Registration number:
Pentagram Design Limited
for the Year Ended 30 September 2025
Pentagram Design Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Independent Auditor's Report |
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Profit and Loss Account |
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Statement of Comprehensive Income |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Pentagram Design Limited
Company Information
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Directors |
H Pearce L Powell M Willer D Lippa J Rushworth A Hyland J Hudson-Powell J Marshall |
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Company secretary |
C Francis-Kirton |
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Registered office |
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Auditors |
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Pentagram Design Limited
Strategic Report for the Year Ended 30 September 2025
The directors present their strategic report for the year ended 30 September 2025.
Principal activity
The principal activity of the company is design and consultancy services through our main office in London, England and our European branch in Berlin, Germany
Fair review of the business
Despite national and global factors at play which included the ongoing political and economic uncertainty and cost of living crisis, the period to September 2025 has continued to see Pentagram’s growing commitment within our core multi-disciplinary design business to provide critically acclaimed, industry-leading work.
This year saw a big change for our London office, with a move from our West London home of 41 years to a new space in Islington, North London. Prior to the move we held a sale of archive material, with £7k raised and donations shared between the Grenfell Foundation and the refugee charity Choose Love.
The new studio space is fully accessible, and has a bespoke interior designed by former Pentagram partner William Russell. The ground and first floors are home to open-plan studios and meeting rooms, while the top floor houses a professional kitchen and a flexible area with a roof terrace running alongside. Eating together and welcoming the design community into our studio has always been part of Pentagram’s DNA and the top floor serves as both our new canteen and event space.
The ground floor also houses Pentagram’s new Osh Gallery, named after the building’s previous incarnation as The Old Sorting House. Open to the public, the flexible, street-level space will house around four art and design shows per year. The gallery opened with Road Works, an exhibition and private view of work by design legend (and local N1 resident) Margaret Calvert OBE, which ran as part of this year’s London Design Festival. This was followed by an exhibition and panel discussion on one of Pentagram’s founding partners Theo Crosby, celebrating his centenary year.
The upstairs event space also saw the first two in a new series of industry talks about Industrial Design, with nearly 150 attendees from the industrial design community in attendance at each. We have also hosted events for The Design Council, The Modernist Society and the Twentieth Century Society.
Pentagram has completed numerous high-profile projects during this period, which saw the partners from our London office completing a substantial and diverse portfolio of new work. Some of our most notable recent projects include redesigning the brand identity for TwelveLabs, Zeff, OSL, GSA and Global Switch. We have continued to work with longstanding clients such as the John Lewis Partnership and Waitrose & Partners, and department store Liberty.
Pentagram has also delivered several new projects in the Third Sector, including identities for changemakers Grow to Know and housing charity Just. Pentagram also designed the visual identity for Together for Palestine, a new initiative that organises large, mainstream events to shift culture and public discourse on Palestine.
Industrial design projects included innovative products including a smart children' s messenger for Karri, a new developer computer terminal for Caligra, and a smart wildlife camera for Behold.
Additionally, we have continued to be highly active in the cultural world, designing the brand identities for Glyndbourne, The Royal Drawing School, Cartier at the V&A, Brasil! Brasil! at the Royal Academy, the London Design Biennale, and the 23rd London Design Festival. In addition to the Roadworks exhibition, during the London Design Festival, the exhibition Sketching with Stickers ran at the Design Museum, and work by the Pentagram partners featured in exhibitions curated by Caligra and the Contemporary Design Reference Archive.
Pentagram Design Limited
Strategic Report for the Year Ended 30 September 2025
We have been shortlisted for and won several major design awards, receiving accolades from Dezeen, D&AD and Transform Awards Europe.
During this period, we have continued to be actively involved in initiatives which aim to increase diversity within our business, these include the ongoing Future Forward scholarship with University of the Arts. We have also welcomed design students from around the world for talks at the Studio.
The expanded edition of our popular Marks book, 1000 Marks by Pentagram was published by Thames & Hudson and launched at an event at the London studio attended by industry professionals and friends.
