The directors present the strategic report for the year ended 31 August 2025.

The Company operates as a provider of architectural and interior design services. The practice covers a diverse range of project types across multiple sectors, including education, science, workplace, hospitality, and residential design. The design services, for projects within the UK and internationally, are delivered from its London studio.

There has been a 23.5% increase in turnover for the year despite the loss of income from the former Czech subsidiary. This increase is partially attributable to an increase in the number of sub consultants employed to assist in the delivery of projects, but also reflects a 12% like for like increase in terms of base architectural fee income.

Staff numbers remained broadly consistent with previous years, and there was an increase in headcount in the second half of the year, including senior appointments to enable us to navigate the legislative changes associated with the newly defined Principal Designer role. Operating Costs have increased, responding to the effects of inflation, energy, insurance and payroll costs.

Income from overseas accounted for 9.6% of turnover in 2025, down from 18% in 2024. This reduction is largely attributable to the sale of the Czech subsidiary, and the UK Company continues to secure opportunities to diversify its sources of income from overseas projects.

The prospects of growth within the UK construction market remain unpredictable and we are seeing greater uncertainty from clients, with limited appointments by work stage.

Upon reviewing the financial position and based on forecasts, the directors are confident that the Company has the necessary resources to continue its operations into the foreseeable future.

Awards

The Company continues to be shortlisted for multiple awards for its projects, as well as recognition for its young staff in the category of Rising Stars and New Talent. Project awards were received for W Edinburgh (Restaurant and Bar Design Awards, World Interiors News Awards, Mix North Awards, Brit List Awards) and John Gray High School (Education Estates International Project of the Year).

ESG

The Company is a registered BCorp, recognising its longstanding commitment to the importance of community, alongside our social and environmental responsibilities as architects and designers. It is exciting to be recognised as part of a global movement focussed on using business as a force for good. The first annual Impact Report was published in October 2025, highlighting the progress the Company has made since certification, and what we are working on as we look to the future.

Beyond project-focussed research and development, the Company also conducts targeted research through its dedicated Addition Labs, which is an in-house research initiative, carrying out design research and projects that are tangential and additive to our work, including sustainable design practices.

ESG (continued)

The Company continues to support the RIBA Charter 2030, committing to reducing operational energy, embodied carbon, and water consumption in the buildings that we design. As part of our sustainability strategy, we have developed a Carbon Reduction Plan, and this year we updated our carbon emissions assessment, following Greenhouse Gas Protocol procedures and Procurement Policy Note 06/21. This revised assessment will serve as the new baseline year for measuring the practice’s operational emissions, following a re-evaluation of assessed categories from the original 2021/22 baseline. The new baseline will inform an updated carbon reduction pathway, while maintaining the target of achieving net-zero emissions by 2050. Our ambition is to achieve net-zero carbon emissions from all of our business-related operational carbon associated with Scope 1, 2 and relevant Scope 3 emissions, which are offset through the World Land Trust's Carbon Balanced program. During the year the Company participated in a Pilot Project for the new UK Net Zero Carbon Buildings Standard.

The Company’s financial instruments, such as cash, receivables, and payables, are critical for financing its operations, but they also expose the business to various financial risks.

Primary risks include market fluctuations, revenue volatility, foreign currency fluctuations, credit risk, liquidity challenges, cybersecurity threats, regulatory updates and competitive pressures. The board has established policies to manage these risks, with an increased focus and investment on improved cyber security measures, including enhanced user training, security monitoring, cloud-based resilience and hardware updates.

Market Risk

Market risk relates to the fluctuating demand for design and construction services. The Company mitigates this by diversifying its projects across different client types, sectors and regions. Regular monitoring of ongoing and potential projects, along with feedback from clients, helps the Company make informed decisions quickly. Flexible resource planning enables us to respond to fluctuations and volatility in varying project requirements.

Revenue Risk

To manage revenue risk, the Company focusses on diversifying its client base and expanding its geographical reach, thereby minimising reliance on any single client, region or sector.

