Company registration number 01981585 (England and Wales)
CHAPMANBDSP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
CHAPMANBDSP LIMITED
COMPANY INFORMATION
Directors
I H Duncombe
E J Lehane
R C Upjohn
L M Scott
R McManus
Company number
01981585
Registered office
40 Gracechurch Street
London
United Kingdom
EC3V 0BT
Auditor
Azets Audit Services
2nd Floor
Regis House
45 King William Street
London
EC4R 9AN
CHAPMANBDSP LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
CHAPMANBDSP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
Fair review of the business
We use the power of design and engineering to deliver excellence for our clients in building services and environmental consultancy. Our agile and assured approach combines creative design with intelligent engineering, enabling us to lead small to large scale projects across a range of sectors.
Our teams of architects, engineers, analysts, and designers help clients realise smarter and more efficient solutions. Our core specialisms - mechanical, electrical, public heath, sustainability, vertical transport, and smart buildings - work seamlessly throughout the building structure to create places that fulfil their potential.
For the 2023/24 financial year, the key financial highlights are as follows:
Last year the company had an annual turnover of £24,400,145. This has increased by 2% during the 2023/24 fiscal year, with the company achieving an annual turnover of £24,899,473. This increase has been generated, despite the uncertainty within the UK market during this reporting period, by our continued growth internationally and the evolution of our Mission Critical service line.
Gross profit has decreased this year, as we continue to invest in our staff, with an increase in both our staff payroll and the skills that we employ as we broaden our sector offering. We continue to develop our international portfolio of projects, where we typically function as lead consultant, resulting in higher project level costs generated by sub-consultants.
We continue to foster our people and their environment. The investment in this period includes further developments to our processes and staff experience, including the deployment of software to augment our collaborative working approach both with external project teams and in a hybrid working environment. This investment has continued post year end with the enhancement of our senior leadership team.
The company continues to nurture successful relationships within the construction sector both in the UK and internationally. We are establishing ourselves within sectors such as Mission Critical, whilst remaining a market leader within the workplace sector, and our international delivery team is well placed to further enhance our position within the Middle East.
CHAPMANBDSP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Principal risks and uncertainties
The management of the business is subject to a number of risks.
The directors have set out below the principal risks facing the business. Where possible, processes are in place to monitor and mitigate such risks.
Financial risk management objectives and policies
The directors constantly monitor the risks and uncertainties facing the company with particular reference to the exposure on liquidity, interest rates, inflation and credit risks. They are confident that they have suitable policies in place and there are no material risks and uncertainties which have not been considered.
The company uses various financial instruments which include leases, cash, and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detailed below.
The main risks arising from the company's financial instruments are liquidity risk, interest rate risk and credit risk. The directors review and agree policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years.
Liquidity risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.
Short term flexibility is achieved through the use of overdraft facilities.
Interest rate risk
The company finances its operations through a mixture of retained profits and bank borrowings. The company's exposure to interest rate fluctuation on its borrowings is managed by the use of both fixed and floating facilities and actively managing its working capital requirements.
Credit risk
The company's principal financial asset is trade debtors and therefore this represents the principal credit risk. In order to manage credit risk, the directors set limits for customers based on a combination of third party credit references and payment history where that exists. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history.
CHAPMANBDSP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Future outlook
Our brand and technical offering continues to be very well received in the market place.
This is a direct result of the strong relationships held by the company, our client focused approach to design, and the innovative design methods we employ.
Our aim for the 2024/25 fiscal year is to continue our focus on delivering the client’s vision and to support them as a trusted partner. Our intention is to build on our strong order book, both within the UK and internationally, as well as building on the solid foundation we have established in the Mission Critical sector.
Our client base remains strong and, after continuing to secure a number of iconic projects both in the UK and internationally, we continue to work with various developers and "blue chip" companies on their property portfolios.
We continue our membership with the First Q network to support our European delivery, whilst also securing the successful registration of our presence in The Kingdom of Saudi Arabia to add to our existing offices across the United Arab Emirates, and enhancing our presence in the Middle East.
The aim of the company is to be the preferred consultant of choice for our clients. This will be achieved through building and maintaining strong relationships whilst delivering high quality designs that respect the absolute requirements of each client.
