Pegasus Planning Group Limited - Period Ending 2021-06-30
Pegasus Planning Group Limited - Period Ending 2021-06-30
Registration number:
for the
Year Ended
Pegasus Planning Group Limited
Contents
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Company Information |
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Directors' Report |
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Strategic Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated profit and loss account |
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Consolidated balance sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Pegasus Planning Group Limited
Company Information
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Directors |
P Cook J Tarzey M Carr G Lees R Barber J Peachey P Burrell D Hutchison D Weaver C Virtue P Smith G Longley C Calvert C May S Kerby N Crouch S Tibenham J Rainey G Stoten |
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Registered office |
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Bankers |
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Auditors |
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Pegasus Planning Group Limited
Directors' Report for the Year Ended 30 June 2021
The Directors present their report and the for the year ended 30 June 2021.
Principal activity
The principal activity of the group is the provision of architect and planning consultancy services.
Directors of the company
The directors who held office during the year were as follows:
Dividends
The directors recommend an interim dividend of £4,098,933 (2020 - £3,875,913) in respect of the financial year ended 30 June 2021.
Going concern
After reviewing the group's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Disclosure of information to the auditor
Each Director has taken the 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 Group's auditor is aware of that information. The Directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
Hazlewoods LLP have expressed their willingness to continue in office.
Approved by the
Director
Pegasus Planning Group Limited
Strategic Report for the Year Ended 30 June 2021
The Directors present their strategic report for the year ended 30 June 2021.
Fair review of the business
Following what we hope to be the worst of the Covid pandemic, we have been able to increase the revenue of the business by £3.8m in the year to June 2021. This excellent result has been driven to a significant degree by the resurgence of the housing market across the country. Measures we took to protect and strengthen the capacity of the business enabled us to respond to the growing demands of our residential market clients throughout the year, but we are also pleased with the increasing contribution from work in other sectors of the economy, including renewable energy and telecoms.
The Company's key financial and other performance indicators during the year were as follows:
|
Unit |
2021 |
2020 |
|
|
Turnover |
£'000 |
33,818 |
30,008 |
|
Gross Profit Margin |
% |
37 |
39 |
|
Operating Profit |
£'000 |
6,077 |
4,243 |
|
Shareholders Funds |
£'000 |
11,803 |
10,898 |
|
Current Assets as a % of Current Liabilities |
% |
278 |
273 |
|
Average number of employees |
No. |
373 |
331 |
Future developments
Due to the resilience of the company through the pandemic we remain in a highly competitive position, with a clear focus on the retention and growth of our fee earning staff. We will also continue to grow the new services we have invested in, including transport and infrastructure and heritage. In addition, our architectural services have expanded with the successful integration of Armstrong Burton following its acquisition in early 2020.
Environmental matters
The company operates under an accreditation for ISO14001, a recognised environmental management system.
We are now looking to deepen our commitments to minimising the adverse impacts on the environment of operating our business. With the support of external specialists, we are determined to develop policies and actions that will deliver clearly defined objectives in realistic timescales, in particular with regard to our energy usage and carbon footprint.
Social and community issues
Our diverse and talented employees take part in a number of charitable events and we are very proud of their achievements in raising money for charities that are dear to their hearts.
The company has made a number of charitable donations over the past year, and each year supports a selected charity nominated by the staff.
Principal risks and uncertainties
The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the Company relate to the recruitment and retention of the right staff, changes in the external economic, policy and legal context and the growth in competition. We continue to maintain competitive salary, bonus and benefit packages for employees in order to attract the best talent and encourage low levels of staff turnover. We carefully monitor the external environment in which we operate and look to mitigate risks by developing new areas of expertise and expanding into sectors, including under different consent regimes, where our services can support clients.
Pegasus Planning Group Limited
Strategic Report for the Year Ended 30 June 2021
Financial instruments
The Company's financial instruments comprise cash and liquid resources, and various other items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to finance the operations of the Company. The Company is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through credit control procedures. The nature of the Company's other financial instruments means they are not subject to price or liquidity risk.
