Finance Switch Architects Finance Switch Architects This document is a high quality, collated...

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FinanceSwitch ArchitectsThis document is a high quality, collated version of the information distributed throughout the ‘Finance’ webpage within the Switch website. It outlines the Financial Business Plan of Switch Architects and covers all the relevant areas related to the sector. The Financial plan was generated using a Microsoft Excel spreadsheet with all the calculations within the document titled, ‘Editable Finance Management Microsoft Excel Spreadsheet’ in the relevant cell. This method of formatting allows Switch Architects to adjust the figures and react to any future change.

This document aims to answer the following questions;

How will Switch Architects demonstrate commercial viability? Where will Switch Architects get set-up funding, and how much is required?What will be the capital of the practice? What will be running costs of the practice? What profit does Switch Architects anticipate, and when?How might Switch expand the scope of the business activities?How would Switch Architect diversify or change course if needed? How might another economic recession affect Switch Architects?

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How will Switch Architects demonstrate commercial viability? How will Switch Architects demonstrate commercial viability? 3

Profit and Loss 3

Where will Switch Architects get set-up funding, and how much is required? 4

What will be the initial starting capital of Switch Architects? 5

What will be the running costs of the practice? 6

Yearly Cash Flow Introduction and Cash Flow 2024-25 9

Cash Flow 2025-26 11




What profit does Switch Architects anticipate, and when? 19

Breakeven Point 19

How might Switch expand the scope of the business activities? 21 Project Pricing Margin 21

Project Pricing 23

Sales Forecast 2024 - 2025 24





How would Switch Architect diversify or change course if needed? 29

Financial Strategy 29

Financial SWOT 30

How might another economic recession affect Switch Architects? 31

3

How will Switch Architects demonstrate commercial viability?Switch Architects will demonstrate commercial viability in a number of ways. Commercial viability is the ability for a business to compete effectively and to make a profit. Commercial viability will be achieved by Switch Architects by;

Achieving break-even in the second year.

Renting where possible to reduce overhead and prompt an earlier break-even and positive cash flow.

Calculating appropriate fees for projects.

Working on an array of project types which will ensure a constant flow of work if any building sector dips in demand.

Working on smaller projects that correlate to the number of team members to ensure an even and workable distribution of work.

Reducing the salary of the five key directors in the initial 2 years to ensure overheads are minimised.

Profit and LossAt Switch Architects the predicted profit and loss for the first five years are as follows;

2024/2025 -£88,144

2025/2026 £106,898

2026/2027 £234, 926

2027/2028 £294, 773

2028/2029 £255,906

PROJECTPRICINGMARGIN5%INCREASE

SomeraBano-FinanceManager

SwitchArchitects

PROFITS

Year TotalCashFlowIn TotalCashFlowOut NetCashFlowGrossProft2024-25 232,832£ £320,976 (88,144)£

2025-26 388,034£ 281,136£ 106,898£2026-27 £471,761 236,835£ 234,926£2027-28 618,936£ 324,163£ 294,773£2028-29 641,220£ 385,314£ 255,906£

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Where will Switch Architects get set-up funding, and how much is required?Switch Architects will obtain set up funding from four key places;1) Income from project fees at £2,120,924 from 2024 to 2029.

2) Equity Capitals (Investment from five directors) at £40,000 from 2024 to 2029.

3) Government Grants (Responding to the 2024 government initiative to maximise regeneration projects in the United Kingdom) at £55,000 from 2024 to 2029.

4) Bank Loans (Sourced from Natwest Banking as part of there New Business Loans) at £215,000 from 2024 to 2029.

More on Government Grants Responding to the regeneration boom

Switch responds to the regeneration boom of 2023 as a result of the change in government initiatives making regeneration a focal point in the future of UK construction and architecture. The government has invested £55,000 in regenerating spaces in less economically developed areas in the UK as a result of a petition held yearly between 2016 to 2022.

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What will be the initial starting capital of Switch Architects?Switch will have an initial starting capital in 2024 to 2025 of £130,000. This in-flow of money is vital for the company as it ensures a constant flow of income whilst the business goes through a period where in which the out-flow and overhead costs supersedes the sales income.

£100,000 is obtained from a bank loan with a monthly repayment over the course of 12 months. Switch will pay 7% interest on the loan which amounts to a total repayment of £103,832.10. This will cost Switch 3,832.10 over the 12-month payback period. This loan will be paid in monthly instalments of £8,652.67.

The remaining £30,000 of initial starting capital is obtained from director investments and a government grant. The five directors will collectively invest £10,000 at £2,500 each and through the government grant Switch will receive £20,000.

SalesRevenue EquityCapital Grants Loans2024-25 Q1[Jan-Mar] 47,744£ 2,500£ 5,000£ 25,000£

Q2[Apr-Jun] 47,744£ 2,500£ 5,000£ 25,000£Q3[Jul-Sep] 47,744£ 2,500£ 5,000£ 25,000£Q4[Oct-Dec] 47,744£ 2,500£ 5,000£ 25,000£

2025-26 Q1[Jan-Mar] 82,008£ 2,500£ 5,000£ 12,500£Q2[Apr-Jun] 82,008£ 2,500£ 5,000£ 12,500£Q3[Jul-Sep] 82,008£ 2,500£ 5,000£ 12,500£Q4[Oct-Dec] 82,008£ 2,500£ 5,000£ 12,500£



2028-29 Q1[Jan-Mar] 156,555£ 2,500£ -£ 1,250£Q2[Apr-Jun] 156,555£ 2,500£ -£ 1,250£Q3[Jul-Sep] 156,555£ 2,500£ -£ 1,250£Q4[Oct-Dec] 156,555£ 2,500£ -£ 1,250£

SalesRevenue EquityCapital Grants Loans97,940£ 2,500£ 5,000£ 12,500£293,820£ 7,500£ 15,000£ 37,500£

CashInFlowAreas

2025-2026CashIn-FlowAreas

SalesRevenue EquityCapital Grants Loans

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What will be the running costs of the practice?The running costs of Switch Architects can be identified as overheads and expenses. Company overheads and expenses are out-flows and they have been organised in relevant categories to monitor their value on a monthly and yearly basis.

Additionally, by organising the out-flows into relevant categories, Switch can monitor the value, change and respond to company and client demand as well as expansion.

The Out-Flow categories include;

Staff SalariesPrintingsFurnitureAdministration Software and HardwareVirtual Reality Software and HardwareArchitectural SoftwareTravel CostsSecurityInsuranceStationaryOffice MaintenanceRegistration, Memberships and SubscriptionsAdvertisementAccommodationStart Up Loan Repayment These categories have been subdivided further to provide more details that can be analysed and used to predict future requirements. This level of detail was vital to assess the value of each out-flow.

As a result, many of the out-flows vary in cost within the first five years. The initial out-flow of funds of £19,403 are minimised by renting equipment including plotters and accommodation such as rented offices. Additionally, the five Switch directors will have a salary reduction in comparison to their previous roles for the first two years to minimise cash out-flow.

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CashOut-FlowAreas

StaffSalaries Details ShortTermAction LongTermAction Justification2024 2025 2026 2027 2028

Types Year1 Year2 Year3 Year4 Year5

KeyEmployees Administrative/ITManagement 18,000£ 20,000£ 22,000£ 24,000£ 30,000£ StaffSalary.MarketingManagement 18,000£ 20,000£ 22,000£ 24,000£ 30,000£ StaffSalary.ImageManagement 18,000£ 20,000£ 22,000£ 24,000£ 30,000£ StaffSalary.TechnologyManagement 18,000£ 20,000£ 22,000£ 24,000£ 30,000£ StaffSalary.FinancialManagement 18,000£ 20,000£ 22,000£ 24,000£ 30,000£ StaffSalary.

OtherEmployees Cleaner 12,000£ 12,000£ 12,000£ 12,000£ StaffSalary.ArchitecturalAssistantPart1Qualified 18,000£ 18,000£ 18,000£ 18,000£ StaffSalary.ArchitecturalAssistantPart2Qualified 20,000£ 20,000£ 20,000£ 20,000£ StaffSalary.TechnologistsAssistant 18,000£ 18,000£ 18,000£ StaffSalary.ArchitecturalTechnologist 22,000£ 24,000£ 30,000£ StaffSalary.Architect 24,000£ 30,000£ StaffSalary.Architect 24,000£ 30,000£ StaffSalary.BuildingInformationModelling(BIM)Managementsalary 30,000£ StaffSalary.

90,000£ 150,000£ 200,000£ 260,000£ 338,000£

Printing Details Justification2024 2025 2026 2027 2028


PlotterHPDesignJetT79544-inPrinter(rent) 1,152£ 1,152£ £- -£ -£ Equipmentneededintheofficeforprinting.HPDesignJetT79544-inPrinter(buy) £- £- 2,670£ -£ -£ Equipmentneededintheofficeforprinting.

