Company registration number 11022760 (England and Wales)
TASKUS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
TASKUS LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 11
TASKUS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
4
947
1,579
Investments
5
27,263,919
27,263,919
27,264,866
27,265,498
Current assets
Debtors
6
2,463,992
1,037,544
Cash at bank and in hand
3,716,121
3,274,086
6,180,113
4,311,630
Creditors: amounts falling due within one year
7
(7,694,449)
(16,881,659)
Net current liabilities
(1,514,336)
(12,570,029)
Total assets less current liabilities
25,750,530
14,695,469
Creditors: amounts falling due after more than one year
8
(44,336,692)
(29,162,510)
Net liabilities
(18,586,162)
(14,467,041)
Capital and reserves
Called up share capital
100
100
Equity reserve
584,130
211,584
Profit and loss reserves
(19,170,392)
(14,678,725)
Total equity
(18,586,162)
(14,467,041)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 24 December 2024 and are signed on its behalf by:
B Maddock
Director
Company Registration No. 11022760
TASKUS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Equity Reserve
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
100
97,633
(25,579)
72,154
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(14,653,146)
(14,653,146)
Share based payments
-
113,951
-
113,951
Balance at 31 December 2022
100
211,584
(14,678,725)
(14,467,041)
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
(4,491,667)
(4,491,667)
Share based payments
-
372,546
-
0
372,546
Balance at 31 December 2023
100
584,130
(19,170,392)
(18,586,162)
TASKUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information

TaskUs Limited is a private company limited by shares incorporated in England and Wales. The registered office is Suite 1, 7th Floor 50 Broadway, London, United Kingdom, SW1H 0BL.

1.1
Accounting convention

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

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

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

1.2
Going concern

The company has net liabilities of £18,586,162 (2022: £14,467,041) at the balance sheet date. The company recharges expenditure to its intermediate Parent company and it is therefore reliant on the Parent company for its funding and working capital.

 

The Parent company has provided the company with an undertaking that it will, for at least 12 months from the date of the approval of these financial statements, continue to make available such funds as are needed by the company which should enable to company to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due for payment. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue.

 

However, there is confidence that the Parent will be able to financially support the company, the financial statements have been prepared on a going concern basis.

1.3
Turnover

Intercompany revenue consist of costs recharged to the Parent company. Recharges are calculated monthly based on agreed upon mark ups. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

 

External revenue from customer support services is recognised on a monthly basis based on actual time and cost incurred for the services provided. Revenue is shown net of sales/value added tax, rebates and discounts.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost 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:

Computers
33%

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.

TASKUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Fixed asset investments

Interests in subsidiaries 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.

1.6
Impairment of fixed assets

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

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

 

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

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

1.7
Trade and other debtors
Trade and other debtors are measured at transaction price less any impairment unless the arrangement constitutes a financing transaction in which case the transaction is measured at the present value of the future receipts discounted at the prevailing market rate of interest. Loans are initially measured at fair value and are subsequently measured at amortised cost using the effective interest method less any impairment.
1.8
Trade and other creditors
Trade and other creditors are measured at their transaction price unless the arrangement constitutes a financing transaction in which case the transaction is measured at present value of future payments discounted at prevailing market rate of interest. Other financial liabilities are initially measured at fair value net of their transaction costs. They are subsequently measured at amortised cost using the effective interest method.
1.9
Taxation

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

Current tax
Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using tax rates that have been enacted or substantively enacted by the reporting date.
TASKUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Deferred tax
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against future taxable profits or against the reversal of deferred tax liabilities. Deferred tax relating to a non-depreciable asset that is measured using the revaluation model, or to investment properties measured at fair value, is measured using the tax rates and allowances that apply to the sale of the asset.

Deferred tax is calculated using tax rates that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

1.11
Retirement benefits

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

1.12
Share-based payments

2019 Stock Incentive Plan

On 16 April 2019, the Company established an equity incentive plan pursuant to which the Company has granted option awards to selected executives and other key employees. The option awards contain service, market and performance conditions. Stock options under this plan contingently vest over a period of two years in the event of a change in control and over a period of three years in the event of an IPO (each as defined in such plan), with the vesting period beginning on the date of the performance event so long as the holder remains employed. The amount of options eligible for vesting is contingent upon a return on invested capital in the Company. These options have contractual lives of 10 years. At the date of the IPO, the group concluded that the public offering represents a qualifying liquidity event that would cause the stock option’s performance condition to be probable of occurring. As such, the company began to recognise compensation expense in relation to the stock options issued under the 2019 Plan.