The Board constantly monitor the Company's trading results to ensure that the Company can meet its future obligations as they fall due and have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Approved by the
Director
Pegasus Planning Group Limited
Statement of Directors' Responsibilities
The Directors are responsible for preparing the Strategic Report, Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:
• | select suitable accounting policies and 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 Company will continue in business. |
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group's and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Pegasus Planning Group Limited
Independent Auditor's Report to the Members of Pegasus Planning Group Limited
Opinion
We have audited the financial statements of Pegasus Planning Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2021, which comprise the Consolidated profit and loss account, Consolidated balance sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated 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 Group's and the parent Company's affairs as at 30 June 2021 and of the group's profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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.
Pegasus Planning Group Limited
Independent Auditor's Report to the Members of Pegasus Planning Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent Company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors’ remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group’s and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
In identifying and assessing risks of material misstatement in respect of fraud, including irregularities and non-compliance with laws and regulations, our procedures included the following:
• We obtained an understanding of the legal and regulatory frameworks applicable to the company financial statements or that had a fundamental effect on the operations of the company. We determined that the most significant laws and regulations included UKGAAP, UKCompaniesAct 2006, and taxation laws;
• We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included challenging assumptions and judgments made by management in its significant accounting estimates and identifying and testing journal entries, in particular any journal entries posted with unusual characteristics.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Pegasus Planning Group Limited
Independent Auditor's Report to the Members of Pegasus Planning Group Limited
Use of this 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
Staverton Court
GL51 0UX
Pegasus Planning Group Limited
Consolidated profit and loss account for the Year Ended 30 June 2021
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Note |
2021 |
2020 |
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|
Turnover |
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|
|
|
Cost of sales |
( |
( |
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Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
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Other operating income |
|
|
|
|
Operating profit |
|
|
|
|
Other interest receivable and similar income |
|
|
|
|
Interest payable and similar charges |
( |
( |
|
|
(9,762) |
(723) |
||
|
Profit before tax |
|
|
|
|
Taxation |
( |
( |
|
|
Profit for the financial year |
|
|
|
|
Profit/(loss) attributable to: |
|||
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Owners of the company |
|
|
The above results were derived from continuing operations.
The group has no other comprehensive income for the year.
Pegasus Planning Group Limited
(Registration number: 07277000)
Consolidated balance sheet as at 30 June 2021
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Note |
2021 |
2020 |
|
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Fixed assets |
|||
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Intangible assets |
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|
|
|
Tangible fixed assets |
|
|
|
|
|
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Current assets |
|||
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Debtors |
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|
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Cash at bank and in hand |
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|
|
|
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||
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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|
|
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Total assets less current liabilities |
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|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
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|
|
|
Share premium reserve |
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|
|
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Other reserves |
|
|
|
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Profit and loss account |
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Equity attributable to owners of the company |
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Total equity |
|
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Approved and authorised by the
Director
Pegasus Planning Group Limited
(Registration number: 07277000)
Balance Sheet as at 30 June 2021
|
Note |
2021 |
2020 |
|
|
Fixed assets |
|||
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Intangible assets |
|
|
|
|
Tangible fixed assets |
|
|
|
|
Investments |
|
|
|
|
|
|
||
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Current assets |
|||
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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 |
( |
( |
|
|
Net assets |
|
|
|
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Capital and reserves |
|||
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Called up share capital |
|
|
|
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Share premium reserve |
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|
|
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Other reserves |
|
|
|
|
Profit and loss account |
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|
|
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Total equity |
|
|
The company made a profit after tax for the financial year of £5,005,904 (2020 - profit of £3,385,360).
