The directors present the strategic report for the year ended 31 December 2024.
Salt Solutions Group Limited (“the group”) is a global leader in digital recruitment. The group covers all aspects of digital; creating futures for our customers globally that will positively impact the digital economy.
The group has traded for many years, operating in a high growth market designed to meet the challenges of existing and emerging technology. Customer demand has been impacted by a slow-down as new product development stalled. Consultancies continue to change globally, and businesses work on their digital transformations; all whilst access to talent is often seen as a bottleneck.
The group has good client diversity; developing long-term, direct relationships with many of the world’s fastest growing, blue-chip and emerging companies. Salt Solutions Group Limited provides permanent and contract solutions across creative, marketing, sales and technology, building teams for tech companies and covering all areas from customer experience, ecommerce, data analytics, AI (Artificial Intelligence), software engineering, consulting, transformation, cyber security, VR (virtual reality) to IOT (Internet of Things).
As well as managing global recruitment campaigns, the group also places its staff onsite and provides an embedded solution to accelerate time to hire whilst reducing cost per hire; this product is known as our DRO (Digital Recruitment Outsourcing – Salt X).
The group including associates has an experienced and stable management operating globally in multiple offices across 15 countries including the United Kingdom, Australia, Belgium, Brazil, Canada, Germany, Hong Kong, Malaysia, Netherlands, New Zealand, Singapore, South Africa, Thailand, United Arab Emirates and the United States of America.
During the year the group were not immune to the market slow-down with operating losses of £453k (2023: £1.02m). The group has a strong team, a loyal customer base and being a specialist digital recruiter is well placed heading into 2025 and beyond.
Economic headwinds remain strong and lower growth forecasts meant demand continue to decline in 2024 but expected to hold in 2025. Whilst these headwinds are impactive the group will continue to offset this by a combination of:
• Continued demand and supply imbalances in the digital job market;
• NFI generated from contract placements; and
• Control of costs; and
• By remaining focussed on core digital recruitment activities.
The group’s international network reduces its dependence on any one specific geography, economy or customer, however, these global and local variances will impact the group’s business. The group has strong management structures in place to control and react to risk and market changes; and the strength of the Salt brand, with over 1 million followers on LinkedIn, and the experience of the Leadership team means the group is well placed to meet these risks as demonstrated over many years.
Economic and market risk
The recruitment market is driven by economic cycles and business confidence, and as a consequence the group is subject to risks associated with an economic downturn. The group addresses this risk through ensuring non- dependence on any one client or service, operating globally across 15 countries and offering a broad range of services within the sectors in which it operates together with a focus on quality and performance of delivery.
Competitive risk
The markets in which the group operate are competitive and fragmented, and as a consequence the group is subject to a number of risks including the impact of competitor activity, key staff attraction and retention. The group addresses this risk through regularly monitoring competitor rates and margins and by attracting and retaining quality staff through incentive and retention initiatives, although the group accept a moderate level of attrition may arise given the focus on achievement, quality and compliance. Risks are regularly reviewed and assessed by the management team to ensure that adverse effects are minimised.
Credit risk
The group policies are set to minimise exposure to credit risk, and in particular over bad debts. The group addresses this risk through monitoring the creditworthiness of customers, working with customers to ensure debt is within acceptable credit limits and taking remedial action where necessary. Credit risk is regularly reviewed through an efficient management process of financial control, invoicing and debt recovery.
Foreign exchange risk
The group has exposure to foreign exchange risk. The group addresses this risk on a monthly basis through continued review of the group’s global strategy, reviewing exchange rates, and ensuring costs and revenues are delivered in the same local currency.
The recruitment market is dynamic and the directors track a range of key performance indicators on a periodic basis. The more important KPI’s include Net Fee Income (“NFI”); operating profit and EBITDA; contractor numbers and margins; and written business, all of which are measured on a regular basis against budget metrics.
Financial indicators may be extracted from the group profit and loss account on page 11; other performance indicators are market sensitive and not for disclosure.
The group’s operation exposes it to a variety of financial risk that include the effects of credit risk, currency risk and liquidity risk. The directors seek to limit the effects of credit and liquidity risk by monitoring turnover and debtor days. The risks in relation to currency have been less material to the group in the year as currency movements have appreciated in favour of the group on its group debt movements. The directors seek to limit the effects on the financial performance of the group by regularly monitoring levels of exposure to identified financial risks.
Section 172 of the Companies Act 2006 requires a company’s directors to take into consideration the interests of wider stakeholders when performing their duty and in their decision making. In particular, consideration should be given to the long-term consequences of decisions, the interests of employees, business relationships with suppliers, clients and others, the impact of the group's operations on the community and the environment, and the desirability of the group to maintain a reputation for high standards of business conduct.
This section of the strategic report and the pages to which it refers comprises the group's section 172(1) statement together with statements on how the directors have engaged with employees, business relationships with clients, suppliers and other external stakeholders and had regard to their respective interests.