 

2021 Omnibus Incentive Plan

In connection with the IPO, the group adopted the 2021 Omnibus Incentive Plan which provides for the issuance of non-qualified stock options and restricted stock units (“RSUs”). The stock options are subject to service-based vesting conditions and generally vest quarterly or annually over three to four years and expire 10 years from the date of the grant. The RSUs are typically subject to service-based vesting conditions and generally vest in quarterly or annual instalments over two to four years.

 

Employee Stock Purchase Plan

The Company adopted the TaskUs, Inc. 2022 Employee Stock Purchase Plan (the “ESPP”) on 14 June 2022. Under the ESPP, eligible employees may purchase a limited number of shares of our Class A common stock at the lesser of 85% of the market value on the enrollment date or 85% of the market value on the purchase date. As of December 31, 2023, no shares were issued through the ESPP.

 

There is a recharge agreement for Non Qualified Stock Options and Restricted Stock Units, between TaskUS UK and TaskUS Inc., this has been deemed a varying recharge based on future expected intrinsic value of the options. The recharge is clearly linked to the share-based scheme and as such has been accounted for through equity over the vesting period of the awards.

1.13
Foreign exchange

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

TASKUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
2
Judgements and key sources of estimation uncertainty

The preparation of financial statements requires management to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 a continuing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised if the revision affects only that year, or in the year of the revision and future years if the revision affects both current and future years.

Share Options

The key judgements and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

 

Employees are eligible to various Stock awards (note 10) which are classified as equity-settled awards in TaskUs Limited, due to the obligation being settled by TaskUs Inc.

 

The options have a degree of estimation and judgement to determine their fair value. This was undertaken using the Black-Scholes model applying the following assumptions.

 

 

 

Earn out

Subject to heloo's EBITDA (as defined in the share purchase agreement for the acquisition) margin exceeding a minimum level, the former shareholders of heloo are eligible to receive contingent earn-out payments not to exceed £16.7 million during each of the one year periods beginning 1 May 2022 and 1 May 2023, which are payable after the first and second anniversaries from completion.

 

The fair value of contingent earn-out payments was determined to be £nil and £9,987,300 as of 31 December 2023 and 2022, respectively, based on probabilities and timing of achieving the prescribed targets. Since these payments are contingent on future service conditions, they have been recognised as payroll expense ratably over the required service period. For the years ended 31 December 2023 and 2022, the Company recognised £4,380,079 and £10,245,450, respectively, in payroll expenses related to the contingent earn-out payments included in administrative expenses.

 

Whilst the directors exercise due care and attention to make reasonable estimates, taking in to account all available information, the estimates may differ.

 

With the exception of the estimate described above, the directors consider that there are no other significant judgements or estimates in the preparation of these financial statements.

3
Employees

The average monthly number of persons employed (excluding directors) by the company during the year was 8 (2022 - 9).

Directors remuneration is paid by another company within the Group.

TASKUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
4
Tangible fixed assets
Computers
£
Cost
At 1 January 2023 and 31 December 2023
1,895
Depreciation and impairment
At 1 January 2023
316
Depreciation charged in the year
632
At 31 December 2023
948
Carrying amount
At 31 December 2023
947
At 31 December 2022
1,579
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
27,263,919
27,263,919

Heloo Acquisition - Investment In Q Experience

On April 15, 2022, the Company acquired all of the equity interests of Parsec d.o.o. and Q Experience d.o.o. ("heloo"), a Croatia-based digital customer experience solutions provider to European technology companies supporting 20 languages across seven additional Eastern European countries, including Bosnia, Serbia, and Slovenia. The Company believes this acquisition will be complementary to its growth strategy by expanding its global delivery footprint with a suite of multi-lingual, cost-competitive Digital Customer Experience services. The acquisition date fair value of the consideration transferred was £27.3 million.

Investment in Serbia - Hold Co

Within investment, there is £4,270 relating to investment in TaskUs SB d.o.o. Beograd (TaskUS Serbia), an entirely new entity established from the ground up formally incorporated on 17 August 2022. English translation of incorporation certificate and notarized foundation deed confirms that Task US Limited as the "founder" 100% owner of shares in TaskUS SB D.o.o Beograd.

