Company Registration No. 10423022 (England and Wales)
Cloudstream Global Limited
Annual report and financial statements
for the year ended 31 December 2022
Cloudstream Global Limited
Company information
Directors
Adam Marsh
Andrew Goodman
(Appointed 27 January 2023)
Adam Blaney
(Appointed 27 January 2023)
Stephen Smith
(Appointed 13 April 2023)
Secretary
Sarkis Zeronian
Company number
10423022
Registered office
First Floor
3-8 Carburton Street
London
W1W 5AJ
Independent auditor
Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
Cloudstream Global Limited
Contents
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
Cloudstream Global Limited
Strategic report
For the year ended 31 December 2022
Page 1

The directors present the strategic report for the year ended 31 December 2022.

Review of business

The Company is a global recruitments specialist operating globally. The Company specialises in temporary and permanent employment agency activities.

The results of the Company for the year, as set out on page 8 show a loss on ordinary activities before tax of £6,853,718 (2021 – loss of £1,215,561). However during the year there was a one off provision against intercompany debtor balances totalling £6,847,330, seen in note 4. When excluding this amount the adjusted operating loss for the year is £6,388.

Business environment
During the year, the decision was made by the directors and ultimate parent company to simplify the group structure and focus on the two key brands in the group; Xcede and Earthstream. As such all contracts with clients, candidates and staff were novated from the company to Xcede Limited in the year. Therefore, as at 31 December 2022 the business was no longer trading and the financial statements have not been prepared on a going concern basis.

Strategy

The company will not continue to trade in 2023. All trade will continue in Xcede Limited.

Going Concern

Given the novation of business to Xcede Limited during the year and the intention not to trade going forward the Company has not adopted the going concern basis in preparing its financial statements.

 

On behalf of the board

Andrew Goodman
Director
10 November 2023
Cloudstream Global Limited
Directors' report
For the year ended 31 December 2022
Page 2

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company continued to be that of technology recruitment. The trade and assets and liabilities were moved to Xcede Limited on 1 January 2022.

 

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Paul Hart
(Resigned 8 July 2022)
William Jacques
(Resigned 31 March 2023)
Adam Marsh
Andrew Goodman
(Appointed 27 January 2023)
Adam Blaney
(Appointed 27 January 2023)
Stephen Smith
(Appointed 13 April 2023)
Auditor

The auditor, Saffery Champness LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Andrew Goodman
Director
10 November 2023
Cloudstream Global Limited
Directors' responsibilities statement
For the year ended 31 December 2022
Page 3

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

 

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Cloudstream Global Limited
Independent auditor's report
To the members of Cloudstream Global Limited
Page 4
Opinion

We have audited the financial statements of Cloudstream Global Limited (the 'company') for the year ended 31 December 2022 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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's 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.

Financial statements prepared on a basis other than going concern

We draw attention to Note 1.2 to the financial statements which explains that the directors strategic decision to noavte the trade of the company to other entities within the group and therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than going concern as described in Note 1.2. Our opinion is not modified in respect of this matter.

Cloudstream Global Limited
Independent auditor's report (continued)
To the members of Cloudstream Global Limited
Page 5

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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.

 

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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

 

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

Cloudstream Global Limited
Independent auditor's report (continued)
To the members of Cloudstream Global Limited
Page 6
Auditor's 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.

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. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

 

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

Cloudstream Global Limited
Independent auditor's report (continued)
To the members of Cloudstream Global Limited
Page 7

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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.

Jamie Cassell
Senior Statutory Auditor
For and on behalf of Saffery LLP
10 November 2023
Chartered Accountants
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
Cloudstream Global Limited
Statement of comprehensive income
For the year ended 31 December 2022
Page 8
2022
2021
as restated
Notes
£
£
Turnover
3
-
0
15,755,812
Cost of sales
-
0
(12,904,326)
Gross profit
-
0
2,851,486
Administrative expenses
(6,928,519)
(3,994,024)
Operating loss
4
(6,928,519)
(1,142,538)
Interest payable and similar expenses
7
(21,845)
(72,923)
Loss before taxation
(6,950,364)
(1,215,461)
Tax on loss
8
96,647
(100)
Loss for the financial year
(6,853,717)
(1,215,561)

The income statement has been prepared on the basis that all operations are continuing operations.