Foreign Currency Risk

Since a portion of the Company's turnover comes from international contracts, foreign currency risk is a consideration. The Company mitigates this by maintaining foreign currency balances to match future cash outflows, thereby minimising exchange rate exposure. No financial instruments are currently employed to hedge foreign exchange fluctuations.

Credit Risk

The Company’s primary credit risk comes from receivables. To manage this, credit checks are conducted for new clients, and regular reviews of outstanding accounts are carried out with proactive debtor management. Provisions for doubtful debts are made where necessary.

Liquidity Risk

The Company manages liquidity risk by setting annual budgets and projected annual cash flows, and the Board reviews these against a fee income pipeline on a regular basis to ensure that management can ensure sufficient funding is in place to meet the Company’s payment obligations as they arise. The Company is debt averse and manages its cashflow without financial loans. The Board operates on the model that cash balances provide the Company with a good degree of financial resilience, whilst future profits generate sufficient cash resources to ensure operating costs are covered. Like many long established architectural practices the Company has received notifications about potential cladding claims related to the industry-wide challenge of historic residential projects. Each claim is assessed by the Board, notified to insurers and regularly monitored.

Competition Risk

To counter competition, the Company focusses on providing innovative, tailored design solutions for each client with an emphasis on sustainability. By adopting the latest design standards and attracting talent, the Company ensures its competitiveness. The board is mindful of maintaining a healthy workload and continues to seek new projects through bidding and client collaboration, but is suffering like many in the industry from piecemeal appointments by workstage for new commissions and greater amounts of unpaid work prior to appointment.

The key financial metrics for the year are as follows:

Future strategy and objectives

As we look ahead, our practice is positioned to explore emerging opportunities while navigating the evolving landscape of the UK design and construction industry. Our strategic vision focusses on sustainable growth, enhanced service delivery, and strengthening our market position across multiple sectors through innovation, collaboration, and high-quality design.

The Company will continue to focus on a diversified portfolio of projects, expanding its presence across its principal sectors of education, residential and hospitality, whilst exploring possibilities to reestablish its credentials in commercial sectors such as workspace and science. Our ambition is to continue targeting 10% annual revenue growth, with a particular focus on new sectors and international projects.

Our pathway for digital transformation and innovation continues with internal working groups focussed on getting the best out of advanced digital design technologies such as BIM and exploring the opportunities for design and processes assisted by appropriate AI‑assisted workflows. This requires investment in staff training, software infrastructure and digital delivery capabilities. We will invest in skills and capabilities that remain valuable across economic cycles.

The Company remains committed to people as its most important asset, and is creating a robust pipeline of future leaders while ensuring knowledge transfer between generations. We are introducing structured mentorship programmes, professional development pathways, and exploring the opportunity for enhanced equity participation schemes. We continue to enable flexible working arrangements to attract and retain top talent and are investing in automation and efficiency tools to maximise productivity.

Sustainable design has been a longstanding focus of the practice and we are positioning the Company as a leader in sustainable and net-zero design. Building on our BCorp status we are keen to develop our expertise in circular design principles, and forge partnerships and collaborations with like-minded sustainability consultants and engineers. We are undertaking post occupancy evaluation across a number of our projects and seeking measurable sustainability outcomes across all completed projects.

We see increased opportunities to work with existing buildings, which is informed by the Company’s extensive portfolio in refurbishing and re-purposing buildings to creatively respond to new uses. This aligns with our clients' focus on retrofitting their ageing estates and achieving significant carbon savings, as well as our own carbon reduction commitments.

The Company continues to implement rigorous quality assurance processes across all project stages, including regular reviews of working practices and external audits (ISO 9001). Training and updated workflow processes associated with the changes that come from the Building Safety Act have been implemented during the year and will continue to inform the way that we work. New workstreams exist for being appointed as Principal Designer for Building Regulations on our projects.

Our strategic vision positions the practice for sustainable long-term growth while building resilience against industry challenges. Through focussed investment in people, technology, and market development, we are confident in our ability to deliver exceptional value to clients while building a practice that will thrive for generations to come. The Board continues to explore options for the future structure of the business, including the potential for strategic recruitment of senior professionals in key growth areas and outsourced delivery capability. As noted in the Risk and Uncertainties above there is an increasing occurrence of notifications of potential claims related to historic residential projects, which is being proactively managed by the Board.

