Hawkins Brown Architecture Limited Group accounts (Group and Company)

COMPANY REGISTRATION NUMBER: 13240050

Hawkins Brown Architecture Limited

Financial Statements

31 March 2025

Hawkins Brown Architecture Limited

Financial Statements

Year ended 31 March 2025

Contents	Page

Strategic report	1

Directors' report	2

Independent auditor's report to the members	5

Consolidated income statement	10

Consolidated statement of financial position	11

Company statement of financial position	12

Consolidated statement of changes in equity	13

Company statement of changes in equity	14

Consolidated statement of cash flows	15

Notes to the financial statements	16

Hawkins Brown Architecture Limited

Strategic Report

Year ended 31 March 2025

The directors consider that the key financial performance indicators (KPIs) are those that communicate the financial performance and strength of the Hawkins Brown Group as a whole to the members. These KPIs comprise turnover, operating profit and shareholders' funds. Business Review Turnover, on a group level, has decreased by 16% from £35,325,974 (2024) to £29,501,897 (2025). Gross profit decreased by 16% from £14,654,149 to £12,247,425 and Operating profit decreased by 80% from £1,268,413 (2024) to £248,339 in 2025. Principal Risks & Uncertainties The directors believe that the principal risks and uncertainties facing the company in the coming year are as follows:- Potential downturn in the construction industry as a result of ongoing increases in raw material costs and uncertainty surrounding economic growth. Bad debt risk as a result of client cashflow tightening if construction industry activity slows.

This report was approved by the board of directors on 16 December 2025 and signed on behalf of the board by:

Mr J R Brown

Director

Registered office:

Eastcastle House

27/28 Eastcastle Street

London

United Kingdom

W1W 8DH

Hawkins Brown Architecture Limited

Directors' Report

Year ended 31 March 2025

The directors present their report and the financial statements of the group for the year ended 31 March 2025 .

Directors

The directors who served the company during the year were as follows:

Mr J R Brown
Mr R A Hawkins
Mr O Milton
Mr A C Roberts
Ms H J York

Dividends and other distributions

The directors do not recommend the payment of a dividend.

Employment of disabled persons

Our policies and procedures fully support our disabled colleagues. We take active measures to do so via: - a robust reasonable adjustment policy; and - processes to ensure colleagues are fully supported. The Group is responsive to the needs of its employees. As such, should any employee of the Group become disabled during their time with us, we will actively retrain that employee and make reasonable adjustments to their working environment where possible, in order to keep the employee with the Group. It is the policy of the Group that the recruitment, training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The objective of the Board of Directors of Hawkins Brown Architecture Limited is to act in a way which promotes the success of the business for the benefit of its members, having regard for the matters set out in s172 of the Companies Act 2006, sections (a) to (f). We operate as an Employee Ownership Trust (EOT) and, as such, our employees are our shareholders. As a body our employees have an elected Employee Council through which they provide input to the running of the business and to key strategic matters. They also have representation on the EOT Board. Employees are regularly updated on the performance of the business through all employee briefings and question and answer sessions. As a business we strive to maintain strong working relationships with both our clients and our suppliers. We recognise the importance of forming long term relationships in both cases

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards 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 the company and 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 judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

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

This report was approved by the board of directors on 16 December 2025 and signed on behalf of the board by:

Mr J R Brown

Director

Registered office:

Eastcastle House

27/28 Eastcastle Street

London

United Kingdom

W1W 8DH

Hawkins Brown Architecture Limited

Independent Auditor's Report to the Members of Hawkins Brown Architecture Limited

Year ended 31 March 2025

Opinion

We have audited the financial statements of Hawkins Brown Architecture Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the consolidated income statement, consolidated statement of financial position, company statement of financial position, consolidated statement of changes in equity, company statement of changes in equity, consolidated statement of cash flows 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 FRS 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 of the parent company's affairs as at 31 March 2025 and of the group's profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 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 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.

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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

- the information given in the strategic report and 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.

