Company No:
Contents
| DIRECTOR | P Karakusevic |
| REGISTERED OFFICE | Studio 501 37 Cremer Street |
| Hackney | |
| London | |
| E2 8HD | |
| United Kingdom |
| COMPANY NUMBER | 08720267 (England and Wales) |
| AUDITOR | Praxis |
| Statutory Auditor | |
| 1 Fore Street Avenue | |
| London | |
| EC2Y 9DT |
The director presents their Strategic Report for the financial year ended 31 December 2025.
REVIEW OF THE BUSINESS
The practice has remained at the forefront of Public Sector and Council Housing in the UK and internationally and seeks to build on this reputation in 2026 and beyond.
RESULTS AND PERFORMANCE
Turnover for the financial year amounted to £6,879,794 (2024: £6,858,061). The Group earned a profit after taxation totalling £552,497 (2024: £839,103).
The net current asset position of the Group as at the financial year end amounted to £2,419,789 (2024: net current asset £1,991,043).
The net asset position of the Group as at the financial year end amounted to £3,321,145 (2024: net asset £3,673,937).
KEY PERFORMANCE INDICATORS ('KPIS')
The director uses the following key performance indicators (KPIS) to assess the development, performance and position of the group's business during the year.
| 2025 | 2024 | ||
| £ | £ | ||
| Revenues | 6,879,794 | 6,858,061 | |
| Operating profit | 830,538 | 1,123,646 |
The group's principal non-financial KPI is the studio average headcount which is 52 (2024: 55).
PRINCIPAL RISKS AND UNCERTAINTIES
The director has considered the principal risks and uncertainties facing the group. As a provider of architectural and urban design services, the group operates in markets that are influenced by economic conditions, government housing policy, public sector expenditure and the availability of development funding. The principal risks facing the group comprise changes in public sector funding and housing policy, the successful delivery of long-term projects, professional liability and regulatory compliance matters, economic conditions affecting the construction sector, and the management of credit and cash flow exposure. The director monitors these risks regularly and has implemented procedures designed to mitigate their potential impact on the group's performance and financial position.
Public Sector Funding and Political Risk
A significant proportion of the group's workload is linked directly or indirectly to local authorities and City Hall, housing association and regeneration projects. Changes in central government funding, housing policy, planning legislation or local authority spending priorities may result in the delay, reduction or cancellation of projects. Political uncertainty can adversely affect the pipeline of future work and the timing of project delivery.
The group seeks to maintain a diversified client base across local authorities, Housing Associations and registered providers, international work for state and regional government and Toronto City Hall private developers and other sectors, while monitoring policy developments and maintaining strong client relationships.
Long-Term Contract and Project Delivery Risk
Architectural commissions frequently extend over multiple years and are subject to changes in client requirements, planning outcomes, construction costs and project viability. Delays or cancellations can affect revenue recognition, profitability and cash flow. The group is also exposed to the risk of underestimating project resource requirements.
Regular project reviews are undertaken to monitor budgets, resource utilisation, programme changes and recoverability of amounts due from clients. We have an experienced team who are able to mitigate risks.
Professional Liability and Regulatory Compliance Risk
The group operates quality assurance procedures, peer review processes and maintains appropriate levels of professional indemnity insurance.
Economic and Construction Sector Risk
Demand for architectural services is influenced by broader economic conditions, interest rates, inflation, construction costs, public sector funding and wider and investor confidence. Adverse economic conditions may reduce development activity, delay investment decisions and increase pressure on fee levels and project profitability.
Management regularly reviews forecasts, workload projections and resource requirements and seeks to maintain a balanced portfolio of projects across sectors and stages of development.
Credit and Cash Flow Risk
The group monitors receivable balances closely, undertakes regular credit assessments and maintains regular dialogue with clients regarding payment milestones. Our public sector clients are responsible for in their terms and fees are received regularly in the main which ensures stability.
Approved by the Board of Directors and signed on its behalf by:
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P Karakusevic
Director |
The director presents this annual report on the affairs of the Company and the Group, together with the financial statements and auditors’ report, for the financial year ended 31 December 2025.
PRINCIPAL ACTIVITIES
GOING CONCERN
DIVIDENDS
The director paid a dividend of £905,289 in the current financial year (2024: £655,000).
