Company registration number: 07567924
COMPANY INFORMATION
CONTENTS
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The principal activity of the Company is that of a holding company.
The principal activities of the subsidiary companies were structural and façade engineering consultancy and design services.
The principal activities of the subsidiary companies were structural and façade engineering consultancy and design services.
The Eckersley O’Callaghan Group employs over 130 staff, with subsidiaries located in 11 major locations around the world
(London, Manchester, Paris, Milan, New York, San Francisco, Los Angeles, Hong-Kong, Shanghai, Sydney & Delhi).
Founded in 2004, Eckersley O’Callaghan was built on a belief that engineering should enable design, not limit it. As engineers who work at the heart of design, our expertise spans structures, facades, sustainability, digital design and materials. With independently run offices around the world, we combine the insight and agility of local teams with the reach and knowledge of a global network. Our strength lies in our people, who are curious, collaborative and rigorous, and think deeply and solve problems with integrity. As a result, we are trusted partners with a global reputation for pioneering work that sets new benchmarks in design, performance and sustainability. Clients work with us from the earliest stages of a project to explore what’s possible, clarify what’s viable and deliver the most elegant and efficient solutions.
The last 12 months has seen continued success in our facades and structures groups, winning large and prestigious projects globally, despite a period of global economic volatility that has led to a more challenging environment for the property development sectors. Successful delivery of our completed projects during the year continued to strengthen our reputation in the markets in which we operate. In all our markets we see further opportunities for growth during the coming year as economic conditions start to stabilise.
We continue to work with most structural materials and across many sectors. We have continued to consolidate our position in the structural sector across the education, cultural, residential and commercial sectors. Façade engineering work has also continued to see strong demand for our services particularly in the commercial sector where we have built a very strong reputation that, in turn, has helped us to work on projects of increasing scale and profile. Our specialist structural glass expertise continues to be sought out from clients all around the world, and the application of this expertise to the ultra high end marine world has generated further opportunities.
We have continued to enhance our service offering this year, having fully established our Facade Access & Maintenance, Digital Design, and Sustainability teams to expand the expertise we provide to our client base.
Our projects and work in driving progress within the built environment, is recognised by our industry and we continue to receive many awards that reflect this. In 2024 we received a number of prestigious awards including 2024 Building Innovation Awards – Most Innovative SME and 2024 Facade Design and Engineering Award – International New Build. These awards add to the two Queens Awards for Enterprise, the first for Innovation and the second for International Trade.
(London, Manchester, Paris, Milan, New York, San Francisco, Los Angeles, Hong-Kong, Shanghai, Sydney & Delhi).
Founded in 2004, Eckersley O’Callaghan was built on a belief that engineering should enable design, not limit it. As engineers who work at the heart of design, our expertise spans structures, facades, sustainability, digital design and materials. With independently run offices around the world, we combine the insight and agility of local teams with the reach and knowledge of a global network. Our strength lies in our people, who are curious, collaborative and rigorous, and think deeply and solve problems with integrity. As a result, we are trusted partners with a global reputation for pioneering work that sets new benchmarks in design, performance and sustainability. Clients work with us from the earliest stages of a project to explore what’s possible, clarify what’s viable and deliver the most elegant and efficient solutions.
The last 12 months has seen continued success in our facades and structures groups, winning large and prestigious projects globally, despite a period of global economic volatility that has led to a more challenging environment for the property development sectors. Successful delivery of our completed projects during the year continued to strengthen our reputation in the markets in which we operate. In all our markets we see further opportunities for growth during the coming year as economic conditions start to stabilise.
We continue to work with most structural materials and across many sectors. We have continued to consolidate our position in the structural sector across the education, cultural, residential and commercial sectors. Façade engineering work has also continued to see strong demand for our services particularly in the commercial sector where we have built a very strong reputation that, in turn, has helped us to work on projects of increasing scale and profile. Our specialist structural glass expertise continues to be sought out from clients all around the world, and the application of this expertise to the ultra high end marine world has generated further opportunities.
We have continued to enhance our service offering this year, having fully established our Facade Access & Maintenance, Digital Design, and Sustainability teams to expand the expertise we provide to our client base.
Our projects and work in driving progress within the built environment, is recognised by our industry and we continue to receive many awards that reflect this. In 2024 we received a number of prestigious awards including 2024 Building Innovation Awards – Most Innovative SME and 2024 Facade Design and Engineering Award – International New Build. These awards add to the two Queens Awards for Enterprise, the first for Innovation and the second for International Trade.
The future relationship and trading environment between the UK and the EU remains the principal risk to the business and the construction industry.
We continue to mitigate these risks by ensuring that the Group has a strong and diverse portfolio of projects and clients throughout the global market. We continue to monitor these risks and adjust our business to reflect the changing situation.
We continue to mitigate these risks by ensuring that the Group has a strong and diverse portfolio of projects and clients throughout the global market. We continue to monitor these risks and adjust our business to reflect the changing situation.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The Group monitors its performance against strategic objectives by means of key performance indicators. In the current tough economic climate, it is important for us to continue to secure new exciting projects and continue to deliver the highest technical quality of our existing projects. In order to do this the Group continues to monitor its performance through the following KPI’s.
