The directors present the strategic report for the year ended 30 September 2024.

ADP Architecture Limited is an internationally trading architecture, interiors and landscape practice who deliver works globally. Our group of companies includes our wholly owned subsidiaries, our joint venture studios and investment companies.

ADP is an employee owned practice, with a 59 year history in both the UK and internationally.

Our vision is underpinned by a number of key pillars; Sustainability, Belonging and Engagement as part of our mission to ‘Create Joy In Our World’. We intend to measure ourselves honestly, and to seek to redress real world problems in our architecture. We are driven by purpose, and in doing so we have confidence that our investment into the practice will see it as fit for purpose, and relevant for the next 50 years.

The 2024 financial year has been a difficult year for the business with group turnover reducing to £9.2m due to the recent downturn in the architecture industry leading to a temporary decrease in business activity combined with a slowdown in clients committing to projects.

We have had to re-structure the business internally and streamline our cost base to place us in a better position to shield ourselves from the slowdown.

Market risk

The group policy is to reduce market risk by being diversified in terms of market sector and geography. Our traditional strengths have been in the public sector, with higher education, schools and healthcare being prominent contributors to our turnover. However, year-end 2024 saw big drops in revenue in the higher education and healthcare sectors compared to 2023. This was mainly due to the uncertainty within the UK marketplace with high interest rates, as well as the outcome of the election in July 24.

As in previous years, our resilience was greatly improved by our strategy to have a multi sector, multi-location setup that has allowed us to share our resources across different centres enabling the practice to smooth the curve of workload where necessary.

Our growing workload in Cyprus has allowed us to grow a small team and also retain our ability to trade in mainland Europe as registered architects. Cyprus revenues and profits have grown during 2024 and we expect this to continue and enable us to grow our presence in Europe and internationally.

Technology risk

The group has invested heavily in its IT and software infrastructure in recent years and has enabled us to remain competitive and up to date. We have begun to look at ways of streamlining our IT costs but without taking away from the need to remain competitive and relevant. Going forward, our inward investment in IT should become more streamlined as we continue to see evolved technology and cloud applications benefiting the business.

Price risk

We seek to reduce price risk by providing a service that clients value and are prepared to pay a premium for. In order to reduce volatility, we have strengthened our bidding review process to the extent that we no longer undertake any open market bidding unless we have been specifically invited by a client. This ensures that we have influence over the fees and pricing and allow us to try and be more selective around the work that we can secure and push for stronger profitability.

Turnover within the group company was £9.2m compared with £13.4m last year. As mentioned earlier, the drop in revenue was mainly due to the uncertainty within the UK marketplace with high interest rates, as well as the outcome of the election in July 24. There was also a significant increase in our negative WIP position, which we are trying to manage carefully going forwards.

We had a number of very challenging large scale projects, such as the SPEC building for University of Hertfordshire, and the New City Centre Campus for University of Gloucester that were heavily impacted by cost inflation, delays and are likely to result in additional costs for the practice. We are confident that in the future, these projects will be successfully completed and will continue to demonstrate our skillset on complex projects.

Our subsidiary in India continues to work successfully in the education and commercial sectors. Although this has been loss-taking in the past, it is now generating profits as it has established a stronger local presence.

Our subsidiary in Europe has seen revenue and profit grow in Cyprus during 2024 and we expect this to continue to flourish.

We continue to monitor our overhead costs rigorously and even more looking forward.

The staff detailed in note 7 who are employed directly by ADP Architecture Limited are employee/owners of the business. Their interests and views are conveyed to the management board by way of elected employee representatives who sit on an employee council. The employee council holds the management board to account against the practice constitution and has the power to appoint and dismiss the chair and managing director. The chair of the employee council sits on the board as the employee director.

On behalf of the board

The directors present their annual report and financial statements for the year ended 30 September 2024.

The principal activity of the company and group continued to be the provision of architectural services.

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

The results for the year are set out on page 9.

No ordinary dividends were paid although the company made distributions to The ADP Employee Ownership Trust as set out in note 13. The directors do not recommend payment of a further ordinary dividend, although distributions to the Trust were made since the year end.

The group maintains a fee forecast for ADP Architecture Ltd. This is translated into a cash flow forecast that assumes a payment of debts in line with our calculated debtor days. We carry out credit control on a regular basis at accounts level, assisted by client managers, to prevent the build-up of aged debtors. We have a permanent credit controller who is tasked with reducing our level of aged debtors.

Aged debtor performance, fees in arrears, cash flow and fee forecast are reviewed regularly at board level. We maintain a weighted probability fee pipeline to give us an indication of the level of fee that might be available beyond that which is confirmed in the fee forecast.

Our target moving into YE 2025 is to maintain stability in a difficult marketplace. The change in the UK government,

various wars internationally, higher interest rates have all affected our business, with many clients holding back and waiting to see the market recover before investing in projects.

The foreign subsidiary in India forms the largest potential exposure to foreign currency risk with intra group balances and the conversion of the year end data for the consolidation. Although the intra group balances are largely denominated in sterling, the India subsidiary is required to retranslate any monetary transactions and these result in foreign currency exchange gains and losses being recognised in each year.

Other transactions in a currency other than sterling are currently limited and stable, such as euros, although these may increase in the future with additional work because of geographical diversification.

The Group does not have a major problem with bad debts as we work mainly with blue chip clients or major organisations. However, late payment can be a problem particularly with contracting organisations who can dictate payment terms. We carry out credit control and monitor our financial systems rigorously to ensure we remain efficient.

Our R+D process has strengthened significantly in the last year as we work more closely with our advisors Leyton on developing government recognised activities, supported by HMRC tax relief. We expect this to be a continued trend into YE 2025.

Legislative changes, particularly around energy, and fire and safety are still causing noticeable shifts in our working practice as well as creating risks within insurances markets. We are expecting costs from insurance markets to continue to rise, which need to be factored into our running costs.

During YE 2025, two key board members left the company, a development that has impacted on our business. However, to address this, we've empowered our current senior management talent to leverage their capabilities and absorb the critical knowledge previously held by these individuals.

We are confident that we have put in place strategies that will both maximise the chances of winning the work that is available and managing our costs carefully. Consequently, we are satisfied that the group and company remains a going concern.

The practice is committed within the coming business year to both consolidate the core business in line with our vision and mission. Our aim is also to increase our offering in new and existing international markets to provide additional revenue streams.

We will be looking to review our group company structure and streamline in certain areas to ensure maximisation of revenue & profit.

The auditor, Edwin Smith, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards 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 group and company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the principal risks and uncertainties of the company.

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 auditor of the company 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 auditor of the company is aware of that information.

We have audited the financial statements of ADP Architecture Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 30 September 2024 and of the group's 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 group and parent 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 group's and parent 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 audittrue:

• The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

The objectives of our audit in respect of fraud, are to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

• We obtained an understanding of the legal and regulatory requirements applicable to the Company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council and UK taxation legislation.

• We obtained an understanding of how the Company complies with these requirements by making enquiries with management and those charged with governance. We corroborated our enquiries through our review of the Directors’ meeting minutes.

• We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur by considering the key risks impacting the financial statements and documenting the controls that the Company has established to address risks identified, or that otherwise seek to prevent, deter or detect fraud. In our assessment we considered the risk of management override. Our audit procedures included testing manual journals, including segregation of duties.

• We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.

• Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

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.

As permitted by s408 Companies Act 2006, the truecompany has not presented its own profit and loss account and related notes. The company’s loss for the year was £732,127 (2023 - £496,453 profit).

ADP Architecture Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is The Fire Station, 150 Waterloo Road, London, SE1 8SB.

The group consists of ADP Architecture Limited and all of its subsidiaries and joint venture arrangements.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements: true

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated financial statements incorporate those of ADP Architecture Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired are consolidated using the purchase method. Their results are incorporated from the date that control passes.

All financial statements are made up to 30 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group. Where the year end of the subsidiary is non coterminous, management accounts are prepared to 30 September and used in the consolidation.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates. In the group financial statements, associates are accounted for using the equity method.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. In the group financial statements, joint ventures are accounted for using the equity method.

At the time of approving the financial statements, the directors have a reasonable expectation that the truegroup has adequate resources to continue in operational existence for at least 12 months from the date these accounts are approved. The directors are confident that they have put in place strategies that will both maximise the chances of winning the work that is available and managing the costs so that they remain in line with the income. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the rendering of professional services on contracts is recognised by reference to the stage of completion on the appointed elements 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.

Further detail is included in the long term contracts accounting policy.

Rental income

Rental income from operating leases (net of any incentives given to the lessee) is arising from surplus business accommodation and is recognised on a straight-line basis over the lease term.

Dividend income

Dividend income from investments is recognised when the right to receive payment has been established.

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.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is considered to be 25 years in total.

The expected useful life applied to the company goodwill now capitalised on the Hive across of the trade and assets of the subsidiary, Runaich Consultancy Limited, is 10 years from the date of the investment acquisition.

The expected useful life applied to the consolidated goodwill arising on acquisitions in the prior year end 30 September 2023, is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash- generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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:

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 recognised in the income statement.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities. In the group financial statements, joint ventures are accounted for using the equity method.

At each reporting period end date, the group 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.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

Due to the length of the majority of contracts, the company recognises turnover and profit on an FRS 102: long term contract basis. Long term contracts are assessed on a contract by contract basis.

Where the outcome of a contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Where the outcome of a contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

The amount by which turnover exceeds payments on account is classified as "amounts recoverable on contracts" and included in debtors. To the extent that payments on account exceed relevant turnover and long term contracts balances, the excess is included in creditors. The amount of long term contracts, at cost net of amounts transferred to cost of sales, less provision for foreseeable losses and payments on account not matched with turnover are included within stocks.

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.

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and 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, 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, 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.

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.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.

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 group after deducting all of its 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.

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.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the group 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 group.

The 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 net profit as reported in the income statement 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 income statement, 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 if, and only if, there is 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.

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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.

The trading results of Group undertakings are translated into sterling at the average exchange rates for the year. The assets and liabilities of overseas undertakings, including goodwill and fair value adjustments arising on acquisition, are translated at the exchange rates ruling at the year-end. Exchange adjustments arising from the retranslation of opening net investments and from the translation of the profits or losses at average rates are recognised in ‘Other comprehensive income’ and allocated to non-controlling interest as appropriate.

Contributions to The ADP Employee Ownership Trust

The ADP Employee Ownership Trust (EOT) was established on 31 January 2017 by ADP Architecture Limited, in order to secure the continuation of the company as a successful, independent and professionally managed enterprise with an employee owned ethos. To achieve this, the Trust subsequently purchased 75% of the company's share capital from the owners and now holds these shares for the benefit of the company's employees. The shares never vest in individual employees.

The Trustee of The ADP Employee Ownership Trust is ADP EOT Limited, a dormant company limited by guarantee.

Funding for the purchase of the company's share capital is derived from the company, which pays contributions to the Trust. These contributions are accounted for as payments (gifts) out of the company's distributable reserves.

This arrangement could be regarded as an intermediate payment arrangement under FRS 102. However, the EOT is part of the company's ownership and government structure and is designed to operate alongside or independently of the board of directors of the company. The company does not exercise control over EOT and consequently the directors consider that the substance of the arrangement is that the company and the Trust are separate entities and are more truly and fairly accounted for by reflecting this separation than by consolidating their respective accounts.

Accordingly, the activities of the Trust are not consolidated with the company.

During the current financial year, the company has adopted a minor change in accounting policy regarding the recognition of revenue from long-term contracts, Previously, revenue was recognised based on the percentage of completion of each contract as a whole with stages that were expected to progress at the end of each accounting period. Under the revised policy, revenue is now recognised by percentage of completion on complete or in progress stages only as separate elements leading to a more accurate reflection of the outcome in each accounting period.

The policy was implemented to provide a more accurate reflection of the revenue generated which is more aligned to the way projects are completed and handled in the industry and changes in appointment practices where there is a piecemeal approach. The stages can be separately identified and each have their own agreed fee as well as formal appointment at each level. The amended policy ensures revenue is recognised in a way which better reflects the performance of the appointed elements of each contract in each period.

The change is policy means the work in progress numbers were reviewed retrospectively. After evaluating the impact of the change in policy, we have determined that the change does not have a material impact on the current or prior year's financial statements. As a result, the comparative financial information for the prior period has not been restated.

In the application of the group’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.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

The group enters into leases for its fixed assets. Judgement is used to establish the nature of the leases and to categorise them as either operating or finance leases in accordance with the accounting policy at 1.19.

The group has not provided for its deferred tax assets in full as there are insufficient indicators to show that it will be probable that the assets will be recoverable against taxable profits in the current climate.

The group maintains a central log of potential contingent liabilities and any associated contingent assets arising. Judgement is used to provide an assessment of the likelihood of any potential obligation and any associated asset.

Provisions for leases are assessed at the end of each year end for the likelihood of outflow based on the contractual requirements, and the nature of works undertaken which may be required for reinstatement.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The annual depreciation charge is sensitive to any changes in the estimated useful life and residual values of tangible assets. The useful economic lives and residual value is assessed on an annual basis and are amended only when evidence shows a change in these. Criteria used to assess these includes technological advancement, economic utilisation, physical condition of the assets and future investments.

In respect of gross amounts due from contract customers in debtors, and payments received on account within creditors, the group makes an assessment of the future costs to complete the work and the contract value for the stage in progress at the reporting date. The group considers the knowledge of the contract to date, the work type and the amount of work to complete the contract. The level of future costs are based the number of hours estimated to complete the work at various employee cost rates.

The group makes an assessment of the recoverability of trade debtors. When making this assessment, the group considers the age of the debt and the credit risk associated with each client.

As detailed in note 27 the provision for the annuities payable is subject to the assumptions noted which include assumed life expectancy, inflation rates, discount rates and future profit levels.

Currency translation differences recognised on the translation of foreign subsidiaries are detailed in the group statement of comprehensive income.

Research and development expenditure of £652,436 (2023 - £1,706,270) has been identified in the financial statements.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2023 - 5).

The number of directors who exercised share options during the year was 0 (2023 - 0).

The 2023 value under changes in the fair value of investment properties represents the impairment of the investment property value in the prior year. More details can be found in note 17.

From 1 April 2023, marginal rates were introduced for profits between £50,000 and £250,000. The main rate of tax of 25% will apply reduced by marginal relief where applicable.

The actual credit for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

During the prior year, the company recognised impairments against the investment in a subsidiary and the joint venture due to a continued lowering in the expected returns from those investments. The amount is detailed in note 18. The impairment loss is recognised against the investment in the subsidiary and joint venture within the company results. These have been eliminated in the group results.

The values of these investments have now been reduced to nil.

There is no impact to the group results, as the relevant consolidated goodwill has already been reduced to nil.

The goodwill that arose on the purchase of the business at the point it became employee owned is being amortised over 25 years as described in the accounting policies. The remaining amortisation period at the balance sheet date is 18 years.

The goodwill arising on the business acquisitions in 2023 is being amortised over 10 years.

The current year disposal of goodwill in the group relates to the subsidiary, Adpak Limited, that was liquidated and struck off during the year.

More information on impairment movements in the year is given in note 14.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

The computers noted above are held as security for the associated liability under the hire purchase and/or finance lease agreement.

Investment property purchased in the year comprises two reforestation plots of land of 2,500 sqft each. As part of the purchase, an underlying deed of conditions limits the land use in perpetuity, and as such it is unlikely to appreciate.

At the time of purchase, a 100 year nominal lease of £1 was granted to the vendors for the express purpose of reforesting and re-wilding the holding, of which the reforestation plots form part of, in perpetuity. As a result of these restrictions, the fair value is considered to be no more than £1. The value has been adjusted accordingly.

No independent valuation has been carried out in the year.

Details of the company's subsidiaries at 30 September 2024 are as follows:

Registered office addresses (all UK unless otherwise indicated):

In addition to the above subsidiaries, ADP EOT Limited is a dormant company limited by guarantee with no share capital. The registered office is The Fire Station, 150 Waterloo Road, London, England, SE1 8SB. The company is the trustee of The ADP Employee Ownership Trust.

ADP Architecture Limited, as the parent undertaking of ADP Interior Design Limited registration number 05867062, provided a guarantee under section 479C of the Companies Act 2006 for the period ended 30 September 2024 to allow the subsidiary exemption from audit under section 479A.

ADP Architecture Limited, as the parent undertaking of Runaich Consultancy Limited registration number 09244679, provided a guarantee under section 479C of the Companies Act 2006 for the year ended 30 September 2024 to allow the subsidiary exemption from audit under section 479A.

Details of joint ventures at 30 September 2024 are as follows:

As permitted by the reduced disclosure framework within FRS 102, the company has taken advantage of the exemption from disclosing the carrying amount of certain classes of financial instruments, denoted by 'n/a' above.

The bank overdraft and loan facility is secured by a fixed and floating charge over all assets of the company.

The loan facility is repayable by equal monthly instalments of the principle amount, across an initial 5 year term. Interest is payable monthly in arrears, at 4.65% per annum over the Bank of England Base Rate.

Loans from related parties:

A member of key management personnel of a foreign subsidiary:

The additional loan within the group value above of £nil (2023 - £9,150) relates to a loan from a member of key management personnel of a foreign subsidiary. The underlying loan is in rupees. It is unsecured, repayable on demand and interest free. It was repaid during this financial year.

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery, motor vehicles and software. This also includes items under hire purchase agreements.

Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The obligations under finance leases are secured on the assets to which they relate.

Provision for annuities

As part of the transfer of the trade and assets of Architects Design Partnership LLP, the company took on the liability of the annuities payable to the former retired members of the LLP which is payable under a deed.

The provision reflects the present value of the obligations arising as at the reporting date. Any changes in the provision for these annuities arising from changes in entitlements, financial estimates or actuarial assumptions are recognised in the income statement. The unwinding of the discount is presented in the income statement as a finance expense. The payments made to the annuitants are shown as a utilisation of the provision.

The deed of annuity is closed to new members but is payable for life for each retired member who is disclosed as an annuitant in the deed. If any annuitant should die leaving a widow, the annuity shall be payable to the spouse for the shorter of the remainder of life or a period of 10 years from the date of death of the annuitant.

The principal actuarial assumptions used in calculating the annuities provision are an assumed life expectancy based on the tables issued by The Office for National Statistics on expectation of life for the years 2021-2023, discount rates of 5% and inflation rates of between 11% and 2% in various areas of the calculations. The annuity is based upon the profits of the business, and is subject to a cap and collar amount. These assumptions have been reviewed during the year resulting in changes to the life expectancy levels used.

A payment is made monthly to each annuitant at the collar amount for the year, with any balance due for additional amounts due becoming payable in the following year.

It is expected that an amount of £23,742 (2023 - £21,906) will be utilised in the next 12 months, and the full provision is likely to be settled by the end of 2030.

Dilapidation and reinstatement costs on leases

As part of the group's property leasing arrangements, there is an obligation under the leases to return some properties to the original condition. Where significant leasehold improvements are made, these costs are capitalised as part of the leasehold improvement asset.

There is also an obligation to repair damages which occur during the life of the leases, such as wear and tear. A provision has been made for these obligations as above.

Claims

A provision is included for agreed costs which have been settled in 2025.

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

Unrecognised deferred tax assets

Group:

During this year, the Cyprus subsidiary utilised all tax losses which were accumulated and profits are now subject to foreign tax (2023 losses unprovided for were approximately £169,000).

The UK subsidiaries have post acquisition losses of £68,137 (2023 - £40,342).

These group losses have not been provided as an asset in the group as it is not yet probable that they will be recovered against future taxable profits in the short term.

Company:

A company deferred tax asset is not recognised in respect of tax losses of £515,365 (2023 - £463,905) and other tax credits of £420,599 (2023 - £390,894) as it is not yet probable that they will be recovered against the reversal of deferred tax liabilities or future taxable profits in the short term.

There is no expiry date for the tax losses or credits. The asset provided for should reverse in the next 12 months.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Included in creditors is a balance due to the pension scheme of £45,095 (2023 - £26,144), which also includes amounts deducted from employees.

At the end of 2021, the corporate trustee for The ADP Employee Ownership Trust entered into two contracts to purchase further Ordinary A shares. Contract A completed in the prior year. The penultimate completion date on contract B for the third tranche of shares occurred during the year, and 603 shares were re-designated as Ordinary shares resulting in the movement recorded above. Contract B completed after the year end in November 2024 for the remaining shares.

The Ordinary Shares and A Ordinary Shares rank pari passu in all respects other than as follows:

A dividend may be declared and paid on the Ordinary Shares only (excluding the A shares) but a dividend may only be declared and paid on the A shares only (excluding the Ordinary Shares) with the authority of a special resolution and the written consent of the EOT Trustee.

The profit and loss reserves reflect cumulative profits and losses net of distributions.

Within this reserve for the group is an amount of £41,363 (2023 - £35,789) which is non distributable, being the amount of the currency exchange reserve.

On 21 May 2024 the group disposed of its 100% holding in Adpak Limited following a planned cessation of trade and dissolution. There are no profits arising in the current year data in these financial statements from the company's interests in Adpak Limited up to the date of its disposal, with loss contribution of £674 in the 2023 year.

The investment was carried at a nil value and the amount received was £214.

The terms of the agreement between The ADP Employee Ownership Trust and the owners of the company (previously members of Architects Design Partnership LLP as at 30 September 2016), to buy 75% of the company's shares included both a completion payment and deferred consideration which is payable in instalments until 31 December 2044.

In order that The ADP Employee Ownership Trust should have the funds to pay the deferred consideration, ADP Architecture Limited intends to make contributions to the Trust over this same period, subject always to there being distributable reserves available within the company.

During 2021, the corporate trustee for The ADP Employee Ownership Trust entered into two contracts to purchase a further A Ordinary shares. At the end of the financial year, a commitment to pay instalments in still in place for one of these contracts. Note 36 provides further information.

Guarantees

ADP Architecture Limited, as the parent undertaking of Adpak Limited, registration number 01725015, provided a guarantee under section 479C of the Companies Act 2006 for the period ended 31 December 2022 to allow the subsidiary exemption from audit under section 479A. The entity has now been dissolved.

ADP Architecture Limited, as the parent undertaking of ADP Interior Designs Limited (formally ADP X Love Interiors Limited), registration number 05867062, provided a guarantee under section 479C of the Companies Act 2006 for the years ended 30 September 2023 and 2024 to allow the subsidiary exemption from audit under section 479A.

ADP Architecture Limited, as the parent undertaking of Runaich Consultancy Limited, registration number 09244679, provided a guarantee under section 479C of the Companies Act 2006 for the years ended 30 September 2023 and 2024 to allow the subsidiary exemption from audit under section 479A.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Amounts contracted for but not provided in the financial statements:

The company has paid further contributions amounting to £87,500 towards the original deferred consideration liability to The ADP Employee Ownership Trust between the year end and the date the accounts are approved.

During a previous year, the corporate trustee for The ADP Employee Ownership Trust signed a share purchase agreement to purchase 2,412 A ordinary shares of £1 each from a retiring director. This agreement contained four completion dates resulting in four equal tranches of shares. The purchase price is payable by instalments commencing 1 November 2021, ending in 2025. Since the year end an amount of £54,000 has been settled towards this contract by way of gifts to the EOT.

A further agreement to purchase 2,171 A ordinary shares of £1 each has been made with another retiring director. This agreement contained two completion dates resulting in two tranches of shares. The purchase price is payable by instalments commencing in October 2024, ending in 2029. Since the year end £79,605 has been settled towards this contract by way of gifts to the EOT.

In order that The ADP Employee Ownership Trust has the funds to make the payments, the company intends to make contributions to the trust over this same period, subject to there always being distributable reserves within the company.

The group has taken advantage of the exemption within FRS 102 Section 33.7A, as directors remuneration has been disclosed and the key management personnel and directors are the same.

Distributions

Gifts to The ADP Employee Ownership Trust are detailed in note 13 and amounts since the balance sheet date are detailed in note 36.

During the year the group entered into the following transactions with related parties:

Applications for fees owed by an entity over which the company has control, joint control or significant influence of £36,593 were written off during the year.

The company has taken advantage of the exemption from disclosing transactions with wholly owned subsidiaries of ADP Architecture trueLimited.

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

All balances outstanding are unsecured and interest free and are repayable on demand.

Neither the group or the company has provided or benefited from any guarantees for any related party receivables or payables, nor made any provision for doubtful debts relating to amounts owed by related parties other than the write off noted above.

Details of guarantees provided to related parties

As detailed in note 33.

The company is run and managed on a day to day basis by the board of directors.

The ultimate controlling party is ADP EOT Ltd, a company limited by guarantee without share capital, as the trustee for The ADP Employee Ownership Trust which owns 91.01% of the company's share capital at the balance sheet date.

The directors of ADP EOT Ltd, who were also members of the board of directors of the company during the year were S. Miles, C. Cullimore, and N. Murphy. The remaining directors of ADP EOT Ltd comprised an independent trustee director and an employee trustee director.