DIRECTOR
The director, who served during the financial year and to the date of this report except as noted, was as follows:
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AUDITOR
Each of the persons who is a director at the date of approval of this report confirms that:
* So far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware; and
* The director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
Praxis have expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place for them to be deemed reappointed as auditors in the absence of an Annual General Meeting.
Approved by and signed by the director:
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P Karakusevic
Director |
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. Under company law the director must not approve the financial statements unless the director is satisfied that they give a true and fair view of the state of affairs of the Company and Group and of the profit or loss of the Group for that financial period.
In preparing these financial statements, the director is required to:
* Select suitable accounting policies and then apply them consistently;
* Make judgements and accounting estimates that are reasonable and prudent;
* State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
* Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company and Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and Group and enable them to ensure that the financial statements comply with the Companies Act 2006. The director is also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Karakusevic Carson Architects Limited (the ‘Parent Company’) and its subsidiaries (the ‘Group’) for the financial year ended 31 December 2025, which comprise the Consolidated Profit and Loss Account, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows, the accounting policies, and the related notes 1 to 21, 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).
In our opinion the financial statements of Karakusevic Carson Architects Limited (the ‘Company’):
* Give a true and fair view of the state of the Company and Group's affairs as at 31 December 2025 and of the Group's profit for the financial year then ended;
* Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"; and
* Have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report.
We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 Group 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 director with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
The comparative figures were unaudited.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
* The information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
* The Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Director's Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
* Adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
* The Parent Company financial statements are not in agreement with the accounting records and returns; or
* Certain disclosures of director's remuneration specified by law are not made; or
* We have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the Director's Responsibilities Statement, the director is 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 director determines 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 director is responsible for assessing the Group and Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Group and Parent Company or to cease operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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.
We considered the nature of the Company’s industry and its control environment, and reviewed the Company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework(s) that the Company operates in, and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. In this context we considered the Companies Act 2006 together with UK GAAP. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statements.
Furthermore, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company and the Group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the Company and the Group for fraud and the laws and regulations we considered in this context for the UK operations were the General Data Protection Regulation (GDPR) and employment legislation.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
As a result of performing the above, we identified the greatest potential for fraud (or non-compliance with laws and regulations) in the following areas, and our specific procedures performed to address them are described below:
Revenue recognition
We have considered the risk of revenue being artificially overstated and understated by management in relation to long term contract accounting. For a sample of projects we have interrogated the calculations produced by management, vouching to supporting external evidence and recalculating the stage of completion to compare and assess the risk of revenue being incorrectly or deliberately misstated during the year. We have agreed the WIP schedule to the financial statements. We have also reviewed the schedule against sales invoices and recalculated the expected deferred/accrued revenue for our selected sample.
Staff costs
We have considered where fraud may exist in respect of staff costs and salaries. In addressing the risk we have performed analytical procedures to corroborate the completeness of payroll costs as well as confirmed the existence of staff and appropriate recording of starters and leavers throughout the year. We have also considered the risk of duplicate employee recording and evidence of additional costs of close family relationships connected with key management.
Management override
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
* reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
* performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
* enquiring of management and in-house legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
* reading minutes of meetings of those charged with governance.
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.
For and on behalf of
Statutory Auditor
London
EC2Y 9DT
| Note | 2025 | 2024 | ||
| £ | £ | |||
| Turnover | 3 |
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| Cost of sales | (
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| Gross profit |
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| Administrative expenses | (
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| Other operating income | 4 |
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| Operating profit |
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| Other non-operating loss |
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| Profit before interest and taxation | 830,538 | 648,894 | ||
| Interest receivable and similar income | 5 |
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| Interest payable and similar expenses | 5 | (
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| Profit before taxation | 6 |
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| Tax on profit | 9 | (
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| Profit for the financial year |
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There were no items of other comprehensive income or losses for the current or prior year other than those included in the Profit and Loss Account, accordingly no Statement of Comprehensive Income is presented.