Approved and authorised by the
Director
Pegasus Planning Group Limited
Consolidated Statement of Changes in Equity for the Year Ended 30 June 2021
Equity attributable to the parent company
|
Share capital |
Share premium |
Other reserves |
Profit and loss account |
Total |
|
|
At 1 July 2019 |
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
( |
( |
|
Shares subscribed not issued |
- |
- |
182,280 |
- |
182,280 |
|
At 30 June 2020 |
|
|
|
|
|
|
Share capital |
Share premium |
Other reserves |
Profit and loss account |
Total |
|
|
At 1 July 2020 |
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
( |
( |
|
Shares subscribed not issued |
- |
- |
350,405 |
- |
350,405 |
|
At 30 June 2021 |
|
|
|
|
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Pegasus Planning Group Limited
Statement of Changes in Equity for the Year Ended 30 June 2021
|
Share capital |
Share premium |
Other reserves |
Profit and loss account |
Total |
|
|
At 1 July 2019 |
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
( |
( |
|
Shares subscribed not issued |
- |
- |
182,280 |
- |
182,280 |
|
At 30 June 2020 |
|
|
|
|
|
|
Share capital |
Share premium |
Other reserves |
Profit and loss account |
Total |
|
|
At 1 July 2020 |
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
( |
( |
|
Shares subscribed not issued |
- |
- |
350,405 |
- |
350,405 |
|
At 30 June 2021 |
|
|
|
|
|
Pegasus Planning Group Limited
Consolidated Statement of Cash Flows for the Year Ended 30 June 2021
|
Note |
2021 |
2020 |
|
|
Cash flows from operating activities |
|||
|
Profit for the year |
4,889,748 |
3,371,621 |
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
334,911 |
1,443,890 |
|
|
Profit on disposal of tangible fixed assets |
- |
(1,748) |
|
|
Finance income |
(1,505) |
(10) |
|
|
Finance costs |
11,267 |
733 |
|
|
Income tax expense |
1,178,292 |
871,208 |
|
|
6,412,713 |
5,685,694 |
||
|
Working capital adjustments |
|||
|
Increase in debtors |
(1,746,472) |
(196,639) |
|
|
(Decrease)/increase in creditors |
(1,846,514) |
1,016,441 |
|
|
Cash generated from operations |
2,819,727 |
6,505,496 |
|
|
Income taxes paid |
(763,761) |
(967,611) |
|
|
Net cash flow from operating activities |
2,055,966 |
5,537,885 |
|
|
Cash flows from investing activities |
|||
|
Interest received |
1,505 |
10 |
|
|
Acquisitions of tangible fixed assets |
(52,677) |
(107,087) |
|
|
Proceeds from sale of tangible fixed assets |
- |
7,500 |
|
|
Acquisition of intangible assets |
(729,444) |
(1,775,831) |
|
|
Cash balances acquired |
- |
1,048,306 |
|
|
Net cash flows from investing activities |
(780,616) |
(827,102) |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
(11,267) |
(733) |
|
|
Proceeds received in advance of share capital not issued |
350,405 |
182,280 |
|
|
Proceeds from bank borrowing draw downs |
- |
1,600,000 |
|
|
Repayment of bank borrowing |
(218,703) |
(13,955) |
|
|
Dividends paid |
(2,731,789) |
(2,666,939) |
|
|
Net cash flows from financing activities |
(2,611,354) |
(899,347) |
|
|
Net (decrease)/increase in cash and cash equivalents |
(1,336,004) |
3,811,436 |
|
|
Cash and cash equivalents at 1 July |
3,680,076 |
(131,360) |
|
|
Cash and cash equivalents at 30 June |
2,344,072 |
3,680,076 |
|
Pegasus Planning Group Limited
Notes to the Financial Statements for the Year Ended 30 June 2021
|
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
|
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 UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the Company and its subsidiary undertakings drawn up to 30 June 2021.
A subsidiary is an entity controlled by the Company. Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the Group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the Company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Pegasus Planning Group Limited
Notes to the Financial Statements for the Year Ended 30 June 2021
Going concern
After reviewing the group's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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 period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements
The Directors are required to make judgements regarding: the recoverability of trade debtor balances; amounts recoverable on long-term contracts; the fair value of work in progress; and the estimated useful life of tangible and intangible fixed assets. |
Key sources of estimation uncertainty
No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies..
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the Company’s activities. Turnover is shown net of value added tax.
The Company recognises revenue when: the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the Company's activities.
Government grants
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
Tax
The tax expense for the period comprises corporation tax and deferred 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 corporation 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.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the Company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible fixed assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible fixed assets includes directly attributable incremental costs incurred in their acquisition and installation.
Pegasus Planning Group Limited
Notes to the Financial Statements for the Year Ended 30 June 2021
Depreciation
Depreciation is charged so as to write off the cost of assets, as follows:
|
Asset class |
Depreciation method and rate |
|
Fixtures, fittings and equipment |
25% straight line |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the Group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill is amortised over its useful life, which shall not exceed five years if a reliable estimate of the useful life cannot be made.
Intangible assets
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
10% or 20% straight line |
|
Client list |
50% straight line |
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.
Debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business, and are recognised initially at the transaction price. They are subsequently measured at amortised cost, 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.
