The directors present the strategic report for the year ended 31 July 2025.
Our principal aim remains to continually improve the quality of our designs, delivering excellent buildings within budget, programme and environment performance. We aim to create settings for social engagement at a broad range of scales of making.
Principal Developments During the year to 31 July 2025
This period saw the completed retrofit project at 11 Belgrave Road, London occupied, and site progress on four other developments in the capital. These include Salisbury Square Development for the City of London with the major new Court Building, City of London Police HQ, an office building and a heritage public house, which are all now structurally topped out for completion in Spring 2027.
The complex 1 Liverpool Street oversite development completed its demanding structural stage and now is fully clad for delivery in May 2026. This development is successfully let with significant leases to Knight Frank and lawyers Dentons.
The major office tower development at 50 Fenchurch Street progressed after vacant possession to deconstruction phase with its ingenious structural retention of the listed mediaeval church tower of All Hallows Staining. We continued to work with the Clothworkers’ Company for the fit-out of their new livery hall and offices within the development.
1 Undershaft project was granted planning committee approval in December 2024, and full permission was granted with the Section 106 Agreement last December allowing the deconstruction from March 2026.
The multiple award-winning sustainable 11 Belgrave Road project heralded two other office schemes: Ebbgate (Seal House) on the river Thames, and 40 Holborn Viaduct at the gateway to the City. Both projects progressed from approval to RIBA Stage 4 in the period and to site in late 2025. All these projects deliver the best refurbished, retrofitted and new workspaces focussed on occupier wellbeing, increased urban greening and always with our responsive design to urban context.
Our focus on design for health continued with the full development of the masterplan at Warneford Park, Oxford. For joint clients NHS Trust, University of Oxford and a private family trust the new mental health campus will deliver a new mental health hospital, research building and graduate college for the parties respectively. The masterplan based around the historic restorative landscape provides new buildings and repurposes the outdated asylum properties for the new college. After over 8 years of evolution the submitted application should be approved in April 2026.
The period saw the completion of the second residential fit-out at Phase 4 Chelsea Barracks. The apartment building 1 Five Fields Square is now being occupied and enjoys the new public square.
Internationally four commissions progressed with two prestigious projects in Tokyo, a resort hotel on Okinawa, and a food research headquarters in Ahmedabad, India. Our role as architects working closely with our clients and local expertise will deliver these regional projects later this decade.
After 14 years of success the Holburne Museum, Bath has delivered a new suite of spaces within the EPA extension to the original Georgian building. The important Schroeder Collection is now displayed in high specification galleries adding to the significance of this regional museum and visitor attraction.
In June 2025 Eric Parry’s services to architecture was recognised in the King’s Birthday Honours with acceptance of a Commander of the Order of the British Empire (CBE) medal.
The business has taken a strategic decision to expand the current office space in our building as of July 2024. This additional space promotes staff wellbeing, generates more creative space for design processes and allows hosting of our series of lectures and seminars. These are open to students, educational institutions and the public who are interested in architecture and technical design.
During the year, we worked on over 26 fee paying projects with a very diversified portfolio, from over £1billion construction projects to a small development of a £1million extension. The business maintained an excellent workforce with highly skilled, experienced and competent team ready to deal with innovative and challenging projects.
It is increasingly common for our appointments to be agreed on staged basis. An overall project programme is usually between 3 to 10 years; however, it is now common to have a pause period between stages. It is therefore more challenging for resource planning to react promptly to these demands. The management team meet on weekly basis to discuss resource requirements for all active projects and look-ahead to ensure teams maintain their efficiency and our quality of service.
During the year, our design work for one major project came to an end, and our role was reduced to monitoring thereafter. A significant residential scheme was paused during its planning stage due to outstanding matters with the freeholder. Inflation has affected most construction projects, including one put on hold to allow the project viability to be reassessed.
We participated in several developer selections and entered some high-profile open competitions in the UK and overseas in the period. We are diligent and selective in competition entries as it can be costly, focusing on where the chances of winning are best. The business has set a budget each year for enquiries and competition work, and allocates resources as required. Our budget for 2025 was higher due to our commitment to a few high-profile international competitions.
We work closely with all our clients and provide support and advice when required, we are confident that both major projects that were on hold will be re-starting in this current financial year after resolving their issues.
| 2025 | 2024 |
Turnover | £12,678,867 | £14,745,699 |
Gross profit margin | 54.38% | 56.00% |
Fees per architect | £144,078 | £173,479 |
Staff training
The business continues to invest in staff training to ensure our team has the skills and latest technique for their design and technical works. We promote internal and external training across all levels including registering them with RIBA on BRPD and conservation courses. We support our staff with a programme of CPD sessions, encourage them to attend webinars and seminars, and coordinate presentations with consultants. Recently relevant staff attended BSI quality control and accounting courses to ensure they have the right knowledge and skills to execute their work.
Sustainability
Our commitment is to responsible, transparent and sustainable practice. We integrate the principles of environmental stewardship, social value and good governance across all operations and design activities.