Pentagram’s communications channels speak to a global audience and continue to grow at a steady rate. Our Instagram following now stands at over a million followers, we have 162k Facebook followers, and we now have an audience of 301k on X (formerly Twitter) and 191k followers on Threads. Our LinkedIn presence has also continued to develop and now reaches 424k professionals.
Additionally, our London office remains a recognised hub for creative ideas. We continue to share and showcase our design expertise, with our London-based partners (now including renowned designer Hugh Miller) expanding their reach by speaking at numerous in-person and online events, viewed simultaneously by audiences from around the world.
The company's key financial and other performance indicators during the year were as follows:
|
Financial KPIs |
Unit |
2025 |
2024 |
|
Turnover |
£ |
14,972,901 |
14,738,738 |
|
Turnover (decline)/growth |
% |
2 |
2 |
|
Net assets at the balance sheet date |
£ |
2,660,190 |
2,600,190 |
|
No. of clients |
No. |
135 |
155 |
|
Gross profit margin |
% |
80 |
80 |
Pentagram Design Limited
Strategic Report for the Year Ended 30 September 2025
Principal risks and uncertainties
Currency risk
The company is exposed to translation and transaction foreign exchange risk as some of the company's sales and purchases are transacted in non-sterling. The net exposure of each currency is monitored and managed by the use of currency hedging. Foreign exchange differences on retranslation of these assets and liabilities are taken to the profit and loss account of the company.
Liquidity risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. The company has a rolling cash flow forecast which is regularly updated, ensuring it maintains cash reserves to cover several months core costs. It also has an overdraft facility available.
Interest rate risk
The company finances its operations through retained profits and has no significant interest bearing assets or liabilities, and so is not exposed to material risk. The balance sheet includes trade debtors and creditors which do not attract interest and are therefore subject to fair value interest rate risk.
Credit risk
The company's principal financial assets are cash and trade debtors. The credit risk associated with cash is limited as the counterparties have high credit ratings assigned by international credit-rating agencies. The principal credit risk arises, therefore, from trade debtors.
In order to manage credit risk, management set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed periodically by the financial controller.
Approved and authorised by the
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Pentagram Design Limited
Directors' Report for the Year Ended 30 September 2025
The directors present their report and the financial statements for the year ended 30 September 2025.
Directors of the company
The directors who held office during the year were as follows:
Directors' responsibilities statement
The directors acknowledge their responsibilities 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:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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 and in accordance with FRS 102. 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website Legislation in the United Kingdon, governing the preparation and dissemination of financial statements may differ from legislation in other juristictions.
Pentagram Design Limited
Directors' Report for the Year Ended 30 September 2025
Financial instruments
Objectives and policies
The company uses various financial instruments which include cash, trade debtors, trade creditors and amounts due to group undertakings that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail in the strategic report.
Environmental matters
Pentagram is committed to environmental protection. The company has a policy of internal waste management and environmental protection within the office. Recycling procedures are in place for all appropriate materials and environmentally sound adhesives and adhesive application systems used by all design teams.
The company attempts to be environmentally responsible in all design disciplines, using recycled/recyclable materials in graphic projects, non-endangered materials in architecture and interior design projects.
Future developments
The Directors are encouraged with the overall performance for the year and feel they are well positioned for an exciting and successful 2026.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
The auditors Sterling Grove Accountants Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved and authorised by the
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Pentagram Design Limited
Independent Auditor's Report to the Members of Pentagram Design Limited
Opinion
We have audited the financial statements of Pentagram Design Limited (the 'company') for the year ended 30 September 2025, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 30 September 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 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 director's 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 original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
Pentagram Design Limited
Independent Auditor's Report to the Members of Pentagram Design Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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• |
the Strategic Report and 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 our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where 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. |
Responsibilities of directors
As explained more fully in the Directors' report,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.
