Company registration number 10022218 (England and Wales)
CHERRY PICK TALENT LTD.
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
CHERRY PICK TALENT LTD.
COMPANY INFORMATION
Director
B Filler
Company number
10022218
Registered office
8 High Street
Brentwood
Essex
CM14 4AB
Auditor
M J Bushell Audit LLP
8 High Street
Brentwood
Essex
CM14 4AB
CHERRY PICK TALENT LTD.
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
CHERRY PICK TALENT LTD.
STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 1 -

The director presents the strategic report for the year ended 29 February 2024.

Review of the business

Cherry Pick Talent Ltd has delivered strong performance in the field of influencer marketing during the financial year resulting in revenue increasing by 8.9% to £13.6m. The company has successfully connected brands with influencers who align with their target audiences, driving impactful campaigns and measurable results. The business has maintained its competitive edge by maintaining strong relationships with both clients and creators, as well as adapting quickly to changes in the digital landscape creating strong profits of £3.5m.

Principal risks and uncertainties

The influencer marketing sector faces challenges such as increasing competition, evolving consumer behaviour, and changes to social media platform policies and algorithms that may impact campaign reach. Cherry Pick Talent mitigates these uncertainties by diversifying its client and influencer networks, staying ahead of industry trends, and continuously refining campaign strategies to maximize effectiveness.

On behalf of the board

B Filler
Director
26 November 2024
CHERRY PICK TALENT LTD.
DIRECTOR'S REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -

The director presents her annual report and financial statements for the year ended 29 February 2024.

Principal activities

The principal activity of the company continued to be that of support activities to performing arts.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £4,330,381. The director does not recommend payment of a final dividend.

Director

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

B Filler
Statement of director's responsibilities

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

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

 

 

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

Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

CHERRY PICK TALENT LTD.
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 3 -
On behalf of the board
B Filler
Director
26 November 2024
CHERRY PICK TALENT LTD.
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CHERRY PICK TALENT LTD.
- 4 -
Opinion

We have audited the financial statements of Cherry Pick Talent Ltd. (the 'company') for the year ended 29 February 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the director 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 director is 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:

CHERRY PICK TALENT LTD.
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CHERRY PICK TALENT LTD. (CONTINUED)
- 5 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Management override of controls
Non compliance with laws and regulations

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 member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

CHERRY PICK TALENT LTD.
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CHERRY PICK TALENT LTD. (CONTINUED)
- 6 -
Corné von Wielligh ACA
Senior Statutory Auditor
For and on behalf of M J Bushell Audit LLP
26 November 2024
Chartered Accountants
Statutory Auditor
8 High Street
Brentwood
Essex
CM14 4AB
CHERRY PICK TALENT LTD.
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
13,623,413
12,509,955
Cost of sales
(7,202,530)
(6,634,993)
Gross profit
6,420,883
5,874,962
Administrative expenses
(1,664,539)
(657,285)
Operating profit
4
4,756,344
5,217,677
Interest receivable and similar income
7
2,225
20,592
Interest payable and similar expenses
8
(41,098)
-
0
Amounts written off investments
9
-
31,833
Profit before taxation
4,717,471
5,270,102
Tax on profit
10
(1,181,362)
(1,021,652)
Profit for the financial year
3,536,109
4,248,450

The profit and loss account has been prepared on the basis that all operations are continuing operations.

CHERRY PICK TALENT LTD.
BALANCE SHEET
AS AT
29 FEBRUARY 2024
29 February 2024
- 8 -
29 February 2024
28 February 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
76,003
91,241
Investments
14
1,046,496
1,061,586
1,122,499
1,152,827
Current assets
Stocks
15
562,304
353,898
Debtors
16
8,014,003
4,480,435
Cash at bank and in hand
921,902
4,752,109
9,498,209
9,586,442
Creditors: amounts falling due within one year
17
(2,993,282)
(2,321,271)
Net current assets
6,504,927
7,265,171
Total assets less current liabilities
7,627,426
8,417,998
Provisions for liabilities
Deferred tax liability
18
27,000
23,300
(27,000)
(23,300)
Net assets
7,600,426
8,394,698
Capital and reserves
Called up share capital
21
100
100
Profit and loss reserves
7,600,326
8,394,598
Total equity
7,600,426
8,394,698