Amounts recoverable on contracts
Amounts recoverable on contracts, which are included within debtors, are stated at net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost.
Pegasus Planning Group Limited
Notes to the Financial Statements for the Year Ended 30 June 2021
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Group 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 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.
Financial instruments
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet, The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
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 profit or loss as described below.
A non-financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
For financial assets carried at amortised cost, the amount of an 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.
Pegasus Planning Group Limited
Notes to the Financial Statements for the Year Ended 30 June 2021
|
Revenue |
The analysis of the group's revenue for the year from continuing operations is as follows:
|
2021 |
2020 |
|
|
Rendering of services |
|
|
The total turnover of the company has been derived from its principal activity wholly undertaken in the United Kingdom.
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
|
2021 |
2020 |
|
|
Other operating income |
219,154 |
333,154 |
Other income includes £193,828 received under the Government's Furlough scheme within the year (2020: £324,884).
|
Operating profit |
Arrived at after charging
|
2021 |
2020 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Foreign exchange losses |
|
|
|
Operating lease expense - property |
|
|
|
Operating lease expense - other |
505,654 |
417,495 |
|
Staff costs |
Group
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2021 |
2020 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
Pegasus Planning Group Limited
Notes to the Financial Statements for the Year Ended 30 June 2021
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2021 |
2020 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
Other departments |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2021 |
2020 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
2,845,416 |
2,849,693 |
|
Auditors' remuneration |
|
2021 |
2020 |
|
|
Audit of these financial statements |
|
|
|
Other fees to auditors |
||
|
All other non-audit services |
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2021 |
2020 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
|
|
|
1,185,726 |
876,017 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
( |
|
Tax expense in the income statement |
|
|
Pegasus Planning Group Limited
Notes to the Financial Statements for the Year Ended 30 June 2021
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2020 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2021 |
2020 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Increase in UK and foreign current tax from unrecognised temporary difference from a prior period |
|
|
|
Other tax effects for reconciliation between accounting profit and tax expense (income) |
- |
|
|
Total tax charge |
|
|
Deferred tax
Group
Deferred tax assets and liabilities
|
2021 |
Asset |
|
Accelerated capital allowances |
( |
|
Other timing differences |
|
|
|
|
2020 |
Asset |
|
Accelerated capital allowances |
( |
|
Other timing differences |
|
|
|
Pegasus Planning Group Limited
Notes to the Financial Statements for the Year Ended 30 June 2021
|
Intangible assets |
Group
|
Goodwill |
|
|
Cost |
|
|
At 1 July 2020 |
|
|
Elimination at end of useful life |
( |
|
At 30 June 2021 |
|
|
Amortisation |
|
|
At 1 July 2020 |
|
|
Amortisation charge |
|
|
Elimination at end of useful life |
( |
|
At 30 June 2021 |
|
|
Carrying amount |
|
|
At 30 June 2021 |
|
|
At 30 June 2020 |
|
Company
|
Goodwill |
|
|
Cost |
|
|
At 1 July 2020 |
|
|
Transfer from investments on hive up of subsidiaries |
|
|
Elimination at end of useful life |
( |
|
At 30 June 2021 |
|
|
Amortisation |
|
|
At 1 July 2020 |
|
|
Amortisation charge |
|
|
Elimination at end of useful life |
( |
|
At 30 June 2021 |
|
|
Carrying amount |
|
|
At 30 June 2021 |
|
|
At 30 June 2020 |
|
Pegasus Planning Group Limited
Notes to the Financial Statements for the Year Ended 30 June 2021
|
Tangible fixed assets |
Group
|
Furniture, fittings and equipment |
|
|
Cost |
|
|
At 1 July 2020 |
|
|
Additions |
|
|
At 30 June 2021 |
|
|
Depreciation |
|
|
At 1 July 2020 |
|
|
Charge for the year |
|
|
At 30 June 2021 |
|
|
Carrying amount |
|
|
At 30 June 2021 |
|
|
At 30 June 2020 |
|
Company
|
Furniture, fittings and equipment |
|
|
Cost |
|
|
At 1 July 2020 |
|
|
Additions |
|
|
Acquired through hive up of subsidiary undertakings |
|
|
At 30 June 2021 |
|
|
Depreciation |
|
|
At 1 July 2020 |
|
|
Charge for the year |
|
|
Transfer from hive up of subsidiary undertakings |
|
|
At 30 June 2021 |
|
|
Carrying amount |
|
|
At 30 June 2021 |
|
|
At 30 June 2020 |
|
Pegasus Planning Group Limited
Notes to the Financial Statements for the Year Ended 30 June 2021
|
Investments |
Company
|
2021 |
2020 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Fair value |
|
|
At 1 July 2020 |
|
|
Impairment of investment to fair value |
( |
|
Transfer to goodwill following hive up of trade and assets |
( |
|
At 30 June 2021 |
|
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2021 |
2020 |
|||
|
Subsidiary undertakings |
||||
|
|
England |
Ordinary |
|
|
|
|
England |
Ordinary |
|
|
|
|
England |
Ordinary |
|
|
|
|
England |
Ordinary |
|
|
|
|
England |
Ordinary |
|
|
The subsidiaries are all incorporated in England and registered at Pegasus House, Queens Business Centre, Whitworth Road, Cirencester, Gloucestershire, GL7 1RT.