Pentagram Design Limited
Independent Auditor's Report to the Members of Pentagram Design Limited
Auditor 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.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
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• |
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. |
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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 company’s internal control. |
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
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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. |
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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. |
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Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the company 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.
Pentagram Design Limited
Independent Auditor's Report to the Members of Pentagram Design Limited
The extent to which 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:
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 design and consultancy sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed 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; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical 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 set out in the accounting policies 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 financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
Pentagram Design Limited
Independent Auditor's Report to the Members of Pentagram Design Limited
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
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For and on behalf of
2 Regatta Place
Marlow Road
Bourne End
Buckinghamshire
SL8 5TD
Pentagram Design Limited
Profit and Loss Account for the Year Ended 30 September 2025
|
Note |
2025 |
2024 |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
|
|
|
|
Operating profit |
268,566 |
61,487 |
|
|
Other interest receivable and similar income |
|
|
|
|
Interest payable and similar expenses |
( |
( |
|
|
(64,654) |
(4,942) |
||
|
Profit before tax |
|
|
|
|
Tax on profit |
( |
|
|
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Pentagram Design Limited
Statement of Comprehensive Income for the Year Ended 30 September 2025
|
2025 |
2024 |
|
|
Profit for the year |
|
|
|
Total comprehensive income for the year |
|
|
Pentagram Design Limited
(Registration number: 01599748)
Balance Sheet as at 30 September 2025
|
Note |
2025 |
2024 |
|
|
Fixed assets |
|||
|
Tangible assets |
|
|
|
|
Investments |
|
|
|
|
Right of use assets |
5,532,733 |
- |
|
|
|
|
||
|
Current assets |
|||
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
- |
|
|
Provisions for liabilities |
( |
- |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
105,007 |
105,007 |
|
|
Retained earnings |
2,555,183 |
2,495,183 |
|
|
Shareholders' funds |
2,660,190 |
2,600,190 |
Approved and authorised by the
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Pentagram Design Limited
(Registration number: 01599748)
Balance Sheet as at 30 September 2025
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Pentagram Design Limited
Statement of Changes in Equity for the Year Ended 30 September 2025
|
Share capital |
Retained earnings |
Total |
|
|
At 1 October 2024 |
|
|
|
|
Profit for the year |
- |
|
|
|
At 30 September 2025 |
|
|
|
|
Share capital |
Retained earnings |
Total |
|
|
At 1 October 2023 |
|
|
|
|
Profit for the year |
- |
|
|
|
At 30 September 2024 |
105,007 |
2,495,183 |
2,600,190 |
Pentagram Design Limited
Statement of Cash Flows for the Year Ended 30 September 2025
|
Note |
2025 |
2024 |
|
|
Cash flows from operating activities |
|||
|
Profit for the year |
|
|
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Loss on disposal of tangible assets |
|
|
|
|
Finance income |
( |
( |
|
|
Finance costs |
|
|
|
|
Taxation charge |
|
( |
|
|
Reversal of unused provisions |
- |
(86,816) |
|
|
|
|
||
|
Working capital adjustments |
|||
|
Decrease/(increase) in trade debtors |
|
( |
|
|
(Decrease)/increase in trade creditors |
( |
|
|
|
Increase in provisions |
|
- |
|
|
Cash generated from operations |
|
|
|
|
Taxation paid |
( |
( |
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds for sale of fixed assets |
5,583 |
2,749 |
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
- |
( |
|
|
Payments to lease creditors |
( |
- |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
|
Cash and cash equivalents at 1 October |
|
|
|
|
Cash and cash equivalents at 30 September |
2,773,037 |
3,298,802 |
|
Pentagram Design Limited
Notes to the Financial Statements for the Year Ended 30 September 2025
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General information |
The company is a private company limited by share capital, incorporated in England and Wales with registration number 01599748.
The address of its registered office is:
These financial statements were authorised for issue by the
|
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are prepared in sterling which is the functional currency of the company.