R McManus
Director
26 June 2025
CHAPMANBDSP LIMITED
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.
Principal activities
The principal activity of the company continued to be that of providing building services design solutions to the property market in the United Kingdom and in the United Arab Emirates. The company specialises in the design of mechanical and electrical services for buildings, as well as advising clients on the management of property facilities, conducting building surveys and audits, advising on lift services, lighting design, expert witness services, environmental engineering advice and design solutions and feasibility and due diligence reviews.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J Biscoe
(Resigned 31 December 2023)
I H Duncombe
E J Lehane
M Thurston
(Resigned 10 November 2023)
R C Upjohn
L M Scott
R McManus
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £155,022. The directors do not recommend payment of a final dividend.
Statement of directors' responsibilities
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.
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.
CHAPMANBDSP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
On behalf of the board
R McManus
Director
26 June 2025
CHAPMANBDSP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHAPMANBDSP LIMITED
- 6 -
Opinion
We have audited the financial statements of ChapmanBDSP 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 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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the 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.
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.
CHAPMANBDSP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHAPMANBDSP LIMITED
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
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's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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.
CHAPMANBDSP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHAPMANBDSP LIMITED
- 8 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
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 bias and 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 indicators of potential bias.
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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Rebecca Boys
Senior Statutory Auditor
For and on behalf of Azets Audit Services
Chartered Accountants
Statutory Auditor
2nd Floor
Regis House
45 King William Street
London
EC4R 9AN
CHAPMANBDSP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
24,899,473
24,400,145
Cost of sales
(17,952,112)
(15,780,050)
Gross profit
6,947,361
8,620,095
Administrative expenses
(6,980,679)
(8,496,823)
Operating (loss)/profit
4
(33,318)
123,272
Interest receivable and similar income
8
8
3,125
Interest payable and similar expenses
9
(143,346)
(43,831)
(Loss)/profit before taxation
(176,656)
82,566
Tax on (loss)/profit
10
199,641
77,506
Profit for the financial year
22,985
160,072
The profit and loss account has been prepared on the basis that all operations are continuing operations.
CHAPMANBDSP LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
325,717
470,119
Current assets
Stocks
14
495,780
860,347
Debtors
15
8,986,581
8,231,248
Cash at bank and in hand
540,439
786,096
10,022,800
9,877,691
Creditors: amounts falling due within one year
16
(5,796,892)
(5,553,353)
Net current assets
4,225,908
4,324,338
Total assets less current liabilities
4,551,625
4,794,457
Creditors: amounts falling due after more than one year
17
(49,231)
(133,626)
Provisions for liabilities
Deferred tax liability
19
56,100
82,500
(56,100)
(82,500)
Net assets
4,446,294
4,578,331
Capital and reserves
Called up share capital
21
11,000
11,000
Profit and loss reserves
4,435,294
4,567,331
Total equity
4,446,294
4,578,331
The financial statements were approved by the board of directors and authorised for issue on 26 June 2025 and are signed on its behalf by:
R McManus
Director
Company Registration No. 01981585
CHAPMANBDSP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
11,000
4,812,548
4,823,548
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
160,072
160,072
Dividends
11
-
(405,289)
(405,289)
Balance at 30 September 2023
11,000
4,567,331
4,578,331
Year ended 30 September 2024:
Profit and total comprehensive income for the year
-
22,985
22,985
Dividends
11
-
(155,022)
(155,022)
Balance at 30 September 2024
11,000
4,435,294
4,446,294
CHAPMANBDSP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
1
Accounting policies
Company information
ChapmanBDSP Limited is a private company limited by shares incorporated in England and Wales. The registered office is 40 Gracechurch Street, London, United Kingdom, EC3V 0BT.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income; and,
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of ChapmanBDSP Holdings Limited. These consolidated financial statements are available from its registered office, 40 Gracechurch Street, London, EC3V 0BT.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true
CHAPMANBDSP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.3
Turnover
Turnover represents revenue earned under contracts to provide professional design and advisory services. Revenue is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for its performance under these contracts.
