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

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

Recruitics UK Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Richard House, Winckley Square, Preston, United Kingdom, PR1 3HP. The company's principal place of business is 22 Upper Ground, South Bank, London, SE1 9PD.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

The financial statements have been prepared on a going concern basis.

The directors have reviewed the forecasts for the next 12 months from the date of approval of the financial statements.

The company is supported by other group undertakings. The directors are in receipt of a letter of support from fellow group undertakings confirming that they will continue to provide financial and operational support to the company, as required, for a period of at least twelve months from the date of approval of these financial statements. This includes not demanding repayment of amounts due to group undertakings where such repayment would prejudice the company’s ability to meet its liabilities as they fall due and guaranteeing amounts due from group undertakings.

The directors have considered the ability of the group undertakings to provide this support and have concluded they have adequate resources to do so.

On this basis, at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT.

Revenue from the provision of professional services is recognised by reference to the stage of completion, when the stage of completion, costs incurred and costs to complete can be estimated reliably.

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred that will result in an obligation to pay more, or a right to pay less or to receive more, tax, with the following exception:

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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.

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

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

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

At 31 December 2024, the directors reviewed the carrying amount of the Company’s investment in its subsidiary to assess for indicators of impairment in accordance with FRS 102 Section 27 Impairment of Assets. The directors have concluded that there are indicators of impairment including losses during the year, net liabilities at the balance sheet date and a dependence on ongoing financial and operational support from group undertakings.

The recoverable amount has been determined with reference to the subsidiary’s estimated fair value less costs to sell, which the directors consider to be the most appropriate measure of value in the current circumstances. Fair value was estimated using a revenue-multiple approach, derived from six observable transactions involving UK private technology companies completed between 2021 and 2024.

The average transaction multiple was adjusted by a 20% discount to reflect differences in scale, growth profile and liquidity between the transacting entities and the Company’s subsidiary, resulting in an applied multiple of 2.8 times forecast annual recurring revenue of £324,540. On this basis, the directors estimated the subsidiary’s value at £908,712 (2023: £1,422,406). As this amount was below the investment’s carrying value, an impairment charge of £513,694 (2023: £585,696) was recognised in the profit and loss account.

The fair-value estimate was not adjusted for the subsidiary’s intragroup creditor balances because such balances are guaranteed by the US parent and are therefore not expected to reduce the recoverable amount of the investment.

The directors believe that the valuation approach and assumptions are consistent with information available from market participants at the reporting date; however, the recoverable amount is subject to estimation uncertainty and actual realisable value may differ.

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

The immediate parent company is Recruitics LLC, a company incorporated in USA with registered office at 1500 W Alhambra Rd, California, USA, 91801-8006.

The smallest group in which the results of the company are consolidated is that headed by Hire Innovations Inc, a company incorporated in the USA, with registered office at 230 East Avenue, Suite 101, Norwalk, Connecticut, USA, 06855.

The ultimate parent company is Clark Group Holdings LLC, a company incorporated in the USA, with registered office at 424 Font Blvd, San Francisco, California, USA, 94132.

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

The auditor's report was unqualified.

Emphasis of matter - Impairment of investment in subsidiary

We draw attention to Note 2 to the financial statements, which describes the significant judgements and estimates made by the directors in reviewing the impairment of the investment in the Company’s subsidiary. Our opinion is not modified in respect of this matter.