Group accounts not prepared
Judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for income and expenses during the year and that affect the amounts reported for assets and liabilities at the reporting date. For this reporting date there are no significant judgements, estimates or assumptions that have been required. |
Pentagram Design Limited
Notes to the Financial Statements for the Year Ended 30 September 2025
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.
The Company recognises revenue when a service has been completed in accordance with the terms of agreement with the client. Where the provision of a service remains incomplete at the end of a period, a proportion of the income pertaining to the level of the service performed is accrued and is part of the debtors balance within amounts recoverable on contracts.
Where clients have been invoiced in advance for services to be delivered at a future date, the income is deferred and becomes part of the creditors balance.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Leasehold improvements |
Over the unexpired term of the lease |
|
Fixtures, fittings and computer equipment |
20%-33% on cost |
|
Right of use assets |
Over the unexpired term of the lease |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Pentagram Design Limited
Notes to the Financial Statements for the Year Ended 30 September 2025
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business. Trade debtors are recognised at the transaction price less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Dilapidations provision
Provision is made for dilapidations. This requires management’s best estimate of the expenditure that will be incurred based on contractual requirements. Provisions are recognised when the company has an obligation at the reporting date 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.
Pentagram Design Limited
Notes to the Financial Statements for the Year Ended 30 September 2025
Leases
The Company recognises a right-of-use asset and corresponding liability at the date at which a leased asset is made available for use by the Company, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low-value assets. For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease.
Lease liabilities are measured at the present value of the future lease payments, excluding any payments relating to non-lease components. Future lease payments include fixed payments, in-substance fixed payments, and variable lease payments that are based on an index or a rate, less any lease incentives receivable. Lease liabilities also take into account amounts payable under residual value guarantees and payments to exercise options to the extent that it is reasonably certain that such payments will be made. The payments are discounted at the rate implicit in the lease or, where that cannot be readily determined, at an incremental borrowing rate.
Right-of-use assets are measured initially at cost based on the value of the associated lease liability, adjusted for any payments made before inception, initial direct costs and an estimate of the dismantling, removal and restoration costs required in the terms of the lease.
Subsequent to initial recognition, the lease liability is reduced for payments made and increased to reflect interest on the lease liability (using the effective interest method). The related right-of-use asset is depreciated over the term of the lease or, if shorter, the useful economic life of the leased asset. The lease term shall include the period of an extension option where it is reasonably certain that the option will be exercised. Where the lease contains a purchase option the asset is written off over the useful life of the asset when it is reasonably certain that the purchase option will be exercised.
The Company remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:
· The lease term has changed or there is a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.
· The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using the initial discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used).
· A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.
Share capital
Ordinary shares are classified as equity.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans and other short term employee benefits are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Pentagram Design Limited
Notes to the Financial Statements for the Year Ended 30 September 2025
Financial instruments
Financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
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 are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party, or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial liabilitie
s
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Offsetting
The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.