Turnover from contracts for the provision of professional design and advisory services are recognised by reference to the stage of completion, costs incurred and where costs to complete can be estimated reliably. Where the outcome of individual contracts can be estimated reliably, contract revenue and contract costs are recognised as revenue and expenses respectively in reference to the stage of completion at the reporting date. Where the outcome cannot be estimated reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable.
Work in progress and revenue recognition
Revenue is recognised in line with the completion of projects. The percentage completion is determined using the cost approach. Costs are recognised as incurred and revenue is recognised on the basis of the proportion of total costs at the reporting date to the estimated total costs of the contract. No margin is recognised until the outcome of the contract can be estimated with reasonable certainty. Provision is made for known expected losses on individual contacts once such losses become reasonably apparent. Revenue in respect of variations to contracts is recognised when it is probable it will be agreed by the customer.
For contracts in progress, the amount of revenue reflects the accrual of the the right to consideration by reference to the value of the work performed. Revenue exceeds fees rendered, the balance is included in work in progress and payments on account in excess of the relevant amount of revenue are included in creditors.
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.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
5 years
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
on cost over the period of the lease
Fixtures and fittings
20% on reducing balance
Computers
25% on cost
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.
CHAPMANBDSP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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.
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, bank loans, loans from fellow group companies, 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.
1.9
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.
CHAPMANBDSP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
CHAPMANBDSP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
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.
Depreciation and useful economic lives
Determine whether there are indicators of impairment of the company's intangible and tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.
Intangible and tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing assets' lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Leases
Determine whether leases entered into by the company either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee, on a lease by lease basis.
Revenue and margin reconciliation
The company's revenue recognition and margin recognition policies which are set out in Note 1.3, are central to how the company values the work it has carried out in the financial year.
These policies require forecasts to be made of the outcomes of contracts for design works which require assessments and judgements to be made on the recovery of changes in the scope of the work, contract programme issues, monitoring, defects liabilities and changes in costs.
3
Turnover and other revenue
A geographical split of turnover is not given as in the opinion of the directors, to do so would be seriously prejudicial to the company's business.
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging:
£
£
Exchange losses
442,016
738,726
Depreciation of owned tangible fixed assets
181,488
192,298
Amortisation of intangible assets
-
1,885
Operating lease charges
897,941
905,613
CHAPMANBDSP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
28,700
26,200
Audit of the financial statements of the company's subsidiaries
11,500
11,000
40,200
37,200
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Direct
152
156
Administration
24
25
Total
176
181
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
12,619,120
12,552,494
Social security costs
1,197,364
1,200,911
Pension costs
1,065,418
1,041,726
14,881,902
14,795,131
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
1,024,701
1,252,047
Company pension contributions to defined contribution schemes
69,948
88,369
1,094,649
1,340,416
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 7 (2023 - 7).
CHAPMANBDSP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
7
Directors' remuneration
(Continued)
- 18 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
262,343
252,720
Company pension contributions to defined contribution schemes
15,122
15,122
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
8
3,125
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
-
43,196
Other interest on financial liabilities
41,108
635
Other interest
102,238
143,346
43,831
CHAPMANBDSP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
68,666
12,342
Adjustments in respect of prior periods
(12,342)
(55,454)
Double tax relief
88,560
(31,731)
Adjustment in respect of R&D tax credits
(318,125)
(30,538)
Total current tax
(173,241)
(105,381)
Deferred tax
Origination and reversal of timing differences
(26,400)
27,875
Total tax credit