The principal activity of the subsidiaries is architectural services, other than Armstrong Burton Limited, which is dormant.
|
Debtors |
|
Group |
Company |
||||
|
Note |
2021 |
2020 |
2021 |
2020 |
|
|
Debtors |
|
|
|
|
|
|
Amounts owed by related parties |
- |
- |
|
- |
|
|
Other debtors |
|
|
|
|
|
|
Prepayments |
|
|
|
|
|
|
Accrued income |
- |
|
- |
|
|
|
Gross amount due from customers for contract work |
|
|
|
|
|
|
Deferred tax assets |
|
|
|
|
|
|
Total current trade and other debtors |
|
|
|
|
|
Pegasus Planning Group Limited
Notes to the Financial Statements for the Year Ended 30 June 2021
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
2021 |
2020 |
2021 |
2020 |
|
|
Cash on hand |
286 |
2,965 |
286 |
2,965 |
|
Cash at bank |
2,343,786 |
3,677,111 |
2,340,907 |
3,254,715 |
|
2,344,072 |
3,680,076 |
2,341,193 |
3,257,680 |
|
|
Creditors |
|
Group |
Company |
||||
|
Note |
2021 |
2020 |
2021 |
2020 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Creditors |
|
|
|
|
|
|
Amounts due to related parties |
- |
- |
|
|
|
|
Social security and other taxes |
|
|
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
|
|
Other creditors |
|
|
|
|
|
|
Accrued expenses |
|
|
|
|
|
|
Corporation tax liability |
856,760 |
434,795 |
856,760 |
395,493 |
|
|
Other current financial liabilities |
|
|
|
|
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Other non-current financial liabilities |
|
|
|
|
|
|
978,620 |
1,944,485 |
978,620 |
1,944,485 |
||
Pegasus Planning Group Limited
Notes to the Financial Statements for the Year Ended 30 June 2021
|
Loans and borrowings |
|
Group |
Company |
|||
|
2021 |
2020 |
2021 |
2020 |
|
|
Current loans and borrowings |
||||
|
Bank borrowings |
|
|
|
|
|
Group |
Company |
|||
|
2021 |
2020 |
2021 |
2020 |
|
|
Non-current loans and borrowings |
||||
|
Bank borrowings |
|
|
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
2021 |
2020 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
5,600 |
|
5,600 |
|
|
|
2,320 |
|
2,320 |
|
|
|
5,540 |
|
5,540 |
|
|
|
|
|
|
Pegasus Planning Group Limited
Notes to the Financial Statements for the Year Ended 30 June 2021
|
Related party transactions |
During the year the Company had the following related party transactions:
S Bawtree & A Cook
(Directors and shareholders of the Company)
During the year rent of £148,500 (2020 - £148,500) was paid by the Company in respect of a lease on a property owned by the Directors and used by the Company. At the year end £nil (2020 - £nil) was owed by the Company.
Callendar Farm Limited
(A company under common control)
During the year sales of £nil (2020 - £28,731) were made to Callendar Farm Limited. At the year end £nil (2020 - £nil) was owed to the Company.
Participator's loans
At the year end the £713,407 (2020 - £477,368) were owed by shareholders to the company:
The above loans to Director's and participators have been settled after the year end.
|
Control |
No one individual or entity controls the group.