Cloudstream Global Limited
Statement of financial position
As at 31 December 2022
Page 9
2022
2021
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
10
-
0
82,939
Current assets
Debtors
11
49,075
9,817,768
Cash at bank and in hand
181,645
31,646
230,720
9,849,414
Creditors: amounts falling due within one year
12
(10,192,634)
(13,040,550)
Net current liabilities
(9,961,914)
(3,191,136)
Net liabilities
(9,961,914)
(3,108,197)
Capital and reserves
Called up share capital
14
1,000
1,000
Profit and loss reserves
(9,962,914)
(3,109,197)
Total equity
(9,961,914)
(3,108,197)
The financial statements were approved by the board of directors and authorised for issue on 10 November 2023 and are signed on its behalf by:
Andrew Goodman
Director
Company Registration No. 10423022
Cloudstream Global Limited
Statement of changes in equity
For the year ended 31 December 2022
Page 10
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 December 2021:
Balance at 1 January 2021
1,000
(428,999)
(427,999)
Prior year adjustment
-
(1,464,637)
(1,464,637)
As restated
1,000
(1,893,636)
(1,892,636)
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
(1,215,561)
(1,215,561)
Balance at 31 December 2021
1,000
(3,109,197)
(3,108,197)
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(6,853,717)
(6,853,717)
Balance at 31 December 2022
1,000
(9,962,914)
(9,961,914)
Cloudstream Global Limited
Notes to the financial statements
For the year ended 31 December 2022
Page 11
1
Accounting policies
Company information

Cloudstream Global Limited is a private company limited by shares incorporated in England and Wales. The registered office is First Floor, 3-8 Carburton Street, London, W1W 5AJ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

 

As explained in note 1.2, the company has novated the trade to other entities within the group during the reporting period. The financial statements have been prepared on a basis other than that of going concern which includes, where appropriate, writing down the company's assets to net realisable value. Provided for any provisions made for any contractual commitments that have become onerous at the balance sheet date. The financial statements do not reflect the future costs of terminating the business of the company except to the extent that such costs were committed at the balance sheet date.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Techstream International Group Holdings Limited. These consolidated financial statements are available Companies House.

1.2
Going concern

During the year, the decision was made by the directors and ultimate parent company to simplify the group structure and focus on the two key brands in the group; Xcede and Earthstreamtrue, and therefore the trade of the entity was novated to Xcede Limited, another trading entity within the group.

 

On that basis, these financial statements have been prepared on a basis other than going concern. The presentation of the financial statements on a basis other than going concern has no notable differences to the presentation of the current results on a going concern basis.

Cloudstream Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies (continued)
Page 12
1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Turnover in respect of permanent placements is recognised when the company has fulfilled its contractual obligations in accordance with the underlying contracts. This is normally the start date of the candidates' employment. The directors consider the likelihood of withdrawal and make a provision accordingly.

 

Turnover in respect of temporary placements is recognised when the service has been received and accepted by the client.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Contracts aquired
Straight line over 5 years
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
Over the life of the lease
Fixtures and fittings
20% straight line method
Computer equipment
33% straight line method

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Cloudstream Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies (continued)
Page 13
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Cloudstream Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies (continued)
Page 14
Basic financial assets

Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Cloudstream Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies (continued)
Page 15
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Cloudstream Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
1
Accounting policies (continued)
Page 16
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Cloudstream Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
Page 17
2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Intercompany recoverability

The recoverability of the amounts owed from group entities has been based on the review of the trading activities and forecasts for the next 12 months for the wider group and entities the debt relates to in order to ensure the group lending will be continued and no issues in the ability of the groups liquidity and going concern as a whole.

 

Cloudstream Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
Page 18
3
Turnover
2022
2021
£
£
Turnover analysed by geographical market
United Kingdom and Europe
-
15,667,187
Rest of the world
-
88,624
-
15,755,811
4
Operating loss
2022
2021
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange losses
56,153
36,092
Fees payable to the company's auditor for the audit of the company's financial statements
(41,110)
19,000
Depreciation of owned tangible fixed assets
-
0
51,795
Amortisation of intangible assets
-
0
184,818
Provision against intercompany balances
6,847,330
-
0

Intercompany balance provision

As at 31 December 2022, Cloudstream Global Limited had fully provided for intercompany balances of £6,847,330.

5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2022
2021
Number
Number
Total
-
0
34
Cloudstream Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
5
Employees (continued)
Page 19

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
1,200,816
2,187,383
Social security costs
151,131
225,186
Pension costs
20,744
52,454
1,372,691
2,465,023
6
Key management personnel
2022
2021
£
£
Remuneration for qualifying services
-
0
192,000
Company pension contributions to defined contribution schemes
-
0
2,888
-
0
194,888

No Directors were paid by this company.

