Knowles:
Guiding a growing construction business through accounting changes
Knowles are a family-run construction business with over 30 years of expertise in complex building projects in London and the surrounding areas.
A BKL client since 2019, we have supported their growth with audit, accounts, corporate tax, VAT advisory, payroll and company secretarial services.
As a fast‑growing business in a key UK sector, maintaining a strong balance sheet is essential for Knowles. With one of their major projects coming to an end, a reduction in turnover and profit was expected for the following financial year. After several consecutive years of strong performance, this presented a challenge to their growth ambitions.
The challenge
Recognising this challenge early, we identified upcoming changes to the UK’s FRS 102 accounting standards (effective from January 2026) as a unique solution.
We explained to Knowles how the early adoption of the updated accounting standards, in particular the one relating to revenue recognition and long-term contracts, would have a positive impact on their net assets.
Our specialists in technical accounting and FRS 102 worked with the Knowles team on updating the company’s revenue recognition policy to reflect the new rules.
This was a complex transition for a well-established, medium-sized business. But our long‑standing relationship with Knowles, together with our deep expertise in the construction sector, meant that we could give them the clear, commercially-minded guidance they needed: supporting them end-to-end as they do with their own clients.
What we did
Early adoption of FRS 102 enabled Knowles to bolster their profits, strengthening their year-end balance sheet and supporting their story of continued growth.
Our proactive approach, underpinned by technical expertise, helped an ambitious business to navigate technical accounting changes – reinforcing our role as trusted advisers who support clients’ strategic goals.
Alan Nixon
Group Finance Director, Knowles