Matters on which we are required to report by exception

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 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.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 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 extent to which the audit was considered capable of detecting irregularities including fraud Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operation of the company, including the Companies Act 2006, taxation legislation, data protection, employment, environmental and health and safety legislation; - we assessed the extent of non-compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence We assess the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected, and alleged fraud; - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and - understanding the design of the company's remuneration policies. To address the risk of fraud through management bias and override of controls, we: - performed analytical review procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing the financial disclosures to underlying supporting documentation; - reading the minutes of meetings of those charged with governance; - enquiring of management as to actual or potential litigation and claims; and - reviewing correspondence with HMRC and the company's legal advisors. 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 is available on the Financial Reporting Council's website at: www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidanc e-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor's report. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.

Paul Mattei

(Senior Statutory Auditor)

For and on behalf of

Leaman Mattei

Chartered accountants & statutory auditor

Suite 1, First Floor

1 Duchess Street

London

W1W 6AN

16 December 2025

Hawkins Brown Architecture Limited

Consolidated Income Statement

Year ended 31 March 2025

		2025	2024
Note		£	£
Turnover	4	29,501,897	35,325,974

Cost of sales	17,254,472	20,671,825
	-------------	-------------
Gross profit	12,247,425	14,654,149

Administrative expenses		12,308,747	13,461,391
Other operating income	5	309,661	75,655
		-------------	-------------
Operating profit	6	248,339	1,268,413

Other interest receivable and similar income	9	20,582	2,344
Interest payable and similar expenses	10	1,849	3,801
		-------------	-------------
Profit before taxation		267,072	1,266,956

Tax on profit	11	186,882	28,672
		---------	------------
Profit for the financial year		80,190	1,238,284
		---------	------------

All the activities of the group are from continuing operations.

The group has no other recognised items of income and expenses other than the results for the year as set out above.

Hawkins Brown Architecture Limited

Consolidated Statement of Financial Position

31 March 2025

	2025	2024
Note	£	£

Fixed assets

Intangible assets	12	2,723,432	3,177,337
Tangible assets	13	634,584	910,917
Investments:	14
Investments in associates		41	40
		------------	------------
		3,358,057	4,088,294

Current assets

Stocks	15	532,329	162,647
Debtors	16	7,296,749	8,508,244
Cash at bank and in hand		2,096,354	3,078,016
		------------	-------------
		9,925,432	11,748,907

Creditors: amounts falling due within one year	17	4,029,563	5,223,465
		------------	-------------
Net current assets		5,895,869	6,525,442
		------------	-------------
Total assets less current liabilities		9,253,926	10,613,736
		------------	-------------
Net assets		9,253,926	10,613,736
		------------	-------------

Capital and reserves

Called up share capital	19	10,000	10,000
Share premium account	20	4,556,676	4,556,676
Other reserves, including the fair value reserve	20	3,037,783	3,037,783
Profit and loss account	20	1,649,467	3,009,277
		------------	-------------
Shareholders funds		9,253,926	10,613,736
		------------	-------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 16 December 2025 , and are signed on behalf of the board by:

Mr J R Brown

Director

Company registration number: 13240050

Hawkins Brown Architecture Limited

Company Statement of Financial Position

31 March 2025

	2025	2024
Note	£	£

Fixed assets

Intangible assets	12	5,508,000	6,426,000
Tangible assets	13	607,316	898,661
Investments	14	6,125,077	6,125,076
		-------------	-------------
		12,240,393	13,449,737

Current assets

Stocks	15	202,340	84,920
Debtors	16	4,702,978	3,843,903
Cash at bank and in hand		412,705	184,583
		------------	------------
		5,318,023	4,113,406

Creditors: amounts falling due within one year	17	8,599,106	6,623,943
		------------	------------
Net current liabilities		3,281,083	2,510,537
		-------------	-------------
Total assets less current liabilities		8,959,310	10,939,200
		------------	-------------
Net assets		8,959,310	10,939,200
		------------	-------------

Capital and reserves

Called up share capital	19	10,000	10,000
Share premium account	20	4,556,676	4,556,676
Other reserves, including the fair value reserve	20	3,037,783	3,037,783
Profit and loss account	20	1,354,851	3,334,741
		------------	-------------
Shareholders funds		8,959,310	10,939,200
		------------	-------------

The loss for the financial year of the parent company was £ 539,890 (2024: £ 262,421 ).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 16 December 2025 , and are signed on behalf of the board by:

Mr J R Brown

Director

Company registration number: 13240050

Hawkins Brown Architecture Limited

Consolidated Statement of Changes in Equity

Year ended 31 March 2025

	Called up share capital	Share premium account	Other reserves, including the fair value reserve	Profit and loss account	Total
	£	£	£	£	£
At 1 April 2023	10,000	4,556,676	3,037,783	3,279,721	10,884,180

Profit for the year				1,238,284	1,238,284
	--------	------------	------------	------------	-------------
Total comprehensive income for the year	–	–	–	1,238,284	1,238,284

Distributions to HBAL Trustees Limited	–	–	–	(1,508,728)	(1,508,728)
	--------	------------	------------	------------	-------------
Total investments by and distributions to owners	–	–	–	( 1,508,728)	( 1,508,728)

At 31 March 2024	10,000	4,556,676	3,037,783	3,009,277	10,613,736

Profit for the year				80,190	80,190
	--------	------------	------------	------------	-------------
Total comprehensive income for the year	–	–	–	80,190	80,190

Distributions to HBAL Trustees Limited	–	–	–	(1,440,000)	(1,440,000)
	----	----	----	------------	------------
Total investments by and distributions to owners	–	–	–	( 1,440,000)	( 1,440,000)

	--------	------------	------------	------------	------------
At 31 March 2025	10,000	4,556,676	3,037,783	1,649,467	9,253,926
	--------	------------	------------	------------	------------

Hawkins Brown Architecture Limited

Company Statement of Changes in Equity

Year ended 31 March 2025

	Called up share capital	Share premium account	Other reserves, including the fair value reserve	Profit and loss account	Total
	£	£	£	£	£
At 1 April 2023	10,000	4,556,676	3,037,783	5,105,890	12,710,349

Loss for the year				( 262,421)	( 262,421)
	--------	------------	------------	------------	-------------
Total comprehensive income for the year	–	–	–	( 262,421)	( 262,421)

Distributions to HBAL Trustees Limited	–	–	–	(1,508,728)	(1,508,728)
	--------	------------	------------	------------	-------------
Total investments by and distributions to owners	–	–	–	( 1,508,728)	( 1,508,728)

At 31 March 2024	10,000	4,556,676	3,037,783	3,334,741	10,939,200

Loss for the year				( 539,890)	( 539,890)
	--------	------------	------------	------------	-------------
Total comprehensive income for the year	–	–	–	( 539,890)	( 539,890)

Distributions to HBAL Trustees Limited	–	–	–	(1,440,000)	(1,440,000)
	----	----	----	------------	------------
Total investments by and distributions to owners	–	–	–	( 1,440,000)	( 1,440,000)

	--------	------------	------------	------------	------------
At 31 March 2025	10,000	4,556,676	3,037,783	1,354,851	8,959,310
	--------	------------	------------	------------	------------

Hawkins Brown Architecture Limited

Consolidated Statement of Cash Flows

Year ended 31 March 2025

	2025	2024
	£	£

Cash flows from operating activities

Profit for the financial year	80,190	1,238,284

Adjustments for:
Depreciation of tangible assets	318,810	561,910
Amortisation of intangible assets	453,905	453,905
Other interest receivable and similar income	( 20,582)	( 2,344)
Interest payable and similar expenses	1,849	3,801
Tax on loss	186,882	28,672
Accrued expenses/(income)	480,091	( 2,204,514)

Changes in:
Stocks	( 369,682)	252,224
Trade and other debtors	472,817	1,476,851
Trade and other creditors	( 919,746)	( 482,966)
	---------	------------
Cash generated from operations	684,534	1,325,823

Interest paid	( 1,849)	( 3,801)
Interest received	20,582	2,344
Tax paid	( 202,886)	( 693,113)
	---------	------------
Net cash from operating activities	500,381	631,253
	---------	------------

Cash flows from investing activities

Purchase of tangible assets	( 42,477)	( 1,089,870)
Acquisition of interests in associates and joint ventures	( 1)	( 40)
	---------	------------
Net cash used in investing activities	( 42,478)	( 1,089,910)
	---------	------------

Cash flows from financing activities

Proceeds from borrowings	435	1,716
Distributions paid to EOT	(1,440,000)	(1,508,728)
	------------	------------
Net cash used in financing activities	( 1,439,565)	( 1,507,012)
	------------	------------

Net decrease in cash and cash equivalents	( 981,662)	( 1,965,669)
Cash and cash equivalents at beginning of year	3,078,016	5,043,685
	------------	------------
Cash and cash equivalents at end of year	2,096,354	3,078,016
	------------	------------

Hawkins Brown Architecture Limited

Notes to the Financial Statements

Year ended 31 March 2025

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Eastcastle House, 27/28 Eastcastle Street, London, W1W 8DH, United Kingdom.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Disclosure exemptions

The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:

(a) Disclosures in respect of each class of share capital have not been presented.

(b) No cash flow statement has been presented for the company.

(c) Disclosures in respect of financial instruments have not been presented.

(d) No disclosure has been given for the aggregate remuneration of key management personnel.

Consolidation

The financial statements consolidate the financial statements of Hawkins Brown Architecture Limited and all of its subsidiary undertakings.

The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.

The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The items in the financial statements where these judgements and estimates have been made include: a) Work in progress Determining the value of Work completed but unbilled at the year end. In assessing the correct amount to be recognised, the directors make the best estimates available. These include reports provided by department heads and time keeping software. It is continually revised and updated for reasonableness. b) Fixed assets Tangible and intangible fixed assets are depreciated or amortised over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. c) Debtors The directors make decisions on a case by case basis in assessing individual debtor recoverability and provide for outstanding debtors accordingly.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Goodwill	-	10% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Long leasehold property	-	10% straight line
Fixtures and fittings	-	20% straight line
Equipment	-	25 % straight line

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Investments in associates

Investments in associates are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the associate.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2025	2024
	£	£
Architectural Services	29,501,897	35,325,974
	-------------	-------------

The turnover is attributable to the one principal activity of the group. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

	2025	2024
	£	£
United Kingdom	28,098,177	33,334,875
Overseas	1,403,720	1,991,099
	-------------	-------------
	29,501,897	35,325,974
	-------------	-------------

5. Other operating income

	2025	2024
	£	£
Other operating income	309,661	75,655
	---------	--------

6. Operating loss

Operating profit or loss is stated after charging:

	2025	2024
	£	£
Amortisation of intangible assets	453,905	453,905
Depreciation of tangible assets	318,810	561,910
Impairment of trade debtors	99,457	359,312
Foreign exchange differences	19,823	5,710
	---------	---------

7. Auditor's remuneration

	2025	2024
	£	£
Fees payable for the audit of the financial statements	28,000	24,900
	--------	--------

Fees payable to the company's auditor and its associates for other services:

Other non-audit services	25,330	23,100
	--------	--------

8. Staff costs

The average number of persons employed by the group during the year, including the directors, amounted to:

	2025	2024
	No.	No.
Administrative staff	40	43
Management staff	14	13
Number of technical staff	215	262
	----	----
	269	318
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2025	2024
	£	£
Wages and salaries	12,533,201	13,926,738
Social security costs	1,368,806	1,606,998
Other pension costs	1,338,090	1,460,965
	-------------	-------------
	15,240,097	16,994,701
	-------------	-------------

9. Other interest receivable and similar income

	2025	2024
	£	£
Interest on cash and cash equivalents	2,632	2,307
Interest on bank deposits	17,950	37
	--------	-------
	20,582	2,344
	--------	-------

10. Interest payable and similar expenses

	2025	2024
	£	£
Interest on banks loans and overdrafts	1,849	3,801
	-------	-------

11. Tax on loss

Major components of tax expense

	2025	2024
	£	£

Current tax:

UK current tax expense	186,882	611,136
Adjustments in respect of prior periods	–	( 582,464)
	---------	---------
Total current tax	186,882	28,672
	---------	---------
Tax on loss	186,882	28,672
	---------	--------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2024: lower than) the standard rate of corporation tax in the UK of 25 % (2024: 25 %).

	2025	2024
	£	£
Profit on ordinary activities before taxation	267,072	1,266,956
	---------	------------
Profit on ordinary activities by rate of tax	67,037	316,754
Adjustment to tax charge in respect of prior periods	3,722	( 582,464)
Effect of expenses not deductible for tax purposes	5,556	–
Effect of capital allowances and depreciation	211,501	285,347
Utilisation of tax losses	( 107,716)	–
Other timing differences	6,782	9,035
	---------	------------
Tax on loss	186,882	28,672
	---------	------------

12. Intangible assets

Group	Goodwill
	£
Cost
At 1 April 2024 and 31 March 2025	4,539,052
	------------
Amortisation
At 1 April 2024	1,361,715
Charge for the year	453,905
	------------
At 31 March 2025	1,815,620
	------------
Carrying amount
At 31 March 2025	2,723,432
	------------
At 31 March 2024	3,177,337
	------------

Company	Goodwill
	£
Cost
At 1 April 2024 and 31 March 2025	9,180,000
	------------
Amortisation
At 1 April 2024	2,754,000
Charge for the year	918,000
	------------
At 31 March 2025	3,672,000
	------------
Carrying amount
At 31 March 2025	5,508,000
	------------
At 31 March 2024	6,426,000
	------------

13. Tangible assets

Group	Fixtures and fittings	Equipment	Total
	£	£	£
Cost
At 1 April 2024	1,025,833	2,313,085	3,338,918
Additions	20,046	22,431	42,477
	------------	------------	------------
At 31 March 2025	1,045,879	2,335,516	3,381,395
	------------	------------	------------
Depreciation
At 1 April 2024	523,679	1,904,322	2,428,001
Charge for the year	124,642	194,168	318,810
	------------	------------	------------
At 31 March 2025	648,321	2,098,490	2,746,811
	------------	------------	------------
Carrying amount
At 31 March 2025	397,558	237,026	634,584
	------------	------------	------------
At 31 March 2024	502,154	408,763	910,917
	------------	------------	------------

Company	Fixtures and fittings	Equipment	Total
	£	£	£
Cost
At 1 April 2024	998,528	2,247,954	3,246,482
Additions	–	22,432	22,432
	---------	------------	------------
At 31 March 2025	998,528	2,270,386	3,268,914
	---------	------------	------------
Depreciation
At 1 April 2024	522,855	1,824,966	2,347,821
Charge for the year	122,518	191,259	313,777
	---------	------------	------------
At 31 March 2025	645,373	2,016,225	2,661,598
	---------	------------	------------
Carrying amount
At 31 March 2025	353,155	254,161	607,316
	---------	------------	------------
At 31 March 2024	475,673	422,988	898,661
	---------	------------	------------

14. Investments

Group	Interests in associates
	£
Share of net assets/cost
At 1 April 2024	40
Additions	1
	----
At 31 March 2025	41
	----
Impairment
At 1 April 2024 and 31 March 2025	–
	----

Carrying amount
At 31 March 2025	41
	----
At 31 March 2024	40
	----

Company	Shares in group undertakings	Shares in participating interests	Total
	£	£	£
Cost
At 1 April 2024	6,125,036	40	6,125,076
Additions	–	1	1
	------------	----	------------
At 31 March 2025	6,125,036	41	6,125,077
	------------	----	------------
Impairment
At 1 April 2024 and 31 March 2025	–	–	–
	------------	----	------------

Carrying amount
At 31 March 2025	6,125,036	41	6,125,077
	------------	----	------------
At 31 March 2024	6,125,036	40	6,125,076
	------------	----	------------

