REGISTERED NUMBER: 09683024 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
for |
TALENTFUL LTD |
REGISTERED NUMBER: 09683024 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
for |
TALENTFUL LTD |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Contents of the Consolidated Financial Statements |
for the year ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 18 |
TALENTFUL LTD |
Company Information |
for the year ended 31 December 2023 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
3rd Floor |
Marlborough House |
298 Regents Park Road |
Finchley |
London |
N3 2SZ |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Group Strategic Report |
for the year ended 31 December 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
Talentful is inventing the future of recruiting. |
This strategic report presents an overview of our performance, achievements, and future strategy for the year ended 31st December 2022. Prepared in accordance with the Companies Act 2006, this report aims to provide stakeholders with a clear understanding of our business's position and our strategic direction moving forward. |
Business Overview |
Talentful provides a suite of high-tier recruitment solutions to the world's most ambitious technology companies. Our aim is to build the RPO of the future, partnering with businesses at each stage of their life cycle, from seed to global enterprise. We exist to enable the growth of ideas that will change the world. |
Financial Performance |
For the year ended 31st December 2023, we were presented with significant financial challenges due to adverse economic and market conditions. However, through strategic planning and proactive measures, we successfully navigated these headwinds. By a number of restructuring initiatives across the group, we were able to reduce costs and as a result, we have emerged from this period to be better positioned to capitalise on future growth opportunities. Our resilient financial foundation and enhanced operational efficiency set us up for sustainable success in the years to come. |
Key financial highlights include: |
Revenue: Our total revenue for the year amounted to £17.9m, representing a 50% decrease compared to the previous year. This reduction is attributed to the challenging market conditions, felt globally and throughout the majority of 2023. |
Gross Profit: The market conditions and restructuring required after Q1 has impacted our gross profit margin to 36.6% in 2023, compared to 44.8% in the previous year. We have reduced our cost of sales by 43% compared to the previous year, which is lower than the decrease in sales experienced, but we felt it important to maintain a sustainable level for our core delivery team so that we are best placed to move back towards our trading levels of 2022 as the market starts to pick up. |
Operating Expenses: Our commitment to maintaining a sustainable cost base, especially amidst the tough market conditions has meant we have reduced this by 30% since last year and are continuing to do post year end. |
Profit Before Tax: Our loss before tax for the year stood at -£0.8m all due to the market conditions stated above compared to a profit in the previous year of £6.19m. We have built up a sufficient resilience level within the business to ride the storm and be well positioned for 2024 and beyond, knowing the effectiveness of our business model and positioning in the market as it starts its recovery. |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Group Strategic Report |
for the year ended 31 December 2023 |
Review of business |
Key Achievements |
During the year 31st December 2023, Talentful Limited was able to demonstrate our resilience to maintain our positioning in an incredibly challenging market and reinforce our commitment to providing exceptional recruitment services: |
Enterprise Growth: We were able to expanded our enterprise client base, establishing partnerships with leading organisations internationally and further solidifying our market presence, despite the ongoing global hiring challenges across the market in 2023. |
Global Reach: We were able to maintain our global presence, allowing us to support organisations across the world, with one unified approach. |
Customer Happiness: Our investment in dedicated customer success has paid dividends, allowing us to achieve market leading NPS, continuing to maintain and increase overall customer retention for key accounts globally, despite reduced hiring demands. This reinforced both our reputation and strength of our client relationships. |
World Class Results: Our team continues to deliver exceptional results for customers in over 80 countries. Our focus on quality and consistent results means we continue to be trusted by the world's best companies to help scale their teams. |
Future Strategy |
Looking ahead, Talentful is committed to pursuing the following strategic objectives: |
Client-Centric Approach: We will continue to prioritize our clients, ensuring a deep understanding of their evolving needs and providing innovative, tailor-made solutions that exceed expectations. |
US Market Expansion: We see the US market as a significant growth market for Talentful and will continue to invest in expansion in this region. |
Proprietary Technology: In 2023 we continued to develop our new technology product that will increase revenue, grow market share and provide a powerful competitive advantage to our business. |
On behalf of the board: |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Report of the Directors |
for the year ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
Principal activity |
The principal activity of the group in the year under review was that of human resources provision and management. |
Dividends |
An interim dividend of 81.6p per share was paid on 6 April 2023. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31 December 2023 will be £ 906,000 . |
Directors |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Statement of directors' responsibilities |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Report of the Directors |
for the year ended 31 December 2023 |
Auditors |
The auditors, Duncan & Toplis Audit Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Talentful Ltd |
Opinion |
We have audited the financial statements of Talentful Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 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: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Talentful Ltd |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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 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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' 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 a Report of the Auditors 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: |
- Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements. |
- Enquiring of management concerning actual and potential litigation and claims. |
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. |
- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. - Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements. |
- Enquiring of management concerning actual and potential litigation and claims. |
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. |
- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
Report of the Independent Auditors to the Members of |
Talentful Ltd |
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 a Report of the Auditors 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. |
for and on behalf of |
3rd Floor |
Marlborough House |
298 Regents Park Road |
Finchley |
London |
N3 2SZ |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Consolidated |
Income Statement |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Turnover | 17,904,857 | 36,152,966 |
Cost of sales | (11,347,531 | ) | (19,942,922 | ) |
Gross profit | 6,557,326 | 16,210,044 |
Distribution costs | - | (78,553 | ) |
Administrative expenses | (7,303,954 | ) | (10,392,503 | ) |
(746,628 | ) | 5,738,988 |
Other operating income | - | 583,119 |
Operating (loss)/profit | 5 | (746,628 | ) | 6,322,107 |
Interest receivable and similar income | 83,089 | - |
(663,539 | ) | 6,322,107 |
Interest payable and similar expenses | 6 | (49,575 | ) | (127,817 | ) |
(Loss)/profit before taxation | (713,114 | ) | 6,194,290 |
Tax on (loss)/profit | 7 | 12,823 | (1,698,990 | ) |
(Loss)/profit for the financial year | ( |
) |
(Loss)/profit attributable to: |
Owners of the parent | (700,291 | ) | 4,495,300 |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Consolidated |
Other Comprehensive Income |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
(Loss)/profit for the year | (700,291 | ) | 4,495,300 |
Other comprehensive income |
Foreign Exchange Movement | (111,649 | ) | - |
Income tax relating to other comprehensive income |
- |
- |
Other comprehensive income for the year, net of income tax |
(111,649 |
) |
- |
Total comprehensive income for the year | (811,940 | ) | 4,495,300 |
Total comprehensive income attributable to: |
Owners of the parent | (811,940 | ) | 4,495,300 |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Consolidated Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 10 | 443,927 | 121,319 |
Tangible assets | 11 | 1,823,420 | 925,981 |
Investments | 12 | - | - |
2,267,347 | 1,047,300 |
Current assets |
Debtors | 13 | 2,350,129 | 2,275,408 |
Prepayments and accrued income | 319,887 | 275,453 |
Cash at bank | 1,367,645 | 5,248,099 |
4,037,661 | 7,798,960 |
Creditors |
Amounts falling due within one year | 14 | 1,995,562 | 2,751,866 |
Net current assets | 2,042,099 | 5,047,094 |
Total assets less current liabilities | 4,309,446 | 6,094,394 |
Creditors |
Amounts falling due after more than one year | 15 | 200,682 | 267,690 |
Net assets | 4,108,764 | 5,826,704 |
Capital and reserves |
Called up share capital | 18 | 111 | 111 |
Other reserves | 19 | (111,649 | ) | - |
Retained earnings | 19 | 4,220,302 | 5,826,593 |
Shareholders' funds | 4,108,764 | 5,826,704 |
The financial statements were approved by the Board of Directors and authorised for issue on 27 September 2024 and were signed on its behalf by: |
C Abbass - Director |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Company Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
Current assets |
Debtors | 13 |
Prepayments and accrued income |
Cash at bank |
Creditors |
Amounts falling due within one year | 14 |
Net current assets |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year | 15 |
Net assets |
Capital and reserves |
Called up share capital | 18 |
Retained earnings | 19 |
Shareholders' funds |
Company's (loss)/profit for the financial year | (586,152 | ) | 726,331 |
The financial statements were approved by the Board of Directors and authorised for issue on |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Consolidated Statement of Changes in Equity |
for the year ended 31 December 2023 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | 102 | 2,056,293 | - | 2,056,395 |
Changes in equity |
Issue of share capital | 9 | - | - | 9 |
Dividends | - | (725,000 | ) | - | (725,000 | ) |
Total comprehensive income | - | 4,495,300 | - | 4,495,300 |
Balance at 31 December 2022 | 111 | 5,826,593 | - | 5,826,704 |
Changes in equity |
Dividends | - | (906,000 | ) | - | (906,000 | ) |
Total comprehensive income | - | (700,291 | ) | (111,649 | ) | (811,940 | ) |
Balance at 31 December 2023 | 111 | 4,220,302 | (111,649 | ) | 4,108,764 |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Company Statement of Changes in Equity |
for the year ended 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2023 |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Consolidated Cash Flow Statement |
for the year ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (146,815 | ) | 5,247,968 |
Interest paid | (49,575 | ) | (127,817 | ) |
Tax paid | (808,650 | ) | (1,213,491 | ) |
Net cash from operating activities | (1,005,040 | ) | 3,906,660 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (271,369 | ) | (49,000 | ) |
Purchase of tangible fixed assets | (1,082,825 | ) | (821,548 | ) |
Purchase of fixed asset investments | - | 1 |
Sale of tangible fixed assets | 4,338 | 2,273 |
Interest received | 83,089 | - |
Net cash from investing activities | (1,266,767 | ) | (868,274 | ) |
Cash flows from financing activities |
Loan repayments in year | (262,500 | ) | (354,257 | ) |
Amount introduced by directors | 5,991,504 | 309,033 |
Amount withdrawn by directors | (6,431,829 | ) | (129,732 | ) |
Share issue | - | 9 |
Equity dividends paid | (906,000 | ) | (725,000 | ) |
Net cash from financing activities | (1,608,825 | ) | (899,947 | ) |
(Decrease)/increase in cash and cash equivalents | (3,880,632 | ) | 2,138,439 |
Cash and cash equivalents at beginning of year |
2 |
5,247,924 |
3,109,485 |
Cash and cash equivalents at end of year | 2 | 1,367,292 | 5,247,924 |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Notes to the Consolidated Cash Flow Statement |
for the year ended 31 December 2023 |
1. | Reconciliation of (loss)/profit before taxation to cash generated from operations |
2023 | 2022 |
£ | £ |
(Loss)/profit before taxation | (713,114 | ) | 6,194,290 |
Depreciation charges | 111,495 | 143,446 |
Loss on disposal of fixed assets | 18,315 | - |
Foreign exchange movement | (111,649 | ) | - |
Finance costs | 49,575 | 127,817 |
Finance income | (83,089 | ) | - |
(728,467 | ) | 6,465,553 |
Decrease/(increase) in trade and other debtors | 197,959 | (537,114 | ) |
Increase/(decrease) in trade and other creditors | 383,693 | (680,471 | ) |
Cash generated from operations | (146,815 | ) | 5,247,968 |
2. | Cash and cash equivalents |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 1,367,645 | 5,248,099 |
Bank overdrafts | (353 | ) | (175 | ) |
1,367,292 | 5,247,924 |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 5,248,099 | 3,110,053 |
Bank overdrafts | (175 | ) | (568 | ) |
5,247,924 | 3,109,485 |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Notes to the Consolidated Cash Flow Statement |
for the year ended 31 December 2023 |
3. | Analysis of changes in net funds |
At 1/1/23 | Cash flow | At 31/12/23 |
£ | £ | £ |
Net cash |
Cash at bank | 5,248,099 | (3,880,454 | ) | 1,367,645 |
Bank overdrafts | (175 | ) | (178 | ) | (353 | ) |
5,247,924 | (3,880,632 | ) | 1,367,292 |
Debt |
Debts falling due within 1 year | (262,500 | ) | 262,500 | - |
(262,500 | ) | 262,500 | - |
Total | 4,985,424 | (3,618,132 | ) | 1,367,292 |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Notes to the Consolidated Financial Statements |
for the year ended 31 December 2023 |
1. | Statutory information |
Talentful Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | Accounting policies |
Basis of preparing the financial statements |
The financial statements have been prepared on a going concern basis. The Director has reviewed and considered relevant information such as cashflow forecasts and concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. |
Key source of estimation, uncertainty and judgement |
The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. |
There is estimation uncertainty in calculating depreciation. A full line by line review of fixed assets is carried out by management regularly. Whilst every attempt is made to ensure that the depreciation policy is as accurate as possible, there remains a risk that the policy does not match the useful life of the assets. |
There is estimation uncertainty in calculating deferred tax. A full line by line review of deferred tax is carried out by management regularly. Whilst every attempt is made to ensure that the deferred tax is as accurate as possible, there remains a risk that the provisions do not match the actual tax liability when asset is disposed of. |
There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectable. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Patents and licences are being amortised evenly over their estimated useful life of 10 years. |
Tangible fixed assets |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
2. | Accounting policies - continued |
Financial instruments |
Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument. |
Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due. |
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts. |
Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Basis of consolidation |
The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. The criteria for merger relief as set out in 612 of the Companies Act have been met. The option available under section 612 of the Companies Act 2006 and FRS 102 paragraph A3.244 has been undertaken to record the cost of the investments in the subsidiaries at the nominal value. |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
3. | Employees and directors |
2023 | 2022 |
£ | £ |
Wages and salaries | 14,985,188 | 24,830,812 |
Other pension costs | 15,009 | 14,118 |
15,000,197 | 24,844,930 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Number of UK staff |
The average number of employees by undertakings that were proportionately consolidated during the year was 54 (2022 - 306 ) . |
4. | Directors' emoluments |
2023 | 2022 |
£ | £ |
Directors' remuneration | 24,000 | 24,000 |
5. | Operating (loss)/profit |
The operating loss (2022 - operating profit) is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 95,720 | 132,360 |
Loss on disposal of fixed assets | 18,315 | - |
Patents and licences amortisation | 15,774 | 11,057 |
Foreign exchange differences | 42,770 | (590,135 | ) |
6. | Interest payable and similar expenses |
2023 | 2022 |
£ | £ |
Bank interest | 49,575 | 127,817 |
7. | Taxation |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | (12,823 | ) | 1,698,990 |
Tax on (loss)/profit | (12,823 | ) | 1,698,990 |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
7. | Taxation - continued |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Foreign Exchange Movement | (111,649 | ) | - | (111,649 | ) |
8. | Individual income statement |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | Dividends |
2023 | 2022 |
£ | £ |
Ordinary shares of 0.0001 each |
Interim | 906,000 | 725,000 |
10. | Intangible fixed assets |
Group |
Patents and | Development |
licences | costs | Totals |
£ | £ | £ |
Cost |
At 1 January 2023 | 138,808 | - | 138,808 |
Additions | 44,000 | 227,369 | 271,369 |
Reclassification/transfer | - | 67,013 | 67,013 |
At 31 December 2023 | 182,808 | 294,382 | 477,190 |
Amortisation |
At 1 January 2023 | 17,489 | - | 17,489 |
Amortisation for year | 15,774 | - | 15,774 |
At 31 December 2023 | 33,263 | - | 33,263 |
Net book value |
At 31 December 2023 | 149,545 | 294,382 | 443,927 |
At 31 December 2022 | 121,319 | - | 121,319 |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
10. | Intangible fixed assets - continued |
Company |
Patents and | Development |
licences | costs | Totals |
£ | £ | £ |
Cost |
At 1 January 2023 |
Additions |
Reclassification/transfer |
At 31 December 2023 |
Amortisation |
At 1 January 2023 |
Amortisation for year |
At 31 December 2023 |
Net book value |
At 31 December 2023 |
At 31 December 2022 |
11. | Tangible fixed assets |
Group |
Fixtures |
Long | and | Computer |
leasehold | fittings | equipment | Totals |
£ | £ | £ | £ |
Cost |
At 1 January 2023 | 43,100 | 57,306 | 1,185,815 | 1,286,221 |
Additions | - | 874 | 1,081,951 | 1,082,825 |
Disposals | - | - | (67,863 | ) | (67,863 | ) |
Reclassification/transfer | - | - | (67,013 | ) | (67,013 | ) |
At 31 December 2023 | 43,100 | 58,180 | 2,132,890 | 2,234,170 |
Depreciation |
At 1 January 2023 | 43,100 | 40,469 | 276,671 | 360,240 |
Charge for year | - | 8,958 | 86,762 | 95,720 |
Eliminated on disposal | - | - | (45,210 | ) | (45,210 | ) |
At 31 December 2023 | 43,100 | 49,427 | 318,223 | 410,750 |
Net book value |
At 31 December 2023 | - | 8,753 | 1,814,667 | 1,823,420 |
At 31 December 2022 | - | 16,837 | 909,144 | 925,981 |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
11. | Tangible fixed assets - continued |
Company |
Fixtures |
Long | and | Computer |
leasehold | fittings | equipment | Totals |
£ | £ | £ | £ |
Cost |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
Reclassification/transfer | ( |
) | ( |
) |
At 31 December 2023 |
Depreciation |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
Net book value |
At 31 December 2023 |
At 31 December 2022 |
12. | Fixed asset investments |
Company |
Unlisted |
investments |
£ |
Cost |
At 1 January 2023 |
Additions |
At 31 December 2023 |
Net book value |
At 31 December 2023 |
At 31 December 2022 |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
12. | Fixed asset investments - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 3rd Floor 65-67 Greene Street New York 10012, USA |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Registered office: 4th Floor Gubener Str. 47 Berlin 10243, Germany |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Registered office: 167-169 Great Portland Street, London, England, W1W 5PF |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Registered office: 167-169 Great Portland Street, London, England, W1W 5PF |
Nature of business: |
% |
Class of shares: | holding |
2023 |
£ |
Aggregate capital and reserves |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
13. | Debtors: amounts falling due within one year |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 1,564,352 | 1,940,091 |
Amounts owed by group undertakings | - | - |
Other debtors | 468,662 | 335,317 |
Directors' loan accounts | 317,115 | - | 157,115 | - |
2,350,129 | 2,275,408 |
14. | Creditors: amounts falling due within one year |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 353 | 262,675 |
Trade creditors | 307,062 | 155,261 |
Amounts owed to group undertakings | - | - |
Tax | 188,973 | 1,010,446 |
Social security and other taxes | 569,242 | 255,264 |
VAT | 400,028 | 175,466 | 426,079 | 150,299 |
Other creditors | 331,674 | 226,811 |
Directors' loan accounts | 28,813 | 152,023 | 919 | 148,458 |
Accruals and deferred income | 169,417 | 513,920 |
1,995,562 | 2,751,866 |
15. | Creditors: amounts falling due after more than one year |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Tax | 24,378 | 24,378 |
Other creditors | 176,304 | 243,312 |
200,682 | 267,690 |
16. | Loans |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 353 | 175 |
Bank loans | - | 262,500 |
353 | 262,675 |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
17. | Leasing agreements |
Minimum lease payments fall due as follows: |
Company |
Non-cancellable |
operating leases |
2023 | 2022 |
£ | £ |
Within one year |
18. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | 0.0001 | 111 | 111 |
19. | Reserves |
Group |
Retained | Other |
earnings | reserves | Totals |
£ | £ | £ |
At 1 January 2023 | 5,826,593 | - | 5,826,593 |
Deficit for the year | (700,291 | ) | (700,291 | ) |
Dividends | (906,000 | ) | (906,000 | ) |
No description | - | (111,649 | ) | (111,649 | ) |
At 31 December 2023 | 4,220,302 | (111,649 | ) | 4,108,653 |
Company |
Retained |
earnings |
£ |
At 1 January 2023 |
Deficit for the year | ( |
) |
Dividends | ( |
) |
At 31 December 2023 |
TALENTFUL LTD (REGISTERED NUMBER: 09683024) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2023 |
20. | Directors' advances, credits and guarantees |
The following advances and credits to directors subsisted during the years ended 31 December 2023 and 31 December 2022: |
2023 | 2022 |
£ | £ |
C Abbass and P Blaydes |
Balance outstanding at start of year | (152,023 | ) | 27,277 |
Amounts advanced | 1,346,324 | 545,700 |
Amounts repaid | (905,999 | ) | (725,000 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 288,302 | (152,023 | ) |
21. | Related party disclosures |
The company has taken advantage of exemption not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
22. | Ultimate controlling party |
The ultimate controlling parties are C Abbass and P Blaydes. |