6
Debtors
as restated
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
883,262
639,648
Other debtors
454,169
341,740
1,337,431
981,388
Deferred tax asset
1,126,561
56,156
2,463,992
1,037,544
TASKUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
7
Creditors: amounts falling due within one year
as restated
2023
2022
£
£
Trade creditors
2,548
12,550
Amounts owed to group undertakings
7,157,532
5,117,492
Taxation and social security
176,955
38,820
Other creditors
357,414
11,712,797
7,694,449
16,881,659

At the balance sheet date, the company had unpaid defined contribution pension payable of £7,769 (2022: £28,777).

A prior year reclassification journal totalling £672,066 has been processed to reclassify the non-current earn-out from short-term to long-term liabilities.

8
Creditors: amounts falling due after more than one year
as restated
2023
2022
Notes
£
£
Amounts owed to group undertakings
44,185,517
28,490,444
Other creditors
35,584
-
0
Accruals and deferred income
115,591
672,066
44,336,692
29,162,510

Within non current creditors, there is a revolver facility from parent company to finance the acquisition of Heloo as described in note 5 totalling £42,367,014. Principal and interest is due for payment in full 2026.

 

Interest accrues on the loan principle at 3.5% and, at the year end amounted to £1,818,502.

Amounts included above which fall due after five years are as follows:
Payable other than by instalments
(44,185,517)
(28,490,444)
TASKUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
9
Share based payments
On 11 June 2021, a liquidating event was triggered when TaskUs, Inc. listed on the NASDAQ. In connection with the initial public offering (IPO), the Parent amended and restated its certificate of incorporation to effect a ten-for-one forward stock split of its outstanding common stock. The accompanying financial statements and related notes to the financial statements give retroactive effect to the stock split for all periods presented.
Stock Incentive Plan - Non Qualified Stock Options
TaskUs Inc. has operated a Stock Incentive Plan granting $ 0.01 Ordinary Share Options to employees under the plan. Options vest when certain non-market based performance conditions are met and vest and subsidiary employees over a period of three years from the date of the IPO. The remaining options are subject to service-based vesting conditions and generally vest quarterly or annually over three to four years and expire 10 years from the date of the grant.
Following an employee transfer during the year to the UK entity, 51,814 options were added under the 2019 Stock Incentive Plan. A charge of £93,918 has been recognised in the profit and loss account for the year ended 31 December 2023 (2022: £40,946) to recognise the fair value of the Non Qualified Stock Options granted to date.
A reconciliation of option movements over the year to 31 December 2023 is shown below:
Weighted average
exercise price
Weighted average
exercise price
(Pence)
Number
(Pence)
Number
2023
2023
2022
2022
Outstanding at the start of the year
1,490
32,337
1,425
12,797
Employee Transfer
357
51,814
-
-
Issued during the period
-
-
1,423
19,540
Outstanding at the end of the year
793
84,151
1,490
32,337
TASKUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Share based payments
(Continued)
- 10 -
Stock Incentive Plan - Restricted Stock Unit Options
TaskUs, Inc. has operated a Stock Incentive Plan granting $ 0.01 Ordinary Share Restricted Stock Units (“RUSs”) to employees under the plan. RSUs are subject to service-based vesting conditions and generally vest quarterly or annually over two to four years.
During the year 21,560 options were issued at a weighted average fair value at the grant date of £nil per share as they are RSUs promises of free shares. A charge of £483,679 has been recognised in the profit and loss account for the year ended 31 December 2023 (2022: £348,506) to recognise the fair value of the RSUs granted to date.
A reconciliation of option movements over the year to 31 December 2023 is shown below:
Weighted average
exercise price
Weighted average
exercise price
(Pence)
Number
(Pence)
Number
2023
2023
2022
2022
Outstanding at the start of the year
2,200
40,085
2,821
18,184
Issued during the period
-
21,560
1,767
27,398
Released during the period
-
13,264
3,151
3,636
Cancelled during the period
-
3,092
3,265
1,861
Outstanding at the end of the year
-
45,289
2,200
40,085
WAEP exercise price is £nil as they are RSUs, promises of free shares. There is a recharge agreement for Non Qualified Stock Options and Restricted Stock Units, between TaskUS UK and TaskUS Inc., this has been deemed a varying recharge based on future expected intrinsic value of the options.  The recharge is clearly linked to the share-based scheme and as such has been accounted for through equity over the vesting period of the options. Future estimated recharge of £89,668 (2022: £224,622) has been booked to equity during the year.  Further a recharge payment of £115,383 (2022: £50,879) has been made during the year which has been offset against equity.
10
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The senior statutory auditor was Alison Nayler BSc FCA.
The auditor was Azets Audit Services.
TASKUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
11
Related party transactions

