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Orms Designers + Architects Limited
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for the year ended 31 December 2022
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Registered number: 02219594
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Orms Designers + Architects Limited
Registered number:02219594
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Statement of financial position
as at 31 December 2022
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Capital redemption reserve
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Page 1
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Orms Designers + Architects Limited
Registered number:02219594
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Statement of financial position (continued)
as at 31 December 2022
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 17 March 2023.
The notes on pages 3 to 11 form part of these financial statements.
Page 2
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Orms Designers + Architects Limited
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Notes to the financial statements
for the year ended 31 December 2022
Orms Designers + Architects Limited is a private company limited by shares and incorporated in England, registration number 02219594. The company's principal place of business and registered office is 1 Oliver's Yard, 55-71 City Road, London, EC1Y 1HQ.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, 'the Financial Reporting Standard applicable in the UK and Republic of Ireland ('FRS 102') and the Companies Act 2006.
The following principal accounting policies have been applied:
The directors have considered the ongoing impact of the COVID-19 pandemic and the current economic uncertainty on the company's business, with a particular focus on its effect on ongoing and potential architecture projects, the company's clients, suppliers and employees.
The directors do not consider this to be a cause for material uncertainty in respect of the company's ability to continue as a going concern. The company has adapted well, successfully employing contingency plans, and the directors consider that the company has sufficient financial resources to continue for the foreseeable
future.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, taking into account discounts, rebates, value added tax and other sales taxes. Turnover represents the amounts derived from the provision of design services and products, which fall within the company's ordinary activities, all of which are continuing, stated net of value added tax.
Rendering of services
Turnover arising from the provision of architectural design services is assessed on a contract by contract basis and reflected in profit and loss by recording turnover and related costs as contract activity progresses. Turnover is calculated as the proportion of total contract value which contract costs to date bear to total expected contract costs.
Profit on long term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which hours worked to date bear to total expected hours for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen.
Page 3
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Orms Designers + Architects Limited
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Notes to the financial statements
for the year ended 31 December 2022
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The estimated useful lives range as follows:
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Leasehold Improvement costs
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Short term debtors are measured at transaction price, less any impairment.
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit and loss.
Short term creditors are measured at the transaction price.
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Operating leases: the company as lessor
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Rental income from operating leases is credited to profit and loss on a straight line basis over the term of the relevant lease.
Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.
Page 4
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Orms Designers + Architects Limited
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Notes to the financial statements
for the year ended 31 December 2022
2.Accounting policies (continued)
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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Operating leases: the company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received as an incentive to sign an operating lease are recognised on a straight line basis over the lease term.
Defined contribution pension plan
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the company in independently administered funds.
Interest income is recognised in profit or loss using the effective interest method.
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.
The company established Orms Employee Ownership Trust to enable shares in the company to be held by the trustees for the benefit of the company's employees. Distributions made by the company are treated as gifts to the trust so the trust can meet its obligations.
Page 5
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Orms Designers + Architects Limited
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Notes to the financial statements
for the year ended 31 December 2022
2.Accounting policies (continued)
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
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The average monthly number of employees, including directors, during the year was 59 (2021 - 60).
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Page 6
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Orms Designers + Architects Limited
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Notes to the financial statements
for the year ended 31 December 2022
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Leasehold improvement costs
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Charge for the year on owned assets
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Page 7
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Orms Designers + Architects Limited
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Notes to the financial statements
for the year ended 31 December 2022
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Investment in subsidiary company
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Subsidiary undertaking
The following was a subsidiary undertaking of the company:
Name Class of shares Holding
Orms Trustees Limited Ordinary 100%
The registered office of Orms Trustees Limited is 1 Oliver's Yard, 55-71 City Road, London, EC1Y 1HQ.
The aggregate of the share capital and reserves as at 31 December 2021 and the profit or loss for the year ended
on that date for the subsidiary undertaking were as follows:
Aggregate of share
Name capital and reserves Profit/(Loss)
Orms Trustees Limited 1 -
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Prepayments and accrued income
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Amounts recoverable on long-term contracts
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Included within other debtors is a rent deposit of £96,930 (2021 - £96,930) receivable after more than one year.
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Page 8
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Orms Designers + Architects Limited
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Notes to the financial statements
for the year ended 31 December 2022
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Creditors: amounts falling due within one year
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Payments received on account
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Other taxation and social security
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Accruals and deferred income
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Creditors: amounts falling due after more than one year
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Accruals and deferred income
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Fixed asset timing difference
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Short term timing difference
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Page 9
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Orms Designers + Architects Limited
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Notes to the financial statements
for the year ended 31 December 2022
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Charged to profit and loss
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Allotted, called up and fully paid
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45 (2021 -45) Ordinary shares of £1.00 each
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Capital redemption reserve
Represents non-distributable reserves derived from the company's purchase of its own shares.
Profit and loss account
Includes all current and prior period retained profits and losses.
There were no contingent liabilities at 31 December 2022 or at 31 December 2021.
There were no capital commitments at 31 December 2022 or at 31 December 2021.
The company contributes to the personal pension schemes of the directors and certain employees. Contributions are charged to the profit and loss account as they become payable in accordance with the contribution rates agreed with the directors and the relevant employees. The charge for the year was £197,216 (2021: £209,338). At 31 December 2022, there were outstanding pension contributions of £16,754 (2021: £17,379).
Page 10
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Orms Designers + Architects Limited
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Notes to the financial statements
for the year ended 31 December 2022
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Commitments under operating leases
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At 31 December 2022 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Commitments under operating leases as lessor
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Later than 1 year and not later than 5 years
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Related party transactions
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During the year the company made cash distributions of £343,862 (2021: £299,331) to Orms Employee Ownership Trust, the majority shareholder.
At the year end, amounts totalling £nil (2021: £42) were due to one of the directors relating to expenses.
All other transactions with directors have been concluded under normal market conditions.
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The auditor's report on the financial statements for the year ended 31 December 2022 was unqualified.
The audit report was signed on 17 March 2023 by Claire Watkins (Senior statutory auditor) on behalf of Buzzacott LLP.
Page 11
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