Company registration number 07197418 (England and Wales)
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
COMPANY INFORMATION
Directors
C C Beck
J N Wallace
M R J Falagario
Secretary
M R J Falagario
Company number
07197418
Registered office
c/o Azets
Burnham Yard
London End
Beaconsfield
Bucks
United Kingdom
HP9 2JH
Auditor
Azets Audit Services
Suites B & D
Burnham Yard
London End
Beaconsfield
Buckinghamshire
United Kingdom
HP9 2JH
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
CONTENTS
Page
Directors' report
1
Directors' responsibilities statement
2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Statement of financial position
7
Statement of changes in equity
8
Notes to the financial statements
9 - 22
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -
The directors present their annual report and financial statements for the year ended 31 August 2024.
Principal activities
The principal activity of the company continued to be that of executive recruitment.
Results and dividends
The results for the year are set out on page 6.
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:
C C Beck
J N Wallace
M R J Falagario
Future developments
After record-breaking growth in fiscal 2022, fiscal 2023 was impacted by suppressed hiring demand and a corresponding reduction in revenue. That environment continued into fiscal 2024.
Encouragingly, the first six months of fiscal 2025 have shown growth in the Number of Assignments in the UK, translating into higher revenue. Given the current macroeconomic and geo-political uncertainty, however, it is difficult to predict whether this trend will continue through calendar 2025.
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
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.
STRATEGIC REPORT
The company is exempt by virtue of Section 414B of the Companies Act 2006 from preparing a Strategic Report on account of its size.
On behalf of the board
M R J Falagario
Director
20 May 2025
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s 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.
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
- 3 -
Opinion
We have audited the financial statements of The Caldwell Partners International Europe Ltd (the 'company') for the year ended 31 August 2024 which comprise the statement of comprehensive income, the statement of financial position, 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 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 August 2024 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
- 4 -
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 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, or returns adequate for our audit have not been received from branches not visited by us; or
the 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; or
the directors were not entitled to take advantage of the small companies exemption from the requirement to prepare a strategic report.
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.
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.
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
- 5 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Adam East ACA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
21 May 2025
Chartered Accountants
Statutory Auditor
Suites B & D
Burnham Yard
London End
Beaconsfield
Buckinghamshire
United Kingdom
HP9 2JH
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 6 -
2024
2023
as restated
Notes
£
£
Revenue
3
3,308,558
4,464,583
Cost of sales
(2,481,729)
(3,046,754)
Gross profit
826,829
1,417,829
Administrative expenses
(836,095)
(972,308)
Operating (loss)/profit
4
(9,266)
445,521
Investment income
6
40,614
-
Finance costs
7
(36,081)
(30,993)
(Loss)/profit before taxation
(4,733)
414,528
Tax on (loss)/profit
8
(19,836)
(Loss)/profit and total comprehensive income for the financial year
(24,569)
414,528
The income statement has been prepared on the basis that all operations are continuing operations.
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 AUGUST 2024
31 August 2024
- 7 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
9
30,872
26,465
Right-of-use assets
9
379,772
488,036
410,644
514,501
Current assets
Trade and other receivables
10
1,147,714
1,717,284
Cash and cash equivalents
310,824
152,232
1,458,538
1,869,516
Current liabilities
Trade and other payables
12
624,918
1,016,265
Taxation and social security
107,082
132,525
Lease liabilities
13
122,931
73,478
854,931
1,222,268
Net current assets
603,607
647,248
Total assets less current liabilities
1,014,251
1,161,749
Non-current liabilities
11
(303,334)
(426,263)
Net assets
710,917
735,486
Equity
Called up share capital
15
674,137
674,137
Retained earnings
36,780
61,349
Total equity
710,917
735,486
The financial statements were approved by the board of directors and authorised for issue on 20 May 2025 and are signed on its behalf by:
M R J Falagario
Director
Company registration number 07197418
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 September 2022
674,137
(353,179)
320,958
Year ended 31 August 2023:
Profit and total comprehensive income for the year
-
414,528
414,528
Balance at 31 August 2023
674,137
61,349
735,486
Year ended 31 August 2024:
Loss and total comprehensive income for the year
-
(24,569)
(24,569)
Balance at 31 August 2024
674,137
36,780
710,917
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 9 -
1
Accounting policies
Company information
The Caldwell Partners International Europe Ltd is a private company limited by shares incorporated in England and Wales. The registered office is c/o Azets, Burnham Yard, London End, Beaconsfield, Bucks, United Kingdom, HP9 2JH.