A4/A3PrinterandScannerCanonPIXMAAll-in-One 1required 45£ Equipmentneededintheofficeforprinting.A4/A3CanonPIXMAAll-in-OneB+W/ColourInk A4/A3PrinterandScannerInk 1,200£ 1,200£ 1,200£ 1,500£ 1,500£ Generalsupplies-Increasesovertimeasdemandintheworkplaceincreasesduetoincreasesinjobsandstaff.HPDesignJetT79544-inPrinter PlotterInk 1,500£ 1,500£ 1,500£ 1,800£ 1,800£ Generalsupplies-Increasesovertimeasdemandintheworkplaceincreasesduetoincreasesinjobsandstaff.

3,897£ 3,852£ 5,370£ 3,300£ 3,300£

Furniture Details Justification2024 2025 2026 2027 2028


ComputerChairs £35.00each 175£ 210£ 280£ 315£ 315£ Furnitureforoffice.Costsaddedovertimefornewfurnitureforanincreaseinstafforuseage.FilingCabinet 4drawer:458Wx622Dx711H.£115each 115£ -£ 115£ -£ 115£ Furnitureforoffice.Costsaddedovertimeforadditionalstoragespacerequired.Desk WoodenDesk:800Wx800Dx725H.£90each 450£ 270£ -£ -£ -£ Furnitureforoffice.Costsaddedovertimeasdemandincreasesduetoanincreaseinstaff.Officecupboard 4Shelf:800Wx400Dx2000H.£150each 300£ -£ -£ -£ -£ Furnitureforoffice.Costsaddedovertimeforadditionalstoragespacerequired.MeetingTable Standardtableformeetings.£120each 240£ -£ -£ 240£ -£ Furnitureforoffice.Costsaddedovertimeforadditionalmeetingspacesrequiredbasedonnumberofjobs.

1,280£ 480£ 395£ 555£ 430£

AdministrationSoftwareandHardware Details Justification2024 2025 2026 2027 2028


MicrosoftOffice365 £114.00for1perannum 570£ 570£ 570£ 570£ 570£ Theprogrammewewillusefordocuments.MicrosoftSurfaceBook(128GB/IntelCorei5) 5requiredat£1,299.00each 6,495£ -£ -£ -£ -£ Usingacomputerwhichiscompatiblewiththesoftwaresthatweusewithinthepractice.OfficeMobilePhones SamsungGalaxys8 336£ 336£ 336£ 336£ 336£ Companycontractphoneforworkrelatedpurposes.

7,401£ 906£ 570£ 906£ 906£

VirtualRealitySoftwareandHardware Details Justification2024 2025 2026 2027 2028


VirtualReality SoftwareCost 160£ 160£ 160£ 180£ 180£ ThemainsoftwareweuseaspartofourUSPforvirtualrealityvisualsofworkingandcompletedprojects.VirtualReality Equipment 499£ 499£ 499£ 500£ 500£ ThemainsoftwareweuseaspartofourUSP.EquipmentincludesheadsetVirtualReality Training 1,700£ 1,700£ 1,700£ 2,500£ 2,500£ Makingsureallstaffassociatedwiththeprogrammearefullytrainedonusingthesoftwareensuringaccuracy.

2,359£ 2,359£ 2,359£ 3,180£ 3,180£

ArchitecturalSoftware Details Justification2024 2025 2026 2027 2028


BIM BIMLevel4training 395£ 395£ 395£ 199£ 199£ Keepinguptodatewithallnewtechnology,fullytrainedtoensureaccuracyandqualityofwork.BIM360 108£ 216£ 324£ 324£ 324£ KeepinguptodatewithallnewtechnologyandBIMlevel4toensureaccuracyandclearcommunication.

Autocad Training 180£ -£ -£ -£ -£ TrainingstaffonlatestversionsofCADtoensurequalityandaccuracy.3DSMax 1,818£ 1,818£ 1,818£ 4,908£ 4,908£ Keepinguptodatewithallnewtechnology.SoftwareusedinintheofficeincorrelationtoBIMlevel4Revit Training 1,865£ 3,545£ 5,035£ 5,035£ 5,035£ Trainingstaffonsoftwareusedinourpracticetoensurequalityandaccuracy.GoogleSketchUpMake Free -£ -£ -£ -£ -£ Softwareusedintheoffice.AdobeCloud £456.00for1perannum 2,280£ 2,280£ 2,280£ 2,280£ 2,280£ Softwareusedintheoffice.AutodeskArchitecture,EngineeringandConstructionCollection £2505.00for1perannum 12,525£ 12,525£ 12,525£ 12,525£ 12,525£ Softwareusedintheoffice.

19,171£ 20,779£ 22,377£ 25,271£ 25,271£

Travel Details Justification2024 2025 2026 2027 2028


ShortTermAction LongTermAction




AnnualTotal


AnnualTotal

AnnualTotal

AnnualTotal

AnnualTotal

AnnualTotal


8

TravelCostsCompanyTravelPass £210annualbuspass 420£ 420£ 420£ 420£ 420£ Wewillcoverstafftravelcostsforsite/clientvisits.Publictransportismoresustainablethanacompanycar.CycletoworkScheme FreeforRIBAmembers -£ -£ -£ -£ -£ Theschemeisecofriendlypromotingcycling.ItalsosavesSWITCH13.8%onNationalInsuranceTax.

420£ 420£ 420£ 420£ 420£

Security Details Justification2024 2025 2026 2027 2028


Safe Fireproofsecuritysafewith£4000insurancerating 339£ Safeforsecurity.Insuredforupto£4000worthinsidethesafe.MemoryStick128GBData SanDiskUSB:£23.99each 120£ USBforeachstaffmembertobackupanyworkorkeepcopiesifneeded.MemoryStick1TBData Seagate1TBPortableinc.2Yeargaruntee:£42.99each 86£ Harddriveforbackingupimportantworkorkeepingcopiesifneeded.ComputerSecurity McAFEEComputerSecurity,TotalProtectionUnlimited 40£ 40£ 40£ 40£ 40£ Protectiononallcomputerdevicestoensurealldataandinformationiskeptsafeandprivate.

585£ 40£ 40£ 40£ 40£

Insurances Details Justification2024 2025 2026 2027 2028


ProfessionalIndemnityInsurance £500perannum 500£ 500£ 500£ 500£ 500£ ProfessionalObligation-insurance.BuildingInsurance £200perannum 200£ 200£ 200£ 200£ 200£ Legalrequirementtopaybuildinginsurance.PhotoCopyright £29.00perannum 29£ 29£ 29£ 29£ 29£ Protectionofourimageryandlogo.

729£ 729£ 729£ 729£ 729£

Stationary Details Justification2024 2025 2026 2027 2028


GeneralStationary Supplies 200£ 250£ 250£ 300£ 300£ Generalsupplies-Increasesovertimeasdemandintheworkplaceincreasesduetoincreasesinjobsandstaff.Paper A4 28£ 31£ 33£ 36£ 36£ Generalsupplies-Increasesovertimeasdemandintheworkplaceincreasesduetoincreasesinjobsandstaff.

A3 84£ 92£ 101£ 109£ 117£ Generalsupplies-Increasesovertimeasdemandintheworkplaceincreasesduetoincreasesinjobsandstaff.A2 168£ 182£ 196£ 210£ 210£ Generalsupplies-Increasesovertimeasdemandintheworkplaceincreasesduetoincreasesinjobsandstaff.A1 215£ 236£ 258£ 279£ 301£ Generalsupplies-Increasesovertimeasdemandintheworkplaceincreasesduetoincreasesinjobsandstaff.A0 175£ 210£ 245£ 280£ 315£ Generalsupplies-Increasesovertimeasdemandintheworkplaceincreasesduetoincreasesinjobsandstaff.

870£ 1,001£ 1,083£ 1,214£ 1,279£

OfficeMaintenance Details Justification2024 2025 2026 2027 2028


Toiletries Supplies 54£ 54£ 63£ 63£ 72£ Generalsupplies-Increasesovertimeasdemandintheworkplaceincreasesduetoincreasesinjobsandstaff.Refreshments BiscuitsandSnacks 50£ 50£ 50£ 50£ 50£ Generalsuppliesforofficeuseandclientmeetings.

104£ 104£ 113£ 113£ 122£

Registrations,MembershipsandSubscriptions Details Justification2024 2025 2026 2027 2028


TheArchitectsjournalsubscription £160.00perannum 160£ 160£ Generalsubscriptiontokeepupwithcurrentprojectsandpromoteourservices.NDSA(NottinghamDerbySocietyofArchitects) Membership -£ -£ -£ -£ -£ KeepinguptodatewithwhatsgoingonintheEastMidlandssoseepotentialforfutureprojects.RIBA(RoyalInstituteofBritishArchitect) Membership 198£ 378£ 672£ 840£ 1,344£ CharteredMembersofRIBA.Attendingeventsfornetworking,socialevents,meetingnewpeopleandmeetings.ARB(ArchitecturalRegistrationBoard) Membership£142perperson 142£ 710£ 710£ 710£ 710£ MembersoftheARBasaprofessionalobligation.Attendingmeetingsandsocialevents.Staffsocialbudget Yearlysocialbudget 500£ 1,000£ 1,500£ 2,000£ 3,000£ Employeesatisfaction.Socialeventsforapositiveworkingenvironmentandemployeerelationships.AttendingRIBAeventsreleventtospecialiam 2Eventsayear Socialeventsforapositiveworkingenvironmentandemployeerelationships.Learningopportunity.

840£ 2,088£ 2,882£ 3,710£ 5,214£

Advertisement Details Justification2024 2025 2026 2027 2028


CPD FreeforRIBAmembers -£ -£ -£ -£ -£Invite Invitingpresstobuildingunveilings -£ -£ 100£ 160£ 250£ Buildourreputationandpromoteourservicestothepublic.Print Newspaper 50£ 150£ 200£ 250£ 300£ Buildourreputationandpromoteourservicestothepublic.FirmPortfolioBooklet £10Costperbooklet 50£ 50£ 50£ 50£ 50£ Sendclientsmoreinformationaboutourprojectsandserviceswhenenquiringaboutacommissionedproject.BusinessCards £13per500 13£ 13£ 13£ 13£ 13£ Promotionofourservices.Informationforclientsandthoseinterestedinourservices.Brochure £25per100 50£ 50£ 50£ 50£ 50£ Promotionofourservices.Informationforclientsandthoseinterestedinourservices.Leaflets £20per250 20£ 20£ 20£ 20£ 20£ Promotionofourservices.Informationforclientsandthoseinterestedinourservices.WebsiteDomainwithWeebly £35.00permonth 420£ 420£ 420£ 420£ 420£ Officialpublishedwebsiteforourbusiness.

603£ 703£ 853£ 963£ 1,103£

Accommodation Details Justification2024 2025 2026 2027 2028


NottinghamOfficeSpaceOldknowsFactory,Nottingham RentedCreativeStudioSpacefor5-6people 720£ -£ -£ -£ -£ Costeffectivestudiotosetupourbusinessasashorttermaction.StoneyStreet,Nottingham,NG1 RentedOfficeSpacefor6-10people -£ 1,440£ -£ -£ -£ Costeffectivestudiotosetupouroffice,takingaccountofanincreaseinstaffKnight&WhitehallHouse,4CarltonStreet,Nottingham,NG1 RentedOfficeSpacefor10-15people -£ -£ 2,400£ -£ -£ Costeffectivestudiotosetupouroffice,takingaccountofanincreaseinstaffTheOldPumphouse,5TheRopewalk,NottinghamNG1 RentedOfficeSpacefor15-20people -£ -£ -£ 3,000£ -£ Studiotosetupoutbusinessinaregeneratedbuilding.Thiswillbewherewearebasedasalongtermaction.TheOldPumphouse,5TheRopewalk,NottinghamNG1 RentedOfficeSpacefor20-25people -£ -£ -£ -£ 3,000£ Studiotosetupoutbusinessinaregeneratedbuilding.Thiswillbewherewearebasedasalongtermaction.




AnnualTotal

AnnualTotal





AnnualTotal

AnnualTotal

AnnualTotal

AnnualTotal

AnnualTotal

720£ 1,440£ 2,400£ 3,000£ 3,000£AnnualTotal

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Yearly Cash Flow Introduction and Cash Flow 2024-25This sections will provide a yearly cash flow tables for the following years; 2024/2025, 2025/202, 2026/2027, 2027/2028 and 2028/2029.

Cash Flow 2024-25

In 2024 to 2025 Switch Architects starts with an in-flow of capital at £320,976. This has been obtained from four key sources;1) Sales Revenue at £190,9762) Bank Loan at £100,0003) Government Grant at £20,0004) Director Investment at 10,000 The bank loan will be paid back over the course of a 12 month period with a 7% interest rate at £8653 per month. The cash out-flow has been calculated through a strategic plan of all the necessary expenditure. The cash out-flow is £232,832 in 2024 to 2025.

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2024-25MONTHLYCASHFLOWFORECAST


SwitchArchitects

APRIL2024-MARCH2025

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR

CashIn-Flows Description(asrequired) 1 2 3 4 5 6 7 8 9 10 11 12 TOTALSalesRevenue 8,122£ 8,122£ 16,122£ 17,622£ 7,997£ 17,997£ 17,997£ 17,997£ 19,750£ 19,750£ 19,750£ 19,750£ 190,976£StartUpLoan 8,333£ 8,333£ 8,333£ 8,333£ 8,333£ 8,333£ 8,333£ 8,333£ 8,333£ 8,333£ 8,333£ 8,333£ 100,000£Grant 1,667£ 1,667£ 1,667£ 1,667£ 1,667£ 1,667£ 1,667£ 1,667£ 1,667£ 1,667£ 1,667£ 1,667£ 20,000£Investment 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 10,000£

18,955£ 18,955£ 26,955£ 28,455£ 18,830£ 28,830£ 28,830£ 28,830£ 30,583£ 30,583£ 30,583£ 30,583£ 232,832£

SalesNetOfVAT 15,164£ 15,164£ 21,564£ 22,764£ 15,064£ 23,064£ 23,064£ 23,064£ 24,467£ 24,467£ 24,467£ 24,467£ 256,781£

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MARCashOut-Flows Description(asrequired) 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL

StaffSalaries 7,500£ 7,500£ 7,500£ 7,500£ 7,500£ 7,500£ 7,500£ 7,500£ 7,500£ 7,500£ 7,500£ 7,500£ 90,000£Printing 325£ 325£ 325£ 325£ 325£ 325£ 325£ 325£ 325£ 325£ 325£ 325£ 3,897£Furniture 107£ 107£ 107£ 107£ 107£ 107£ 107£ 107£ 107£ 107£ 107£ 107£ 1,280£AdministrationSoftwareandHardware 617£ 617£ 617£ 617£ 617£ 617£ 617£ 617£ 617£ 617£ 617£ 617£ 7,401£VirtualRealitySoftwareandHardware 197£ 197£ 197£ 197£ 197£ 197£ 197£ 197£ 197£ 197£ 197£ 197£ 2,359£ArchitecturalSoftware 1,598£ 1,598£ 1,598£ 1,598£ 1,598£ 1,598£ 1,598£ 1,598£ 1,598£ 1,598£ 1,598£ 1,598£ 19,171£TravelCosts 35£ 35£ 35£ 35£ 35£ 35£ 35£ 35£ 35£ 35£ 35£ 35£ 420£Security 49£ 49£ 49£ 49£ 49£ 49£ 49£ 49£ 49£ 49£ 49£ 49£ 585£Insurance 61£ 61£ 61£ 61£ 61£ 61£ 61£ 61£ 61£ 61£ 61£ 61£ 729£Stationary 72£ 72£ 72£ 72£ 72£ 72£ 72£ 72£ 72£ 72£ 72£ 72£ 869£OfficeMaintenance 9£ 9£ 9£ 9£ 9£ 9£ 9£ 9£ 9£ 9£ 9£ 9£ 104£Registrations,MembershipsandSubscriptions 70£ 70£ 70£ 70£ 70£ 70£ 70£ 70£ 70£ 70£ 70£ 70£ 840£Advertisement 50£ 50£ 50£ 50£ 50£ 50£ 50£ 50£ 50£ 50£ 50£ 50£ 603£Accommodation 60£ 60£ 60£ 60£ 60£ 60£ 60£ 60£ 60£ 60£ 60£ 60£ 720£StartUpLoanmonthlyrepayment* 8,653£ 8,653£ 8,653£ 8,653£ 8,653£ 8,653£ 8,653£ 8,653£ 8,653£ 8,653£ 8,653£ 8,653£ 103,832£

19,403£ 19,403£ 19,403£ 19,403£ 19,403£ 19,403£ 19,403£ 19,403£ 19,403£ 19,403£ 19,403£ 19,403£ 320,976£TotalCashOut-FlowsQuarterly 58,208£ 58,208£ 58,208£ 58,208£

ReclaimableVATOnCashOut 3,180£ 3,180£ 3,180£ 3,180£ 3,180£ 3,180£ 3,180£ 3,180£ 3,180£ 3,180£ 3,180£ 3,180£CashOutPriortoVAT 2,544£ 2,544£ 2,544£ 2,544£ 2,544£ 2,544£ 2,544£ 2,544£ 2,544£ 2,544£ 2,544£ 2,544£

SalesVAT 3,791£ 3,791£ 2,000£ 2,000£ 2,000£ 2,000£ 2,000£ 2,000£ 2,000£ 2,000£ 2,000£ 2,000£ReclaimedPurchaseVAT 636£ 636£ 636£ 636£ 636£ 636£ 636£ 636£ 636£ 636£ 636£ 636£