∙Revenue growth
∙Revenue per technical staff per month
∙Wages and salaries cost to revenue
∙Trade debtors as a % of sales
Revenue growth -5.9% (decrease) (2024 - 7.8%)
The Revenue for the Group has been adversely affected during the year by increased geopolitical volatility resulting in a challenging year for the construction industry. This has resulted in fewer projects being commenced, or projects progressing only through initial stages during the year. Whilst the UK market has continued to grow, the impact of volatility and uncertainty has had an impact on operations in North America, China and mainland Europe. The business has, during the year, adjusted its resourcing levels to adapt to the market conditions, whilst maintaining capacity and expertise to respond in those markets when conditions improve.
Revenue per technical staff per month £12,065 (2024 - £12,290)
Compared to the previous year revenue per technical staff member per month has marginally decreased as the business has adjusted its resourcing levels during the year to be better placed to meet the market conditions and maintain capacity and expertise.
Wages and salaries cost to revenue 65.3% (2024 - 60.0%)
Our staff continue to be one of the key strengths of the group and therefore given the competitive nature of our industry it’s important for us to reward and invest. We have had another good year ensuring that they are rewarded share in the Group's success. We continue to maintain competitive salary packages, interesting projects and investment into their development.
Trade debtors as a % of sales 25.7% (2024 - 22.3%)
Our collection of receivables remains strong and consistent with debtors remaining at 25% of turnover, whilst this is consistent with other years, it is marginally higher than the prior year, due to the profile of invoicing during the current year being more heavily weighted towards the final quarter of the year.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The Group's activities expose it to a number of financial risks including credit risk, interest rate risk, liquidity risk and cash flow risk.
Credit risk
The Group's principal financial assets are bank balances and trade receivables.
The Group's risk is primarily attributable to its trade receivables and the amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recovery of the asset.
The Group has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss. The group uses publicly available financial information and its own trading records to rate its major customers. Credit exposure is controlled by counterparty limits that are reviewed and approved annually.
Liquidity risk and cash flow risk
The Group's policy on liquidity risk is to ensure that significant cash is available to fund on-going operations. The Group manages its cash flow risk by reviewing cash flow forecasts on a monthly basis and regularly reviewing required capital facilities to identify if external facilities are required.
Credit risk
The Group's principal financial assets are bank balances and trade receivables.
The Group's risk is primarily attributable to its trade receivables and the amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recovery of the asset.
The Group has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial loss. The group uses publicly available financial information and its own trading records to rate its major customers. Credit exposure is controlled by counterparty limits that are reviewed and approved annually.
Liquidity risk and cash flow risk
The Group's policy on liquidity risk is to ensure that significant cash is available to fund on-going operations. The Group manages its cash flow risk by reviewing cash flow forecasts on a monthly basis and regularly reviewing required capital facilities to identify if external facilities are required.
Future Developments
Through the continued work of our staff and our Leadership Team we are striving towards the following targets that are replicated in our vision statement:
• To be recognised as one of the best design-led structural and façade engineering practices in our industry
• To deliver intelligent, creative and value-focused solutions for great projects around the world
• To foster a love of engineering in our team and in our collaborators through continual innovation, research,
development and enthusiasm for our craft.
Through the continued work of our staff and our Leadership Team we are striving towards the following targets that are replicated in our vision statement:
• To be recognised as one of the best design-led structural and façade engineering practices in our industry
• To deliver intelligent, creative and value-focused solutions for great projects around the world
• To foster a love of engineering in our team and in our collaborators through continual innovation, research,
development and enthusiasm for our craft.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their report and the financial statements for the year ended 31 March 2025.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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 the Group 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 Group's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.
The profit for the year, after taxation and minority interests, amounted to £1,245,843 (2024 - £1,374,213).
Dividends of £1,260,000 (2024 - £1,231,500) were payable during the year. The directors do not recommend payment of a final dividend.
The directors who served during the year were:
The Group has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013 to set out within the Group's Strategic Report, the information required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes certain information that would have been included in the business review and details of principal risks and uncertainties.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The auditor, Menzies LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ECKERSLEY O'CALLAGHAN GROUP LIMITED
We have audited the financial statements of Eckersley O'Callaghan Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2025, which comprise the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in 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, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 or the 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.
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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ECKERSLEY O'CALLAGHAN GROUP LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group 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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ECKERSLEY O'CALLAGHAN GROUP LIMITED (CONTINUED)
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 Group 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 Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:
∙The Companies Act 2006;
∙Financial Reporting Standard 102;
∙UK employment legislation;
∙UK health and safety legislation;
∙General Data Protection Regulations;
∙UK Tax Legislation;
∙Building Regulations 2020;
∙Building Safety Act 2022; and
∙Relevant British Standards publications
We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
We understood how the Group is complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures. We corroborated our inquiries through our review of relevant documentation.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. No issues were identified in this area.
We assessed the susceptibility of the Group financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
∙Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
∙Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
∙Challenging assumptions and judgements made by management in its significant accounting estimates; and
∙Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
∙The application of inappropriate judgements or estimation to manipulate the financial position in the calculation of the year end provisions;
∙Posting of unusual and complex transactions.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ECKERSLEY O'CALLAGHAN GROUP LIMITED (CONTINUED)
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 at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
4th Floor
95 Gresham Street
EC2V 7AB
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CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 20 to 37 form part of these financial statements.
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COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 20 to 37 form part of these financial statements.
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