AD Architects Limited

Contents
	Page
Strategic Report	1—3
Directors' Report	4—5
Independent Auditor's Report	6—8
Profit and Loss Account	9
Statement of Comprehensive Income	10
Balance Sheet	11
Statement of Changes in Equity	12
Notes to the Financial Statements	13—20

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

Principal Activity

The company's principal activity continues to be that of architectural practice.

Review of the Business

AD Architects Limited ("AD Architects") is a UK-based architectural practice operating as part of Sweco BV ("Sweco"), Europe’s leading architecture and engineering consultancy. Our team contributes to Sweco’s mission of planning and designing the sustainable communities and cities of the future.

Within the Sweco Group, we specialise in delivering high-quality architectural solutions across multiple sectors, with a particular focus on healthcare. We collaborate with clients from the public and private sectors, providing architectural design, master planning, and advisory services across the entire project lifecycle.

Being part of Sweco enables us to leverage the Group’s multidisciplinary capabilities, European presence, and digital innovation, while maintaining the agility and local expertise of a specialist architectural team.

AD Architects saw significant organic growth in revenue during 2024. Investments were made in training, maintaining a healthy cash balance, and fostering positive relationships with clients. Stephen Haigh planned to stand down as a director at the end of March 2025.

Our vision is to create meaningful spaces that improve lives and communities. We are committed to sustainable design and social value, working closely with public and private clients to deliver projects that respond to complex briefs and evolving user needs.

AD Architects is renowned as a creative and reliable project partner; the company listens to its clients, interprets their ideas and designs buildings and outcomes that embody project aspirations and requirements. Similarly, at the latter stages of design, there is significant expertise in technical design, construction information, support on site, and handover. AD Architects seeks to Understand; Transform; and Achieve.

AD Architects is ARB Registered and an RIBA Chartered Practice. The company holds ISO9001 (Quality Management), ISO14001 (Environmental Management) certification.

Healthcare

AD Architects has specialist knowledge and expertise in small and medium sized Healthcare projects, especially in Ireland. The company has achieved a successful track record in providing creative design solutions for staff and patient focused facilities.

In addition to project activities in 2024, AD Architects has developed and actioned enhancements in the following areas:

Design competition activity and early-stage design and digital explorations.
BIM and digital technology knowledge, skillsets, capabilities and awareness.
Al adoption. AD Architects goal is to enable the strategic adoption of Al to optimise workflows and foster innovation while safeguarding the integrity, privacy, and security of the company, our work, and our clients' information.
The company ensures that responsible, ethical, and compliant use of Al technology is utilised for all projects.
The number of employees has increased in year, enabling the company to secure new talent and skills for ongoing and future projects.
The company has cultivated a creativity mindset that thrives in flexible, collaborative and enjoyable working environments.

Corporate Social Responsibility:

AD Architects recognises the vital role that ethical, sustainable, and socially responsible practices play in long-term business success. The company is committed to fostering a culture of accountability, transparency, and continuous improvement, ensuring that its decisions deliver positive outcomes for employees, clients, shareholders, suppliers, and the wider communities in which it operates.

Responsible business principles are embedded into the company’s strategy and day-to-day operations, with a focus on the following key areas:

Ethical Conduct and Economic Responsibility: The company upholds the highest standards of integrity, fairness, and transparency in all areas of its operations. This includes a strong commitment to anti-corruption measures and ethical dealings with staff, stakeholders, and clients. The Board maintains oversight of financial decisions to ensure they align with sustainable and socially responsible outcomes.

Labour and Human Rights: AD Architects is dedicated to providing equal opportunities, fair treatment, and safe working conditions for all employees, promoting dignity and respect across the organisation.

Environmental Responsibility: The company actively works to minimise its environmental impact by promoting sustainable design practices and reducing its operational carbon footprint.

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AD Architects Limited

Strategic Report (continued)

For The Year Ended 31 December 2024

Review of the Business - continued

Community Engagement: AD Architects supports programmes that contribute to the well-being and development of the communities it serves.

Diversity, Equity and Inclusion: The company is committed to building a diverse and inclusive workplace where differences are valued, and all employees feel respected and empowered.

Sustainability

AD Architects recognises the significant impact the built environment has on the climate and the natural world. As a responsible architectural practice, the company is committed to advancing sustainable design and contributing to the global goal of achieving Net Zero Carbon by 2050.