MonthlyVAT(+/-) 3,155£ 3,155£ 1,364£ 1,364£ 1,364£ 1,364£ 1,364£ 1,364£ 1,364£ 1,364£ 1,364£ 1,364£QuarterlyVATBill(+/-) 7,674£ 4,092£ 4,092£ 4,092£

YourNetCashFlow(A-B)GrossProfit (447)£ (447)£ (121)£ 9,053£ (572)£ 5,336£ 9,428£ 9,428£ 7,089£ 11,181£ 11,181£ 7,089£ (88,144)£

ProfitAfterTaxandNI(34%) (295.24)£ (295.24)£ (80.17)£ 5,974.76£ (377.74)£ 3,521.54£ 6,222.26£ 6,222.26£ 4,678.52£ 7,379.24£ 7,379.24£ 4,678.52£ 45,007.93£

APRIL2024-MARCH2025

TotalCashIn-Flows(A)

TotalCashOut-Flows(B)

APRIL2024-MARCH2025

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SwitchArchitects

APRIL2024-MARCH2025



18,955£ 18,955£ 26,955£ 28,455£ 18,830£ 28,830£ 28,830£ 28,830£ 30,583£ 30,583£ 30,583£ 30,583£ 232,832£

SalesNetOfVAT 15,164£ 15,164£ 21,564£ 22,764£ 15,064£ 23,064£ 23,064£ 23,064£ 24,467£ 24,467£ 24,467£ 24,467£ 256,781£


StaffSalaries 7,500£ 7,500£ 7,500£ 7,500£ 7,500£ 7,500£ 7,500£ 7,500£ 7,500£ 7,500£ 7,500£ 7,500£ 90,000£Printing 325£ 325£ 325£ 325£ 325£ 325£ 325£ 325£ 325£ 325£ 325£ 325£ 3,897£Furniture 107£ 107£ 107£ 107£ 107£ 107£ 107£ 107£ 107£ 107£ 107£ 107£ 1,280£AdministrationSoftwareandHardware 617£ 617£ 617£ 617£ 617£ 617£ 617£ 617£ 617£ 617£ 617£ 617£ 7,401£VirtualRealitySoftwareandHardware 197£ 197£ 197£ 197£ 197£ 197£ 197£ 197£ 197£ 197£ 197£ 197£ 2,359£ArchitecturalSoftware 1,598£ 1,598£ 1,598£ 1,598£ 1,598£ 1,598£ 1,598£ 1,598£ 1,598£ 1,598£ 1,598£ 1,598£ 19,171£TravelCosts 35£ 35£ 35£ 35£ 35£ 35£ 35£ 35£ 35£ 35£ 35£ 35£ 420£Security 49£ 49£ 49£ 49£ 49£ 49£ 49£ 49£ 49£ 49£ 49£ 49£ 585£Insurance 61£ 61£ 61£ 61£ 61£ 61£ 61£ 61£ 61£ 61£ 61£ 61£ 729£Stationary 72£ 72£ 72£ 72£ 72£ 72£ 72£ 72£ 72£ 72£ 72£ 72£ 869£OfficeMaintenance 9£ 9£ 9£ 9£ 9£ 9£ 9£ 9£ 9£ 9£ 9£ 9£ 104£Registrations,MembershipsandSubscriptions 70£ 70£ 70£ 70£ 70£ 70£ 70£ 70£ 70£ 70£ 70£ 70£ 840£Advertisement 50£ 50£ 50£ 50£ 50£ 50£ 50£ 50£ 50£ 50£ 50£ 50£ 603£Accommodation 60£ 60£ 60£ 60£ 60£ 60£ 60£ 60£ 60£ 60£ 60£ 60£ 720£StartUpLoanmonthlyrepayment* 8,653£ 8,653£ 8,653£ 8,653£ 8,653£ 8,653£ 8,653£ 8,653£ 8,653£ 8,653£ 8,653£ 8,653£ 103,832£





YourNetCashFlow(A-B)GrossProfit (447)£ (447)£ (121)£ 9,053£ (572)£ 5,336£ 9,428£ 9,428£ 7,089£ 11,181£ 11,181£ 7,089£ (88,144)£

ProfitAfterTaxandNI(34%) (295.24)£ (295.24)£ (80.17)£ 5,974.76£ (377.74)£ 3,521.54£ 6,222.26£ 6,222.26£ 4,678.52£ 7,379.24£ 7,379.24£ 4,678.52£ 45,007.93£

APRIL2024-MARCH2025



APRIL2024-MARCH2025

Cash Flow 2025-26Cash Flow 2025-26


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SwitchArchitects

APRIL2025-MARCH2026


CashIn-Flows Description(asrequired) 1 2 3 4 5 6 7 8 9 10 11 12 TOTALSalesRevenue 22,958£ 23,545£ 26,003£ 27,431£ 32,598£ 31,243£ 32,202£ 30,276£ 30,273£ 25,593£ 23,456£ 22,456£ 328,034£StartUpLoan 3,333£ 3,333£ 3,333£ 3,333£ 3,333£ 3,333£ 3,333£ 3,333£ 3,333£ 3,333£ 3,333£ 3,333£ 40,000£Grant 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 10,000£Investment 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 10,000£

27,958£ 28,545£ 31,003£ 32,431£ 37,598£ 36,243£ 37,202£ 35,276£ 35,273£ 30,593£ 28,456£ 27,456£ 388,034£

SalesNetOfVAT 22,366£ 22,836£ 24,802£ 25,945£ 30,078£ 28,994£ 29,762£ 28,221£ 28,218£ 24,474£ 22,765£ 21,965£ 310,427£


StaffSalaries 16,667£ 16,667£ 16,667£ 16,667£ 16,667£ 16,667£ 16,667£ 16,667£ 16,667£ 16,667£ 16,667£ 16,667£ 200,000£Printing 448£ 448£ 448£ 448£ 448£ 448£ 448£ 448£ 448£ 448£ 448£ 448£ 5,370£Furniture 33£ 33£ 33£ 33£ 33£ 33£ 33£ 33£ 33£ 33£ 33£ 33£ 395£AdministrationSoftwareandHardware 48£ 48£ 48£ 48£ 48£ 48£ 48£ 48£ 48£ 48£ 48£ 48£ 570£VirtualRealitySoftwareandHardware 197£ 197£ 197£ 197£ 197£ 197£ 197£ 197£ 197£ 197£ 197£ 197£ 2,359£ArchitecturalSoftware 1,865£ 1,865£ 1,865£ 1,865£ 1,865£ 1,865£ 1,865£ 1,865£ 1,865£ 1,865£ 1,865£ 1,865£ 22,377£TravelCosts 35£ 35£ 35£ 35£ 35£ 35£ 35£ 35£ 35£ 35£ 35£ 35£ 420£Security 3£ 3£ 3£ 3£ 3£ 3£ 3£ 3£ 3£ 3£ 3£ 3£ 40£Insurance 61£ 61£ 61£ 61£ 61£ 61£ 61£ 61£ 61£ 61£ 61£ 61£ 729£Stationary 90£ 90£ 90£ 90£ 90£ 90£ 90£ 90£ 90£ 90£ 90£ 90£ 1,083£OfficeMaintenance 9£ 9£ 9£ 9£ 9£ 9£ 9£ 9£ 9£ 9£ 9£ 9£ 113£Registrations,MembershipsandSubscriptions 240£ 240£ 240£ 240£ 240£ 240£ 240£ 240£ 240£ 240£ 240£ 240£ 2,882£Advertisement 71£ 71£ 71£ 71£ 71£ 71£ 71£ 71£ 71£ 71£ 71£ 71£ 853£Accommodation 200£ 200£ 200£ 200£ 200£ 200£ 200£ 200£ 200£ 200£ 200£ 200£ 2,400£StartUpLoanmonthlyrepayment* 3,461£ 3,461£ 3,461£ 3,461£ 3,461£ 3,461£ 3,461£ 3,461£ 3,461£ 3,461£ 3,461£ 3,461£ 41,533£





YourNetCashFlow(A-B)GrossProfit 4,530£ 5,117£ (3,842)£ 9,003£ 14,170£ 8,723£ 13,774£ 11,848£ 7,753£ 7,165£ 5,028£ (63)£ 106,898£

ProfitAfterTaxandNI(34%) 2,989.75£ 3,377.17£ (2,535.50)£ 5,941.93£ 9,352.15£ 5,757.13£ 9,090.79£ 7,819.63£ 5,116.93£ 4,728.85£ 3,318.43£ (41.74)£ 54,915.56£


APRIL2025-MARCH2026

APRIL2025-MARCH2026


13



14



SwitchArchitects

APRIL2026-MARCH2027



31,820£ 31,820£ 39,820£ 39,820£ 40,456£ 40,670£ 41,827£ 38,359£ 42,526£ 42,526£ 41,410£ 40,711£ 471,761£

SalesNetOfVAT 25,456£ 25,456£ 31,856£ 31,856£ 32,365£ 32,536£ 33,461£ 30,687£ 34,021£ 34,021£ 33,128£ 32,569£ 377,409£