(199,641)
(77,506)
The actual credit for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
(Loss)/profit before taxation
(176,656)
82,566
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
(44,164)
18,165
Tax effect of expenses that are not deductible in determining taxable profit
81,134
22,735
Adjustments in respect of prior years
(12,342)
(55,454)
Double tax relief
88,560
(31,731)
Permanent capital allowances in excess of depreciation
31,696
(24,316)
Research and development tax credit
(318,125)
(30,538)
Short term timing differences
(4,242)
Movement on deferred tax
(26,400)
27,875
Taxation credit for the year
(199,641)
(77,506)
11
Dividends
2024
2023
£
£
Interim paid
155,022
405,289
CHAPMANBDSP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
12
Intangible fixed assets
Software
£
Cost
At 1 October 2023 and 30 September 2024
47,925
Amortisation and impairment
At 1 October 2023 and 30 September 2024
47,925
Carrying amount
At 30 September 2024
At 30 September 2023
13
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 October 2023
163,546
374,093
1,176,823
1,714,462
Additions
4,951
32,135
37,086
Disposals
(23,999)
(23,999)
At 30 September 2024
163,546
355,045
1,208,958
1,727,549
Depreciation and impairment
At 1 October 2023
122,066
276,860
845,417
1,244,343
Depreciation charged in the year
20,601
30,818
130,069
181,488
Eliminated in respect of disposals
(23,999)
(23,999)
At 30 September 2024
142,667
283,679
975,486
1,401,832
Carrying amount
At 30 September 2024
20,879
71,366
233,472
325,717
At 30 September 2023
41,480
97,233
331,406
470,119
14
Stocks
2024
2023
£
£
Work in progress
495,780
860,347
CHAPMANBDSP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
6,399,154
5,919,165
Corporation tax recoverable
346,238
218,895
Amounts owed by group undertakings
1,456,539
1,310,426
Other debtors
108,399
122,973
Prepayments and accrued income
676,251
659,789
8,986,581
8,231,248
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Other borrowings
18
26,328
Trade creditors
2,363,427
2,522,674
Corporation tax
96,779
231,237
Other taxation and social security
1,154,069
1,172,481
Other creditors
221,484
225,329
Accruals and deferred income
1,961,133
1,375,304
5,796,892
5,553,353
17
Creditors: amounts falling due after more than one year
2024
2023
£
£
Accruals and deferred income
49,231
133,626
18
Loans and overdrafts
2024
2023
£
£
Other loans
26,328
Payable within one year
26,328
Other loans related to an invoice discounting facility which is secured by a fixed charge over the company's assets and a floating charge over all assets not subject to an effective fixed rate charge. The debt is also secured by limited personal guarantees from Mr R C Upjohn, Mr E J Lehane and Mr I H Duncombe, up to £200,000.
CHAPMANBDSP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
19
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
56,100
82,500
2024
Movements in the year:
£
Liability at 1 October 2023
82,500
Credit to profit or loss
(26,400)
Liability at 30 September 2024
56,100
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.
A potential deferred tax asset of £111,000 (2023: £18,800) in relation to unrelieved foreign tax has not been recognised due to uncertainty over the timing of the reversal which will be based on future foreign income.
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,065,418
1,041,726
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.
At the balance sheet date, the company owed £93,484 (2023: £97,329) in relation to outstanding pension payments.
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary 'A' of £1 each
10,000
10,000
10,000
10,000
Ordinary 'B' of £1 each
1,000
1,000
1,000
1,000
11,000
11,000
11,000
11,000
CHAPMANBDSP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
21
Share capital
(Continued)
- 23 -
The Ordinary 'A' shares carry full voting and dividend rights.
The Ordinary 'B' shares carry dividend rights and carry no voting rights. The 'B' shares do not confer any right to any further participation in the profits or assets of the company.
Upon winding up or repayment of capital, the holders of the 'A' shares are entitled to the capital paid up on such shares before holders of the 'B' shares.
Called up share capital - this represents the nominal value of shares that have been issued.
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
745,304
781,874
Between two and five years
453,347
1,198,651
1,198,651
1,980,525
23
Directors' transactions
At the balance sheet date, the following balances were due from the directors:
Description
Opening balance
Amounts repaid
Closing balance
£
£
£
J Biscoe - Loan
(16,800)
393
(16,407)
I H Duncombe - Loan
(16,800)
-
(16,800)
E J Lehane - Loan
(21,105)
-
(21,105)
M Thurston - Loan
(16,800)
16,800
-
R C Upjohn - Loan
(16,800)
-
(16,800)
L M Scott - Loan
(3,813)
-
(3,813)
(92,118)
17,193
(74,925)
24
Ultimate controlling party
The company is a wholly owned subsidiary of ChapmanBDSP Holdings Limited, a company registered in England and Wales.
The results of the company are included in the consolidated financial statements of ChapmanBDSP Holdings Limited. The consolidated accounts are available from Companies House, Crown Way, Cardiff, CF14 3UZ.
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