| Note | 2025 | 2024 | ||
| £ | £ | |||
| Fixed assets | ||||
| Intangible assets | 10 |
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| Tangible assets | 11 |
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| 1,473,997 | 1,682,894 | |||
| Current assets | ||||
| Debtors | 13 |
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| Cash at bank and in hand | 14 |
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| 4,009,095 | 4,996,179 | |||
| Creditors: amounts falling due within one year | 15 | (
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| Net current assets | 2,419,789 | 1,991,043 | ||
| Total assets less current liabilities | 3,893,786 | 3,673,937 | ||
| Provision for liabilities | 16 | (
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| Net assets | 3,321,145 | 3,673,937 | ||
| Capital and reserves | 17 | |||
| Called-up share capital |
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| Profit and loss account |
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| Total shareholder's funds | 3,321,145 | 3,673,937 |
The financial statements of Karakusevic Carson Architects Limited (registered number:
|
P Karakusevic
Director |
| Note | 2025 | 2024 | ||
| £ | £ | |||
| Fixed assets | ||||
| Intangible assets | 10 |
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| Tangible assets | 11 |
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| Investments | 12 |
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| 1,444,036 | 1,635,757 | |||
| Current assets | ||||
| Debtors | 13 |
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| Cash at bank and in hand | 14 |
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| 3,336,077 | 4,577,014 | |||
| Creditors: amounts falling due within one year | 15 | (
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| Net current liabilities | (515,112) | (840,269) | ||
| Total assets less current liabilities | 928,924 | 795,488 | ||
| Provision for liabilities | 16 | (
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| Net assets | 356,283 | 795,488 | ||
| Capital and reserves | 17 | |||
| Called-up share capital |
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| Profit and loss account |
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| Total shareholder's funds | 356,283 | 795,488 |
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements. The profit of the parent company was £466,084 (2024: profit of £550,375).
The financial statements of Karakusevic Carson Architects Limited (registered number:
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P Karakusevic
Director |
| Called-up share capital | Profit and loss account | Total | |||
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| Called-up share capital | Profit and loss account | Total | |||
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| 2025 | 2024 | ||
| £ | £ | ||
| Operating profit |
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| Adjustment for: | |||
| Depreciation and amortisation |
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| Loss on sale of plant and equipment |
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| Increase in provisions |
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| Operating cash flows before movement in working capital |
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| Income taxes paid | (
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| Purchase of plant and machinery | (
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| Equity dividends paid | (905,289) | (655,000) | |
| Interest paid | (22,638) | (13,003) | |
| New director loan | 0 | 1,755 | |
| Net cash flows from financing activities | (
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| Reconciliation to cash at bank and in hand: | |||
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Non-cash transactions
In the prior year, the Group acquired goodwill at a cost of £1,750,000 from a connected entity. The non-cash consideration for this was the assumption of net liabilities of £1,750,000 from the same entity.
The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
Karakusevic Carson Architects Limited (the Group) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Group's registered office is Studio 501 37 Cremer Street, Hackney, London, E2 8HD, United Kingdom. These financial statements comprise the consolidated financial statements of the Company and its subsidiary undertakings (together referred to as "the Group").
The principal activities are set out in the Strategic Report.
The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Financial Reporting Standard 102 (FRS 102) applicable in the UK and Republic of Ireland issued by the Financial Reporting Council and the requirements of the Companies Act 2006.
The financial statements are presented in pounds sterling which is the functional currency of the Group and rounded to the nearest £.
The director has assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The director has a reasonable expectation that the Group has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
The Group financial statements consolidate the financial statements of the Company and its subsidiary undertakings drawn up to 31 December each year.
On 8th December 2023, Karakusevic Carson Architects Limited acquired 100% of the shares in Karakusevic Carson Services Limited. This transaction is a group reconstruction and so the business combination has been accounted for using the merger method. The transaction meets the requirements of a group reconstruction because: the ultimate equity holders remain the same, the rights of each equity holder, relative to the others, are unchanged; and no non-controlling interest in the net assets of the group is altered by the transfer.
In 2023 £2,589,721 was added to group reserves in respect of the subsidiary's pre acquisition reserves.
At each period end foreign currency monetary items are translated using the closing rate. Nonmonetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated profit and loss account.
Rendering of architectural services
When the outcome of a transaction can be estimated reliably, turnover from architectural services is recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to the proportion of contract cost incurred to date compared to the total contract cost to completion.
Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the costs recognised that are recoverable.
Short term benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised as an expense when the Group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Defined contribution schemes
When employees have rendered service to the Company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.