Environmental responsibility is embedded at the core of the business. AD Architects is focused on delivering net-zero solutions through its design work and actively promotes the use of Modern Methods of Construction, retrofit strategies, and circular economy principles. The company seeks to lead by example, championing innovative and forward-thinking sustainability approaches to enhance environmental performance across all project outcomes.

Principal Risks and Uncertainties

The principal risks facing the company include:

Market Volatility: Changes in public sector funding or political policy may affect the volume and timing of work.
Talent Retention: Recruiting and retaining skilled architects remains competitive.
Project Risk: As with all design-led consultancies, project scope changes, fee recovery, and contract risk are managed closely.
Regulatory Compliance: Continued compliance with RIBA, ARB, and planning regulations is a key operational priority.

Risk management practices include regular project reviews, professional indemnity coverage, cash flow forecasting, and continuous staff training.

Future Developments

The future outlook remains cautiously optimistic. The firm is positioned to grow its presence in sustainable healthcare and modular design. Strategic priorities for the next 12–24 months include:

Strengthening digital design capabilities (BIM)
Expanding framework agreements with NHS Trusts and Local Authorities
Enhancing brand visibility and thought leadership in public-sector architecture
Exploring adjacent opportunities in mental health design and data centres

In 2025, AD Architects Ltd will continue to target organic growth and expand into new sectors, including data centers. Collaboration with Sweco BV will be intensified, and a new leadership team of Ashley Hughes and John Wiggett will take over from Stephen Haigh.

The company continues to invest in its people, processes, and partnerships to sustain long-term growth and resilience.

Securing New Opportunities

AD Architects maintains a strong and diverse workload and remains committed to delivering high-quality services to its clients. The company continues to actively pursue new opportunities, focusing on expanding its client base and securing a broader range of projects.

Looking ahead, AD Architects aims to grow its presence within its core sectors by delivering services across more geographic locations and offering an expanded portfolio of design solutions. The company is also optimistic about securing larger-scale projects, which would support significant growth in both business size and revenue.

Prioritising Design and Sustainability

Excellence in design remains central to AD Architects’ vision and operations. The company is deeply committed to embedding sustainability into every stage of its design process, with a clear strategy and pathway aligned to its environmental goals.

AD Architects aims to build on its sustainability credentials by reinforcing its reputation for creative, low-carbon design. The company believes in the power of place-specific solutions and values the uniqueness of each project — recognising that truly sustainable architecture must respond thoughtfully to context, community, and environment.

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AD Architects Limited

Strategic Report (continued)

For The Year Ended 31 December 2024

Key performance indicators

The directors continue to examine all aspects of the business with a view to achieving profitability. Together with senior management, they monitor all other statistical information on a regular basis to ensure that they are aware of any trends and influences on profitability using relevant key performance indicators. The main KPI's used by the Company are orientated around Turnover, Gross Profit and Operating Profit. These are summarised as follows;

	2024	2023
Turnover (£m)	£1.96	£1.54
Gross profit margin (%)	54	50
Operating profit margin (%)	13	11

Over the past twelve months, we have successfully met our objective of growing and maintaining our market share in the UK, while also expanding our social media presence.

There has been an increase in turnover for the year 2024 by 27% as compare to the decrease of 9% in last year 2023. This Increase was expected after taken over by Sweco. The company is able to almost maintain its decent market share in tough competition.

Our gross profit margin and net profit margin are at expected levels.

Sweco group support in areas such as finance, IT, and legal services has contributed to efficiency improvements and risk mitigation.

Market environment

The UK built environment sector experienced mixed conditions during the year, with inflationary pressures and procurement delays tempered by continued investment in public infrastructure. Within this context, our specialist focus on healthcare has remained resilient and aligned with national policy objectives.

Healthcare: Demand is driven by the UK Government’s Health Infrastructure Plan, hospital expansion programmes, and community health hubs.

Sweco’s strategic emphasis on sustainable and people-focused design enhances our ability to respond to these opportunities, particularly in decarbonising public buildings and promoting social value.

On behalf of the board

Mr John Wiggett

Director

25 September 2025

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AD Architects Limited

Company No. 04501559

Directors' Report For The Year Ended 31 December 2024

Directors' Report

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

Directors

The directors who held office during the year were as follows:

SWECO BV
Mr John Wiggett	Appointed	31/03/2025
Ms Ashley Hughes	Appointed	31/03/2025
Mr Stephen Haigh	Resigned	31/03/2025
Paul Corbeel Architectenvennootschap Bv	Resigned	01/01/2025

Matters covered in the Strategic Report

Disclosures required under s416(4) of the Companies Act 2006 are commented upon in the Strategic Report as the directors consider them to be of strategic importance to the business.

Statement of Directors' Responsibilities

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', 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 the financial statements the directors are required to:

select suitable accounting policies and then apply them consistently;
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of Disclosure of Information to Auditors

In the case of each director in office at the date the Directors' Report is approved:

so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.

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AD Architects Limited

Directors' Report (continued)

For The Year Ended 31 December 2024

Independent Auditors

The auditors, Cooper Young & Partners Ltd, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.

On behalf of the board

Mr John Wiggett

Director

25 September 2025

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Independent Auditor's Report

to the Members of

AD Architects Limited

Independent Auditor's Report

Opinion

We have audited the financial statements of AD Architects Limited for the year ended 31 December 2024 which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes of Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit/(loss) 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.

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 the provisions available for small entities, in the circumstances set out in note 17 to the financial statements, 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 entity's ability to continue as a going concern for a period of at least 12 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 Matters (unaudited prior year)

The financial statements for the year ended 31 December 2023 were not audited. Accordingly, we do not express an opinion on those financial statements. However, we have obtained sufficient appropriate audit evidence regarding the opening balances as at 1 January 2024 for the purposes of our audit of the financial statements for the year ended 31 December 2024.

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. In connection with our audit of the financial statements, 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 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 the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

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Independent Auditor's Report (continued)

to the Members of

AD Architects Limited

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 or 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 set out on page 4—5, 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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified and assessed the risks of material misstatement in the financial statements, whether due to fraud or error, and designed and performed audit procedures responsive to those risks. Our work included obtaining audit evidence that we considered sufficient and appropriate to provide a basis for our opinion.

In assessing the risk of material misstatement arising from irregularities, including fraud and non-compliance with laws and regulations, we:

Considered the nature of the company’s industry, regulatory environment, control framework, and financial performance.
Made enquiries of management regarding their own assessment of risks related to fraud and compliance.
Discussed with the management how and where fraud might occur in the financial statements and considered potential indicators of fraud.
Performed procedures to address the risk of management override of controls.
Reviewing the nominal ledger and testing journal entries to identify and assess unusual transactions.
Evaluating the appropriateness of accounting estimates and assessing them for potential management bias.
Investigating the rationale behind significant or non-routine transactions.
Conducted analytical procedures to identify any unexpected or unusual trends or relationships.
Undertook sample-based testing of major areas to verify completeness and accuracy.
Reviewed compliance with relevant laws and regulations, and made enquiries regarding any known instances of non-compliance.

These procedures were designed to provide reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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Independent Auditor's Report (continued)

to the Members of

AD Architects Limited

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 that 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.

Manish Sangani (Senior Statutory Auditor)

for and on behalf of Cooper Young & Partners Ltd , Statutory Auditor

25 September 2025

Cooper Young & Partners Ltd

Hunter House

109 Snakes Lane West

Woodford

Essex

IG8 0DY

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AD Architects Limited

Profit and Loss Account

For The Year Ended 31 December 2024

Profit and Loss Account

		2024	2023
	Notes	£	£
TURNOVER	3	1,964,531	1,543,617
Cost of sales		(1,051,636 )	(777,720 )

GROSS PROFIT		912,895	765,897

Administrative expenses		(659,656 )	(602,798 )

OPERATING PROFIT		253,239	163,099
Other interest receivable and similar income	7	4,133	15,232

PROFIT BEFORE TAXATION		257,372	178,331
Tax on Profit	8	(66,260 )	(41,300 )

PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR		191,112	137,031

The notes on pages 13 to 20 form part of these financial statements.

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AD Architects Limited

Statement of Comprehensive Income

For The Year Ended 31 December 2024

Statement of Comprehensive Income

	2024	2023
	£	£
PROFIT FOR THE FINANCIAL YEAR	191,112	137,031
OTHER COMPREHENSIVE INCOME FOR THE YEAR	-	-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR	191,112	137,031

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AD Architects Limited

Balance Sheet

As At 31 December 2024

Balance Sheet

Registered number: 04501559

		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	9		15,553		4,792

			15,553		4,792
CURRENT ASSETS
Stocks	10	12,040		94,332
Debtors	11	599,433		397,472
Cash at bank and in hand		465,189		292,980

		1,076,662		784,784
Creditors: Amounts Falling Due Within One Year	12	(365,469 )		(253,942 )

NET CURRENT ASSETS (LIABILITIES)			711,193		530,842

TOTAL ASSETS LESS CURRENT LIABILITIES			726,746		535,634

NET ASSETS			726,746		535,634

CAPITAL AND RESERVES
Called up share capital	13		1,200		1,200
Profit and Loss Account			725,546		534,434

SHAREHOLDERS' FUNDS			726,746		535,634

On behalf of the board

Mr John Wiggett

Director

25 September 2025

The notes on pages 13 to 20 form part of these financial statements.

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AD Architects Limited

Statement of Changes in Equity

For The Year Ended 31 December 2024

Statement of Changes in Equity

	Share Capital	Profit and Loss Account	Total
	£	£	£
As at 1 January 2023	1,200	897,403	898,603
Profit for the year and total comprehensive income	-	137,031	137,031

Dividends paid	-	(500,000)	(500,000)

As at 31 December 2023 and 1 January 2024	1,200	534,434	535,634


Profit for the year and total comprehensive income	-	191,112	191,112

As at 31 December 2024	1,200	725,546	726,746

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AD Architects Limited

Notes to the Financial Statements

For The Year Ended 31 December 2024

Notes to the Financial Statements

1. General Information

AD Architects Limited is a private company, limited by shares, incorporated in England & Wales, registered number 04501559 . The registered office is 63-65 Fore Street, Hertford, SG14 1AL.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.

2.2. Going Concern Disclosure

The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern.

2.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

The stage of completion is assessed by reference to the proportion of contract costs incurred to date compared to the estimated total contract costs, or by reference to work certified or milestones achieved, depending on the nature of the engagement.

Where the outcome of a contract cannot be estimated reliably, revenue is recognised to the extent of recoverable contract costs incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised immediately as an expense in the profit and loss account.

2.4. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Leasehold	25% on reducing balance
Plant & Machinery	25% on reducing balance
Fixtures & Fittings	25% on reducing balance

Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.

Gains and losses on disposals are recognised by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.5. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

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AD Architects Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.6. Cash and Cash Equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.

2.7. Financial Instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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.

The Company classifies all of its financial assets as loans and receivables.

Basic financial assets, which include trade and other receivables 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.

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

The Company classifies all of its financial liabilities as liabilities at amortised cost.

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.

...CONTINUED

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AD Architects Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.7. Financial Instruments - continued

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.

2.8. Interest Receivable

Interest income is recognised in the profit and loss account on an accruals basis, using the effective interest rate method. It is recognised when it is probable that the economic benefits will flow to the company and the amount of income can be measured reliably.

Interest receivable on cash deposits, loans or other financial instruments is accrued over time, based on the principal outstanding and applicable interest rate.

2.9. Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

2.10. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

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AD Architects Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.11. Provisions and Contingencies

Provisions

Provisions are recognised when the company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost.

Contingencies

Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the company’s control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote.

Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow of economic benefits is probable.

2.12. Pensions

The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

2.13. Significant judgements and estimations

In preparing these financial statements, the directors are required to make judgements, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

The key areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements are as follows:

Revenue Recognition and Stage of Completion

Revenue from architectural services is recognised based on the stage of completion of each contract. This requires the directors to assess the proportion of work performed at the reporting date, which involves judgement and estimation regarding:

Total contract value and expected recoverability;

Progress towards completion;

Time and costs incurred to date compared to budgeted totals;

Achievement of specific deliverables or milestones.

Valuation of Work in Progress

Work in progress is assessed for recoverability at each reporting date. This involves estimating the likelihood of future billing and cash collection, particularly for contracts not yet invoiced in full or subject to client variation or delay.