We aim to provide our clients with exemplary quality of service at all times and deliver high quality outcomes that meet their brief and their own ESG ambitions and commitments. To support this, we engage with clients at the outset of projects, seeking to agree ambitious and measurable sustainability goals that can be included with the projects brief. These goals are developed by the project teams and re-assessed at every project stage as part of our in-house sustainability review process.
Equality, Diversity and Inclusion
We continue to promote an inclusive and diverse workplace that values and respects all backgrounds, race, sexual orientation, religion, disability, age and ethnicity of all parties including clients, consultants and suppliers. The practice encourage staff to share their views and contribute their ideas in our regular internal EDI discussions and attend external seminars, when possible. This is to ensure we have a great environment for all employees.
Quality Assurance and Security
Our Quality Assurance team continue to review and make good improvements to our internal processes, making sure all works comply with procedures and documents are recorded. All staff have undergone training to ensure steps are understood and followed. Our QA team meet with project teams regularly.
Our commitments to ISO9001, ISO14001 and ISO19650 are central to quality management processes and form the basis of being a responsible employer, providing a high standard and a secure workplace.
Project prolongation
Throughout the period we have managed the changing demands of various projects and our resources for these, many of which have had viability pressures in the inflationary central London construction market.
The predominance of live projects in the capital has exposed the practice to both prolongation and viability uncertainties caused by national and international market forces. We continue to seek resilience by diversifying our reach nationally and globally in sectors we excel in and working with the best clients.
Resources and costs
Resource planning is important by utilising right level of resource at the appropriate time. Engaging staff with the right experience and skills for each of the tasks is critical to deliver the project efficiency and effectively. Understanding the scope of services required is key for delivering the project on time and on budget.
Wages have been the major cost for the business and naturally the inflationary pressure has a significant impact to our cost. The business is relying on the best team with excellent skills and experience in return for good financial rewards.
We continue to seek more work regionally and overseas to balance our excellent portfolio of projects in London.
Our highly skilled staff are committed to improving knowledge and IT technology. We recently subscribed to an AI platform to ensure our staff can use the software securely. We continue to look for efficiency and improvement on processes within our operations.
We recently invested on the additional floor space to make it possible for us to have an exhibition/conference area, two extra meeting rooms, and models making and archival display areas. We are expecting to host more industry and educational events over the coming years.
We have successfully hosted many educational seminars and events in London and at universities, including screening of the Art of Architecture at BAFTA in Piccadilly. We have continued to host many more seminars, including Human Face of Architecture by various speakers through Spring 2026.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 July 2025.
The results for the year are set out on page 11.
No ordinary dividends were paid. The directors do not recommend payment of a dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Moore Kingston Smith were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 parent company, and of the profit or loss of the group for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent company, and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Eric Parry Architects Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2025 which comprise the Group Profit and Loss Account, the Group Statement of Comprehensive Income, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
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.
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 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.
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 noncompliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
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 parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £362,707 (2024 - £1,065,240 profit).
Eric Parry Architects Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 28-42 Banner Street, London, EC1Y 8QE.
The group consists of Eric Parry Architects Limited and all of its subsidiaries. Group accounts have been prepared excluding the subsidiary Eric Parry Studio Pte due to being insignificant to group.
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.
The Group financial statements consolidate the financial statements of the Parent Company, Eric Parry Architects Limited and its subsidiaries drawn up to the same reporting date. Subsidiaries are entities controlled by the Group.
In accordance with Section 9 of FRS 102, Eric Parry Studio Pte, a subsidiary that is immaterial to the Group, both individually and in aggregate, is not consolidated as its inclusion would not affect the true and fair view of the Group financial statements. The assessment of materiality considers the size, nature and circumstances of the subsidiary and is reviewed annually.
At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company have adequate resources to continue in operational existence for the foreseeable future. The directors have prepared forecasts for a period over 12 months from signing the accounts, and have concluded there are sufficient cash reserves. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the
consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the 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 if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The 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.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 31 July 2025 are as follows:
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax liability set out above is expected to reverse within 12 months and relates to
accelerated capital allowances that are expected to mature within the same period.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The options outstanding at 31 July 2025 had an exercise price of £nil and a remaining contractual life of 1 year.
Liabilities and expenses
During the year, the company recognised total share-based payment expenses of £596,961 (2024 - £667,711) which related to equity settled share based payment transactions.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The company has taken advantage of the exemption in paragraph 33.1A of FRS 102 not to disclose transactions with other wholly owned members of the group.
At the year end, a Director owed the group £854 (2024: £5,735). This balance is included within other debtors.
Prior period adjustments have been identified in relation to the following;
In the prior period the valuation and annual expense of the share options scheme granted to key employees were incorrectly calculated. These figures have therefore been restated from prior years, these are adjustments within reserves and therefore there is no impact on total equity.
Balances for accrued and deferred income had not been included within the financial statements for previous periods.
An adjustment has been made to correct the recognition of balances paid to Eric Parry Trust Limited as nominee for the Employee Benefit Trust in order to purchase shares in Eric Parry Architects Limited. These balances were previously recognised as Treasury shares or balances due between group companies. All funds provided to the trust are now recognised within a separate Employee Benefit Trust reserve, adjustments are therefore within reserves and there is no impact on total equity.