Arup Financial Statements 2009

FinancialStatements2009 ArupGroupLtd(Consolidated) Coverimage:GreenPixZeroEnergyMediaWall,Beijing,ChinaⒸSimoneGiostra/Arup/ZhouRuoguArchitecturePhotography ContentsPage Directors’report1-2 Independentauditors’report3 Profitandlossaccount4 Noteofhistoricalcostprofitsandlosses4 Statementoftotalrecognisedgainsandlosses4 Groupbalancesheet5 Companybalancesheet6 Cashflowstatement7 Notestothefinancialstatements8-22 Directors’report Thedirectorspresenttheirreporttogetherwiththefinancialstatementsfortheyearended31March2009whichwereapprovedbytheBoardofDirectorson22October2009. ThecapitaloftheCompanyisdividedintoequityshares,whichareheldintrustforthebenefitoftheemployees(pastandpresent)oftheGroup,andvotingsharesthatareheldbytheOveArupPartnershipCharitableTrust. Principalactivity TheCompanyanditssubsidiariespractiseinthefieldofconsultingengineeringservices,inarchitectureandinotherrelatedprofessionalskills. EuropeanUnionbranches TheGrouphassignificantbranchesoperatingintheEuropeanUnioncountriesofPolandandRomania. Reviewofthebusinessandfuturedevelopments TheGroupturnoverfortheyearincreasedby22.5% (2008:26.8%)andtheGroupmadeatotalprofitbeforetax,dividendsandstaffprofitshareof£76.6m(2008:£81.4m). TheperformanceanddevelopmentoftheGroupisinlinewiththeexpectationsofthedirectors. Thedirectorsdrawattentiontothefollowingmatterthathashadanimpactonthereportedperformanceinthecurrentyear: •TheresultsincludethedefinedbenefitpensionschemeliabilitiesandassetsascalculatedunderFRS17.Thisshowsasanetliabilityonthebalancesheetof£98.9m(2008:£37.8m). Theprincipalrisksanduncertaintiesfacingthebusinessincludeforeignexchangeriskandriskresultingfromthediversegeographicalspreadofthebusinessanditsabilitytocontinuetosecurenewprojectsanddelivertheperformanceofexistingprojectsinlinewithmanagement’sobjectives.Tomonitorthese,thedirectorsusethefollowingfinancialkeyperformanceindicators(KPIs): •TurnoverandprofitperpersonisafinancialKPIusedtomonitorthecontinuedcontributiontotheCompany. Incalculatingthismeasureprofitisstatedbeforetax,dividendsandprofitsharepayabletostaff.Fortheyearended31March2009,turnoverperpersonwas£85k(2008:£81k)andprofitperpersonwas£8k(2008:£9k). •Staffturnoverisakeynon-financialmeasureofbusinessperformance.Fortheyearended31March2009,staffturnoverwas10.0%(2008:10.8%). Directorsandtheirinterests TheDirectorsofArupGroupLtdduringtheyearwereasfollows: AJBelfieldRFCare TGACarfraeAKCChanPGDilley TMHill(Resigned31/03/09)GSHodkinson LMLui JCMilesMRaman DJSingletonDAWhittleton NodirectorhasaninterestinthesharesoftheCompany(oranyothermemberoftheGroup)otherthanthroughtheir interestasanemployeeoftheGroupintheemployeetrustswhichowntheequitysharesoftheCompany. Auditors Theauditors,HorwathClarkWhitehillLLP,willretireattheforthcomingAnnualGeneralMeetingandofferthemselvesforre-appointment. Charitabledonations DuringtheyeartheGroupmadecharitabledonationstoUKbeneficiariesamountingto£551k(2008:£281k). Employees ThemaintenanceofahighlyskilledworkforceiskeytothefutureoftheCompany.HealthandSafetymattersareregularlyreviewedbythedirectorsanditistheirpolicy toensurethat: •fullandfairconsiderationisgiventoallapplicationsforemploymentmadebydisabledpersons,havingregardtotheircapabilities; •whenexistingemployeesbecomedisabled(whetherfromillnessoraccident)everyreasonableeffortismadetocontinuetoprovidesuitableemploymenteitherinthesame,orbytraining,inanalternativejob;and •disabledpersonsaregivenequalconsiderationfortraining,careerdevelopmentandopportunitiesforpromotionwithintheCompany. Directors’report|fortheyearended31March20092 Directors’report(continued) TheCompanyisactiveinthefieldofemployeecommunicationsandemployeesareencouragedtoexpresstheirviewsonmajorpolicyissues.EachyearemployeesareprovidedwithaChairman’sReportandfinancialinformation.EmployeesreceivethebalanceofCompanyprofitseachyearaftertransfertoreserves. StatementofDirectors’responsibilities CompanylawrequiresthedirectorstopreparefinancialstatementsforeachfinancialperiodwhichgiveatrueandfairviewofthestateofaffairsoftheCompanyattheendoftheyear,anditsprofitorlossfortheyearthenended.Inpreparingthosefinancialstatements,thedirectorsarerequiredto: •makejudgementsandestimatesthatarereasonableandprudent; •selectsuitableaccountingpoliciesandthenapplythemconsistently; •statewhetherapplicableaccountingstandardshavebeenfollowed,subjecttoanymaterialdeparturesdisclosedandexplainedinthefinancialstatements;and •preparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetoassumethattheCompanywillcontinueinbusiness. ThedirectorsareresponsibleforkeepingproperaccountingrecordswhichdisclosewithreasonableaccuracyatanytimethefinancialpositionoftheCompanyandenablethemtoensurethatthefinancialstatementscomplywiththeCompaniesAct1985.TheyarealsoresponsibleforsafeguardingtheassetsoftheCompanyandhencefortakingreasonablestepsforthepreventionoffraudandotherirregularities. LegislationintheUnitedKingdomgoverningthepreparationanddisseminationoftheaccountsandtheotherinformationincludedinAnnualReportsmaydifferfromle