Company Registration No. 08611116 (England and Wales)
Trust In Soda Ltd
Annual report and financial statements
for the year ended 31 December 2023
Trust In Soda Ltd
Company information
Directors
Ashley Lawrence
David Young
Company number
08611116
Registered office
20 Westland Place
London
N1 7JR
Independent auditor
Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
Trust In Soda Ltd
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
Trust In Soda Ltd
Strategic report
For the year ended 31 December 2023
1

The directors present the strategic report for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of recruitment consultancy.

 

Trust in SODA are a next-generation tech enabled recruitment specialist. We are the partner of choice for digital technology recruitment to a range of industries. For us, digital technology encompasses Software Engineering, DevOps, Data and Design, as well as Product Management and Marketing & Sales. Our community groups include Women in DevOps and Computer Vision in Production.

Review of the business

The results for the year ended 31 December 2023 are set out in the Profit and Loss account on page 9. The UK and global economic environment in 2023 created a challenging trading year for the business. In addition, a strategic repositioning of the business took place to create a more resilient and higher value proposition. In 2023 turnover reduced from £21.4m in the year ended 31 December 2022 to £12.9m as headcount reduced from 52 in 2022 to 37 in 2023.

The business was affected in 2023 by economic headwinds which impacted particularly the staffing sector, including increased interest rates, inflation and overall reduced business confidence.

In the face of these challenges, the business has focused on strengthening its brand and geographical focus. This includes penetrating the Swiss market, with the Labour Leasing Licence recently obtained for Switzerland, and a focus on cost control and effective working capital management.

Principal risks and uncertainties

The company actively considers and manages its risks. The directors consider the company to be subject to the following material areas of risk:

Business and operational risk management

Currently, there is a significant level of global uncertainty in the markets, coupled with high inflation and a drop in business confidence leading to reduced job market activity. To mitigate this we focus on sectors that are more resilient to the fluctuations in the economy. We also ensure that the business is geographically diverse. We offer both permanent and contractor solutions to our clients and remain agile to new opportunities that are presented in the regions in which we operate. The diversity of our client base means we are well placed to take advantage of an increase in demand or mitigate a decline.

Workforce trends, coupled with low unemployment rates across Europe, is leading to a war on talent for highly skilled contractors. We see this as a key risk area. The company’s business model is based on offering niche talent solutions, deploying the right talent at the client locations and having a wide client base covering a number of industries, countries and economies.

 

Financial risk management

The Directors regularly review the financial requirements of the business and the associated risks. The company is financed through a combination of retained earnings, discount credit facility, and a third party short-term loan and does not use complicated financial instruments or derivatives. The company is exposed to financial risk through its financial assets and liabilities. The key financial risk is that the proceeds from financial assets are not sufficient to fund obligations arising from liabilities as they fall due. The main components of financial risk are liquidity risk and credit risk.

 

Due to the nature of the company’s business and the assets and liabilities contained within the company’s balance sheet, the principal financial risk that the Directors consider relevant to the company is credit risk. The risk is mitigated through a robust credit control function.

Trust In Soda Ltd
Strategic report (continued)
For the year ended 31 December 2023
2
Key performance indicators

The principal financial KPI for the company is gross profit. Total gross profit for the year has reduced to £2.6m from £4.5m in the year ended 31 December 2022.

Future developments

The business’ strategic repositioning with a focus on higher value contract business and the penetration of the Swiss market lends itself to growth in future years. Whilst the market conditions remain volatile, with the quality of operational delivery, geographic reach, financial efficiencies and liquidity, the directors believe that the company is well positioned to grow in 2024 and beyond.

 

On behalf of the board

Ashley Lawrence
Director
5 March 2025
Trust In Soda Ltd
Directors' report
For the year ended 31 December 2023
3

The directors present their annual report and financial statements for the year ended 31 December 2023.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Ashley Lawrence
David Young
Auditor

Saffery LLP have expressed their willingness to continue in office.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report 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).

 

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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are 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. They are 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.

Trust In Soda Ltd
Directors' report (continued)
For the year ended 31 December 2023
4
Going concern

The directors note that as at 31 December 2023, the company has net current liabilities of £2.5m (2022: £836k) and generated a loss for the year of £1.6m (£968k).

In 2024, the directors currently expect the business to make a loss before tax of roughly £922k and will end the year on roughly £292k of cash.

The Business encountered challenging trading conditions throughout 2023 and 2024, and responded with a strategic re-positioning. This included investment in new business lines (Trinnovo Consulting and DeepRec.ai), investment into the Swiss and DACH regions (including obtaining the relevant SECO and AUG licences), and move to focus on higher value business with fewer consultants. This investment has already produced results with NFI per head improving from £9.3k per month in the first quarter to £13.1k expected in the fourth quarter of 2024.

The expected loss in 2024 has reduced cash reserves, however the directors are of the opinion that by maintaining current levels of NFI per head, the business will comfortably be cash generative in 2025.

In addition, there is an as-yet un-utilised perm invoice financing facility which can provide between £363k and £447k of additional cash headroom, if required.

The directors therefore have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they have adopted the going concern basis in preparing the annual report and financial statements.

The directors recognise that the ongoing economic uncertainty in the United Kingdom and across the world represents a material uncertainty to the future of the economy and casts doubt on the ability of many companies to continue as a going concern. Having considered these impacts and through the preparation of forecasts which have been sensitised to take into account the uncertainty in the global economy and with the funds the wider group has available, the directors consider it appropriate to prepare the financial statements on a going concern basis.

Medium-sized companies exemption

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

On behalf of the board
Ashley Lawrence
Director
5 March 2025
Trust In Soda Ltd
Independent auditor's report
To the member of Trust In Soda Ltd
5
Opinion

We have audited the financial statements of Trust In Soda Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Trust In Soda Ltd
Independent auditor's report (continued)
To the member of Trust In Soda Ltd
6

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

 

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 directors' report.

 

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

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have 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.

Trust In Soda Ltd
Independent auditor's report (continued)
To the member of Trust In Soda Ltd
7

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

 

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

Trust In Soda Ltd
Independent auditor's report (continued)
To the member of Trust In Soda Ltd
8

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.

Jamie Cassell
Senior Statutory Auditor
For and on behalf of Saffery LLP
5 March 2025
Accountants
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
Trust In Soda Ltd
Statement of comprehensive income
For the year ended 31 December 2023
9
2023
2022
Notes
£
£
Turnover
3
12,877,001
21,389,787
Cost of sales
(10,377,007)
(16,682,480)
Gross profit
2,499,994
4,707,307
Administrative expenses
(4,609,368)
(6,027,262)
Other operating income
3
686,700
589,019
Operating loss
4
(1,422,674)
(730,936)
Interest payable and similar expenses
8
(175,682)
(221,313)
Loss before taxation
(1,598,356)
(952,249)
Tax on loss
10
-
0
(15,450)
Loss for the financial year
(1,598,356)
(967,699)

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

Trust In Soda Ltd
Balance sheet
As at 31 December 2023
10
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
63,790
37,644
Investments
13
153
153
63,943
37,797
Current assets
Debtors
15
3,074,533
4,848,559
Cash at bank and in hand
276,185
248,401
3,350,718
5,096,960
Creditors: amounts falling due within one year
16
(5,861,361)
(5,933,101)
Net current liabilities
(2,510,643)
(836,141)
Total assets less current liabilities
(2,446,700)
(798,344)
Creditors: amounts falling due after more than one year
17
(114,297)
(164,297)
Net liabilities
(2,560,997)
(962,641)
Capital and reserves
Called up share capital
18
100
100
Profit and loss reserves
(2,561,097)
(962,741)
Total equity
(2,560,997)
(962,641)
The financial statements were approved by the board of directors and authorised for issue on 5 March 2025 and are signed on its behalf by:
Ashley Lawrence
Director
Company Registration No. 08611116
Trust In Soda Ltd
Statement of changes in equity
For the year ended 31 December 2023
11
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100
154,958
155,058
Year ended 31 December 2022:
Loss and total comprehensive income
-
(967,699)
(967,699)
Dividends
11
-
(150,000)
(150,000)
Balance at 31 December 2022
100
(962,741)
(962,641)
Year ended 31 December 2023:
Loss and total comprehensive income
-
(1,598,356)
(1,598,356)
Balance at 31 December 2023
100
(2,561,097)
(2,560,997)
Trust In Soda Ltd
Notes to the financial statements
For the year ended 31 December 2023
12
1
Accounting policies
Company information

Trust In Soda Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 20 Westland Place, London, N1 7JR.

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 £.

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

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Trinnovo Group Ltd.These consolidated financial statements are available from its registered office, 20 Westland Place, London, N1 7JR.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

Trust In Soda Ltd is a wholly owned subsidiary of Trinnovo Group Ltd and the results of Trust In Soda Ltd are included in the consolidated financial statements of Trinnovo Group Ltd which are available from 20 Westland Place, London, N1 7JR.

Trust In Soda Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
13
1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that thetrue company has adequate resources to continue in operational existence for the foreseeable future. The directors have prepared forecasts for a period of greater than twelve months from the date of the signed audit report, which show that the company has sufficient funds to ensure that it will continue to trade for the foreseeable future. If required the directors will also take the necessary steps to ensure that the company remains in a strong trading position during the current global uncertainty. The company has also received a letter from its parent entity, confirming its intention to continue to support the entity for the foreseeable future. From the forecasts produced the directors continue 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 services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover from contractor placements, representing fees billed for the services of contractors including their costs, is recognised when the service has been provided.

 

Turnover from permanent placements is recognised on the invoice date. Invoices are raised on the candidate start date.

1.4
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:

Plant and machinery etc
5 years straight line

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.

1.5
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.

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.

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.

Trust In Soda Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
14

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
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.

1.8
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, 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.

Trust In Soda Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
15
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

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.

Derecognition of financial liabilities

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

Trust In Soda Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
16
1.9
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.

1.10
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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.

1.11
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.

1.12
Retirement benefits

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

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Trust In Soda Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
17
1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

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.

2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Recoverability of debtors

Intercompany balances are reviewed at each year end for recoverability by assessing the historical transactions and expected future cash flows respectively.

Trust In Soda Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
18
3
Turnover and other operating income
2023
2022
£
£
Turnover analysed by class of business
Contractor placements
11,718,715
18,983,120
Permanent placements
963,510
2,024,289
Other income
194,776
382,378
12,877,001
21,389,787
2023
2022
£
£
Other operating income
Grants received
-
6,757
Management fees
686,700
582,262
Total
686,700
589,019

Grants received are in relation to the Coronavirus Business Interruption Loan Scheme (see Note 15).

4
Operating loss
2023
2022
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(37,626)
183,403
Government grants
-
(6,757)
Depreciation of owned tangible fixed assets
22,860
20,759
Operating lease charges
1,980
66,000
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
20,250
20,250
Trust In Soda Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
19
6
Employees

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

2023
2022
Number
Number
37
52

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,057,149
3,273,151
Social security costs
220,350
395,250
Pension costs
35,580
43,194
2,313,079
3,711,595
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
49,948
-
0
Company pension contributions to defined contribution schemes
816
-
50,764
-
0
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
15,154
6,748
Interest on invoice finance arrangements
155,572
214,565
Other interest
4,956
-
0
175,682
221,313
9
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
35,580
43,194

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.

Trust In Soda Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
20
10
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
-
0
15,450

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

2023
2022
£
£
Loss before taxation
(1,598,356)
(952,249)
Expected tax credit based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(375,933)
(180,927)
Tax effect of expenses that are not deductible in determining taxable profit
759
1,080
Adjustments in respect of prior years
-
0
15,450
Group relief
351,017
154,308
Permanent capital allowances in excess of depreciation
-
0
4,891
Deferred tax movements not recognised
24,157
20,648
Taxation charge for the year
-
15,450
11
Dividends
2023
2022
£
£
Interim paid
-
0
150,000
Trust In Soda Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
21
12
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023
151,363
Additions
49,006
At 31 December 2023
200,369
Depreciation and impairment
At 1 January 2023
113,719
Depreciation charged in the year
22,860
At 31 December 2023
136,579
Carrying amount
At 31 December 2023
63,790
At 31 December 2022
37,644
13
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
14
153
153
14
Subsidiaries

At 31 December 2023, the company owned 100% of the Ordinary share capital of Soda Digital Recruitment Inc., a company incorporated in the United States of America. The subsidiary's principal activity is the provision of temporary employment agency services. It's registered office is 100 Summer Street, Suite 1600, Boston, 02110.

Trust In Soda Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
22
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
267,272
787,477
Corporation tax recoverable
133,698
157,720
Amounts owed by group undertakings
2,216,947
3,278,774
Other debtors
59,480
18,586
Prepayments and accrued income
397,136
606,002
3,074,533
4,848,559

Other debtors includes an invoice financing facility of £59,481 (2022: £34,985 other creditor) where the agency holds a guarantee as security for all the present and future debts, moneys and and liabilities owed to the agency by the entity.

Amounts owed by group undertakings are interest free, unsecured and repayable on demand.

16
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
17
56,536
56,536
Trade creditors
144,575
153,702
Amounts owed to group undertakings
4,938,586
4,350,206
Corporation tax
-
0
173,170
Other taxation and social security
419,042
549,617
Other creditors
296,762
53,598
Accruals and deferred income
5,860
596,272
5,861,361
5,933,101

Amounts owed to group undertakings are interest free, unsecured and repayable on demand.

 

As at the year end the company has outstanding fixed and floating charges held against their assets.

17
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
114,297
164,297

During the year ended 31 December 2021, the company entered into a new loan agreement for £250,000 with HSBC UK Bank plc., attracting an interest rate of 3.99% per annum over Base Rate. This lending facility is supported by the Coronavirus Business Interruption Loan Scheme, therefore the annual interest rate applicable during the first twelve months of the term was 0%. The loan is repayable in monthly instalments and is due to be repaid in full by 25 May 2027. The balance at 31 December 2023 was £170,833 (2022: £220,833), which is split between amounts due within one year and amounts due after more than one year.

Trust In Soda Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
23
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
100,000
100,000
100
100
19
Related party transactions

The company has taken advantage of the exemption to disclose related party transactions with companies that are wholly owned within the group. The balances outstanding at the year end are disclosed in Notes 13 and 14.

20
Ultimate controlling party

The immediate and ultimate parent company was Trinnovo Group Limited, by virtue of its 100% ownership of the company. Copies of the consolidated financial statements can be obtained from its registered office at 20 Westland Place, London, N1 7JR.

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