The directors present the strategic report for the year ended 31 December 2023.
HC Group Global Holdings Limited is a specialist executive search firm focused on the commodities sector. As a medium-sized enterprise, we provide tailored recruitment solutions to leading commodity trading, energy, and natural resource companies. Over the past year, we have strengthened our market position, expanded our global reach, and enhanced our service offerings to support the evolving talent needs of our clients.
The principal risks and uncertainties facing our business include:
Market Volatility: Fluctuations in global economic conditions can impact hiring activity within the sector.
Talent Shortages: The increasing demand for niche skills in commodities trading poses challenges in sourcing high-caliber candidates.
Geopolitical Factors: Political instability, trade policies, and sanctions can affect the movement of talent and business growth in certain markets.
Competition: Increased competition from both large recruitment firms and boutique search specialists requires continuous differentiation through service quality and client engagement.
Throughout the year, HC Group Global Holdings Limited has focused on strategic initiatives to drive growth and mitigate uncertainties, including:
Expanding our presence in key global commodity hubs.
Strengthening our talent intelligence and advisory offering.
Enhancing client retention through long-term partnership models.
Developing insights and thought leadership reports to provide added value to clients.
Despite ongoing market uncertainties, we remain confident in our ability to adapt and capitalize on emerging opportunities within the commodities sector.
To measure our performance and ensure sustainable growth, we track the following KPIs:
Revenue Growth: The group experienced revenue growth of 8% in the year compared to the prior year.
Operating Profit Decrease: The group experienced a reduction in operating profit of 50% compared to the prior year. Resulting in an OPM of 14% (2022: 28%)
Headcount growth: The group's headcount has increased by 39%, from 53 to 75 in the year.
Looking ahead, HC Group Global Holdings Limited aims to further strengthen its market position by:
Investing in technology-driven recruitment solutions to enhance candidate sourcing and assessment.
Expanding our advisory services to offer insights into talent market trends and workforce planning.
We remain committed to delivering outstanding recruitment solutions, adapting to industry dynamics, and ensuring long-term value creation for our stakeholders.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2023.
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £1,250,000. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
We have audited the financial statements of HC Group Global Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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).
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 group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and the parent company and their 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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including non- compliance with laws and regulations, was as follows:
the engagement director ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with management, and from our commercial knowledge and experience;
we focussed on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery and employment legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal fee expenditure; and
identified laws and regulations were communicated within the audit team and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions; assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statements disclosures to underlying supporting documentation; and
enquiring of management as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of management and inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,250,000 (2022 - £775,000 profit).
HC Group Global Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is N2 Bressenden Place, LONDON, SW1E 5BY.
The group consists of HC Group Global Holdings Ltd and all of its subsidiaries. HC Group Global Holdings Limited has no business line activities and is purely an investment holding company.
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.
The consolidated group financial statements consist of the financial statements of the parent company HC Group Global Holdings Ltd together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 December 2023.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
The subsidiaries Freshname No. 412 Limited, registered number 10550749, Freshname No. 411 Limited, registered number 09010488, Freshname No. 410 Limited, registered number 07269782, HC Group Search Holdings Limited, registered number 04477179, HC Group Search Limited, registered number 04477127, HC Group Venture Holdings Limited, registered number 14596849, Enco Insights Limited, registered number 14944505 and 3C Advisors Limited, registered number 14801835, are exempt from the audit of financial statements in the United Kingdom under section 479A of the Companies Act 2006 (United Kingdom).
The exemption means that HC Group Global Holdings Limited, registered number 12316702, guarantees for all subsidiaries Freshname No. 412 Limited, Freshname No. 411 Limited, Freshname No. 410 Limited, HC Group Search Holdings Limited, HC Group Search Limited, HC Group Venture Holdings Limited, Enco Insights Limited and 3C Advisors Limited debts as at 31 December 2023 until paid in full.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The directors believe that the company is well placed to manage its business risks in the current economic outlook. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised on the accruals basis when it is probable (more likely than not) that future economic benefits will flow to the enterprise and revenue and attributable costs can be measured reliably. Revenue 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. Turnover is recognised when the outcome of the transaction involving the rendering of the service can be estimated reliably and includes the provision of recruitment and advisory services.
Interest income
Interest income is recognised in profit or loss using the effective interest method.
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
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 recognised in the profit and loss account.
Equity investments are recognised at cost.
In the parent company financial statements, investments in subsidiaries are measured at cost.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Financial assets 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.
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs.
Debtors
Short-term debtors are measured at transaction price, less any impairment.
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 group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are recognised at transaction price including transaction costs.
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.
Creditors
Short-term creditors are measured at the transaction price.
Equity instruments issued by the group 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 group.
The tax expense represents the sum of the tax currently payable.
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
The costs of short-term employee benefits are recognised as a liability and an expense.
The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further obligations.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of of the plan are held separately from the group in independently administered funds.
Rentals payable under operating leases are charged to profit or loss on a straight line basis over the term of the relevant lease.
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 is not recognised until there is reasonable assurance that the entity will comply with the conditions attaching to it; and the grant will be received. Measurement is at the fair value of the asset received or receivable.
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.
Financial statements of foreign subsidiaries
The assets and liabilities of foreign subsidiaries are translated from the foreign subsidiary's functional currency to the group's reporting currency, sterling, at the foreign exchange rates prevailing at the balance sheet date.
Revenues and expenses of foreign subsidiaries are translated to sterling at average rates that approximate the foreign exchange rates prevailing at each of the transaction dates. Translation differences arising from the translation of the net investment in foreign subsidiaries are recognised in other comprehensive income.
On consolidation, the results of overseas operations are translated into sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
In the application of the group’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.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
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:
Subsidiaries are entities over which the parent company has a controlling influence. Controlling influence exists if the parent company has the power over the investee, meaning the investor has existing rights that give it the ability to direct the relevant activities, is exposed to or has the rights to a variable return from its involvement in the investee and can, through its influence, affect the return from the involvement in the investee.
The financial statements of subsidiaries are included in the consolidated financial statements until the date that control ceases.
Details of the company's subsidiaries at 31 December 2023 are as follows:
The subsidiaries Freshname No. 412 Limited, registered number 10550749, Freshname No. 411 Limited, registered number 09010488, Freshname No. 410 Limited, registered number 07269782, HC Group Search Holdings Limited, registered number 04477179, HC Group Search Limited, registered number 04477127, HC Group Venture Holdings Limited, registered number 14596849, Enco Insights Limited registered number 14944505 and 3C Advisors Limited, registered number 14801835, are exempt from the audit of financial statements in the United Kingdom under section 479A of the Companies Act 2006.
The exemption means that HC Group Global Holdings Limited, registered number 12316702, guarantees for all United Kingdom subsidiaries named above all outstanding liabilities to which the subsidiary companies are subject as at 31 December 2023 until they are satisfied in full. The guarantee is enforceable against the parent undertaking by any person to whom the subsidiary is liable in respect of those liabilities.
As at 31 December 2023 and 31 December 2022 the group has outstanding loans, including government guaranteed borrowings.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
During the year ended 31 December 2023 11,900 ordinary shares of £0.01 each were redesignated as 11,900 P ordinary shares of £0.01 each and 11,900 ordinary shares of £0.01 each were redesignated as 11,900 D ordinary shares of £0.01 each.
The shares rank pari passu in all respects, including rights to vote at a general meeting, rights to receive dividends and return of capital on exit.
Non-cancellable operating leases relate to properties from which group companies trade. £110,299 (2022 - £90,960) is included in other debtors to reflect the deposit held by the property landlords.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Freshname No. 412 Limited is a wholly-owned subsidiary of HC Group Global Holdings Limited. Freshname No. 411 Limited is a wholly-owned subsidiary of Freshname No. 412 Limited. Freshname No. 410 Limited is a wholly-owned subsidiary of Freshname No. 411 Limited. HC Group Search Holdings Limited is a wholly-owned subsidiary of Freshname No. 410 Limited.
During the year ownership of 100% of the share capital of HC Group Search Holdings Limited was transferred from Freshname No. 410 Limited to HC Group Global Holdings Limited.
However, this transaction has not been reflected in the group financial statements for the year ended 31 December 2023. The transfer occurred prior to the completion of the group’s restructuring process, which was finalised in 2024.
As the share capital transfer took place early in the year, it was not in alignment with the finalised group restructuring plan, and therefore, has not been incorporated into the group’s consolidated financials.
The transaction will be reflected in the financial statements in the subsequent period, once the impact of the restructuring is fully-integrated into the group’s financial reporting.
On 24 June 2024, subsequent to the balance sheet date, HC Group Search Limited a subsidiary company entered into a lease agreement for office premises located at Part 3rd Floor, N2 Bressenden Place, Victoria SW1. The lease term is 3 years, commencing from 24 June 2024. The total minimum lease payments over the lease term are expected to be £708,886.
The remuneration of key management personnel is as follows.
Dividends totalling £1,250,000 (2022 - £775,000) were paid in the year in respect of shares held by the company's directors.