LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
17
7,075,499
3,172,075
Income taxes paid
(1,062,930)
(1,049,786)
Net cash inflow from operating activities
6,012,569
2,122,289
Investing activities
Purchase of intangible assets
(178,444)
(65,000)
Purchase of tangible fixed assets
(2,726)
(2,138)
Net cash used in investing activities
(181,170)
(67,138)
Financing activities
Dividends paid
(3,465,000)
(3,000,000)
Net cash used in financing activities
(3,465,000)
(3,000,000)
Net increase/(decrease) in cash and cash equivalents
2,366,399
(944,849)
Cash and cash equivalents at beginning of year
1,437,956
2,382,805
Cash and cash equivalents at end of year
3,804,355
1,437,956
PERFECT CIRCLE JV LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
1
Accounting policies
Company information
Perfect Circle JV Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Halford House, Charles Street, Leicester, LE1 1HA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The way in which the Company's business model operates is that work is tendered by clients under Scape framework agreements and then let to individual joint-venture / preferred partners and supply chain sub-consultants through the entity of Perfect Circle JV Ltd (the company). The work for end-clients is undertaken by the relevant partner/supplier, who invoice the Company for work done and the Company then invoices end-clients. Liabilities to joint-venture partners, who undertake much of the work, are only settled once end-clients have settled their balances with the Company. The Company has detailed visibility of its substantial order pipeline, albeit inevitably in the context of potentially significant capital projects, the exact timing of work undertaken by the JV partners and suppliers for the end-clients can fluctuate. However, regardless of the timing of such work the Company bears limited operational cash risk as it settles its obligations to the joint venture partners only when it has the cash to do so. true
By virtue of the Company's business model as described, the directors have concluded that the Company can meet its obligations as they fall due for at least the 12 months following the date of approval of these financial statements, and have therefore prepared the financial statements on the basis that the Company is a going concern.
1.3
Turnover
Revenue is recognised in line with the underlying service contract.
Fee income is recognised as contractual costs are incurred. Amounts recognised reflect the fees due to sub-consultants and all costs associated with the delivery of services. The Company determines that fee income revenue should be recognised on this basis as it acts as principal under contracts with clients, under which it holds primary responsibility for the provision of services, including the risk and reward associated with the contract.
Levy income for use of the Company's public sector frameworks and for management / administration of all contracts is recognised based on contractually fixed percentages of the fees due to the sub-consultant.
All corresponding costs, including fees payable to sub-consultants and commission payable to Scape Procure Ltd under the Scape frameworks are recognised as an expense.
1.4
Intangible fixed 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.
PERFECT CIRCLE JV LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Software
5 years straight line
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Computers
3 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
PERFECT CIRCLE JV LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
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
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from joint venture partners, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
PERFECT CIRCLE JV LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
PERFECT CIRCLE JV LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Revenue recognition
As set out in note 1.3, revenue comprises amounts invoiced to clients in accordance with its contracts, including fees for the work of sub-consultants and all fees associated with delivering services. The company determines that revenue should be recognised on this basis as it acts as principal, due to the fact that the company contracts directly with the customer and holds primary responsibility for the provision of services, including the risk and rewards associated with the contract. The revenue recorded is the total fee billed inclusive of sub-contracted elements, with all corresponding costs recognised as an expense.