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 1A 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

12
Parent company

The intermediate parent company of TaskUs Limited is TaskUs Holdings, Inc. and its registered office is 3221 Donald Douglas Loop S, Santa Monica, CA 90405, USA. The Ultimate parent company is TaskUs Inc..

13
Prior period adjustment
Reconciliation of changes in equity
1 January
31 December
2022
2022
£
£
Adjustments to prior year
Prior Period Adjustment
-
(10,245,450)
Equity as previously reported
72,154
(4,221,591)
Equity as adjusted
72,154
(14,467,041)
Analysis of the effect upon equity
Profit and loss reserves
-
(10,245,450)
Reconciliation of changes in loss for the previous financial period
2022
£
Adjustments to prior year
Prior Period Adjustment
(10,245,450)
Loss as previously reported
(4,407,696)
Loss as adjusted
(14,653,146)
Notes to reconciliation

It has been identified that the service agreement was misinterpreted in FY22. The payment related to the earn-out was recorded as a passthrough expense; however, upon closer examination of the service agreement, this cost does not appear to be connected to the provision of services to the US company and, therefore, should not have been reimbursed under the terms of the agreement.

 

Based on this interpretation, any payments made by the US company should have been reflected through the company loan, and the "income" should not have been recorded in the profit and loss statement.

 

As a result, a prior year adjustment has been agreed upon to accurately reflect the service agreement's terms. This adjustment has increased the UK company's accounting loss by approximately £10 million. This has also affected the amounts owed by group undertakings which due to this adjustment means the group balances are now classified as amounts owed to group undertakings within creditors due within one year.

2023-12-312023-01-01false24 December 2024CCH SoftwareCCH Accounts Production 2024.210No description of principal activityThis audit opinion is unqualifiedFirst Inital J WeirB MaddockMr R Ronakfalsefalse110227602023-01-012023-12-31110227602023-12-31110227602022-12-3111022760core:ComputerEquipment2023-12-3111022760core:ComputerEquipment2022-12-3111022760core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3111022760core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3111022760core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3111022760core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3111022760core:ShareCapital2023-12-3111022760core:ShareCapital2022-12-3111022760core:OtherMiscellaneousReserve2023-12-3111022760core:OtherMiscellaneousReserve2022-12-3111022760core:RetainedEarningsAccumulatedLosses2023-12-3111022760core:RetainedEarningsAccumulatedLosses2022-12-3111022760core:ShareCapital2021-12-3111022760core:OtherMiscellaneousReserve2021-12-3111022760core:RetainedEarningsAccumulatedLosses2021-12-31110227602021-12-3111022760bus:Director22023-01-012023-12-3111022760core:RetainedEarningsAccumulatedLosses2022-01-012022-12-31110227602022-01-012022-12-3111022760core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3111022760core:ComputerEquipment2023-01-012023-12-3111022760core:ComputerEquipment2022-12-3111022760core:CurrentFinancialInstruments2023-12-3111022760core:CurrentFinancialInstruments2022-12-3111022760core:WithinOneYear2023-12-3111022760core:WithinOneYear2022-12-3111022760core:Non-currentFinancialInstruments2023-12-3111022760core:Non-currentFinancialInstruments2022-12-3111022760core:Non-currentFinancialInstruments12023-12-3111022760core:Non-currentFinancialInstruments12022-12-3111022760bus:PrivateLimitedCompanyLtd2023-01-012023-12-3111022760bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3111022760bus:FRS1022023-01-012023-12-3111022760bus:Audited2023-01-012023-12-3111022760bus:Director12023-01-012023-12-3111022760bus:CompanySecretary12023-01-012023-12-3111022760bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP