The directors present their strategic report for the year ended 31 December 2023. This report has been prepared for Jobandtalent UK Limited (the Group) as a whole, and therefore, gives a greater emphasis to those matters which are significant to Jobandtalent UK Limited and its subsidiary undertakings when viewed as a whole.
Our mission is to reshape temporary work by tearing down the barriers to job searching and hiring, harnessing the power of technology and data, and matching great people with great companies directly through our app.
Jobandtalent continued to encounter challenging market conditions in 2023. We have continued to prioritise profitable growth and have made progress in this regard, but there remains significant work to complete. We remain committed to maximising our liquidity position in our marketplace, ensuring the business is well-equipped for commercial success.
In terms of financial performance in the UK, our revenues have decreased 13% YoY to £348 million in 2023. This is a result of:
Our prioritisation of profitability vs growth, having conducted a comprehensive review of our client base which culminated in pricing renegotiations and unilateral terminations of unprofitable relationships. As a result, Gross Margin is up to 6.7% in 2023, from 5.8% in 2022.
An external slowdown in demand, with clients placing more conservative orders mostly due to down revisions of their own business forecasts or internalisation of temp workers.
Our administrative expenses have decreased significantly in 2023 to £29.4 million (-42% YoY). This is mainly driven by a 1) reduction of personnel baseline, by shifting to a more efficient operating model, 2) reduction of marketing investment, optimising workers supply funnel, and 3) positive exchange rate result on non-GBP denominated balance.
In the coming year, our focus is to keep improving profitability through three key levers: establishing best practices for Sales Structures, renegotiating pricing with clients, and continuing implementing cost efficiency measures to reduce OPEX, personnel and marketing expenses.
The Company's key financial and other performance indicators during the period were as follows:
| Unit | 2023 | 2022 |
Turnover | £ | 347,860,685 | 399,512,010 |
Gross Profit | £ | 23,374,234 | 23,046,720 |
Operating Profit/(Loss) | £ | (6,057,930) | (27,691,950) |
Jobandtalent remains dedicated to a culture of ongoing innovation, consistently seeking to enhance its service offerings. This unwavering commitment to innovation has been a cornerstone in facilitating the company's remarkable growth in recent years.
Going forward, the product development will not only execute cost savings but it will also allow us to grow our client base, scale our operations with a leaner cost-to-serve and integrate new acquisitions smoother and faster.
In 2023, we implemented several initiatives to improve our profitability across countries, which will continue into the coming year:
Analysis of client profitability and renegotiating pricing to ensure healthy margins;
Reorganisation of our sales department to deliver organic growth (both in existing and new clients);
Optimization of our entire cost structure, including supply marketing, demand marketing, personnel and OPEX; and
Acceleration of product roll-out, contributing to organic business growth and organisational structure optimisation.
Jobandtalent’s stakeholders are its candidates and temporary workers, clients, suppliers, office employees, shareholders, and lenders. The Board develops and encourages long-term relationships with all these groups. The company is committed to being a diverse and inclusive company, actively supporting the communities in which it operates. By delivering a superior service to workers and clients worldwide, Jobandtalent ensures long-term relationships that will drive the success of its entire ecosystem.
Workers are at the heart of Jobandtalent’s business and the company strives to provide them with the flexibility they value. We engage with them through effective communication channels, a transparent hiring process, feedback procedures, development opportunities, and recognition initiatives.
We show appreciation and commitment to our workers by establishing transparency and trust, for example by keeping them updated on the latest job opportunities, company news, and events. We also provide clear and concise information about the hiring process, making sure that people have all information they need so that expectations are aligned from the beginning of their journey with us. At Jobandtalent, we encourage workers to provide feedback on their experiences, and use this feedback to continuously improve our policies and practices. We also offer workers a variety of training and development opportunities to help them advance their skills and stay up-to-date on the latest trends. Last, but not least, we make sure that workers feel acknowledged and appreciated for their hard work and dedication through a variety of initiatives including awards and bonuses.
Jobandtalent has continuously invested in its worker-centric marketplace, resulting in enhanced employment and reemployment opportunities for blue collar workers globally and improved satisfaction level throughout 2023, the Group has a proven track record of offering a viable solution that adapts resiliently to current labour market dynamics.
Jobandtalent’s employees are fundamental to the delivery of the company’s vision, mission, strategic and financial promises to its stakeholders. Our mission as a business is to empower the people who make the world go round.
Jobandtalent maintains open communication with its employees through various channels such as team collaborative platforms, company-wide emails, town halls meetings and employee surveys. This allows employees to stay informed about the company's progress and to provide feedback. Additionally, we provide employees with opportunities to develop their skills and advance their careers, such as training and mentorship programs. We also support flexible work arrangements, including remote work options, to accommodate the employee’s needs.
By engaging with our employees these ways, we create a positive and supportive work environment where employees feel valued and respected. This commitment to employee engagement is evident in high levels of satisfaction and retention metrics.