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Fee Income
109,306,508
94,553,288
Management Levy
4,919,006
5,045,504
114,225,514
99,598,792
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
31,750
37,956
Depreciation of owned tangible fixed assets
1,951
1,042
Amortisation of intangible assets
40,022
21,667
PERFECT CIRCLE JV LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration
3
3
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
409,417
327,773
Social security costs
43,767
34,405
Pension costs
22,760
14,342
475,944
376,520
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
202,908
168,940
Company pension contributions to defined contribution schemes
11,167
7,764
214,075
176,704
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
202,908
168,940
Company pension contributions to defined contribution schemes
11,167
7,764
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,092,529
883,371
PERFECT CIRCLE JV LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
7
Taxation
2024
2023
£
£
(Continued)
- 20 -
Deferred tax
Origination and reversal of timing differences
46,071
Total tax charge
1,138,600
883,371
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
4,499,020
4,056,388
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
1,124,755
892,405
Tax effect of expenses that are not deductible in determining taxable profit
1,065
740
Adjustments in respect of prior years
1,672
Deferred tax adjustments in respect of prior years
11,108
(9,774)
Taxation charge for the year
1,138,600
883,371
8
Dividends
2024
2023
£
£
Interim paid
3,465,000
3,000,000
PERFECT CIRCLE JV LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
9
Intangible fixed assets
Software
£
Cost
At 1 October 2023
65,000
Additions
178,444
At 30 September 2024
243,444
Amortisation and impairment
At 1 October 2023
21,667
Amortisation charged for the year
40,022
At 30 September 2024
61,689
Carrying amount
At 30 September 2024
181,755
At 30 September 2023
43,333
10
Tangible fixed assets
Computers
£
Cost
At 1 October 2023
4,542
Additions
2,726
At 30 September 2024
7,268
Depreciation and impairment
At 1 October 2023
2,787
Depreciation charged in the year
1,951
At 30 September 2024
4,738
Carrying amount
At 30 September 2024
2,530
At 30 September 2023
1,755
PERFECT CIRCLE JV LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
14,133,993
14,510,978
Amounts owed by joint venture partners
654,533
1,211,686
Other debtors
17,226
131,423
Prepayments and accrued income
118,852
159,445
14,924,604
16,013,532
An impairment loss of nil (2023: £200,000) was recognised against trade debtors with a compensating adjustment made to Amounts owed to joint venture partners, due to the back-to-back nature of the related contracts.
12
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
7,521,561
5,987,560
Amounts owed to joint venture partners
9,843,142
9,908,604
Corporation tax
479,626
450,027
Other taxation and social security
23,721
10,903
Accruals and deferred income
385,618
421,397
18,253,668
16,778,491
13
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
46,071
-
2024
Movements in the year:
£
Liability at 1 October 2023
-
Charge to profit or loss
46,071
Liability at 30 September 2024
46,071
PERFECT CIRCLE JV LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
13
Deferred taxation
(Continued)
- 23 -
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
22,760
14,342
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.
15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
3
3
3
3
16
Related party transactions
Transactions with related parties
The immediate controlling entities of the Company are PEKG Ltd, Gleeds Capital Limited and Aecom Limited by virtue of their 33% shareholdings in the Company. There is deemed to be no ultimate controlling party.
The business has entered into a joint-venture agreement with Pick Everard, Gleeds Cost Management Limited and Aecom Infrastructure & Environment UK Limited, referred to below as joint venture partners.
During the year the company entered into the following transactions with related parties:
Supply of services and other reimburseable expenses
Management levy
2024
2023
2024
2023
£
£
£
£
Joint venture partners
66,768,238
62,412,621
3,427,489
3,907,707
2024
2023
Amounts due to related parties
£
£
Joint venture partners
9,843,142
9,908,604
PERFECT CIRCLE JV LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
16
Related party transactions
(Continued)
- 24 -
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Joint venture partners
654,533
1,211,686
Other information
In addition to the above, the joint venture partners were paid management and secondment fees and capitalised development costs totaling £797,891 and (2023: £452,671) by the company.
17
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
3,360,420
3,173,017
Adjustments for:
Taxation charged
1,138,600
883,371
Amortisation and impairment of intangible assets
40,022
21,667
Depreciation and impairment of tangible fixed assets
1,951
1,042
Movements in working capital:
Decrease/(increase) in debtors
1,088,928
(2,961,361)
Increase in creditors
1,445,578
2,054,339
Cash generated from operations
7,075,499
3,172,075
18
Analysis of changes in net funds
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
1,437,956
2,366,399
3,804,355
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