Pentagram Design Limited
Notes to the Financial Statements for the Year Ended 30 September 2025
|
Turnover |
The analysis of the company's revenue for the year from continuing operations is as follows:
|
2025 |
2024 |
|
|
Design and consultancy services |
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2025 |
2024 |
|
|
Rental income and other operating income |
|
|
|
Exceptional item - Damages settlement agreement |
- |
3,500,000 |
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2025 |
2024 |
|
|
Depreciation expense |
|
|
|
Foreign exchange (gains)/losses |
( |
|
|
Operating lease expense - property |
|
|
|
Operating lease expense - office equipment |
- |
|
|
Loss on disposal of property, plant and equipment |
|
|
|
Auditor's remuneration - The audit of the company's annual accounts |
24,165 |
24,158 |
|
Auditor's remuneration - Tax services |
2,500 |
2,500 |
|
Auditor's remuneration - Other services |
3,000 |
3,000 |
|
Other interest receivable and similar income |
|
2025 |
2024 |
|
|
Interest income on bank deposits |
|
|
|
Other finance income |
- |
|
|
|
|
|
Interest payable and similar expenses |
|
2025 |
2024 |
|
|
Interest on lease liability |
|
- |
|
Other interest expenses |
- |
|
|
|
|
Pentagram Design Limited
Notes to the Financial Statements for the Year Ended 30 September 2025
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2025 |
2024 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Other employee expense |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2025 |
2024 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
Compensation for loss of office |
- |
|
|
3,067,974 |
5,273,504 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2025 |
2024 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
- |
|
Pentagram Design Limited
Notes to the Financial Statements for the Year Ended 30 September 2025
|
Auditors' remuneration |
|
2025 |
2024 |
|
|
Audit of the financial statements |
|
|
|
Other fees to auditors |
||
|
Taxation compliance services |
|
|
|
All other assurance services |
|
|
|
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2025 |
2024 |
|
|
Current taxation |
||
|
UK corporation tax |
|
- |
|
UK corporation tax adjustment to prior periods |
- |
( |
|
143,912 |
(3,455) |
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2024 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2025 |
2024 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Decrease in UK and foreign current tax from adjustment for prior periods |
- |
( |
|
Tax (decrease)/increase from effect of capital allowances and depreciation |
( |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Effect of tax losses |
- |
( |
|
Tax increase arising from overseas tax suffered/expensed |
|
- |
|
Tax (decrease)/increase from other tax effects |
- |
( |
|
Total tax charge/(credit) |
|
( |
Pentagram Design Limited
Notes to the Financial Statements for the Year Ended 30 September 2025
|
Tangible assets |
|
Leasehold improvements |
Furniture, fittings and equipment |
Total |
|
|
Cost or valuation |
|||
|
At 1 October 2024 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
( |
( |
( |
|
At 30 September 2025 |
|
|
|
|
Depreciation |
|||
|
At 1 October 2024 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
( |
( |
( |
|
At 30 September 2025 |
|
|
|
|
Carrying amount |
|||
|
At 30 September 2025 |
|
|
|
|
At 30 September 2024 |
|
|
|
Included within the net book value of land and buildings above is £990,002 (2024 - £105,378) in respect of short leasehold land and buildings.
|
Investments |
|
2025 |
2024 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 October 2024 |
|
|
Provision |
|
|
Carrying amount |
|
|
At 30 September 2025 |
|
|
At 30 September 2024 |
|
Pentagram Design Limited
Notes to the Financial Statements for the Year Ended 30 September 2025
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Country of incorporation |
Holding |
Proportion of voting rights and shares held |
|
|
2025 |
2024 |
|||
|
Subsidiary undertakings |
||||
|
|
162 Packington Street, London,
|
Ordinary |
|
|
|
Subsidiary undertakings |
|
Pentagram Design Services Limited The principal activity of Pentagram Design Services Limited is |
|
Right of use assets |
|
Leases |
|
|
Right of use assets |
Buildings
|
|
Property cost addition |
5,612,965 |
|
Property depreciation charge |
(80,232) |
|
As at 30 September 2025 |
5,532,733 |
The property lease gives rise to a right of use asset measured initially at cost based on the value of the associated lease liability. Refer to the Leases accounting policy for further details.
|
Lease liabilities |
Buildings
|
|
New lease |
(5,612,965) |
|
Rent repayments |
363,550 |
|
Interest expense |
(69,499) |
|
As at 30 September 2025 |
(5,318,914) |
The lease term for the new London office is for 10 years expiring 8 January 2035.
The table below analyses the lease liabilities into relevant maturity groupings on their contracts. The amounts disclosed in the table are the contractual discounted cash flows.