YourNetCashFlow(A-B)GrossProfit 12,083£ 12,083£ 7,175£ 20,083£ 20,719£ 16,841£ 22,090£ 18,622£ 18,697£ 22,789£ 21,673£ 16,883£ 234,926£

ProfitAfterTaxandNI(34%) 7,975.00£ 7,975.00£ 4,735.28£ 13,255.00£ 13,674.76£ 11,115.28£ 14,579.62£ 12,290.74£ 12,340.24£ 15,040.96£ 14,304.40£ 11,142.72£ 138,428.95£


APRIL2026-MARCH2027

APRIL2026-MARCH2027


15



16



SwitchArchitects

APRIL2027-MARCH2028


CashIn-Flows Description(asrequired) 1 2 3 4 5 6 7 8 9 10 11 12 TOTALSalesRevenue 45,363£ 52,426£ 52,426£ 52,801£ 52,020£ 53,312£ 54,011£ 54,011£ 46,932£ 46,233£ 37,534£ 36,867£ 583,936£StartUpLoan 1,667£ 1,667£ 1,667£ 1,667£ 1,667£ 1,667£ 1,667£ 1,667£ 1,667£ 1,667£ 1,667£ 1,667£ 20,000£Grant 417£ 417£ 417£ 417£ 417£ 417£ 417£ 417£ 417£ 417£ 417£ 417£ 5,000£Investment 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 10,000£

48,280£ 55,343£ 55,343£ 55,718£ 54,937£ 56,229£ 56,928£ 56,928£ 49,849£ 49,150£ 40,451£ 39,784£ 618,936£

SalesNetOfVAT 38,624£ 44,274£ 44,274£ 44,574£ 43,950£ 44,983£ 45,542£ 45,542£ 39,879£ 39,320£ 32,361£ 31,827£ 495,152£







YourNetCashFlow(A-B)GrossProfit 21,266£ 28,329£ 7,538£ 28,704£ 27,923£ 25,123£ 29,914£ 29,914£ 18,743£ 22,136£ 13,437£ 8,678£ 294,773£

ProfitAfterTaxandNI(34%) 14,035.87£ 18,697.45£ 4,975.26£ 18,944.95£ 18,429.49£ 16,581.49£ 19,743.55£ 19,743.55£ 12,370.69£ 14,610.07£ 8,868.73£ 5,727.41£ 172,728.51£

APRIL2027-MARCH2028

APRIL2027-MARCH2028



17


In 2028 to 2029 Switch Architects starts with an in-flow of capital at £641,220. This has been obtained from four key sources;1) Sales Revenue at £626,2202) Bank Loan at £5,0003) Government Grant non4) Director Investment at 10,000 The bank loan will be paid back over the course of a 12 month period with a 7% interest rate at £192 per month. The cash out-flow has been calculated through a strategic plan of all the necessary expenditure. The cash out-flow is £385,314 in 2028 to 2029.

18



SwitchArchitects

APRIL2028-MARCH2029


CashIn-Flows Description(asrequired) 1 2 3 4 5 6 7 8 9 10 11 12 TOTALSalesRevenue 44,946£ 51,310£ 51,310£ 51,310£ 59,307£ 59,307£ 59,307£ 59,307£ 51,529£ 51,529£ 43,529£ 43,529£ 626,220£StartUpLoan 417£ 417£ 417£ 417£ 417£ 417£ 417£ 417£ 417£ 417£ 417£ 417£ 5,000£Grant -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ -£ -£Investment 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 833£ 10,000£

46,196£ 52,560£ 52,560£ 52,560£ 60,557£ 60,557£ 60,557£ 60,557£ 52,779£ 52,779£ 44,779£ 44,779£ 641,220£

SalesNetOfVAT 36,957£ 42,048£ 42,048£ 42,048£ 48,446£ 48,446£ 48,446£ 48,446£ 42,223£ 42,223£ 35,823£ 35,823£ 512,976£


StaffSalaries 28,167£ 28,167£ 28,167£ 28,167£ 28,167£ 28,167£ 28,167£ 28,167£ 28,167£ 28,167£ 28,167£ 28,167£ 338,000£Printing 275£ 275£ 275£ 275£ 275£ 275£ 275£ 275£ 275£ 275£ 275£ 275£ 3,300£Furniture 36£ 36£ 36£ 36£ 36£ 36£ 36£ 36£ 36£ 36£ 36£ 36£ 430£AdministrationSoftwareandHardware 76£ 76£ 76£ 76£ 76£ 76£ 76£ 76£ 76£ 76£ 76£ 76£ 906£VirtualRealitySoftwareandHardware 265£ 265£ 265£ 265£ 265£ 265£ 265£ 265£ 265£ 265£ 265£ 265£ 3,180£ArchitecturalSoftware 2,106£ 2,106£ 2,106£ 2,106£ 2,106£ 2,106£ 2,106£ 2,106£ 2,106£ 2,106£ 2,106£ 2,106£ 25,271£TravelCosts 35£ 35£ 35£ 35£ 35£ 35£ 35£ 35£ 35£ 35£ 35£ 35£ 420£Security 3£ 3£ 3£ 3£ 3£ 3£ 3£ 3£ 3£ 3£ 3£ 3£ 40£Insurance 61£ 61£ 61£ 61£ 61£ 61£ 61£ 61£ 61£ 61£ 61£ 61£ 729£Stationary 107£ 107£ 107£ 107£ 107£ 107£ 107£ 107£ 107£ 107£ 107£ 107£ 1,279£OfficeMaintenance 10£ 10£ 10£ 10£ 10£ 10£ 10£ 10£ 10£ 10£ 10£ 10£ 122£Registrations,MembershipsandSubscriptions 435£ 435£ 435£ 435£ 435£ 435£ 435£ 435£ 435£ 435£ 435£ 435£ 5,214£Advertisement 92£ 92£ 92£ 92£ 92£ 92£ 92£ 92£ 92£ 92£ 92£ 92£ 1,103£Accommodation 250£ 250£ 250£ 250£ 250£ 250£ 250£ 250£ 250£ 250£ 250£ 250£ 3,000£StartUpLoanmonthlyrepayment* 192£ 192£ 192£ 192£ 192£ 192£ 192£ 192£ 192£ 192£ 192£ 192£ 2,299£





YourNetCashFlow(A-B)GrossProfit 14,086£ 20,450£ 634£ 20,450£ 28,447£ 24,355£ 28,447£ 28,447£ 16,577£ 20,669£ 12,669£ 8,579£ 255,906£

ProfitAfterTaxandNI(34%) 9,297.02£ 13,497.26£ 418.70£ 13,497.26£ 18,775.28£ 16,074.56£ 18,775.28£ 18,775.28£ 10,941.08£ 13,641.80£ 8,361.80£ 5,662.13£ 147,717.49£

APRIL2028-MARCH2029



APRIL2028-MARCH2029

19

What profit does Switch Architects anticipate, and when?At Switch, we anticipate profit in the second year of operating where we break-even.

Breakeven Point

The initial start-up fund and in-flow cash of £18,955 is minimised by renting equipment including plotters and accommodation such as rented offices. Additionally, the five Switch directors will have a pay cut in comparison to their previous roles for the first two years to minimise staff salaries and in turn cash-out flow. This will ensure a financial break-even point is reached within the second year of operating. The break-even point is achieved in the seventeenth month during July 2025. This point is identified by creating a sum of total out-flow cash plotted against sales on a monthly basis. The point in which the sum of sales overlaps and supersedes the total out-flow in cash is the break-even point. Although Switch does not break-even until the second year, the company is able to fund for overheads because of the £130,000 initial capital obtained from the five directors, government grant and bank loan.

21

How might Switch expand the scope of the business activities?In order to see the potential scope of business activities an indicative sales forecast has been created for the first five years based on research and predictions from current regeneration projects in 2017.

Project Pricing Margin

To forecast the sales of Switch on a yearly basis a list of estimated standard jobs based on regeneration have been calculated as a guide. The average fees were taken from the results of an independent annual fee survey carried out by the Fees Bureau, this information was sourced from www.architecture.com.

These predictions play a pivotal role in ensuring there is a sufficient amount of profit in the architectural sector of regeneration. Switch will charge its clients through a percentage based fee from the revenue gained from the project and this will be invoiced monthly and received from the client in monthly instalments.

The table below outlines the project pricing margins with the costs of an array of regeneration projects in 2017. The table also estimates their growth from 2024-2019.