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 26 November 2024
B Filler
Director
Company registration number 10022218 (England and Wales)
CHERRY PICK TALENT LTD.
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2022
100
4,146,148
4,146,248
Year ended 28 February 2023:
Profit and total comprehensive income
-
4,248,450
4,248,450
Balance at 28 February 2023
100
8,394,598
8,394,698
Year ended 29 February 2024:
Profit and total comprehensive income
-
3,536,109
3,536,109
Dividends
11
-
(4,330,381)
(4,330,381)
Balance at 29 February 2024
100
7,600,326
7,600,426
CHERRY PICK TALENT LTD.
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
4,748,767
4,289,789
Interest paid
(41,098)
-
0
Income taxes paid
(2,500,235)
(124,641)
Net cash inflow from operating activities
2,207,434
4,165,148
Investing activities
Purchase of tangible fixed assets
(8,601)
(18,755)
Adjustment to acquisition cost of investments
15,090
-
0
Loans made to directors
(1,715,974)
(494,911)
Interest received
2,225
20,592
Net cash used in investing activities
(1,707,260)
(493,074)
Financing activities
Dividends paid
(4,330,381)
-
0
Net cash used in financing activities
(4,330,381)
-
Net (decrease)/increase in cash and cash equivalents
(3,830,207)
3,672,074
Cash and cash equivalents at beginning of year
4,752,109
1,080,035
Cash and cash equivalents at end of year
921,902
4,752,109
CHERRY PICK TALENT LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 11 -
1
Accounting policies
Company information

Cherry Pick Talent Ltd. is a private company limited by shares incorporated in England and Wales. The registered office is 8 High Street, Brentwood, Essex, CM14 4AB.

1.1
Accounting convention

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

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 £1.

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

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Intangible fixed assets other than goodwill

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

 

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

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

Computer software
33% Straight Line
CHERRY PICK TALENT LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 12 -
1.5
Tangible fixed assets

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

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

Fixtures and fittings
25% Straight Line
Computers
33% Straight Line
Motor vehicles
20% Reducing Balance

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

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
Impairment of fixed assets

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

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

 

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

CHERRY PICK TALENT LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 13 -

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

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

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

1.10
Financial instruments

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

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

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.

CHERRY PICK TALENT LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

Other financial liabilities

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

 

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

CHERRY PICK TALENT LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

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

1.11
Equity instruments

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

1.12
Taxation

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

Current 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. 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 when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

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

 

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

 

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

1.14
Retirement benefits

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

1.15
Foreign exchange

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

CHERRY PICK TALENT LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Campaign income
13,623,413
12,509,955
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
3,822,813
1,478,139
Europe
2,518,148
6,636,465
North America
7,282,452
4,395,351
13,623,413
12,509,955
2024
2023
£
£
Other revenue
Interest income
2,225
20,592
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
197,455
(189,508)
Fees payable to the company's auditor for the audit of the company's financial statements
11,000
-
0
Depreciation of owned tangible fixed assets
23,111
25,750
Loss on disposal of tangible fixed assets
728
-
CHERRY PICK TALENT LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 17 -
5
Employees

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

2024
2023
Number
Number
8
8

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
986,499
532,327
Social security costs
44,501
29,503
Pension costs
34,272
13,087
1,065,272
574,917
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
12,000
12,000
Company pension contributions to defined contribution schemes
27,000
7,200
39,000
19,200
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
2,225
20,592
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
41,098
-
0
9
Amounts written off investments
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Gain on financial assets held at fair value through profit or loss
-
0
31,833
CHERRY PICK TALENT LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 18 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,177,662
1,016,752
Deferred tax
Origination and reversal of timing differences
(3,800)
4,900
Changes in tax rates
7,500
-
0
Total deferred tax
3,700
4,900
Total tax charge
1,181,362
1,021,652