Jobandtalent exceeds industry standards in client engagement by leveraging technology to streamline the hiring process and offering a comprehensive array of services. The company dedicates time to comprehend each client's unique needs, customising its services accordingly. Known for its prompt responsiveness to client inquiries and requests, Jobandtalent ensures transparent communication about services and pricing, consistently delivers on promises, and actively seeks innovative ways to enhance its offerings and meet client requirements. Committed to fostering a positive client experience, Jobandtalent has cultivated a strong reputation and a devoted customer base.
Description | Mitigation |
Key third-party technology service provider failure | |
The Group's operations depend on the effective functioning of third-party IT systems, encompassing network infrastructure, software, and content delivery processes. A noteworthy disturbance to these systems or services holds the potential for a substantial impact on the job marketplace operations, affecting the ability to fulfil companies' requests. Consequently, this may adversely influence the Group's reputation and financial performance. Notably, a significant service disruption, such as a distributed denial of service (DDoS) attack, poses a material threat to the business. This could manifest in processing delays, data loss, or even a complete outage of the platform, with the potential to harm the company's reputation and result in financial setbacks.
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Cyber and data security | |||||
The Group demonstrates a commitment to safeguarding the personal data of its workers, companies, and employees. Recognizing the potential misuse of sensitive data, including names, addresses, and Social Security numbers, for malicious purposes such as ransomware attacks, is a priority. Failure to effectively protect this information from security threats may result in substantial reputational and legal consequences, as well as financial losses. |
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Reputation and brand | |||||
The Group regards its reputation as a highly valuable asset crucial for attracting and retaining employees, workers, clients, and investors. Any occurrence of negative publicity or events with the potential to harm the reputation may have a substantial impact on the business. Factors that could detrimentally affect the Group's reputation include unfavourable or inaccurate publicity, events beyond its control, or misconduct by employees, workers, or clients. Safeguarding and enhancing the Group's reputation is of paramount importance. |
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Competition & strategic risk | |||||
Several entities operate within the job industry, providing comparable services. To ensure sustainable success, the Group must effectively compete on aspects such as price, quality, and features. Establishing and maintaining a competitive position in each market poses a challenge that may impact the long-term viability of the business. |
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Compliance with regulations | |||
The staffing industry, particularly the operations of temporary staffing firms, entails specific regulatory requirements in the UK market. This includes the necessity for specific licences and adherence to distinct regulatory frameworks. However, the Management has not identified any significant risk or foresees regulatory changes that could compel the Group to cease operations in the next 12 months.
Consequently, the company faces potential litigation, heightened operational costs, fines, penalties, as well as the risk of business disruption and reputational damage due to the aforementioned regulatory complexities. |
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Financial risk | |||
Historically, the Group has experienced net losses, and the possibility of such occurrences in the future remains. This could potentially affect its ability to access the capital markets and impede the growth of the business. |
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Foreign exchange rate exposure | |||
The functional and presentational currency of the parent company is EUR and the majority of loans held with our parent company are denominated in EUR. This gives rise to exposure in fluctuations in GBP/EUR exchange rates. EUR and GBP currencies are known for their low volatility and status as two of the strongest currencies globally. |
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The Directors of JobandTalent UK Limited consider, both individually and together, that they have acted in the way they consider, in good faith, to promote the success of the company for the benefit of its members as a whole in the decision taken during the year ended 31 of December 2023.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2023.
The results for the year are set out on page 13.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
The company and its subsidiaries are included in the consolidated financial statements of the ultimate parent company, Job and Talent Holding Limited. Energy and carbon reporting is disclosed in the financial statements of the ultimate parent.
We have audited the financial statements of Jobandtalent Uk Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows 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).
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 group and parent 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 directors' 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are 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. 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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and the parent company and their 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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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.
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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.
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 extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
From the preliminary stages of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.
In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:
Enquiry of management and those charged with governance around actual and potential litigation and claims;
Reviewing minutes of meetings of those charged with governance, where available;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £15,369,583 (2022 - £18,923,997 loss).
Jobandtalent Uk Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 12 New Fetter Lane, London. EC4A 1JP.
The group consists of Jobandtalent Uk Limited and all of its subsidiaries.
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.
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.
The consolidated group financial statements consist of the financial statements of the parent company Jobandtalent Uk Limited together with all entities controlled by the parent company.
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The group is dependent on the support of its ultimate parent company and wider group to continue as a going concern. Confirmation of this support has been provided and accordingly the directors consider it appropriate to prepare the accounts on a going concern basis.
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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Turnover represents amounts chargeable to clients for employment services provided during the year and is recognised when a right to consideration has been obtained through performance under each contract for the provision of both temporary and permanent staff.
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 recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group 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).
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
Basic financial assets, which include debtors and cash and bank balances, 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, 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.
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.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.
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 group after deducting all of its 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.
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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group 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 group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black-Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
The company participates in a share-based payment arrangement granted to its employees and employees of its subsidiaries. The company has elected to recognise and measure its share-based payment expense on the basis of a reasonable allocation of the expense for the group recognised in its consolidated accounts. The directors consider the number of unvested options granted to the company’s employees compared to the total unvested options granted under the group plan to be a reasonable basis for allocating the expense.
The expense in relation to options over the ultimate parent company’s shares granted to employees of a subsidiary is recognised by the company as a capital contribution, and presented as an increase in the company’s investment in that subsidiary.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
In the application of the group’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.
In 2022 exceptional income £87,717 relates to the re-imbursement received from a former director .
Exceptional costs amounting to £4,016 (2022 - £296,886) were incurred during the year following the acquisition of The Staffing Group Limited and its subsidiary companies. The costs incurred include setting up a call centre to deal with questions on the takeover from temporary workers, fees on early termination of contracts and staff redundancies.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
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:
Details of the company's subsidiaries at 31 December 2023 are as follows:
The investments in subsidiaries are all stated at cost.
The following subsidiary companies are exempt from the requirements of the Companies Act 2006 relating
to the audit of individual accounts by virtue of S479A:-
Jobandtalent Works Limited - Company Registered Number - 10123783
Jobandtalent Services Limited - Company Registered Number - 10654381
Jobandtalent Advisors Limited - Company Registered Number - 11345125
Wymea Group Limited - Company Registered Number - 08784878
The Works Staffing Solutions Ltd - Company Registered Number - 05348140
The Red Eagle Group Ltd - Company Registered Number - 05288421
Red Eagle Ltd - Company Registered Number - 05288420
Unique Employment Services Ltd - Company Registered Number - 03595874
The Staffing Group Ltd - Company Registered Number - 05801688
The Staffing Holdings Ltd - Company Registered Number - 04581062
Extra Personnel Ltd - Company Registered Number - 02692139
Single Resource Ltd - Company Registered Number - 04866747
Extra Personnel Automotive Ltd - Company Registered Number - 08586759
TSG Financial Services Ltd - Company Registered Number - 07619129
Training For Talent Ltd - Company Registered Number - 08587061
Jump Staff Limited - Company Registered Number - 09942347
Included in amounts owed by group undertakings are amounts receivable after one year of £9,011,591 (2022 - £1,961,550).
Bank loans consist of amounts advanced under commercial invoice discounting agreements. The advances are secured by a debenture over all of the assets of the group.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The Job and Talent Group operates several share option plans for granting of non-transferable options in the shares of the ultimate holding company, Job and Talent Holding Limited, to certain members at the discretion of the Directors. All options are equity settled. All charges in relation to these schemes are fully recharged on to the subsidiary companies who employ the designated individuals. In order for the employees right to be allotted with the option to vest, certain conditions must be fulfilled.
Details of the share option plans containing designated individuals who are employed by Jobandtalent UK Limited are set out below.
ESOP C:
The framework plan, signed with an initial date in October 2019, consists of obtaining the rights to purchase options on ordinary shares by the beneficiary of the Group’s ultimate parent company in the UK, Job and Talent Holding Limited. The plan amounts to a total of 4,988,791 options, distributed between employees and Directors, with a price or “strike price” of €7.5219.
Its vesting or accrual period is four years from the start date, with a minimum period of stay in the company of one year and its exercise or settlement is ten years from its concession, being non-transferable.
Within this plan two types of assets are defined:
“C options”: options on shares to which the conditions mentioned in the two previous paragraphs apply.
“Growth C shares”: assets with the nature of shares granted to company employees with a certain category and Directors. For the purposes of accrual conditions, they have the same characteristics as the C options.
Options granted are considered as a transaction with payments based on shares, valuing both the services provided and the increase in the equity for the fair value of the equity instruments transferred, as of the date of the concession agreement.
In February 2022 the parent company granted 16,433 ESOP C shares and no expense was recognised in that financial year as no shares had been vested. A valuation by an independent third party has led to a personnel expense of £109,285 in Jobandtalent UK Limited in respect of designated individuals employed by the company and its counterpart in reserves.
ESOP D:
In March 2021 the ultimate parent company Job and Talent Holding Limited granted a total of 3,171,548 “D growth shares” to the founder directors against a receipt of a subscription price of €0.005 per share.
The “ESOP D” works in a similar way and has the same nature as the “ESOP C growth shares”; assets with the nature of shares granted to company employees with a certain category and Directors.
D growth share agreements include a vesting period which is linked to an “Exit Event” or “Share Sale” and contains service conditions. Management has decided to recognise the expense over a four-year vesting period.
The ultimate parent company can choose to repurchase or nominate any person to repurchase at subscription price of €0.005 per share from founders of 1) all the D growth shares if they are Bad Leaver or on an Exit occurring within five years of the date of the First Completion which does not cause the shares to vest, or 2) certain portion of shares based on their service years (Good Leaver provision).
In August 2022 the parent company granted 11,625 ESOP D shares with a “strike price” of €2.5 per share and no expense was recognised in that financial year as no shares had been vested. In the financial year 2023 a further 58,316 shares were granted at a “strike price” of €2.5 per share. A valuation by an independent third party has led to a personnel expense of £118,597 in Jobandtalent UK Limited in respect of designated individuals employed by the company and its counterpart in reserves.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: