Company Information
Contents
Group strategic report
For the year ended 31 December 2024
The director presents his strategic report of TargetCW Services Ltd. ('the company') and its subsidiaries (together 'the group') for the year ended 31 December 2024.
Principal activity
The principal activity of the group and company during the year is that of the provision of global payroll solutions.
Business strategy and objectives
The group’s overall objective is to become a leader of the activity listed above.
The group’s strategy for achieving this in the long run is to provide payroll solutions that adhere to the core values of the company. Helping clients create their global workforce while mitigating their risk is what we strive to do.
Principal activity
The principal activity of the group and company during the year is that of the provision of global payroll solutions.
Business strategy and objectives
The group’s overall objective is to become a leader of the activity listed above.
The group’s strategy for achieving this in the long run is to provide payroll solutions that adhere to the core values of the company. Helping clients create their global workforce while mitigating their risk is what we strive to do.
The business model of the group anticipates the growth of international clients and their workforce and assists those clients in the need for international employment opportunities.
Future developments, business trends and factors
The director of the company anticipates the current activities of the group to remain largely unchanged into the future.
He anticipates continued growth into specific countries where payroll solutions are needed for the global workforce.
Shortly after the year end, the group closed down operations in Germany via the closure of its subsidiary TCWGlobal Gmbh and has plans to close TCWGlobal IL Ltd. and TCWGlobal Hungary Kft.
Future developments, business trends and factors
The director of the company anticipates the current activities of the group to remain largely unchanged into the future.
He anticipates continued growth into specific countries where payroll solutions are needed for the global workforce.
Shortly after the year end, the group closed down operations in Germany via the closure of its subsidiary TCWGlobal Gmbh and has plans to close TCWGlobal IL Ltd. and TCWGlobal Hungary Kft.
The main risks that the group faces have been identified as:
Employee risk
The employees are considered a key resource of the business and the main business risk faced is sourcing specialist staff
to provide and support services.
Credit risk
The group is exposed to credit risk in relation to trade debtors. The director continues to monitor the position of these client companies in order to mitigate this risk. Mitigation to this risk is done by keeping on top of open receivables as well as not extending terms beyond the client's means.
Liquidity risk
The group’s policy on liquidity risk is to ensure that sufficient cash is available to fund ongoing operations. The group
principally uses loans from related parties to ensure the group has adequate funds to meet future working capital
requirements. Mitigation to this risk is done by keeping enough capital in each entity to full-cycle the operations, and ensuring only minimal distributions are taken.
Employee risk
The employees are considered a key resource of the business and the main business risk faced is sourcing specialist staff
to provide and support services.
Credit risk
The group is exposed to credit risk in relation to trade debtors. The director continues to monitor the position of these client companies in order to mitigate this risk. Mitigation to this risk is done by keeping on top of open receivables as well as not extending terms beyond the client's means.
Liquidity risk
The group’s policy on liquidity risk is to ensure that sufficient cash is available to fund ongoing operations. The group
principally uses loans from related parties to ensure the group has adequate funds to meet future working capital
requirements. Mitigation to this risk is done by keeping enough capital in each entity to full-cycle the operations, and ensuring only minimal distributions are taken.
Page 1
Group strategic report (continued)
For the year ended 31 December 2024
The group's financial performance is monitored on a continual basis. This includes review of monthly management
accounts.
The main KPIs that are reviewed are:
KPI 2024 2023
£ £
Sales 10.78m 12.48m
Gross Profit 1.44m 1.29m
Profit/(loss)after tax 501k (66k)
accounts.
The main KPIs that are reviewed are:
KPI 2024 2023
£ £
Sales 10.78m 12.48m
Gross Profit 1.44m 1.29m
Profit/(loss)after tax 501k (66k)
This report was approved by the director and signed by:
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Director's report
For the year ended 31 December 2024
The director presents his annual report and the consolidated financial statements of the company for the year ended
31 December 2024 .
The profit for the year, after taxation, amounted to £500,508 (2023 - loss £66,298).
The director did not declare or pay a dividend in the year (2023 - £17,098).
The director did not declare or pay a dividend in the year (2023 - £17,098).
The director who served during the year was:
The director is responsible for preparing the Group strategic report, the Director's report and the consolidated financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period.
In preparing these financial statements, the director is required to:
∙select suitable accounting policies for the group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business.
The board of the parent entity, Cloud Motion Inc, meets on a bi-monthly basis to review all aspects of the business for any concerns, growth and sustainability. Having considered the current trading activity and the expected future cash flows of the group and the company, the director has continued to adopt the going concern basis of accounting in preparation of the consolidated financial statements.
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Director's report (continued)
For the year ended 31 December 2024
This report was approved by the director and signed on:
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Independent auditor's report to the members of TargetCW Services Ltd.
For the year ended 31 December 2024
We have audited the financial statements of TargetCW Services Ltd. (the 'company') and its subsidiaries (the 'group') for the year ended 31 December 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated and Company statements of financial position, the Consolidated and Company statement of changes in equity, the Consolidated statement of cash flows and the related notes, including a summary of 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).
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 in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's or the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The director is responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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Independent auditor's report to the members of TargetCW Services Ltd. (continued)
For the year ended 31 December 2024
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Director's report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Director's report.
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 Group financial statements.
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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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Independent auditor's report to the members of TargetCW Services Ltd. (continued)
For the year ended 31 December 2024
Auditor's responsibilities for the audit of the financial statements (continued)
How the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud
and non-compliance with laws and regulations, was as follows:
How the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud
and non-compliance with laws and regulations, was as follows:
∙the Senior Statutory Auditor 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 made enquiries of management as to where they considered there was susceptibility to fraud, and their knowledge of actual, suspected and alleged fraud;
∙we identified the laws and regulations that could reasonably be expected to have a material effect on the financial statements of the group and company through discussions with the management of the group and company at the planning stage;
∙the audit team held a discussion to identify any particular areas that were considered to be susceptible to misstatement, including with respect to fraud and non-compliance with laws and regulations; and
∙we focused our planned audit work 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 and taxation legislation.
We assessed the extent of compliance with the laws and regulations identified above through:
∙making enquiries of management;
∙inspecting legal expenditure and correspondence throughout the period for any potential litigation or claims; and
∙considering the internal controls in place that are designed 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:
∙determined the susceptibility of the company to management override of controls by checking the implementation of controls and enquiring of individuals involved in the financial reporting process;
∙performed analytical procedures to identify any large, unusual or unexpected transactions and investigated any large variances from the prior period;
∙reviewed journal entries to identify any unusual transactions;
∙reviewed accounting estimates and evaluated where judgements or decisions made by management indicated bias on the part of the company's management;
∙tested the occurrence of income by agreeing entries in the nominal ledger to invoices and bank receipts; and
∙carried out substantive testing to check the occurrence and cut-off of expenditure.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which
included:
∙agreeing financial statement disclosures to underlying supporting documentation; and
∙enquiring of management as to actual and potential litigation and claims.
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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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Independent auditor's report to the members of TargetCW Services Ltd. (continued)
For the year ended 31 December 2024
Auditor's responsibilities for the audit of the financial statements (continued)
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's 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.
for and on behalf of
Chartered Accountants
130 Wood Street
EC2V 6DL
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Consolidated statement of comprehensive income
For the year ended 31 December 2024
Page 9
Consolidated statement of financial position
As at 31 December 2024
The financial statements were approved and authorised for issue by the director:
The notes on pages 16 to 28 form part of these financial statements.
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Company statement of financial position
As at 31 December 2024
The financial statements were approved and authorised for issue by the director:
The notes on pages 16 to 28 form part of these financial statements.
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Consolidated statement of changes in equity
For the year ended 31 December 2024
Page 12
Company statement of changes in equity
For the year ended 31 December 2024
Page 13
Consolidated statement of cash flows
For the year ended 31 December 2024
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Consolidated analysis of net debt
For the year ended 31 December 2024
Page 15
Notes to the financial statements
For the year ended 31 December 2024
TargetCW Services Ltd. is a private company limited by shares and incorporated in England and Wales. Its registered office is 130 Wood Street, London, EC2V 6DL. The address of the principal place of business is 3545 Aero Ct., San Diego, California CA 92123, United States. The company registration number is 08679619.
2.Accounting policies
Financial Reporting Standard 102 (FRS 102),'The Financial Reporting Standard applicable in the UK and
Republic of Ireland', ('FRS 102') and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical
accounting estimates. It also requires management to exercise judgement in applying the group's
accounting policies (see note 3).
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the company and its own subsidiaries ("the
group") as if they form a single entity. Intercompany transactions and balances between companies in the group headed by TargetCW Services Ltd. are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase
method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent
liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations
are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
group") as if they form a single entity. Intercompany transactions and balances between companies in the group headed by TargetCW Services Ltd. are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase
method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent
liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations
are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
The board of the parent entity, Cloud Motion Inc, meets on a bi-monthly basis to review all aspects of the business for any concerns, growth and sustainability. Having considered the current trading activity and the expected future cash flows of the group and the company, the director has continued to adopt the going concern basis of accounting in preparation of the consolidated financial statements.
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Notes to the financial statements
For the year ended 31 December 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
accordance with the stage of completion of the contract when all of the following conditions are satisfied:
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Notes to the financial statements
For the year ended 31 December 2024
2.Accounting policies (continued)
The group operates defined contribution plans for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payments obligations.
The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the group in independently administered funds.
The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the group in independently administered funds.
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Notes to the financial statements
For the year ended 31 December 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
The group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from other third parties and loans from and to related parties.
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Notes to the financial statements
For the year ended 31 December 2024
make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimate and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of
the revision and future periods if the revision affects both current and future periods.
The director has not used any key estimates or judgements in the preparation of these financial statements.
Analysis of turnover by country of destination:
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Notes to the financial statements
For the year ended 31 December 2024
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Notes to the financial statements
For the year ended 31 December 2024
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Notes to the financial statements
For the year ended 31 December 2024
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Notes to the financial statements
For the year ended 31 December 2024
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Notes to the financial statements
For the year ended 31 December 2024
Amounts owed to related undertakings are interest free and repayable on demand.
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Notes to the financial statements
For the year ended 31 December 2024
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Page 26
Notes to the financial statements
For the year ended 31 December 2024
Profit and loss account
The group and company had no contingent liabilities at 31 December 2024 or 31 December 2023.
The group and company had no capital commitments at 31 December 2024 or 31 December 2023.
At 31 December 2024, contributions totalling £452,807 (2023 - £338,980) were payable by the group to defined contribution pension schemes and £26,682 (2023 - £38,469) were payable to defined contribution pension schemes by the company.
Page 27
Notes to the financial statements
For the year ended 31 December 2024
The immediate and ultimate parent undertaking of the group is Cloud Motion Inc., a company incorporated in United States of America and its registered office is 3545 Aero court, San Diego, CA 92123. No consolidated financial statements are prepared by Cloud Motion Inc.
In the opinion of the director, the ultimate controlling party isM Ziebold .
In the opinion of the director, the ultimate controlling party is
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