Company registration number 07320343 (England and Wales)
NICHOLAS WEBB ARCHITECTS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
NICHOLAS WEBB ARCHITECTS PLC
COMPANY INFORMATION
Directors
Mr N Webb
Ms M Skorupska
Ms A Vico Correas
Mr J Stockdale
Secretary
Ms M Skorupska
Company number
07320343
Registered office
3rd Floor
Great Titchfield House
14-18 Great Titchfield Street
London
W1W 8BD
Auditor
Sam Rogoff & Co Ltd
3rd Floor
Great Titchfield House
14-18 Great Titchfield Street
London
W1W 8BD
Business address
The Old Dairy
Harpendenbury Farm
Redbourn
St Albans
Hertfordshire
AL3 7QA
NICHOLAS WEBB ARCHITECTS PLC
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 27
NICHOLAS WEBB ARCHITECTS PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Review of the business

The Business is a Chartered Architectural Practice registered with the RIBA. The Company works in the commercial sector and in particular the Data Centre Market (100% of turnover for the past year was for Data Centre Projects). The Company continued to operate from its head office near St Albans, Herts which continues to prove an ideal location with its proximity to train connections to London (40 minutes) and access to both Luton and Stanstead Airports which provide good connectivity to the European sites that the Company is currently involved with.

The office in Hertfordshire is nearing capacity. Short term the company has taken on serviced office space in London. This continues to be a cost-effective solution which allows the practice to have a London presence without the commitment and expense of a full time office. The quality environment afforded at our Hertfordshire base will continue to be business centre.

 

Principal risks and uncertainties

The office has now reopened and the majority of staff have returned to the office however many of the employees continue to operate through remote working which continues to operate in an effective manner.

Despite the economic uncertainty the demand for Data Centres is increasing rapidly the UK as well as in the European and Asian Markets and the Company will have to continue to adapt to meet the needs of both existing clients and develop new relationships outside of the UK market place. Two new Data Blue Chip clients have been added to the Company’s Client List during the past accounting period.

As a result of increasing work outside the UK a percentage of the fee accounts are issued in Euros, to avoid the risk of fluctuations in currency rates the Company has now implemented control measures to ensure that either exchange rates are agreed at the outset of a project or the ability to recover additional fees (as a result of fluctuations) is written into the appointment agreement.

 

Development and performance

The construction industry and commercial property sector remained stable through the accounting period. The Data Centre market continues to show strong growth with an uplift in demand in all sectors, especially with the increase in use of AI . Existing clients continued to expand their portfolio and together with new Clients gained as a result of progressive marketing turnover increased to £5,029,245 an increase of 11.47% on the previous year.

In order to facilitate the increase in workload recruitment has been substantially increased, staff numbers have increased from 28 on 31st December 2023 to 33 on 31st December 2024. Despite the increase in overheads profitability was maintained at a proportional amount in comparison to previous years .

Business Environment

There was strong evidence of continuing growth in the Data Centre Market. Construction costs have risen as a result of post Covid material shortages but this does not appear to have affected the market and Data Centre requirement still continues to grow

PI costs remain very high but are now seemingly beginning to fall back to more reasonable numbers. Fee levels and charge out rates again had to be adjusted upwards by 17% to compensate for the sharp rises in energy costs and inflation .

NICHOLAS WEBB ARCHITECTS PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

Strategy

The Company continues to maintain and enhance its reputation in the Data Centre Market and again secured several prestigious commissions that have helped to promote this. It is pleasing that a large proportion of the fee income has resulted from repeat commissions from existing clients in a market place that has expanded from the UK to Europe. The addition of new Clients has also strengthened the company position

The company continues to develop partnering arrangements in Europe to serve client needs and to promote further business opportunities. The Company has now established partnering relationships in Ireland, the Netherlands, France, Germany , Denmark and Belgium.

Analysis of the market trends has identified the need to establish offices in other European Countries . As a result the practice continues the process of opening an Office in Madrid, with 4 staff currently working there, to serve what is seen as a good emerging Market opportunity .

Whilst the Data Centre Industry has provided a niche market specialist opportunity, the Company is conscious that it is potentially a risky strategy to rely solely on one specialist market. The Company continues to analyse the experience of the key personnel and has identified key sectors of the commercial market that continue to be actively marketed. Diversification has been slow but remains a key exercise in order to continue growth. The Directors have identified the Hotel and Film industry as two sectors where past experience has been strong and is setting out to actively market.

The role of the Architect and the services provided has evolved rapidly with the development of design software. The advent of 3D modelling has revolutionised the way a building is designed and constructed. The Company has reacted to this change through the employment of appropriately skilled personnel and the purchase of state of the art hardware and software. These changes in procurement have allowed an opportunity to develop the marketing of additional services such as BIM managers that control and construct BIM models throughout both the design and construction phases. This is currently successfully being marketed to both clients and main contractors. The BIM role for the period has contributed to the overall turnover and allowed a new skill set to be offered to potential clients.

To increase efficiency and cyber security the Practice has completed the migration from the office based server to a Cloud Platform . In addition to providing added security the move has allowed greater access to documentation for staff members .

Energy efficiency

The practice has also identified the importance of sustainability in design and construction and as a result has formed NWA Sustainability department to assist in current projects but also to undertake standalone commissions. This remains ongoing and is proving to be a valuable addition to the services the practice offers.

Software has been developed to allow the practice to measure energy use in the manufacture of materials specified. This has proven to be a valuable tool in assisting clients with their own commitments to becoming carbon neutral .

The practice is also looking at its own carbon foot print and implementing energy saving measures with a view to becoming carbon neutral by 2030.

 

NICHOLAS WEBB ARCHITECTS PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Key performance indicators

Participation in the yearly RIBA benchmark survey continues to provide the most effective tool in assessing the Companies performance in comparison to other Companies and practices operating in the same sector. Analysis of the results continues to show that the Company is operating in a cost effective manner and achieving good levels of profitability. For the current accounting period profitability appeared as follows:-

 

2023

2024

Gross profit

66.25%

58.89%

Net profit before tax

30.56%

11.20%

Net profit after tax

25.97%

12.22%

Return on capital employed

80.97%

33.89%

 

Staff retention has remained excellent and the company has continued to attract and retain quality personnel. At the beginning of the year the company targeted a staff growth rate of 20%, which was exceeded as the employees now number 34. A similar increase is targeted for the following year and the practice predicts a further 20% increase.

Monthly management meetings are held to review all aspects of the company’s performance. The basis of the meeting is informed through the review of data produced from in house management tools analysing cash flow, project profitability and resource allocation. The practice has now implemented third party management and accounting software to monitor and analyse the business performance.

Section 172

At the AGM the Directors set a detailed document outlining all the roles and responsibilities they hold . These are being set out in a revised document that will be incorporated as an appendix to the Directors appointment contract. The third party software will act as a check against performance in regard to the requirement. Much of the detail has been included in the narrative above .

The requirement for the Directors to act in good faith and promote the success of the company is key as well as ensuring the following going forward :

The likely consequences of any decision in the long term,
The interests of the company's employees,
The desirability of the company maintaining a reputation for high standards of business conduct.
The need to act fairly as between members of the company.

 

ISO 9001/14001 Accreditation

Having, in 2019 attained ISO accreditation 9001 and 14001 the company continues to monitor and adhere to the criteria set out in our manuals and procedures and has again this year passed the audit .

 

NICHOLAS WEBB ARCHITECTS PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

Company Identity and re Branding

During the previous financial period the Company brought on board the expertise of a marketing Company to assist in rebranding exercise that the Directors deemed necessary to realign the Practice going forward .

The principal driver behind this was to get away from the image of single entity privately owned practice to new entity forming a multi lead practice with an inclusive and collaborative approach offering clear career paths to all .

Our third party marketing Partners continue to remain on board helping us achieve the objectives and drive the practice forward

 

Sustainability and Carbon Neutrality

Sustainability plays an ever increasing part in how our work practice and lives are affected by Carbon emissions.

The practice takes this very seriously and has appointed a head of sustainability who has responsibility to ensure our workplace emissions are reduced as far as practically possible. We believe that without Carbon offsetting we will achieve Carbon neutrality by 2030

In addition to looking at our working environment the practice is looking at design criteria that minimise energy consumption and materials specified to assist in the reduction of carbon foot print

 

On behalf of the board

Ms M Skorupska
Director
27 June 2025
NICHOLAS WEBB ARCHITECTS PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities
The principal activity of the company was that of architectural services.
Results and dividends

The results for the year are set out on page 10.

A dividend of £248,155 has been paid in respect of the period ended 31st December 2024.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr N Webb
Ms M Skorupska
Ms A Vico Correas
Mr J Stockdale
Liquidity risk

The company manages its cash and borrowing requirements to ensure the company has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

Borrowings are at a fixed rate of 2.5% (government backed bounce back loan). There is no other exposure to interest rate fluctuations.