22

PROJECTPRICINGMARGIN5%INCREASE


SwitchArchitects

RegenerationProjectType 2017 2017Fee(%) 2018 2018Fee(%) 2019 2019Fee(%) 2020 2020Fee(%) 2021 2021Fee(%) 2022 2022Fee(%) 2023 2023Fee(%) 2024 2024SwitchFee(%)

PrivateHousing 17,458£ 8.5 18,377£ 8.5 19,345£ 8.5 20,363£ 9 21,434£ 9.5 22,563£ 10 23,750£ 10.5 25,000£ 11

Leisure 17,458£ 7.5 £18,377 7.5 £19,345 7.5 20,363£ 8 21,434£ 8.5 22,563£ 9 23,750£ 9.5 25,000£ 10

Offices 17,458£ 6.5 £18,377 6.5 £19,345 6.5 20,363£ 7 21,434£ 7.5 22,563£ 8 23,750£ 8.5 25,000£ 9Industrial 17,458£ 3.5 £18,377 3.5 £19,345 3.5 20,363£ 4 21,434£ 4.5 22,563£ 5 23,750£ 5.5 25,000£ 6Retail 17,458£ 4.5 £18,377 4.5 £19,345 4.5 20,363£ 5 21,434£ 5.5 22,563£ 6 23,750£ 6.5 25,000£ 7PublicHousing 17,458£ 6.5 £18,377 6.5 £19,345 6.5 20,363£ 7 21,434£ 7.5 22,563£ 8 23,750£ 8.5 25,000£ 9Health 17,458£ 8.5 £18,377 8.5 £19,345 8.5 20,363£ 9 21,434£ 9.5 22,563£ 10 23,750£ 10.5 25,000£ 11Education 17,458£ 4.5 £18,377 4.5 £19,345 4.5 20,363£ 5 21,434£ 5.5 22,563£ 6 23,750£ 6.5 25,000£ 7


PrivateHousing 34,917£ 7.5 36,755£ 7.5 38,689£ 7.5 40,725£ 8 42,869£ 8.5 45,125£ 9 47,500£ 9.5 50,000£ 10

Leisure 34,917£ 6.5 £36,755 6.5 £38,689 6.5 40,725£ 7 42,869£ 7.5 45,125£ 8 47,500£ 8.5 50,000£ 9

Offices 34,917£ 5.5 £36,755 5.5 £38,689 5.5 40,725£ 6 42,869£ 6.5 45,125£ 7 47,500£ 7.5 50,000£ 8

Industrial 34,917£ 3.5 £36,755 3.5 £38,689 3.5 40,725£ 4 42,869£ 4.5 45,125£ 5 47,500£ 5.5 50,000£ 6Retail 34,917£ 4.5 £36,755 4.5 £38,689 4.5 40,725£ 5 42,869£ 5.5 45,125£ 6 47,500£ 6.5 50,000£ 7

PublicHousing 34,917£ 5.5 £36,755 5.5 £38,689 5.5 40,725£ 6 42,869£ 6.5 45,125£ 7 47,500£ 7.5 50,000£ 8

Health 34,917£ 7.5 £36,755 7.5 £38,689 7.5 40,725£ 8 42,869£ 8.5 45,125£ 9 47,500£ 9.5 50,000£ 10

Education 34,917£ 5.5 £36,755 5.5 £38,689 5.5 40,725£ 6 42,869£ 6.5 45,125£ 7 47,500£ 6.5 50,000£ 7

RegenerationProjectType 2017 2017Fee(%) 2018 2018Fee(%) 2019 2019Fee(%) 2020 2020Fee(%) 2021 2021Fee(%) 2022 2022Fee(%) 2023 2023Fee(%) 2024 2024SwitchFee(%)PrivateHousing 52,375£ 7.5 55,132£ 7.5 58,034£ 7.5 61,088£ 8 64,303£ 8.5 67,688£ 9 71,250£ 9.5 75,000£ 10Leisure 52,375£ 6.5 £55,132 6.5 £58,034 6.5 61,088£ 7 64,303£ 7.5 67,688£ 8 71,250£ 8.5 75,000£ 9Offices 52,375£ 5.5 £55,132 5.5 £58,034 5.5 61,088£ 6 64,303£ 6.5 67,688£ 7 71,250£ 7.5 75,000£ 8Industrial 52,375£ 3.5 £55,132 3.5 £58,034 3.5 61,088£ 4 64,303£ 4.5 67,688£ 5 71,250£ 5.5 75,000£ 6Retail 52,375£ 4.5 £55,132 4.5 £58,034 4.5 61,088£ 5 64,303£ 5.5 67,688£ 6 71,250£ 6.5 75,000£ 7PublicHousing 52,375£ 5.5 £55,132 5.5 £58,034 5.5 61,088£ 6 64,303£ 6.5 67,688£ 7 71,250£ 7.5 75,000£ 8Health 52,375£ 6.5 £55,132 6.5 £58,034 6.5 61,088£ 7 64,303£ 7.5 67,688£ 8 71,250£ 8.5 75,000£ 9Education 52,375£ 4.5 £55,132 4.5 £58,034 4.5 61,088£ 5 64,303£ 5.5 67,688£ 6 71,250£ 6.5 75,000£ 7

RegenerationProjectType 2017 2017Fee(%) 2018 2018Fee(%) 2019 2019Fee(%) 2020 2020Fee(%) 2021 2021Fee(%) 2022 2022Fee(%) 2023 2023Fee(%) 2024 2024SwitchFee(%)PrivateHousing 104,751£ 6.5 110,264£ 6.5 116,067£ 6.5 122,176£ 7 128,606£ 7.5 135,375£ 8 142,500£ 8.5 150,000£ 9Leisure 104,751£ 5.5 £110,264 5.5 £116,067 5.5 122,176£ 6 128,606£ 6.5 135,375£ 7 142,500£ 7.5 150,000£ 8

Offices 104,751£ 5.5 £110,264 5.5 £116,067 5.5 122,176£ 6 128,606£ 6.5 135,375£ 7 142,500£ 7.5 150,000£ 8

Industrial 104,751£ 3.5 £110,264 3.5 £116,067 3.5 122,176£ 4 128,606£ 4.5 135,375£ 5 142,500£ 5.5 150,000£ 6

Retail 104,751£ 3.5 £110,264 3.5 £116,067 3.5 122,176£ 4 128,606£ 4.5 135,375£ 5 142,500£ 5.5 150,000£ 6

PublicHousing 104,751£ 4.5 £110,264 4.5 £116,067 4.5 122,176£ 5 128,606£ 5.5 135,375£ 6 142,500£ 6.5 150,000£ 7

Health 104,751£ 5.5 £110,264 5.5 £116,067 5.5 122,176£ 6 128,606£ 6.5 135,375£ 7 142,500£ 7.5 150,000£ 8

Education 104,751£ 4.5 £110,264 4.5 £116,067 4.5 122,176£ 5 128,606£ 5.5 135,375£ 6 142,500£ 6.5 150,000£ 7


PrivateHousing 349,169£ 4.5 367,546£ 4.5 386,890£ 4.5 407,253£ 5 428,688£ 5.5 451,250£ 6 475,000£ 6.5 500,000£ 7

Leisure 349,169£ 6.5 £367,546 6.5 £386,890 6.5 407,253£ 7 428,688£ 7.5 451,250£ 8 475,000£ 8.5 500,000£ 9

Offices 349,169£ 4.5 £367,546 4.5 £386,890 4.5 407,253£ 5 428,688£ 5.5 451,250£ 6 475,000£ 6.5 500,000£ 7

Industrial 349,169£ 2.5 £367,546 2.5 £386,890 2.5 407,253£ 3 428,688£ 3.5 451,250£ 4 475,000£ 4.5 500,000£ 5

Retail 349,169£ 3.5 £367,546 3.5 £386,890 3.5 407,253£ 4 428,688£ 4.5 451,250£ 5 475,000£ 5.5 500,000£ 6

PublicHousing 349,169£ 3.5 £367,546 3.5 £386,890 3.5 407,253£ 4 428,688£ 4.5 451,250£ 5 475,000£ 5.5 500,000£ 6

Health 349,169£ 4.5 £367,546 4.5 £386,890 4.5 407,253£ 5 428,688£ 5.5 451,250£ 6 475,000£ 6.5 500,000£ 7

Education 349,169£ 3.5 £367,546 3.5 £386,890 3.5 407,253£ 4 428,688£ 4.5 451,250£ 5 475,000£ 5.5 500,000£ 6


PrivateHousing 698,337£ 4.5 735,092£ 4.5 773,781£ 4.5 814,506£ 5 857,375£ 5.5 902,500£ 6 950,000£ 6.5 1,000,000£ 7

23

Project PricingThis table shows the project pricing as a result of the research and prediction undertaken from the year 2017-2024.

PROJECTPRICINGFORECAST


SwitchArchitects

RegenerationProjectType ProjectCost(IncVAT) SwitchFee(%) EstimatedContractLength(Months) Revenue InvoiceMonthly

PrivateHousing 25,000£ 11 4 2,750£ 688£

Leisure 25,000£ 10 6 2,500£ 417£Offices 25,000£ 9 6 2,250£ 375£Industrial 25,000£ 6 7 1,500£ 214£Retail 25,000£ 7 6 1,750£ 292£PublicHousing 25,000£ 9 4 2,250£ 563£Health 25,000£ 11 6 2,750£ 458£Education 25,000£ 7 8 1,750£ 219£


PrivateHousing 50,000£ 10 5 5,000£ 1,000£

Leisure 50,000£ 9 7 4,500£ 643£Offices 50,000£ 8 7 4,000£ 571£Industrial 50,000£ 6 8 3,000£ 375£Retail 50,000£ 7 9 3,500£ 389£PublicHousing 50,000£ 8 5 4,000£ 800£Health 50,000£ 10 7 5,000£ 714£Education 50,000£ 7 9 3,500£ 389£

RegenerationProjectType ProjectCost(IncVAT) SwitchFee(%) EstimatedContractLength(Months) Revenue InvoiceMonthlyPrivateHousing 75,000£ 10 6 7,500£ 1,250£Leisure 75,000£ 9 8 6,750£ 844£Offices 75,000£ 8 8 6,000£ 750£Industrial 75,000£ 6 9 4,500£ 500£Retail 75,000£ 7 10 5,250£ 525£PublicHousing 75,000£ 8 6 6,000£ 1,000£Health 75,000£ 9 8 6,750£ 844£Education 75,000£ 7 10 5,250£ 525£

RegenerationProjectType ProjectCost(IncVAT) SwitchFee(%) EstimatedContractLength(Months) Revenue InvoiceMonthlyPrivateHousing 150,000£ 9 7 13,500£ 1,929£Leisure 150,000£ 8 9 12,000£ 1,333£Offices 150,000£ 8 9 12,000£ 1,333£Industrial 150,000£ 6 10 9,000£ 900£Retail 150,000£ 6 11 9,000£ 818£PublicHousing 150,000£ 7 7 10,500£ 1,500£Health 150,000£ 8 9 12,000£ 1,333£Education 150,000£ 7 11 10,500£ 955£

RegenerationProjectType ProjectCost(IncVAT) SwitchFee(%) EstimatedContractLength(Months) Revenue InvoiceMonthlyPrivateHousing 500,000£ 7 8 35,000£ 4,375£Leisure 500,000£ 9 10 45,000£ 4,500£

Offices 500,000£ 7 10 35,000£ 3,500£

Industrial 500,000£ 5 11 25,000£ 2,273£

Retail 500,000£ 6 12 30,000£ 2,500£

PublicHousing 500,000£ 6 8 30,000£ 3,750£Health 500,000£ 7 10 35,000£ 3,500£Education 500,000£ 6 12 30,000£ 2,500£


PrivateHousing 1,000,000£ 7 9 70,000£ 7,778£

24

Sales Forecast 2024 - 2025This table shows the total Sales Forecast on a yearly basis, it breaks down the year into twelve months and splits the yearly revenue accordingly as Switch will receive project revenue through a monthly invoice. The total yearly revenue received in 2024 - 2025 is £200,976.

2024-25SALESFORECAST


SwitchArchitects

APRIL2024-MARCH2025

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MARProjectType ProjectCost(IncVAT) 1 2 3 4 5 6 7 8 9 10 11 12PrivateHousing 500,000£ 4,372.00£ 4,372.00£ 4,372.00£ 4,372.00£ 4,372.00£ 4,372.00£ 4,372.00£ 4,372.00£

PublicHousing 500,000£ 3,750£ 3,750£ 3,750£ 3,750£ 3,750£ 3,750£ 3,750£ 3,750£

Leisure 500,000£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£

Offices 500,000£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£

Health 150,000£ 1,500£ 1,500£ 1,500£ 1,500£ 1,500£ 1,500£ 1,500£ 1,500£ 1,500£

Industrial 50,000£ 375£ 375£ 375£ 375£ 375£ 375£ 375£ 375£

PrivateHousing 25,000£ 699£ 699£ 699£ 699£

PrivateHousing 25,000£ 699£ 699£ 699£ 699£

PrivateHousing 25,000£ 699£ 699£ 699£ 699£

PrivateHousing 1,000,000£ 7,778£ 7,778£ 7,778£ 7,778£

MonthlyTotal 8,122£ 8,122£ 16,122£ 17,622£ 17,997£ 17,997£ 17,997£ 17,997£ 19,750£ 19,750£ 19,750£ 19,750£

YearlyTotal 200,976£

APRIL2024-MARCH2025

25




SwitchArchitects

APRIL2025-MARCH2026

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MARProjectType ProjectCost(IncVAT) 1 2 3 4 5 6 7 8 9 10 11 12Education 1,000,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£Retail 1,000,000£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£Industrial 1,000,000£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£Offices 1,000,000£ 5,455£ 5,455£ 5,455£ 5,455£ 5,455£ 5,455£ 5,455£ 5,455£ 5,455£ 5,455£ 5,455£Leisure 1,000,000£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£Leisure 500,000£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£Offices 500,000£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£Leisure 25,000£ 417£ 417£ 417£ 417£ 417£ 417£Education 25,000£ 219£ 219£ 219£ 219£ 219£ 219£ 219£ 219£Industrial 25,000£ 214£ 214£ 214£ 214£ 214£ 214£ 214£PrivateHousing 25,000£ 699£ 699£ 699£ 699£Health 25,000£ 458£ 458£ 458£ 458£ 458£ 458£PrivateHousing 25,000£ 699£ 699£ 699£ 699£PrivateHousing 25,000£ 699£ 699£ 699£ 699£Offices 1,000,000£ 5,455£Leisure 1,000,000£ 6,364£

MonthlyTotal 25,153£ 25,153£ 33,153£ 33,153£ 33,789£ 34,003£ 35,160£ 31,692£ 36,558£ 36,558£ 35,442£ 34,743£


APRIL2025-MARCH2026

26




SwitchArchitects

APRIL2026-MARCH2027

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MARProjectType ProjectCost(IncVAT) 1 2 3 4 5 6 7 8 9 10 11 12Offices 1,000,000£ 5,455£ 5,455£ 5,455£ 5,455£ 5,455£ 5,455£ 5,455£ 5,455£ 5,455£ 5,455£ 5,455£Leisure 1,000,000£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£Offices 1,000,000£ 5,455£ 5,455£ 5,455£ 5,455£ 5,455£ 5,455£ 5,455£ 5,455£ 5,455£ 5,455£ 5,455£Leisure 1,000,000£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£Education 1,000,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£Retail 1,000,000£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£Industrial 1,000,000£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£Leisure 25,000£ 417£ 417£ 417£ 417£ 417£ 417£PrivateHousing 25,000£ 699£ 699£ 699£ 699£Health 500,000£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£Industrial 50,000£ 375£ 375£ 375£ 375£ 375£ 375£ 375£ 375£Industrial 50,000£ 375£ 375£ 375£ 375£ 375£ 375£ 375£ 375£Education 25,000£ 219£ 219£ 219£ 219£ 219£ 219£ 219£ 219£Education 25,000£ 219£ 219£ 219£ 219£ 219£ 219£ 219£ 219£PrivateHousing 1,000,000£ 7,778£ 7,778£ 7,778£ 7,778£ 7,778£ 7,778£ 7,778£Leisure 25,000£ 417£ 417£ 417£ 417£ 417£ 417£Retail 25,000£ 292£ 292£ 292£ 292£ 292£ 292£Retail 25,000£ 292£ 292£ 292£ 292£ 292£ 292£PrivateHousing 25,000£ 699£ 699£ 699£ 699£PrivateHousing 25,000£ 699£ 699£ 699£ 699£

MonthlyTotal 25,570£ 37,389£ 41,588£ 41,963£ 42,776£ 50,554£ 50,439£ 51,138£ 51,837£ 51,837£ 51,837£ 38,944£


APRIL2026-MARCH2027

27




SwitchArchitects

APRIL2027-MARCH2028

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MARProjectType ProjectCost(IncVAT) 1 2 3 4 5 6 7 8 9 10 11 12Education 1,000,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£Retail 1,000,000£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£Industrial 1,000,000£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£Offices 500,000£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£Leisure 500,000£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£PrivateHousing 1,000,000£ 7,778£ 7,778£ 7,778£ 7,778£ 7,778£ 7,778£ 7,778£ 7,778£Retail 500,000£ 2,500£ 2,500£ 2,500£ 2,500£ 2,500£ 2,500£ 2,500£ 2,500£ 2,500£ 2,500£ 2,500£ 2,500£Education 1,000,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£Retail 1,000,000£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£Industrial 1,000,000£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£Leisure 25,000£ 417£ 417£ 417£ 417£ 417£ 417£Leisure 1,000,000£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£PrivateHousing 25,000£ 699£ 699£ 699£ 699£Industrial 50,000£ 375£ 375£ 375£ 375£ 375£ 375£ 375£ 375£Education 25,000£ 219£ 219£ 219£ 219£ 219£ 219£ 219£ 219£Retail 25,000£ 292£ 292£ 292£ 292£ 292£ 292£PrivateHousing 25,000£ 699£ 699£ 699£ 699£Leisure 25,000£ 417£ 417£ 417£ 417£ 417£ 417£PrivateHousing 25,000£ 699£ 699£ 699£ 699£PrivateHousing 25,000£ 699£ 699£ 699£ 699£

MonthlyTotal 45,363£ 52,426£ 52,426£ 52,801£ 53,020£ 53,312£ 54,011£ 54,011£ 46,932£ 46,233£ 37,534£ 36,867£


APRIL2027-MARCH2028

28




SwitchArchitects

APRIL2028-MARCH2029

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MARProjectType ProjectCost(IncVAT) 1 2 3 4 5 6 7 8 9 10 11 12Education 1,000,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£Retail 1,000,000£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£Industrial 1,000,000£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£Leisure 500,000£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£ 4,500£Offices 500,000£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£ 3,500£PrivateHousing 1,000,000£ 7,778£ 7,778£ 7,778£ 7,778£ 7,778£ 7,778£ 7,778£ 7,778£PrivateHousing 1,000,000£ 7,778£ 7,778£ 7,778£ 7,778£ 7,778£ 7,778£ 7,778£ 7,778£Leisure 1,000,000£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£ 6,364£Retail 500,000£ 2,500£ 2,500£ 2,500£ 2,500£ 2,500£ 2,500£ 2,500£ 2,500£ 2,500£ 2,500£ 2,500£ 2,500£Education 1,000,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£ 5,000£Retail 1,000,000£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£Industrial 1,000,000£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£ 4,167£Leisure 25,000£ 417£ 417£ 417£ 417£ 417£ 417£PrivateHousing 25,000£ 699£ 699£ 699£ 699£Industrial 50,000£ 375£ 375£ 375£ 375£ 375£ 375£ 375£ 375£Education 25,000£ 219£ 219£ 219£ 219£ 219£ 219£ 219£ 219£Retail 25,000£ 292£ 292£ 292£ 292£ 292£ 292£PrivateHousing 25,000£ 699£ 699£ 699£ 699£PrivateHousing 25,000£ 699£ 699£ 699£ 699£Leisure 25,000£ 417£ 417£ 417£ 417£ 417£ 417£

MonthlyTotal 44,946£ 51,310£ 51,310£ 51,310£ 59,307£ 59,307£ 59,307£ 59,307£ 51,529£ 51,529£ 43,529£ 43,529£


APRIL2028-MARCH2029

29

How would Switch Architect diversify or change course if needed?Switch will diversify or change course if needed. This has been prepared for with the variety of job types Switch undertakes as well as the internal analysis ensuring all key factors of the business have been considered.

Financial Strategy Initial Start Up Plan:

Maintain a steady income and complete a mixture of project types for financial security

Record, understand and analyse changes in out and in-flows

Distribute relevant financial information internally to ensure all managing directors have a clear understanding on the financial position of Switch Architects

1-3 Year Plan:

Ensure Switch reaches a break-even point during the second year of operating in relation to out-flow expenditure and sales in-flow

Ensure Switch maintain a level of positive cash in-flow through sales that supersede cash-out flow

Employ a team members to work alongside the directors and delegate the growing individual workload further including; Cleaner, Architectural Assistant Part 1, Architectural Assistant Part 2, Technology Assistant and an Architectural Technologist.

Makes profits grow through the expansion and investment in contingencies, e.g. investing in a company plotter and moving to larger office premises to facilitate the growing team.

4 – 5 Year Plan:

Aim to complete more large-scale regeneration projects to increase sale revenue and establish Switch further as a brand with a specialism in Regeneration and Virtual Reality.Move into an office space that epitomises the essence of the brand in relation to regeneration and technology within Nottingham.Employ more specialised, senior team members with experience and knowledge on large scale projects.

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Financial SWOTStrengths:

Switch is a unique architectural practice with a focus on regeneration that is expressed in each project through virtual reality simulation. This acts as a core strength and selling point. The company will begin as a small practice with five members that are willing to have their salary cut for the development of the company for the first two years. This minimises the cash out-flow and maximises the chance of break-even and profit in the earlier years.

By regenerating derelict and unused spaces the outcome is always positive as it will undoubtedly supersede the role the building had previously and make it current, used and improve the community dynamic. This will be achieved by integrating them into the process and ensuring the space responds to their needs and requirements.

Weaknesses:

If the company grows accordingly to ensure it has a break-even point in the 1-3 years of operating the workload required for the projects may be difficult to achieve. Therefore, it is key to maintain a balance between the workload of the projects and Switch members to ensure a level of standards and service to every client.

Opportunities:

Through the research undertaken on regeneration and the service of virtual reality simulation it is evident that a sufficient architectural fee can be charged across the board.

By ensuring an excellent level of standards and service to every client individually, the workload and growth of Switch will follow as this will create a strong image and positive reputation.

Threats:

A key financial threat that Switch Architects will face within the first year of operating is the lack of projects and in turn work to cover the out-flow costs of the company that need to be paid monthly. Therefore, it is vital to ensure out-flows are minimised where possible through strategically sourced items, materials and reductions to ensure a viable number of projects are completed and in turn, demands are met.

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How might another economic recession affect Switch Architects? There are many factors that may effect Switch if another economic recession occurs. The effected areas that will have an effect on Switch include;

Interest ratesExchange ratesDevelopment incentivesEconomic GrowthFalling and rising markets

Interest Rates

The UK interest rates have been cut from 0.5% to 0.25% and this is a new low. There are suggestions that it could go lower as a result of the Brexit vote. From the vote there have been concerns about an economic slowdown and this has resulted in the slashing of interest rates to encourage activity. The Construction industry is closely linked with the strength of the economy and although the interest rate changes do effect the economy, the economic and political situation will have a greater effect on the Construction industry.

However the low interest rate will have some few direct effects to the construction industry and these include;

Cheaper mortgage rateCheaper lendingReduced interest on savings

For Switch, this information means that trade with Europe and expansion as a business may have some difficulties as a result of the Brexit Vote and break with the European Union. Additionally it is important to note that the strength of the economy is strongly linked with the construction industry. Therefore at this point, there is an uncertainty about how the economy will change a result of the Brexit Vote.

Exchange Rates

An exchange rate is the value of one currency for the purpose of conversion to another. Factors that influence exchange rather include;Interest rates - encourages money flowsInflation - makes exports less competitve and reduces demand for currency.Confidence - in the economy and currency

Appreciation of exchange rates:

If the Pound Sterling appreciates in value the effects include;UK exports more expensive abroad - lower demandImports into the UK become cheaper - this increases the demand for exportsAn appreciation will reduce inflation but will lead to lower economic growth Depreciation / Devaluation

If the pound sterling devalue then we will see:

More competitive UK exports and an increasing demand for exports

More expensive imports and lower demand for imports

This will increase economic growth and cause inflation

For Switch, based in Nottingham, UK there is evidence that the pounds sterling is declining in worth. This may lead to an expansion and base in another country with a more stronger currency to gain maximum finances and stability in the future. As a result, moving or having offices in a country with a stronger financial currency will be something to consider in the future.

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How might another economic recession affect Switch Architects? Economic growth

UK gross domestic product (GDP) was estimated to have increased by 0.6% during Quarter 4 (Oct to Dec) 2016, the same rate of growth as in the previous 2 quarters. Growth during Quarter 4 was dominated by services, with a strong contribution from consumer-focused industries such as retail sales and travel agency services. Following falls in Quarter 3 (July to Sept) 2016, construction and production provided negligible positive contributions to GDP growth in Quarter 4 2016. UK GDP was estimated to have increased by 2.0% during 2016, slowing slightly from 2.2% in 2015 and from 3.1% in 2014.

GDP per head was estimated to have increased by 0.4% during Quarter 4 2016 and by 1.3% during 2016. For Switch, this information means that construction is hugely contributing to the economic growth in the UK however an increase in estimated. Switch can contribute to this increase by creating jobs in community regeneration project based in the UK.

Rising and falling market sectorsIn November 2016, construction output fell by 0.2% compared with October 2016, largely due to a contraction in non-housing repair and maintenance.

The underlying pattern as suggested by the 3 month on 3 month movement shows a slight contraction of 0.1%.Repair and maintenance provides the largest downwards pressure to construction output, falling both on the month and year.

New work in November 2016 increased, with new housing output continuing to grow (Davies, 2017). Half of planned developments in central London likely to be postponed with a 30% to 40% decline across the UK, warns Savills.

Commercial development has barely recovered from the post-financial crisis slump, and the uncertainty surrounding the terms of Britain’s departure from the EU will trigger another 30% to 40% decline across the country in the next five years. There have been warnings that 100,000 jobs could go if London loses its ability to process euro-denominated transactions. This would sharply reduce demand for new office space. Savills is predicting a 4% fall in UK office prices next year followed by a 1% drop in 2018. Thereafter it forecasts a slow return to growth, penciling in price increases of 1.1% in 2019, 2.5% in 2020 and 3.2% in 2021. This translates into 1.6% growth over the five-year period.

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