Provision for Doubtful Debts

Judgement is applied in determining the recoverability of outstanding debtors. A provision is made where there is evidence that full collection may not be possible, based on factors such as the age of the debt, client communication, and past payment history.

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AD Architects Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

3. Turnover

Analysis of turnover by geographical market is as follows:

	2024	2023
	£	£
United Kingdom	1,964,531	1,543,617

	1,964,531	1,543,617

4. Auditor's Remuneration

Remuneration received by the company's auditors and their associates during the year was as follows:

	2024	2023
	£	£
Audit Services
Audit of the company's financial statements	13,000	-


Non-Audit Services
Taxation compliance service	1,000	-
Other non-audit services	4,500	-

	5,500	-

5. Staff Costs

Staff costs, including directors' remuneration, were as follows:

	2024	2023
	£	£
Wages and salaries	997,707	845,960
Social security costs	4,962	6,688
Other pension costs	60,636	38,584

	1,063,305	891,232

6. Average Number of Employees

Average number of employees, including directors, during the year was: 22 (2023: 18)

7. Interest Receivable and Similar Income

	2024	2023
	£	£
Bank interest receivable	4,133	3,065
Loan interest receivable	-	12,167

	4,133	15,232

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AD Architects Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

8. Tax on Profit

	Tax Rate		2024	2023
The tax charge on the profit for the year was as follows:
	2024	2023	£	£
Current tax
UK Corporation Tax	25.0%	23.0%	66,260	41,300


Total tax charge for the period			66,260	41,300


The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
			2024	2023
			£	£
Profit before tax			257,372	178,331

Tax on profit at 25% (UK standard rate)			64,343	41,164
Goodwill/depreciation not allowed for tax			991	368
Expenses not deductible for tax purposes			245	76
Capital allowances			(3,946 )	(308 )
Current tax from unrecognised tax loss or credit			4,627	-

Total tax charge for the period			66,260	41,300

9. Tangible Assets

	Land & Property
	Leasehold	Plant & Machinery	Fixtures & Fittings	Total
	£	£	£	£
Cost
As at 1 January 2024	1,800	9,450	131,764	143,014
Additions	-	14,726	-	14,726

As at 31 December 2024	1,800	24,176	131,764	157,740

Depreciation
As at 1 January 2024	1,681	9,150	127,391	138,222
Provided during the period	30	2,842	1,093	3,965

As at 31 December 2024	1,711	11,992	128,484	142,187

Net Book Value
As at 31 December 2024	89	12,184	3,280	15,553

As at 1 January 2024	119	300	4,373	4,792

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AD Architects Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

10. Stocks

	2024	2023
	£	£
Work in progress	12,040	94,332

Work in progress comprises costs incurred on architectural projects that were incomplete at the balance sheet date. These include direct staff costs, attributable overheads, and third-party consultant fees, to the extent that they are recoverable under the terms of engagement with clients.

11. Debtors

	2024	2023
	£	£
Due within one year
Trade debtors	533,898	356,004
Prepayments and accrued income	59,452	35,385
Other debtors	6,083	6,083

	599,433	397,472

12. Creditors: Amounts Falling Due Within One Year

	2024	2023
	£	£
Trade creditors	11,392	2,444
Corporation tax	66,260	41,300
Other taxes and social security	20,686	29,807
VAT	173,093	113,952
Other creditors	4,123	10,557
Accruals and deferred income	29,772	6,589
Amounts owed to group undertakings	60,143	49,293

	365,469	253,942

Amounts owed to group undertakings are interest free, have no fixed repayment date and are repayable on demand.

13. Share Capital

	2024	2023
	£	£
Allotted, Called up and fully paid	1,200	1,200

14. Pension Commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.

During the year the charge to the profit and loss account in respect of defined contribution schemes was £60,636 (2023: £0).

At the balance sheet date contributions of £4,123 (2023: £10,557) were due to the fund and are included in creditors.

15. Related Party Disclosures

At the balance sheet date, company owed the parent company SWECO BV £60,143 (2023: £49,293)

No dividends were paid in the year (2023: £500,000) in respect of shares held by the Company's shareholders.

16. Controlling Parties

The ultimate parent company is SWECO BV, a company incorporated in Belgium.

In the opinion of the directors there is no ultimate controlling party.

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AD Architects Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

17. FRC's Ethical Standard - Provision Available for Small Entities

In common with other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

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