Foreign currency risk

The company’s principal foreign currency exposures arise from trading with European companies, some but not all of which are invoiced in currencies other than sterling. The company does not make use of hedging arrangements, the risk is mitigated in some cases by agreeing an exchange rate at the outset of a contract and by operating a Euro bank account.

Credit risk

Investments of cash surpluses are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Auditor
In accordance with the company's articles, a resolution proposing that Sam Rogoff & Co Ltd be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

NICHOLAS WEBB ARCHITECTS PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -

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:

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.

On behalf of the board
Ms M Skorupska
Director
27 June 2025
NICHOLAS WEBB ARCHITECTS PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NICHOLAS WEBB ARCHITECTS PLC
- 7 -
Opinion

We have audited the financial statements of Nicholas Webb Architects Plc (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, 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:

Basis for opinion

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.

Other information

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:

NICHOLAS WEBB ARCHITECTS PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NICHOLAS WEBB ARCHITECTS PLC
- 8 -
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:

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as considerations as to where and how fraud may occur in the entity.

 

Based on our understanding of the company and the industry, we identified that key legislation includes the Companies Act 2006, UK Financial reporting standards, UK tax legislation and distributable profits legislation. We discussed with the directors their policies and procedures regarding compliance with laws and regulations. The company follows the RIBA (Royal Institute of British Architects) Code of Professional Conduct and the ARB (Architect’s Registration Board) Code of Conduct and Practice, as appropriate to the industry in which it operates, and meets requirements for other relevant legislation with the assistance of its specialist advisers.

 

We considered the extent to which non-compliance might have a material effect on the financial statements and the audit team was alert to any indicators of non-compliance. We did not identify any instances of actual or suspected non-compliance.

 

In consideration of the extent to which the financial statements might be materially misstated we identified that the principal risk related to management bias affecting accounting estimates. Accordingly, we carried out audit procedures including enquiry and challenge of management estimates, testing the appropriateness of entries in the nominal ledger, and the performance of analytical procedures.

 

There are inherent limitations in the audit procedures carried out, and any irregularities arising from fraud may be inherently more difficult to detect than those resulting from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

 

NICHOLAS WEBB ARCHITECTS PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NICHOLAS WEBB ARCHITECTS PLC
- 9 -

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.

Use of our 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.

Emily Brown (Senior Statutory Auditor)
For and on behalf of Sam Rogoff & Co Ltd
27 June 2025
Chartered Accountants
Statutory Auditor
3rd Floor
Great Titchfield House
14-18 Great Titchfield Street
London
W1W 8BD
NICHOLAS WEBB ARCHITECTS PLC
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
5,029,245
4,511,691
Cost of sales
(2,067,737)
(1,522,884)
Gross profit
2,961,508
2,988,807
Administrative expenses
(2,397,611)
(1,609,166)
Operating profit
4
563,897
1,379,641
Interest payable and similar expenses
8
(448)
(861)
Profit before taxation
563,449
1,378,780
Tax on profit
9
51,178
(207,117)
Profit for the financial year
614,627
1,171,663

The profit and loss account has been prepared on the basis that all operations are continuing operations.

NICHOLAS WEBB ARCHITECTS PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
£
£
Profit for the year
614,627
1,171,663
Other comprehensive income
-
-
Total comprehensive income for the year
614,627
1,171,663
NICHOLAS WEBB ARCHITECTS PLC
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
41,695
47,145
Current assets
Debtors
13
2,287,482
1,973,006
Cash at bank and in hand
123,905
134,676
2,411,387
2,107,682
Creditors: amounts falling due within one year
14
(621,002)
(677,869)
Net current assets
1,790,385
1,429,813
Total assets less current liabilities
1,832,080
1,476,958
Creditors: amounts falling due after more than one year
16
(8,417)
(18,450)
Provisions for liabilities
Deferred tax liability
17
10,217
11,534
(10,217)
(11,534)
Net assets
1,813,446
1,446,974
Capital and reserves
Called up share capital
19
50,001
50,001
Profit and loss reserves
1,763,445
1,396,973
Total equity
1,813,446
1,446,974
The financial statements were approved by the board of directors and authorised for issue on 27 June 2025 and are signed on its behalf by:
Ms M Skorupska
Director
Company registration number 07320343 (England and Wales)
NICHOLAS WEBB ARCHITECTS PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
50,001
769,150
819,151
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,171,663
1,171,663
Dividends
10
-
(543,840)
(543,840)
Balance at 31 December 2023
50,001
1,396,973
1,446,974
Year ended 31 December 2024:
Profit and total comprehensive income
-
614,627
614,627
Dividends
10
-
(248,155)
(248,155)
Balance at 31 December 2024
50,001
1,763,445
1,813,446
NICHOLAS WEBB ARCHITECTS PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
393,242
516,448
Interest paid
(448)
(861)
Income taxes paid
(123,121)
(95,708)
Net cash inflow from operating activities
269,673
419,879
Investing activities
Purchase of tangible fixed assets
(22,256)
(58,414)
Proceeds on disposal of tangible fixed assets
-
(1)
Net cash used in investing activities
(22,256)
(58,415)
Financing activities
Repayment of bank loans
(10,033)
(9,788)
Dividends paid
(248,155)
(543,840)
Net cash used in financing activities
(258,188)
(553,628)
Net decrease in cash and cash equivalents
(10,771)
(192,163)
Cash and cash equivalents at beginning of year
134,676
326,839
Cash and cash equivalents at end of year
123,905
134,676
NICHOLAS WEBB ARCHITECTS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
1
Accounting policies
Company information

Nicholas Webb Architects Plc is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor, Great Titchfield House, 14-18 Great Titchfield Street, London, W1W 8BD.

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

Atruet 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.

1.3
Turnover

Turnover is recognised based on pre-agreed stage payments based on the stages of completion of the projects.

The company recognises revenue from the following major sources:

 

 

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Architectural services

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Intangible fixed assets - goodwill

Acquired goodwill is written off in equal annual instalments over five years which is its estimated useful economic life.

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:

Plant and machinery
20% Straight Line
Fixtures, fittings & equipment
20% Straight Line
NICHOLAS WEBB ARCHITECTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -

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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Cash and cash equivalents

Cash and cash equivalents 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.

NICHOLAS WEBB ARCHITECTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

NICHOLAS WEBB ARCHITECTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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.

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.

NICHOLAS WEBB ARCHITECTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
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 are accrued.

1.13
Leases
As lessee

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.

1.15

Research & Development Expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

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.

Key sources of estimation uncertainty

 

Amounts Recoverable on Long Term Contracts

The significant estimate included in these financial statements is the valuation of the amounts recoverable on work in progress.

NICHOLAS WEBB ARCHITECTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
3
Turnover

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Architectual Services
5,029,245
4,511,691

Turnover by geographical area in 2024 was as follows: UK £4,890,657, Europe £138,588

4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
22,966
14,700
Fees payable to the company's auditor for the audit of the company's financial statements
18,000
18,000
Depreciation of owned tangible fixed assets
27,812
34,592
(Profit)/loss on disposal of tangible fixed assets
(105)
570
Operating lease charges
15,396
2,899
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
18,000
18,000
For other services
All other non-audit services
17,699
16,461
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Architectural services
29
24
Administration and Finance
1
2
Total
30
26
NICHOLAS WEBB ARCHITECTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Employees
(Continued)
- 21 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,545,126
1,624,306
Social security costs
311,593
189,676
Pension costs
84,232
35,907
2,940,951
1,849,889
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
1,306,210
591,567
Company pension contributions to defined contribution schemes
53,142
12,865
1,359,352
604,432
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
521,715
166,058
Company pension contributions to defined contribution schemes
16,000
4,624

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4.

 

Directors and key management personnel are the same.

8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
439
861
Other finance costs:
Other interest
9
-
0
448
861
NICHOLAS WEBB ARCHITECTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
151,165
324,147
Adjustments in respect of prior periods
(201,026)
(122,899)
Total current tax
(49,861)
201,248
Deferred tax
Origination and reversal of timing differences
(1,317)
5,869
Total tax (credit)/charge
(51,178)
207,117

The applicable rate of corporation tax increased to 25% from 19% with effect from 1st April 2023.