The principal place of business is 107 Cannon Street, 2nd Floor, London EC4N 5AF.
Authorisation of Financial Statements
The financial statements of The Caldwell Partners International Europe Ltd for the year ended 31 August 2024 were authorised for issue by the board of directors on 20 May 2025 and the Balance Sheet was signed on the board's behalf by Mr M R J Falagario. The Caldwell Partners International Europe Ltd is incorporated and domiciled in England and Wales.
1.1
Accounting convention
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.
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 company has taken advantage of the following disclosure exemptions under FRS 101:
the requirements of paragraphs 45(b) and 46-52 of IFRS 2 Share based Payment;
the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64 (o)(ii), B64(p), B64(q)(ii), B66 and B67of IFRS 3 Business Combinations. Equivalent disclosures are included in the consolidated financial statements of The Caldwell Partners International Inc. in which the entity is consolidated;
the requirements of paragraph 33 (c) of IFRS 5 Non current Assets Held for Sale and Discontinued Operations;
the requirements of IFRS 7 Financial Instruments: Disclosures;
the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement;
the requirement in paragraph 38 of IAS 1 ‘Presentation of Financial Statements’ to present comparative information in respect of: (i) paragraph 79(a) (iv) of IAS 1, (ii) paragraph 73(e) of IAS 16 Property Plant and Equipment (iii) paragraph 118 (e) of IAS 38 Intangibles Assets, (iv) paragraphs 76 and 79(d) of IAS 40 Investment Property and (v) paragraph 50 of IAS 41 Agriculture;
the requirements of paragraphs 10(d), 10(f), 16, 38A to 38D, 39 to 40 ,111 and 134-136 of IAS 1 Presentation of Financial Statements;
the requirements of IAS 7 Statement of Cash Flows;
the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;
the requirements of paragraph 17 of IAS 24 Related Party Disclosures;
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member ; and
the requirements of paragraphs 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.
the requirements of IFRS 16 Lease disclosures
As permitted by FRS 101, the company has taken advantage of the disclosure exemptions available under that standard in relation to share based payments, financial instruments, capital management, presentation of a cash flow statement, presentation of comparative information in respect of certain assets, standards not yet effective, impairment of assets, business combinations, discontinued operations and related party transactions.
Where required, equivalent disclosures are given in the group accounts of The Caldwell Partners International Inc. The group accounts of The Caldwell Partners International Inc are available to the public.
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 10 -
1.2
Going concern
The parent company, Caldwell Partners International Inc. has confirmed that it will provide support to enable the company to fulfil its financial obligations for a period of at least twelve months from the date these financial statements were approved.true
The directors have prepared budgets and have assessed that the operating cashflows generated, together with the financial support outlined above is adequate to ensure that the company will meet its liabilities as and when they fall due for a period of at least twelve months from the date from which these financial statements were approved. On this basis the directors are of the opinion that the financial statements should be drawn up on a going concern basis.
1.3
Revenue
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises accrued revenue calculated by reference to the fair value of services to a customer performed up to the balance sheet date, but not invoiced. Conversely, the company recognises unbilled revenue where invoices have been issued but the related services have not been performed.
1.4
Property, plant and equipment
Property, plant and equipment 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:
Right-of-use lease assets
Straight line over the term of the lease
Furniture and equipment
20% on reducing balance
Computer equipment
20-30% on reducing balance
Computer application software
33% on cost
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 income statement.
1.5
Impairment of tangible assets
At each reporting 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.
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 11 -
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.
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.
1.6
Fair value measurement
IFRS 13 establishes a single source of guidance for all fair value measurements. IFRS 13 does not change when an entity is required to use fair value, but rather provides guidance on how to measure fair value under IFRS when fair value is required or permitted. The company is exempt under FRS 101 from the disclosure requirements of IFRS 13. There was no impact on the company from the adoption of IFRS 13.
1.7
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.
1.8
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
Impairment of financial assets
Financial assets carried at amortised cost are assessed for indicators of impairment at each reporting end date.
The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
For trade receivables, the simplified approach permitted by IFRS 9 is applied, which requires expected lifetime losses to be recognised from initial recognition of the receivables.
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 12 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.9
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
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 income statement 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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 13 -
1.12
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 inventories or non-current 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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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.
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 14 -
1.15
The company leases a property. Leases are classified as either operating leases or finance leases based on the substance of the transaction at the inception of the lease.
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor and are leased for a period of less than twelve months are classified as operating leases. Payments made under operating leases, net of any incentives received from the lessor, are charged to profit or loss within general and administrative expenses on a straight line basis over the period of the lease.
From 1 September 2019 IFRS 16 has been adopted which provides revised guidance on identifying a lease and for separating lease and non-lease components of a contract for leases of more than 12 months. IFRS 16 generally requires a lessee to recognise an asset (right-of-use of the leased asset) and a financial liability on the statement of financial position.
At the inception of a lease contract, the company assesses whether it or contains a lease based on whether the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
In accordance with IFRS 16, a right of use asset and a corresponding lease liability are recognized at the date a leased asset is available for use by the company. The right of use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove or restore the underlying asset, less any lease incentives received.
The lease liability is initially measured at the present value of the lease payments discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate is used to calculate present value. The lease term determined by the company is comprised of the non-cancellable period of the lease contract, as well as options to terminate or extend the lease term if the exercise of either option is reasonably certain.
Right-of-use assets are subsequently measured at cost less depreciation on a straight-line basis and reduced to reflect impairment losses (if any) and adjusted for any remeasurement of the lease liability. After the lease commencement date, lease liabilities are measured at amortized cost using the effective interest method, which increases the liability amount to reflect interest on the lease liability, reduces the liability carrying amount to reflect lease payments made and also reflects any remeasurement or lease modifications. If a remeasurement to the lease liability is deemed necessary, a corresponding adjustment is also made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. Payments related to short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss over the respective lease terms. Short-term leases are leases with a lease term of 12 months or less.
1.16
Advances are sign on payments made to employees to join the Company. Such amounts may be recouped if the employee leaves the Company before a contractually stipulated period of time has elapsed, usually up to 48 months from their start date. The advances are amortised to expenses on a straight-line basis over the life of the contractual recoupment period.
1.17
Commission and bonus plans
The company recognises a liability and an expense for commissions and bonuses, based on performance measures relevant to those employees. Revenue-producing employees earn bonuses tied directly to revenue production. Bonus structure is approved by the Board of Directors. The company recognises the expense and revenue share in the period based on performance levels attained. To the extent revenue is deferred for recognition in a future period, the Company will also defer the relevant amount of estimated Revenue Share expense directly associated with such deferred revenue.
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 15 -
2
Critical accounting estimates and judgements
The Company makes estimates and assumptions concerning the future that will, by definition, seldom equal actual results. The following are the estimates and judgments applied by management that most significantly affect the Company's consolidated financial statements. These estimates and judgments have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. The following discussion sets forth management’s most significant estimates and assumptions in determining the value of assets and liabilities, and the most significant judgments in applying accounting policies.
Revenue recognition
The Company’s method of revenue recognition requires it to estimate the expected average performance period and the percentage of completion, based on the proportion of the estimated effort to fulfill the Company’s obligations throughout the expected average performance period for its executive searches. Differences between the estimated percentage of completion and the amounts billed will give rise to a deferral of revenue to a future period. Changes in the average performance period or the proportion of effort expended throughout the performance period for its executive searches could lead to an under or overvaluation of revenue.
The Company’s method of revenue recognition also requires it to estimate the total expected revenue at the beginning of each contract, which requires the Company to estimate uptick revenue on open searches, based on historic uptick rates. Changes in average uptick rates on executive searches could lead to an under or overvaluation of revenue.
Allowance for doubtful accounts
The Company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance model in determining the loss for all accounts receivable. Accounts receivable have been grouped based on shared credit risk characteristics and the days past due to measure expected credit losses. Accounts receivable are written off when there is no reasonable expectation of recovery.
Compensation accruals
Partner commissions are based on a per partner basis on amounts billed during a respective year and collected within a certain timeframe. These collections are then subject to a commission grid that escalates as the individual collects more. Assumptions are made regarding what each partner’s full year collections will be in order to set an estimated commission tier to accrue compensation expense throughout the year.
3
Revenue
As restated
2024
2023
£
£
Revenue analysed by class of business
Executive search recruitment
3,308,558
4,464,583
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
3
Revenue
(Continued)
- 16 -
As restated
2024
2023
£
£
Revenue analysed by geographical market
United Kingdom
1,716,555
1,451,144
United States of America
582,973
895,403
Canada
803,915
1,464,837
Rest of the World
205,115
653,199
3,308,558
4,464,583
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange losses
43,215
124,875
Fees payable to the company's auditor for the audit of the company's financial statements
16,607
14,403
Depreciation of property, plant and equipment
120,623
60,484
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Management, sales and administration
15
15
Their aggregate remuneration comprised:
As restated
2024
2023
£
£
Wages and salaries
2,006,477
2,575,051
Social security costs
272,482
304,812
Pension costs
85,974
75,139
2,364,933
2,955,002
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 17 -
6
Investment income
2024
2023
£
£
Interest income
Interest receivable from group companies
40,614
7
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
13,248
Interest on lease liabilities
36,081
17,745
36,081
30,993
8
Taxation
2024
2023
£
£
Current tax
Foreign taxes and reliefs
19,836
19,836
The charge for the year can be reconciled to the (loss)/profit per the income statement as follows:
2024
2023
£
£
(Loss)/profit before taxation
(4,733)
414,528
Expected tax (credit)/charge based on a corporation tax rate of 25.00% (2023: 19.00%)
(1,183)
78,760
Effect of expenses not deductible in determining taxable profit
1,997
4,204
Utilisation of tax losses not previously recognised
(527)
(81,920)
Permanent capital allowances in excess of depreciation
(287)
(1,044)
Overseas taxation charges
19,836
-
Taxation charge for the year
19,836
-
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 18 -
9
Property, plant and equipment
Right-of-use lease assets
Furniture and equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 September 2023
537,435
1,042
67,991
606,468
Additions
16,766
16,766
At 31 August 2024
537,435
1,042
84,757
623,234
Accumulated depreciation and impairment
At 1 September 2023
49,399
942
41,626
91,967
Charge for the year
108,264
100
12,259
120,623
At 31 August 2024
157,663
1,042
53,885
212,590
Carrying amount analysed between owned assets and right-of-use assets
At 31 August 2024
Owned assets
-
-
30,872
30,872
Right-of-use assets
379,772
-
-
379,772
379,772
30,872
410,644
At 31 August 2023
Owned assets
-
100
26,365
26,465
Right-of-use assets
488,036
-
-
488,036
488,036
100
26,365
514,501
Property, plant and equipment includes right-of-use assets, as follows:
Right-of-use assets
2024
2023
£
£
Net values at the year end
Property
379,772
488,036
Depreciation charge for the year
Property
108,264
49,399
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 19 -
10
Trade and other receivables
2024
2023
£
£
Trade receivables
282,226
511,058
Amounts owed by fellow group undertakings
584,421
872,418
Other receivables
62,502
62,502
Prepayments and accrued income
218,565
271,306
1,147,714
1,717,284
Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.
Trade debtors are stated after provision for impairment of £15,000 (2023: £22,863). Impairment losses recognised in the year ended 31 August 2024 were £(7,146) (2023: £22,863) and are included in administrative expenses.
11
Liabilities
Current
Non-current
2024
2023
2024
2023
Notes
£
£
£
£
Trade and other payables
12
624,918
1,016,265
Taxation and social security
107,082
132,525
-
-
Lease liabilities
13
122,931
73,478
303,334
426,263
854,931
1,222,268
303,334
426,263
12
Trade and other payables
2024
2023
£
£
Trade payables
10,165
18,037
Amounts owed to fellow group undertakings
33,151
-
Accruals and deferred income
581,602
998,228
624,918
1,016,265
13
Lease liabilities
2024
2023
Maturity analysis
£
£
Within one year
122,931
73,478
In two to five years
303,334
426,263
Total undiscounted liabilities
426,265
499,741
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
13
Lease liabilities
(Continued)
- 20 -
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2024
2023
£
£
Current liabilities
122,931
73,478
Non-current liabilities
303,334
426,263
426,265
499,741
2024
2023
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
36,081
17,745
Other leasing information is included in note 17.
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
85,974
75,139
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.
15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Authorised
Ordinary shares of £1 each
674,137
674,137
674,137
674,137
Issued and fully paid
Ordinary shares of £1 each
674,137
674,137
674,137
674,137
16
Secured Debts
On the 28 September 2016, the company agreed a fixed and floating charge over its assets in favour of The Toronto Dominion Bank.
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
17
Other leasing information
Lessee
Amounts recognised in profit or loss as an expense during the period in respect of lease arrangements are as follows:
2024
2023
£
£
20,259
81,715
Set out below are the future cash outflows to which the lessee is potentially exposed that are not reflected in the measurement of lease liabilities:
2024
2023
Land and buildings
£
£
Within one year
12,983
-
On 29 May 2024 the company entered into a lease relating to office space in Switzerland. The lease is for a period of 12 months and therefore is recognised as an operating lease.
On 21 February 2023, the company entered into a lease relating to the trading premises at 2nd Floor, 107 Cannon Street, London. This lease is for a minimum of 5 years, with rental payments of £75,308 in the first 14 months and a further £150,616 commitment for the remaining 46 months of the 5 year period and therefore in accordance with IFRS 16 has been recognised from that date as a right-of-use lease asset..
Information relating to lease liabilities is included in note 13.
18
Ultimate Controlling party
The Caldwell Partners International Inc (incorporated in Canada) is regarded by the directors as being the company's ultimate parent company.
The company is a wholly owned subsidiary of The Caldwell Partners International Inc., a company incorporated in Canada, by virtue of its 100% holding in the ordinary issued share capital of the company. The Caldwell Partners International Inc. is also the ultimate parent undertaking.
The largest group in which the results of the company are consolidated is that headed by The Caldwell Partners International Inc.
The consolidated accounts of the ultimate parent undertaking are available to the public and may be obtained from 79 Wellington Street West, Suite 2410, PO Box 75, Toronto, Canada, M5K 1E7.
THE CALDWELL PARTNERS INTERNATIONAL EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
19
Prior year adjustment
In compliance with IFRS 15 Revenue and Costs of sales (in relation to wages and salaries) for the year ended 31 August 2023 have been restated due to the reallocation of costs.
The impact is to increase both Revenue and Cost of sales by £116,023. There is no impact on the gross profit or trading results for the year ended 31 August 2023.
Reconciliation of changes in equity
The prior period adjustment does not give rise to any effect upon equity.
2024-08-312023-09-01C C BeckJ N WallaceM R J FalagarioM R J FalagariofalsefalseCCH SoftwareiXBRL Review & Tag 2024.2071974182023-09-012024-08-3107197418bus:Director12023-09-012024-08-3107197418bus:Director22023-09-012024-08-3107197418bus:CompanySecretaryDirector12023-09-012024-08-3107197418bus:CompanySecretary12023-09-012024-08-3107197418bus:Director32023-09-012024-08-3107197418bus:RegisteredOffice2023-09-012024-08-31071974182024-08-31071974182022-09-012023-08-3107197418core:ContinuingOperations2023-09-012024-08-3107197418core:RetainedEarningsAccumulatedLosses2023-09-012024-08-3107197418core:RetainedEarningsAccumulatedLosses2022-09-012023-08-3107197418core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-08-3107197418core:FurnitureFittings2024-08-3107197418core:ComputerEquipment2024-08-3107197418core:ContinuingOperations2024-08-3107197418core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-08-3107197418core:FurnitureFittings2023-08-3107197418core:ComputerEquipment2023-08-31071974182023-08-3107197418core:CurrentFinancialInstrumentscore:WithinOneYear2024-08-3107197418core:CurrentFinancialInstrumentscore:WithinOneYear2023-08-3107197418core:Non-currentFinancialInstrumentscore:AfterOneYear2024-08-3107197418core:Non-currentFinancialInstrumentscore:AfterOneYear2023-08-3107197418core:CurrentFinancialInstruments2024-08-3107197418core:CurrentFinancialInstruments2023-08-3107197418core:Non-currentFinancialInstruments2024-08-3107197418core:Non-currentFinancialInstruments2023-08-3107197418core:ShareCapital2024-08-3107197418core:ShareCapital2023-08-3107197418core:RetainedEarningsAccumulatedLosses2024-08-3107197418core:RetainedEarningsAccumulatedLosses2023-08-31071974182022-08-3107197418core:Held-to-maturityFinancialAssets2023-09-012024-08-3107197418core:ForeignTax12023-09-012024-08-3107197418core:ForeignTax12022-09-012023-08-3107197418core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-08-3107197418core:FurnitureFittings2023-08-3107197418core:ComputerEquipment2023-08-31071974182023-08-3107197418core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-09-012024-08-3107197418core:FurnitureFittings2023-09-012024-08-3107197418core:ComputerEquipment2023-09-012024-08-3107197418bus:PrivateLimitedCompanyLtd2023-09-012024-08-3107197418bus:FRS1012023-09-012024-08-3107197418bus:Audited2023-09-012024-08-3107197418bus:FullAccounts2023-09-012024-08-31xbrli:purexbrli:sharesiso4217:GBP