The Company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Balance Sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the Balance Sheet date. Timing differences are differences between the Group's taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date that are expected to apply to the reversal of the timing difference. Deferred tax relating to property, plant and equipment is measured using the revaluation model and investment property is measured using the tax rates and allowances that apply to the sale of the asset.
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The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.
Non-financial assets
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). The recoverable amount of an asset is the higher of its fair value less costs to sell and its 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.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. 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.
Financial assets
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
For financial assets carried at amortised cost, the amount of impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument.
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.
Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Basic financial assets
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.
Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, or the Group transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the Group, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Basic financial 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.
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
Investments
Investments in subsidiaries are measured at cost less impairment. The Parent Company holds 100% of the shares in KCAT Limited, a subsidiary based in Canada. However, due to the entity's inclusion in the consolidated accounts being immaterial for the purpose of giving a true and fair view of the financial statements, this entity has not been consolidated.
Equity instruments
Equity instruments issued by the Group are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Group.
The company claims Research and Development Expenditure Credits ("RDEC") in respect of qualifying research and development expenditure. The credit is accounted for as a government grant in accordance with Section 24 of FRS 102 as it is intended to compensate the company for qualifying operating expenditure incurred on research and development activities.
The credit is recognised on an accruals basis in the period in which the qualifying expenditure is incurred where there is reasonable assurance that the company has complied with the relevant conditions and that the credit will be received.
The gross RDEC income is recognised within Other Operating Income in the profit and loss account. As the credit constitutes taxable income for corporation tax purposes, the related corporation tax charge is recognised within Tax on profit.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
In the application of the Group’s accounting policies, which are described in note 1, the director is required to make judgements, estimates and assumptions about the carrying amounts 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 financial year in which the estimate is revised if the revision affects only that period, or in the financial year
of the revision and future periods if the revision affects both current and future periods.
Critical judgements in applying the Group’s accounting policies
The following are the critical judgements, apart from those involving estimations (which are dealt with separately below), that the director has made in the process of applying the Group’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements.
The Group engages in projects that can take many years to complete. The director therefore must make estimations in terms of the level of revenue to recognise within each set of annual financial statements. Such estimations are by their nature judgemental but are backed by reviews of correspondence and resourcing forecasts performed post year end.
Turnover represents the fair value of architectural services provided to customers during the financial year excluding value added tax.
Breakdown by geographical market:
An analysis of the Group's turnover by geographical market is set out below.
| 2025 | 2024 | ||
| £ | £ | ||
| United Kingdom | 6,205,445 | 6,561,288 | |
| Rest of the World | 674,349 | 296,773 | |
| 6,879,794 | 6,858,061 |
| 2025 | 2024 | ||
| £ | £ | ||
| Research and Development Credits (RDEC) |
|
|
| 2025 | 2024 | ||
| £ | £ | ||
| Interest receivable and similar income |
|
|
|
| Interest payable and similar expenses | (
|
(
|
|
| (15,571) | (7,065) |
Profit before taxation is stated after charging/(crediting):
| 2025 | 2024 | ||
| £ | £ | ||
| Depreciation of tangible fixed assets (note 11) |
|
|
|
| Amortisation of intangible assets (note 10) |
|
|
|
| Government grants |
|
|
|
| Operating lease rentals |
|
|
|
| Foreign exchange losses |
|
|
An analysis of the auditor's remuneration is as follows:
| 2025 | 2024 | ||
| £ | £ | ||
| Fees payable to the Group’s auditor and its associates for the audit of the Group's annual financial statements: | 17,500 | 0 | |
| Total audit fees |
|
|
|
| Group | Group | ||
| 2025 | 2024 | ||
| Number | Number | ||
| The average monthly number of employees (including directors) was: | |||
| Architects, management and studio employees |
|
|
Their aggregate remuneration comprised:
| Group | Group | ||
| 2025 | 2024 | ||
| £ | £ | ||
| Wages and salaries |
|
|
|
| Social security costs |
|
|
|
| Other retirement benefit costs |
|
|
|
| 2,748,718 | 2,770,557 |
Accounted for as follows:
| Expensed in financial year | 2,748,718 | 2,770,557 |
The Company had no employees during the year (prior year 2024: nil). Director's remuneration paid by the Company and Group was £nil (prior year 2024: nil)
| 2025 | 2024 | ||
| £ | £ | ||
| Current tax on profit | |||
| UK corporation tax |
|
(
|
|
| Total current tax |
|
(
|
|
| Total tax on profit |
|
(
|
The tax assessed for the year is higher than (2024: lower than) the standard rate of corporation tax in the UK:
| 2025 | 2024 | ||
| £ | £ | ||
| Profit before taxation | 814,967 | 641,829 | |
| Tax on profit at standard UK corporation tax rate of 25% (2024: 25%) |
|
|
|
| Total tax charge for year | 203,742 | 160,457 |
Group
| Goodwill | Other intangible assets | Total | |||
| £ | £ | £ | |||
| Cost | |||||
| At 01 January 2025 |
|
|
|
||
| At 31 December 2025 |
|
|
|
||
| Accumulated amortisation | |||||
| At 01 January 2025 |
|
|
|
||
| Charge for the financial year |
|
|
|
||
| At 31 December 2025 |
|
|
|
||
| Net book value | |||||
| At 31 December 2025 |
|
|
|
||
| At 31 December 2024 |
|
|
|
Company
| Goodwill | Other intangible assets | Total | |||
| £ | £ | £ | |||
| Cost | |||||
| At 01 January 2025 |
|
|
|
||
| At 31 December 2025 |
|
|
|
||
| Accumulated amortisation | |||||
| At 01 January 2025 |
|
|
|
||
| Charge for the financial year |
|
|
|
||
| At 31 December 2025 |
|
|
|
||
| Net book value | |||||
| At 31 December 2025 |
|
|
|
||
| At 31 December 2024 |
|
|
|
Group
| Fixtures and fittings | Computer equipment | Total | |||
| £ | £ | £ | |||
| Cost | |||||
| At 01 January 2025 |
|
|
|
||
| Additions |
|
|
|
||
| At 31 December 2025 |
|
|
|
||
| Accumulated depreciation | |||||
| At 01 January 2025 |
|
|
|
||
| Charge for the financial year |
|
|
|
||
| At 31 December 2025 |
|
|
|
||
| Net book value | |||||
| At 31 December 2025 | 24,410 | 49,587 | 73,997 | ||
| At 31 December 2024 | 32,547 | 75,347 | 107,894 |
Company
| Fixtures and fittings | Computer equipment | Total | |||
| £ | £ | £ | |||
| Cost | |||||
| At 01 January 2025 |
|
|
|
||
| Additions |
|
|
|
||
| At 31 December 2025 |
|
|
|
||
| Accumulated depreciation | |||||
| At 01 January 2025 |
|
|
|
||
| Charge for the financial year |
|
|
|
||
| At 31 December 2025 |
|
|
|
||
| Net book value | |||||
| At 31 December 2025 | 24,410 | 19,527 | 43,937 | ||
| At 31 December 2024 | 32,547 | 28,111 | 60,658 |
Company
| Investments in subsidiaries | Total | ||
| £ | £ | ||
| Cost or valuation before impairment | |||
| At 01 January 2025 |
|
|
|
| At 31 December 2025 |
|
|
|
| Carrying value at 31 December 2025 |
|
|
|
| Carrying value at 31 December 2024 |
|
|
Investments in subsidiaries
The following were subsidiary undertakings of the Company:
| Name of entity | Registered office | Principal activity | Class of shares |
Ownership 31.12.2025 |
Ownership 31.12.2024 |
Held |
|
|
Studio 501 37 Cremer St, Hackney, London, E2 8HD, United Kingdom | Architectural and related sub consultancy and provision of office services to Karakusevic Carson Architects Limited. |
|
|
|
Direct |
|
|
181 Bay Street, Suite 800, Toronto, Ontario, Canada, M5J 2T9 | Payment services |
|
|
|
Direct |
For the year ending 31 December 2025, Karakusevic Carson Services Limited (company registration number 11067014), a subsidiary company, was entitled to exemption from audit under Section 479A of the Companies Act 2006 relating to subsidiary companies as a guarantee of its liabilities has been given by this Company.
| Group | Group | Company | Company | ||||
| 2025 | 2024 | 2025 | 2024 | ||||
| £ | £ | £ | £ | ||||
| Trade debtors |
|
|
|
|
|||
| Amounts recoverable on contracts |
|
|
|
|
|||
| Amounts owed by connected persons (note 19) |
|
|
|
|
|||
| Amounts owed by related parties (note 19) |
|
|
|
|
|||
| VAT recoverable |
|
|
|
|
|||
| Other taxation and social security |
|
|
|
|
|||
| Other debtors |
|
|
|
|
|||
| Prepayments |
|
|
|
|
|||
|
|
|
|
|
| Group | Group | Company | Company | ||||
| 2025 | 2024 | 2025 | 2024 | ||||
| £ | £ | £ | £ | ||||
| Cash at bank and in hand |
|
|
|
|
| Group | Group | Company | Company | ||||
| 2025 | 2024 | 2025 | 2024 | ||||
| £ | £ | £ | £ | ||||
| Director loans (note 19) |
|
|
|
|
|||
| Payments received on account |
|
|
|
|
|||
| Trade creditors |
|
|
|
|
|||
| Amounts owed to own subsidiaries (note 19) |
|
|
|
|
|||
| Amounts owed to connected persons (note 19) |
|
|
|
|
|||
| Taxation and social security |
|
|
|
|
|||
| VAT |
|
|
|
|
|||
| Accruals |
|
|
|
|
|||
| Other creditors |
|
|
|
|
|||
|
|
|
|
|
There are no amounts included above in respect of which any security has been given by the Group or Company.
Group
| Operational | Other | Total | |||
| £ | £ | £ | |||
| At 01 January 2025 |
|
|
0 | ||
| Charged to the Profit and Loss Account |
|
|
203,964 | ||
| Reclassification from Accruals and deferred income |
|
|
368,677 | ||
| At 31 December 2025 |
|
|
572,641 | ||
Company
| Operational | Other | Total | |||
| £ | £ | £ | |||
| At 01 January 2025 |
|
|
0 | ||
| Charged to the Profit and Loss Account |
|
|
203,964 | ||
| Reclassification from Accruals and deferred income |
|
|
368,677 | ||
| At 31 December 2025 |
|
|
572,641 | ||
| 2025 | 2024 | ||
| £ | £ | ||
| Allotted, called-up and fully-paid | |||
|
|
|
|
|
| Presented as follows: | |||
| Called-up share capital presented as equity | 100 | 100 |
The profit and loss reserve represents cumulative profits or losses, net of dividends paid and other adjustments.
Pensions
The Group operates a defined contribution pension scheme for the director and employees. The assets of the scheme are held separately from those of the Group in an independently administered fund.
| Group | Group | Company | Company | ||||
| 2025 | 2024 | 2025 | 2024 | ||||
| £ | £ | £ | £ | ||||
| Unpaid contributions due to the fund (inc. in other creditors) |
|
|
|
|
The Group had no material capital commitments at the year ended 31 December 2025.
The Group has availed of the exemption provided in FRS 102 Section 33 Related Party Disclosures not to disclose transactions entered into with fellow group companies that are wholly owned within the group of companies of which the Group is a wholly owned member.
The director of the Group is deemed to be the key personnel of the Group as defined in Section 33 of FRS 102. No director's remuneration was paid during the current or previous year.
Transactions with related parties or connected persons
Amounts owed by connected persons
| 2025 | 2024 | ||
| £ | £ | ||
| Entities under common control | 925,746 | 1,038,602 | |
| 0 | 0 | ||
| 925,746 |
|
Amounts owed to connected persons
| 2025 | 2024 | ||
| £ | £ | ||
| Entities under common control |
|
|
During the year, the Company made purchases of £408,914 (2024: £461,995) from an entity under common control.
Transactions with the entity’s director (or members of its governing body)
Amounts owed to director
| 2025 | 2024 | ||
| £ | £ | ||
| Directors' Loan Account |
|
|
Under the terms of the agreement, the Company and its subsidiary provided a guarantee of the borrower's obligations and granted a fixed and floating charge over substantially all of its assets as security for those obligations.
At the date of approval of these financial statements, no amounts have become payable by the Company or its subsidiary under the guarantee and the Director does not consider that any provision is required in respect of the arrangement.
The mortgage facility secured by the guarantee amounted to £2,270,000.
P Karakusevic is the ultimate controlling party by virtue of majority ownership of the company’s issued ordinary shares.