Registration number:
SmartRecruiters Ltd
for the Year Ended 31 January 2023
SmartRecruiters Ltd
Contents
for the Year Ended 31 January 2023
Company Information |
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Independent Auditor's Report |
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Balance Sheet |
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Notes to the Financial Statements |
SmartRecruiters Ltd
Company Information
for the Year Ended 31 January 2023
Directors |
Ms A Ziebicka Mr J R Johnson |
Company secretary |
Windsor Accountancy Limited |
Registered office |
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Registered number |
10155889 ( England and Wales ) |
Auditors |
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SmartRecruiters Ltd
Independent Auditor's Report to the Members of SmartRecruiters Ltd
Opinion
We have audited the financial statements of SmartRecruiters Ltd (the 'company') for the year ended 31 January 2023, which comprise the Balance Sheet, 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 FRS 102 Section 1A '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 company's affairs as at 31 January 2023 and of its loss 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 responsibilities for the audit of the financial statements section of our report. We are independent of the company 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 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.
SmartRecruiters Ltd
Independent Auditor's Report to the Members of SmartRecruiters Ltd
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the has 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the .
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, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the 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; or |
• | the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report. |
Responsibilities of directors
As explained more fully in the [set out on page ], 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 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 company or to cease operations, or have no realistic alternative but to do so.
SmartRecruiters Ltd
Independent Auditor's Report to the Members of SmartRecruiters Ltd
Auditor 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition and stock valuation.
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SmartRecruiters Ltd
Independent Auditor's Report to the Members of SmartRecruiters Ltd
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.
Use of our 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.
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For and on behalf of
38 Eton Wick Road
Eton Wick
Berkshire
SL4 6JL
SmartRecruiters Ltd
(Registration number: 10155889)
Balance Sheet as at 31 January 2023
Note |
2023 |
(As restated) |
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Fixed assets |
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Tangible assets |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Net liabilities |
( |
( |
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Capital and reserves |
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Called up share capital |
100 |
100 |
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Other reserves |
472,799 |
272,937 |
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Retained earnings |
(11,654,799) |
(6,737,868) |
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Shareholders' deficit |
(11,181,900) |
(6,464,831) |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.
Approved and authorised by the
......................................... |
SmartRecruiters Ltd
Notes to the Financial Statements for the Year Ended 31 January 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
These financial statements include restated values to the original financial statements for the year ended 31 January 2022. The original financial statements for the year ended 31 January 2022 were approved by the board on 28/10/2022. These restated financial statements for the comparative period are now the statutory financial statements of the company for that period. In accordance with the Companies Act 2006, the financial statements have been restated as at the date of the original financial statements and not as at the date of this restatement. Accordingly they do not deal with events between those dates.
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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Going concern
The financial statements have been prepared on a going concern basis.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
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.
SmartRecruiters Ltd
Notes to the Financial Statements for the Year Ended 31 January 2023
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Office equipment |
20% on cost |
Furniture and fittings |
20% on cost |
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.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, 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 according to the original terms of the receivables.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable 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 using the effective interest method.
SmartRecruiters Ltd
Notes to the Financial Statements for the Year Ended 31 January 2023
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.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company 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.
Share based payments
Equity-settled share based payment transactions include share options and long-term equity incentive plans where the overall outcome is that the employee receives shares. For these awards, fair value is to be measured at the date of grant and charged to the profit and loss over the vesting period. The vesting period is the period of time before shares in an employee plan are unconditionally owned by an employee.
The company measures the fair value of services received and recognises a corresponding increase in equity.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
SmartRecruiters Ltd
Notes to the Financial Statements for the Year Ended 31 January 2023
Tangible assets |
Furniture, fittings and equipment |
Total |
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Cost or valuation |
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At 1 February 2022 |
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Additions |
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At 31 January 2023 |
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Depreciation |
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At 1 February 2022 |
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Charge for the year |
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At 31 January 2023 |
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Carrying amount |
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At 31 January 2023 |
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At 31 January 2022 |
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Debtors |
Current |
Note |
2023 |
(As restated) |
Trade debtors |
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Amounts owed by related parties |
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Prepayments |
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Other debtors |
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SmartRecruiters Ltd
Notes to the Financial Statements for the Year Ended 31 January 2023
Creditors |
Creditors: amounts falling due within one year
Note |
2023 |
(As restated) |
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Due within one year |
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Trade creditors |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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- |
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Reserves |
The changes to each component of equity resulting from share option reserve movements for the current year were as follows:
Other reserves |
Total |
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Share option reserve movement |
199,862 |
199,862 |
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The changes to each component of equity resulting from share option reserve movements for the prior year were as follows:
Other reserves |
Total |
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Share option reserve movement |
100,099 |
100,099 |
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SmartRecruiters Ltd
Notes to the Financial Statements for the Year Ended 31 January 2023
Share-based payments |
Scheme details and movements
There are three types of option vesting arrangements:
1. New hires: 25% of options are vested after 1 year of employment; the remaining 75% vests at 1/36 every month for the next 3 years.
2. Existing employees: options vest at 1/48 every month for the period of 4 years.
3. Manual - 4 year, 1 year cliff: options start vesting after 1 year of employment at 1/36 every month for the next 3 years.
The vesting of options is not related to performance.
The fair value is equal to the grant price on the basis that the options are granted at the price defined by the business' valuation, which is performed annually, There is no market price available for the shares. The business' valuation considers the market condition, company's situation, and also any secondary transactions performed with the company's shares.
The company offer share options to their employees. The options are settled with equity in the parent company. At the time of signing the accounts for the year ended 31st January 2022, the directors were unable to determine the fair value of those options as there is no market value available. The parent has since carried out a business valuation, which determined the value of the options to be recognised within the financial statements of the subsidiary.
The movements in the weighted average exercise price of share options during the year were as follows:
2023 |
2022 |
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Outstanding, start of period |
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Granted during the period |
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Forfeited during the period |
( |
( |
Exercised during the period |
( |
- |
Outstanding, end of period |
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SmartRecruiters Ltd
Notes to the Financial Statements for the Year Ended 31 January 2023
Parent and ultimate parent undertaking |
The company's immediate parent is
The parent of the largest group in which these financial statements are consolidated is
The address of SmartRecruiters Inc is:
15th Floor, Suite #1612
San Francisco
CA 94108
Off-balance sheet arrangements |
Fixed Charges Held
SmartRecruiters Ltd holds an uncommitted credit facility with BNP Paribas London, which is secured by way of fixed charge as continuing security for the payment and discharge of the secured liabilities.