7
Interest payable and similar expenses
2022
2021
£
£
Interest on bank overdrafts and loans
21,845
72,923
8
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
-
0
100
Adjustments in respect of prior periods
(96,647)
-
0
Total current tax
(96,647)
100
Cloudstream Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
8
Taxation (continued)
Page 20

The actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Loss before taxation
(6,950,364)
(1,215,461)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(1,320,569)
(230,938)
Tax effect of expenses that are not deductible in determining taxable profit
1,301,243
54,864
Unutilised tax losses carried forward
19,326
-
0
Group relief
-
0
164,357
Fixed asset timing differences
-
0
11,817
Under/(over) provided in prior years
(96,647)
-
0
Taxation (credit)/charge for the year
(96,647)
100
9
Intangible fixed assets
Contracts aquired
£
Cost
At 1 January 2022
798,894
Impairment
(798,894)
At 31 December 2022
-
0
Amortisation and impairment
At 1 January 2022
798,894
Elliminated on impairment
(798,894)
At 31 December 2022
-
0
Carrying amount
At 31 December 2022
-
0
At 31 December 2021
-
0
Cloudstream Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
9
Intangible fixed assets (continued)
Page 21

The transfer of intangibles in the year relate to an asset agreement executed on 15 March 2017 in Cloudstream Global Limited whereby the business and certain assets and liabilities of Simply Executive Contractors Limited were purchased for consideration of £798,894. The principal asset purchase related to the debts and benefits of customer contracts.

 

At the 31 December 2022, there were no longer any ongoing revenue generated from the customer contracts transferred.

10
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2022
46,850
68,916
126,389
242,155
Transfers
-
0
(68,916)
(126,389)
(195,305)
At 31 December 2022
46,850
-
0
-
0
46,850
Depreciation and impairment
At 1 January 2022
46,850
46,043
66,323
159,216
Transfers
-
0
(46,043)
(66,323)
(112,366)
At 31 December 2022
46,850
-
0
-
0
46,850
Carrying amount
At 31 December 2022
-
0
-
0
-
0
-
0
At 31 December 2021
-
0
22,873
60,066
82,939
11
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
-
0
2,624,536
Amounts owed by group undertakings
49,075
6,177,250
Prepayments and accrued income
-
0
1,015,982
49,075
9,817,768

Amounts owed by group undertakings are interest free and repayable on demand.

Cloudstream Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
Page 22
12
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Invoice discounting
-
0
1,494,374
Trade creditors
-
0
645,341
Amounts owed to group undertakings
9,954,159
9,388,189
Corporation tax
1,267
99,273
Other taxation and social security
22,230
228,718
Deferred income
-
0
13,291
Other creditors
179,978
58,805
Accruals and deferred income
35,000
1,112,559
10,192,634
13,040,550

Amounts owed to group undertakings are interest free and repayable on demand.

 

The invoice discounting facility is secured over the company's trade debtors.

13
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
20,744
52,454

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

14
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000

Each ordinary share is entitled to one vote in any circumstances, is entitled pari passu to dividend payments or any other distribution and entitled pari passu to participate in a distribution arising from winding up of the company.

Cloudstream Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
Page 23
15
Related party transactions

Other information

In accordance with paragraph 33 of FRS 102, disclosures have not been given of transactions entered into with group members that are wholly owned subsidiaries.

16
Ultimate controlling party

The immediate parent of the company is Xcede Group Limited (Company number 12361140) whose registered office is First Floor, 3-8 Carburton Street, London, England, W1W 5AJ. The parent of the smallest and largest group into which Cloudstream Global Limited is consolidated is Xcede Global Holdings Limited (Company number 11996176).

 

In the opinion of the directors, there is no ultimate controlling party.

 

17
Prior period adjustment
Reconciliation of changes in equity
1 January
31 December
2021
2021
£
£
Adjustments to prior year
Prior year adjustment management recharge
(1,556,864)
(1,464,637)
Equity as previously reported
(427,999)
(1,643,560)
Equity as adjusted
(1,984,863)
(3,108,197)
Analysis of the effect upon equity
Profit and loss reserves
(1,556,864)
(1,464,637)
Reconciliation of changes in loss for the previous financial period
2021
£
Adjustments to prior year
Prior year adjustment management recharge
92,227
Loss as previously reported
(1,215,561)
Loss as adjusted
(1,123,334)
Cloudstream Global Limited
Notes to the financial statements (continued)
For the year ended 31 December 2022
17
Prior period adjustment (continued)
Page 24
Notes to reconciliation
Prior year adjustment for management recharges

The prior period adjustment relates to management recharges recorded in Xcede SL financial statements but not in the company. The total understated costs relating to prior to 1 January 2021 totalled £1,556,864. The overstatement in the year to 31 December 2021 totalled £92,227. Total net impact to the retained earnings £1,464,637.

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