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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: C Abbass
P Blaydes





Registered office: 167-169 Great Portland Street
London
W1W 5PF





Registered number: 09683024 (England and Wales)





Auditors: Duncan & Toplis Audit Limited, Statutory Auditor
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:





C Abbass - Director


27 September 2024

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.

C Abbass
P Blaydes

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:




C Abbass - Director


27 September 2024

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.




Hassan Behcet (Senior Statutory Auditor)
for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor
3rd Floor
Marlborough House
298 Regents Park Road
Finchley
London
N3 2SZ

9 October 2024

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 (700,291 ) 4,495,300
(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 10 436,262 112,707
Tangible assets 11 26,793 126,256
Investments 12 172,368 22,368
635,423 261,331

Current assets
Debtors 13 2,221,104 2,548,550
Prepayments and accrued income 293,384 193,202
Cash at bank 648,100 1,274,792
3,162,588 4,016,544
Creditors
Amounts falling due within one year 14 2,776,978 1,747,620
Net current assets 385,610 2,268,924
Total assets less current liabilities 1,021,033 2,530,255

Creditors
Amounts falling due after more than one year 15 196,451 213,521
Net assets 824,582 2,316,734

Capital and reserves
Called up share capital 18 111 111
Retained earnings 19 824,471 2,316,623
Shareholders' funds 824,582 2,316,734

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 27 September 2024 and were signed on its behalf by:





C Abbass - Director


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 102 2,015,292 2,015,394

Changes in equity
Issue of share capital 9 - 9
Dividends - (425,000 ) (425,000 )
Total comprehensive income - 726,331 726,331
Balance at 31 December 2022 111 2,316,623 2,316,734

Changes in equity
Dividends - (906,000 ) (906,000 )
Total comprehensive income - (586,152 ) (586,152 )
Balance at 31 December 2023 111 824,471 824,582

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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. Accounting policies

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

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 36 153

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 128,840 - 128,840
Additions 44,000 227,369 271,369
Reclassification/transfer - 67,013 67,013
At 31 December 2023 172,840 294,382 467,222
Amortisation
At 1 January 2023 16,133 - 16,133
Amortisation for year 14,827 - 14,827
At 31 December 2023 30,960 - 30,960
Net book value
At 31 December 2023 141,880 294,382 436,262
At 31 December 2022 112,707 - 112,707

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 43,100 42,834 296,299 382,233
Additions - 874 15,169 16,043
Disposals - - (29,056 ) (29,056 )
Reclassification/transfer - - (67,013 ) (67,013 )
At 31 December 2023 43,100 43,708 215,399 302,207
Depreciation
At 1 January 2023 43,100 32,488 180,389 255,977
Charge for year - 6,201 36,203 42,404
Eliminated on disposal - - (22,967 ) (22,967 )
At 31 December 2023 43,100 38,689 193,625 275,414
Net book value
At 31 December 2023 - 5,019 21,774 26,793
At 31 December 2022 - 10,346 115,910 126,256

12. Fixed asset investments

Company
Unlisted
investments
£
Cost
At 1 January 2023 22,368
Additions 150,000
At 31 December 2023 172,368
Net book value
At 31 December 2023 172,368
At 31 December 2022 22,368

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

Talentful Inc
Registered office: 3rd Floor 65-67 Greene Street New York 10012, USA
Nature of business: Human resources provision and management
%
Class of shares: holding
Ordinary 100.00
2023 2022
£ £
Aggregate capital and reserves 3,445,600 3,390,902

Talentful Gmbh
Registered office: 4th Floor Gubener Str. 47 Berlin 10243, Germany
Nature of business: Human resources provision and management
%
Class of shares: holding
Ordinary 100.00
2023 2022
£ £
Aggregate capital and reserves 178,580 417,746

Talentful Canada Inc
Registered office: 167-169 Great Portland Street, London, England, W1W 5PF
Nature of business: Human resources provision and management
%
Class of shares: holding
Ordinary 100.00
2023 2022
£ £
Aggregate capital and reserves (91,946 ) (69,488 )

Higher HQ Ltd
Registered office: 167-169 Great Portland Street, London, England, W1W 5PF
Nature of business: Human resources provision and management
%
Class of shares: holding
Ordinary 100.00
2023
£
Aggregate capital and reserves 153,142


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 1,238,339 300,548
Amounts owed by group undertakings - - 554,751 1,977,124
Other debtors 468,662 335,317 270,899 270,878
Directors' loan accounts 317,115 - 157,115 -
2,350,129 2,275,408 2,221,104 2,548,550

14. Creditors: amounts falling due within one year

Group Company
2023 2022 2023 2022
£ £ £ £
Bank loans and overdrafts (see note 16) 353 262,675 353 262,675
Trade creditors 307,062 155,261 261,395 150,452
Amounts owed to group undertakings - - 1,260,736 68,964
Tax 188,973 1,010,446 83,057 203,056
Social security and other taxes 569,242 255,264 488,555 250,465
VAT 400,028 175,466 426,079 150,299
Other creditors 331,674 226,811 183,704 226,811
Directors' loan accounts 28,813 152,023 919 148,458
Accruals and deferred income 169,417 513,920 72,180 286,440
1,995,562 2,751,866 2,776,978 1,747,620

15. Creditors: amounts falling due after more than one year

Group Company
2023 2022 2023 2022
£ £ £ £
Tax 24,378 24,378 24,378 24,378
Other creditors 176,304 243,312 172,073 189,143
200,682 267,690 196,451 213,521

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 353 175 353 175
Bank loans - 262,500 - 262,500
353 262,675 353 262,675

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 - 3,765,985

18. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £ £
1,110,000 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 2,316,623
Deficit for the year (586,152 )
Dividends (906,000 )
At 31 December 2023 824,471


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.