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

2024
2023
£
£
Profit before taxation
4,717,471
5,270,102
Expected tax charge based on the standard rate of corporation tax in the UK of 24.49% (2023: 19.00%)
1,155,309
1,001,319
Tax effect of expenses that are not deductible in determining taxable profit
25,217
21,166
Effect of change in corporation tax rate
7,500
-
0
Group relief
(6,876)
-
0
Other
212
(833)
Taxation charge for the year
1,181,362
1,021,652
11
Dividends
2024
2023
£
£
Interim paid
4,330,381
-
0
CHERRY PICK TALENT LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 19 -
12
Intangible fixed assets
Computer software
£
Cost
At 1 March 2023 and 29 February 2024
3,550
Amortisation and impairment
At 1 March 2023 and 29 February 2024
3,550
Carrying amount
At 29 February 2024
-
0
At 28 February 2023
-
0
13
Tangible fixed assets
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 March 2023
11,512
41,854
90,900
144,266
Additions
-
0
8,601
-
0
8,601
Disposals
(9,230)
(10,675)
-
0
(19,905)
At 29 February 2024
2,282
39,780
90,900
132,962
Depreciation and impairment
At 1 March 2023
11,512
22,726
18,787
53,025
Depreciation charged in the year
-
0
9,803
13,308
23,111
Eliminated in respect of disposals
(9,230)
(9,947)
-
0
(19,177)
At 29 February 2024
2,282
22,582
32,095
56,959
Carrying amount
At 29 February 2024
-
0
17,198
58,805
76,003
At 28 February 2023
-
0
19,128
72,113
91,241
14
Fixed asset investments
2024
2023
£
£
Unlisted investments
1,046,496
1,061,586
CHERRY PICK TALENT LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
14
Fixed asset investments
(Continued)
- 20 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 March 2023
1,061,586
Adjustment to acquisition cost
(15,090)
At 29 February 2024
1,046,496
Carrying amount
At 29 February 2024
1,046,496
At 28 February 2023
1,061,586
15
Stocks
2024
2023
£
£
Work in progress
562,304
353,898
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,165,505
1,380,650
Other debtors
3,126,462
1,881,916
Prepayments and accrued income
1,673,186
1,217,869
6,965,153
4,480,435
2024
2023
Amounts falling due after more than one year:
£
£
Corporation tax recoverable
1,048,850
-
0
Total debtors
8,014,003
4,480,435
CHERRY PICK TALENT LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 21 -
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Trade creditors
388,461
44,907
Corporation tax
1,211,803
1,485,526
Other taxation and social security
318,936
71,852
Deferred income
19
807,331
603,607
Other creditors
41,051
6,799
Accruals
225,700
108,580
2,993,282
2,321,271
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
19,000
17,300
Revaluations
8,000
6,000
27,000
23,300
2024
Movements in the year:
£
Liability at 1 March 2023
23,300
Credit to profit or loss
(3,800)
Effect of change in tax rate - profit or loss
7,500
Liability at 29 February 2024
27,000
19
Deferred income
2024
2023
£
£
Other deferred income
807,331
603,607
CHERRY PICK TALENT LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 22 -
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
34,272
13,087

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

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
10,000
10,000
100
100
22
Financial commitments, guarantees and contingencies

Cherry Pick Talent has a profit share arrangement with an unconnected company whereby amounts are due to Cherry Pick Talent upon the cessation of campaigns run by the unconnected company. At the date of signing off the financial statements, the amounts received relating to such campaigns in the 2024 and earlier financial years was £1,147,330.

 

 

 

23
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Services received from related party
2024
2023
£
£
Other related parties
571,188
224,811

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due to related parties
£
£
Other related parties
41,051
6,799
2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
-
802
Key management personnel
3,123,199
1,407,225
Other related parties
3,263
4,181
CHERRY PICK TALENT LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
23
Related party transactions
(Continued)
- 23 -
24
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Director's loan
-
1,407,225
3,493,278
(1,777,304)
3,123,199
1,407,225
3,493,278
(1,777,304)
3,123,199
25
Ultimate controlling party

The controlling party is Cherry Pick Talent Holdings Limited, a company registered in England and Wales at the registered office, 8 High Street, Brentwood, Essex, England, CM14 4AB.

26
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
3,536,109
4,248,450
Adjustments for:
Taxation charged
1,181,362
1,021,652
Finance costs
41,098
-
0
Investment income
(2,225)
(20,592)
Loss on disposal of tangible fixed assets
728
-
Depreciation and impairment of tangible fixed assets
23,111
25,750
Other gains and losses
-
(31,833)
Movements in working capital:
Increase in stocks
(208,406)
(353,898)
Increase in debtors
(768,744)
(1,095,777)
Increase/(decrease) in creditors
742,010
(107,570)
Increase in deferred income
203,724
603,607
Cash generated from operations
4,748,767
4,289,789
27
Analysis of changes in net funds
1 March 2023
Cash flows
29 February 2024
£
£
£
Cash at bank and in hand
4,752,109
(3,830,207)
921,902
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