The Board remains committed to this strategic direction and will continue to monitor progress against these objectives through regular strategic reviews and performance measurement.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 August 2025.

The principal activity of the company continued to be that of provision of architecture and design services.

The results for the year are set out on page 12.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

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

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

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

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 company and of the profit or loss of the company 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 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.

We have audited the financial statements of Jestico+Whiles+Associates Limited (the 'company') for the year ended 31 August 2025 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 company's affairs as at 31 August 2025 and of its profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement 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 purposes of expressing an opinion on the effectiveness of the company’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 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 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.

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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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 discussions with management and those charged with governance.

• We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

• We inquired of management and those charged with governance as to any known instances of non-compliance 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.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.

Jestico+Whiles+Associates Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2nd Floor, Sutton Yard, 65 Goswell Road, London, EC1V 7EN.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

There are market uncertainties within the construction sector caused by future project opportunities and the timing of work that are made by client decisions which are beyond our control. Public health, inflation pressures, funding challenges and geopolitical uncertainty have created further levels of uncertainty for the medium and long term compounded by protracted decision making by clients. In addition, as detailed in note 20, the company is aware of various potential legal claims related to cladding. Provisions have been made for the insurance excess and legal costs to cover these claims and as at the date of approval of these financial statements no value or likelihood of success of the claims has been assigned or is expected to materialise in the next twelve months.true

At the balance sheet date, the company had net assets of £3.4m. Subsequent to the year end, the company has made a profit to date. The company has cash reserves of £3m at the date of approval of the financial statements. As a result, the Board has a reasonable expectation that the company will be able to continue in business and meet its liabilities as they fall due for a period of at least twelve months from the date of approval of the financial statements.

Turnover represents amounts receivable for services rendered during the year, and is stated net of VAT. Turnover is recognised when the right to consideration has arisen through the performance under each contract. Consideration accrues as the contract progresses. Turnover is not recognised where the right to receive payment is contingent on events outside the control of the company.

Amounts billed on account of work in progress are included in creditors as deferred income to the extent that they exceed the value of the related work in progress.

Turnover which has accrued but not been invoiced at the balance sheet date is shown as debtors.

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 credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible 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).

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

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

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

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

Basic financial assets, 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. 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 company transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

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 company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company 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.

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.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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.

Revenue from contracts to provide services is assessed on an individual basis with revenue earned being ascertained based on the stage of completion of the contract which is estimated using a combination of the milestones in the contract and the time spent to date compared to the total time expected to be required to undertake the contract. Estimates of the total time required to undertake the contracts are made on a regular basis and subject to management review. These estimates may differ from the actual results due to a variety of factors such as efficiency of working, accuracy of assessment of progress to date and client decision making.

Provisions have been made in respect of liabilities of the company based on best estimates of the amounts payable where the actual costs and timing of future cash flows are dependent on future events. The difference between expectations and the actual future liability will be accounted for in the period when such determination is made.

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, the directors consider factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of the property, plant and equipment and for the useful economic lives for each class of asset.

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

Their aggregate remuneration comprised:

Investment income includes the following:

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

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

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

The capital redemption reserve represents a statutory, non-distributable reserve into which amounts were transferred following the purchase of the company's own shares.

At the balance sheet date (and as at the date of signing these financial statements), the company is aware of the potential for cladding related claims. Provisions have been made for the insurance excess (where cover has been confirmed by insurers) and anticipated legal fees to cover defence costs relating to the claims. This is based on information provided by the company’s professional advisors who continue to work with the directors to defend the claims. As at the date of signing, no final value or likelihood of success of the two claims has been assigned and therefore no further provision has been made in the financial statements.

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

The key management personnel are considered to be the Directors of the company. Their remuneration is disclosed in note 7.

The company was controlled throughout this year and the previous year by The Jestico + Whiles + Associates Limited Employee Benefit Trust by virtue of its 100% shareholding. There is no ultimate controlling party of the trust.