Pentagram Design Limited
Notes to the Financial Statements for the Year Ended 30 September 2025
|
Amounts due |
2025
|
|
Not later than one year |
675,297 |
|
Later than one year and not later than five years |
2,641,561 |
|
Later than five years |
2,499,833 |
|
Discounted using the incremental borrowing rate |
(497,777) |
|
Total lease liabilty |
5,318,914 |
|
Debtors |
|
Current |
Note |
2025 |
2024 |
|
Trade debtors |
|
|
|
|
Amounts owed by group undertakings |
|
|
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
|
|
Accrued income |
|
|
|
|
Gross amount due from customers for contract work |
|
|
|
|
Taxation recoverable |
- |
|
|
|
|
|
|
Cash and cash equivalents |
|
2025 |
2024 |
|
|
Cash on hand |
|
|
|
Cash at bank |
|
|
|
|
|
Pentagram Design Limited
Notes to the Financial Statements for the Year Ended 30 September 2025
|
Creditors |
|
Note |
2025 |
2024 |
|
|
Due within one year |
|||
|
Lease liability |
576,510 |
- |
|
|
Trade creditors |
|
|
|
|
Amounts owed to group undertakings |
|
|
|
|
Amounts owed to directors |
824,037 |
439,035 |
|
|
Social security and other taxes |
|
|
|
|
Accruals and deferred income |
|
|
|
|
Other payables |
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
|
|
||
|
Due after one year |
|||
|
Lease liability |
|
- |
|
Provisions for liabilities |
|
Dilapidations provisions |
Total |
|
|
Additional provisions |
|
|
|
At 30 September 2025 |
|
|
|
|
||
The dilapidations provision relates to the cost of reinstating the company's rented office premises to its former condition at the end of its lease, expiring on 8 January 2035.
|
Pension and other schemes |
Defined contribution pension scheme
The company operates defined contribution pension schemes. The pension cost charge for the year represents contributions payable by the company to the schemes and amounted to £
Contributions totalling £24,039 (2024 - £21,104) were payable to the scheme at the end of the year and are included in creditors.
Pentagram Design Limited
Notes to the Financial Statements for the Year Ended 30 September 2025
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
105,007 |
|
105,007 |
Rights, preferences and restrictions
|
Ordinary shares have the following rights, preferences and restrictions: |
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
|
2025 |
2024 |
|
|
Not later than one year |
- |
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Analysis of changes in net debt |
|
At 1 October 2024 |
Financing cash flows |
Foreign exchange movements |
At 30 September 2025 |
|
|
Cash and cash equivalents |
||||
|
Cash |
3,298,802 |
(555,835) |
30,070 |
2,773,037 |
|
|
( |
|
|
|
|
|
||||
|
Related party transactions |
|
Other transactions with directors |
During the year the directors operated directors' loan accounts. Advances to directors in the year were £937,494 (2024; £1,535,880) and repayments made by directors were £1,322,496 (2024: £1,408,419). At the balance sheet date amounts owed to the directors by the company was £824,037 (2024: £439,035). These loans are repayable on demand.
The company leased its former London office from joint owners which includes some of the current directors. The total rents charged during the year amounts to £479,489 (2024: £550,000). At the balance sheet date the amount due to the directors (in relation to rent payable) was £nil (2024: £nil).
Pentagram Design Limited
Notes to the Financial Statements for the Year Ended 30 September 2025
Income and receivables from related parties
|
2025 |
Other related parties |
|
Amounts receivable from related party |
|
|
|
|
|
2024 |
Other related parties |
|
Amounts receivable from related party |
|
|
|
|
Expenditure with and payables to related parties
|
2025 |
Parent |
|
Amounts payable to related party |
|
|
|
|
|
2024 |
Parent |
|
Amounts payable to related party |
|
|
|
|
Loans to related parties
Terms of loans to related parties
|
Financial instruments |
Categorisation of financial instruments
|
2025 |
2024 |
|
|
Financial assets measured at amortised cost |
|
|
|
Financial liabilities measured at amortised cost |
|
|
|
Parent and ultimate parent undertaking |
The company's immediate and ultimate parent undertaking and the smallest and largest group to consolidate these financial statements is
There is no ultimate controlling party as there is no majority shareholder in the ultimate parent company, Pentagram Design AG