Subsidiaries, associates and other investments

Details of the investments in which the group and the parent company have an interest of 20% or more are as follows:

	Registered office	Class of share	Percentage of shares held
Subsidiary undertakings
HB Holdings 2020 Limited	England	Ordinary	100
Hawkins Brown Design Limited	England	Ordinary	100
Hawkins Brown Limited	England	Ordinary	100
Hawkins Brown USA Inc	USA	Ordinary	100
Hawkins Brown Ireland Limited	Ireland	Ordinary	100
Hawkins Brown International Limited	England	Ordinary	100
Hawkins Brown Architects LLP	England	N/A	99.9
Hawkins Brown Canada Limited	Canada	Ordinary	100
Remap Works Limited	England	Ordinary	40

15. Stocks

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Work in progress	532,329	162,647	202,340	84,920
	---------	---------	---------	--------

16. Debtors

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Trade debtors	6,218,274	6,793,893	1,857,390	606,990
Amounts owed by group undertakings	–	–	1,988,047	2,435,452
Prepayments and accrued income	969,425	1,593,456	625,486	486,001
Corporation tax repayable	67,543	–	201,254	289,795
Other debtors	41,507	120,895	30,801	25,665
	------------	------------	------------	------------
	7,296,749	8,508,244	4,702,978	3,843,903
	------------	------------	------------	------------

17. Creditors: amounts falling due within one year

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Trade creditors	1,307,950	2,122,676	1,056,803	1,774,073
Amounts owed to group undertakings	–	–	5,673,867	3,188,145
Accruals and deferred income	925,075	1,183,662	791,954	893,508
Corporation tax	–	16,004	–	–
Social security and other taxes	1,057,540	1,148,332	963,268	768,177
Director loan accounts	688,151	687,716	–	–
Other creditors	50,847	65,075	113,214	40
	------------	------------	------------	------------
	4,029,563	5,223,465	8,599,106	6,623,943
	------------	------------	------------	------------

18. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 1,338,090 (2024: £ 1,460,965 ).

19. Called up share capital

Issued, called up and fully paid

	2025		2024
	No.	£	No.	£
Ordinary shares of £ 0.01 each	1,000,000	10,000	1,000,000	10,000
	------------	--------	------------	--------

20. Reserves

Called up share capital - This reserve records the nominal value of shares issued by the company. Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Merger relief reserve arising on consolidation - This reserve records the balance arising upon reconstruction of the group. Profit and loss account - This reserve records retained earnings and accumulated losses.

21. Analysis of changes in net debt

	At 1 Apr 2024	Cash flows	At 31 Mar 2025
	£	£	£
Cash at bank and in hand	3,078,016	(981,662)	2,096,354
Debt due within one year	(687,716)	(435)	(688,151)
	------------	---------	------------
	2,390,300	( 982,097)	1,408,203
	------------	---------	------------

Hawkins Brown Architecture Limited

Notes to the Financial Statements (continued)

Year ended 31 March 2025

22. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Not later than 1 year	654,824	655,982	587,884	655,982
Later than 1 year and not later than 5 years	1,597,792	1,380,319	1,369,080	1,380,319
Later than 5 years	2,861,348	3,812,993	2,861,348	3,812,993
	------------	------------	------------	------------
	5,113,964	5,849,294	4,818,312	5,849,294
	------------	------------	------------	------------

23. Contingencies

A legal claim has been made against a subsidiary of the group. While the directors are unable to quantify the amounts of the claim, it is unlikely to have a material effect on the group accounts. The company has provided a cross guarantee with other members of the group as part of the security for any liabilities existing or future owed to Barclays by any of those entities.

24. Related party transactions

Group

The company has taken advantage of the exemption granted by paragraph 33.1(a) of FRS102, Related Party Disclosures, not to disclose transactions with group members, being a wholly owned subsidiary of the group.

Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the company. The total compensation paid to key management personnel for services provided to the group was £ 1,465,582 (2024: £ 1,368,926 ).