The actual (credit)/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
563,449
1,378,780
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
140,862
324,296
Tax effect of expenses that are not deductible in determining taxable profit
8,960
5,979
Permanent capital allowances in excess of depreciation
(5,610)
(473)
Under/(over) provided in prior years
(201,026)
(122,898)
Depreciation add back
6,953
-
0
Timing difference between depreciation and capital allowances
(1,317)
213
Taxation (credit)/charge for the year
(51,178)
207,117

 

 

10
Dividends
2024
2023
£
£
Interim paid
248,155
543,840
NICHOLAS WEBB ARCHITECTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
11
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2024 and 31 December 2024
1,000,000
Amortisation and impairment
At 1 January 2024 and 31 December 2024
1,000,000
Carrying amount
At 31 December 2024
-
0
At 31 December 2023
-
0
12
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 January 2024
2,771
296,684
299,455
Additions
-
0
22,256
22,256
Disposals
-
0
(42,393)
(42,393)
At 31 December 2024
2,771
276,547
279,318
Depreciation and impairment
At 1 January 2024
554
251,756
252,309
Depreciation charged in the year
554
27,258
27,812
Eliminated in respect of disposals
-
0
(42,498)
(42,498)
At 31 December 2024
1,108
236,515
237,623
Carrying amount
At 31 December 2024
1,663
40,032
41,695
At 31 December 2023
2,217
44,928
47,145
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
860,593
1,345,785
Gross amounts owed by contract customers
1,347,634
600,286
Amounts owed by group undertakings
28,793
-
0
Prepayments and accrued income
50,462
26,935
2,287,482
1,973,006
NICHOLAS WEBB ARCHITECTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
15
10,648
10,648
Trade creditors
106,850
86,830
Corporation tax
151,165
324,147
Other taxation and social security
291,967
215,185
Other creditors
29,726
18,785
Accruals and deferred income
30,646
22,274
621,002
677,869

There was a bank overdraft facility of £25,000 available.

15
Loans and overdrafts
2024
2023
£
£
Bank loans
19,065
29,098
Payable within one year
10,648
10,648
Payable after one year
8,417
18,450
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
8,417
18,450

A loan of £50,000 was obtained under the government backed Bounce Back Loan Scheme. The interest rate on the loan is fixed at 2.5%. As at the year end there were 22 monthly repayments remaining, with the final payment due to be made in October 2026.

17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Capital Allowances
10,217
11,534
NICHOLAS WEBB ARCHITECTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
17
Deferred taxation
(Continued)
- 25 -
2024
Movements in the year:
£
Liability at 1 January 2024
11,534
Credit to profit or loss
(1,317)
Liability at 31 December 2024
10,217

The deferred tax liability set out above includes £2,047 which is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
84,232
35,907

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.

19
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
Ordinary Shares of £1 each
50,000
50,000
Ordinary B Shares of £1 each
1
1
50,001
50,001

Ordinary shares have attached to them full voting, dividend and capital distribution, including on winding up, rights and are not redeemable.

 

Ordinary B Shares have no voting rights, rights to participate in dividends, rights on winding up limited to nominal value and are not redeemable.

20
Operating lease commitments
As lessee

The company rents office premises at an annual rent of £54,250, payable quarterly in advance and subject to review on every fifth anniversary of the lease.

 

The lease has a contractual term of 10 years, expiring 29 September 2032, with a break date of 29 September 2027.

NICHOLAS WEBB ARCHITECTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
20
Operating lease commitments
(Continued)
- 26 -

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 1 year
54,250
54,250
Years 2-5
94,938
149,188
149,188
203,438
21
Related party transactions

At the year end £28,793 was owed by Studio NWA Holdings Ltd, the ultimate holding company.

22
Directors' transactions

Dividends totalling £247,708 (2023 - £543,840) were paid in the year in respect of shares held by the company's directors.

23
Ultimate controlling party

During the year the ultimate controlling party was Nicholas Webb by virtue of his majority shareholding. As of 27th June 2024 a new holding company, Studio NWA Holding Ltd was formed which acquired all the shares of Nicholas Webb Architects PLC. As of that date there is no individual controlling party.

24
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
614,627
1,171,663
Adjustments for:
Taxation (credited)/charged
(51,178)
207,117
Finance costs
448
861
(Gain)/loss on disposal of tangible fixed assets
(105)
570
Depreciation and impairment of tangible fixed assets
27,811
34,593
Movements in working capital:
(Increase) in debtors
(314,476)
(907,885)
Increase in creditors
116,115
9,531
Cash generated from operations
393,242
516,450
Difference
-
(2)
Per cash flow statement page
393,242
516,448
NICHOLAS WEBB ARCHITECTS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
25
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
134,676
(10,771)
123,905
Borrowings excluding overdrafts
(29,098)
10,033
(19,065)
105,578
(738)
104,840
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