The group's stakeholders
The directors have considered and assessed the following as the group's key wider stakeholder groups:
The group is a people business with a highly engaged and supported workforce delivering award-winning digital recruitment specialising in the Consulting, Creative, HR, Marketing, Sales and Technology sectors.
The group is committed to providing a supportive, inclusive culture where employees may experience opportunities for career development and a long and rewarding career.
The group engages and feedbacks with employees by means of:
• Quarterly local and regional engagement delivering financial and strategic updates
• Employee annual satisfaction surveys
• Individual career planning to provide employees with a pathway to progression and development
• Employee Mental Well-being Support programs
• Open access to HR engagement for employees to discuss all issues confidentially with a HR specialist
Clients and candidates
The group’s success is dependent upon its engagement with each providing service at the highest level.
The group is committed to helping clients source talent that will positively impact the digital economy, and to support candidates to develop their careers.
The group engages and feedbacks with clients and candidates by means of:
• Net Promoter Score engagement with all clients
• Attendance at and hosting industry events
• Leadership from employees in the form of video and recruitment expertise pieces available to a number of leading platforms
Suppliers
The group engages with suppliers who meet the group’s own high standards and with expertise outside of our award-winning digital recruitment services.
The group is committed to developing strong relationships with suppliers.
The group engages and feedbacks with suppliers by means of:
• Agreement of fair terms of business
• Comitting to align with the group’s own DEI agenda
• Development of a Modern Slavery Act Transparency Statement (available on the group website at www.welovesalt.com/modern-slavery-act-transparency-statement/
The group promotes strategy to positively impact economic and societal factors.
The group engages and feedbacks supporting Corporate Social Responsibility (“CSR”) initiatives by means of:
• CSR activity led by Leadership and Employees
• Development of a Diversity, Equity and Inclusion program
• Management of regulatory matters with our advisers and review of our tax strategy to ensure legal and fiscal compliance
• Online network and channels used to drive social impact voices and content initiatives
The group is committed to a fair and transparent tax strategy including tax compliance and reporting, tax governance and tax risk management.
Shareholders
The group works to provide returns to owners and to maintain the group growth and sustainability going forwards.
The group is committed to providing strong management to drive growth and performance, and to meeting the highest levels of governance and decision-making to benefit all shareholders.
The group engages and feedbacks with shareholders by means of:
• Identifying and offering employee share ownership annually under an Enterprise Management Incentive Scheme
• Monthly board meetings to discuss local, regional and global finances and trading matters with shareholders and future potential shareholders
Review of stakeholder engagement
Employees
The group’s Leadership team engage on a quarterly basis with staff across all offices on a range of matters and to ensure employees had an opportunity to engage and discuss any matters.
The group continues to support employee engagement at all levels to determine policy including mental well-being initiatives, Diversity, Equity and Inclusion, CSR and supporting charitable activities in the local communities. Throughout the year the group promoted a variety of activities that aim to highlight marginalised voices, celebrate culture days with clients and candidates, and recognise special events. These include for example, International Women's Day, Heritage days across the globe, neurodiversity in the workplace, and LGBTQIA+ celebrations.
The group encourages the growth of our employees by offering clear and transparent career pathways. This is supported by weekly and adhoc training sessions, 121 coaching and comprehensive support programs, as well as to the ability to attend and host sector specific events and access external training. The development of staff is reinforced through annual business planning and a Skills Competency Value Matrix framework that identifies areas for development and skills requirements to meet regular promotion criteria.
The group focuses on adhering to inclusive recruitment practices to improve representation and support a diverse workforce. The group strives to offer a tailored employee experience, enabling staff to bring their whole self to work and reach their full potential. Programs focus on a wide variety of inclusion topics with the aim to educate and progress.
The group’s approach to Mental Well-being recognises that employees have wide-ranging demands inside and outside of work. It aims to create a culture of openness to breakdown the taboo of poor mental health and support employees with their mental well-being in the workplace and at home. Such initiatives include a quarterly mental health forum, access to mindfulness and meditation apps, discretionary compassionate leave, flexible working, private medical insurance offering mental well-being therapies and trained mental health first aiders.
The group fosters a culture of open feedback culminating in an annual confidential Employee Engagement survey, with the results shared with all employees, together with a Leadership statement setting out how the group proposes to move forward on matters identified as part of that engagement survey. Additionally the group monitors Glassdoor and conduct exit interviews to garner feedback on the employee experience.
The Leadership team regularly engages with clients and candidates through Net Promoter Score, and develops strategies and additional training needs where results are not at levels set by the group.
The group creates and delivers thought leadership from Hiring Advice, Career Advice and Inspiring Interviews.
Suppliers
Relationships with suppliers are discussed at regular monthly meetings, where necessary, to determine levels of engagement.
The Leadership team regularly assess the level of the company’s creditors to ensure payments are made in a timeous manner and in accordance with payment terms; and assess working capital management as part of this process.
Communities & government
The group supports CSR and fundraising activity which is carried out across all offices.
We work to make a lasting impact on our community and environment. To do this we rely on the values that underpin all our actions and impact everything we do both internally and externally.
Each office chooses local causes to get involved with. With our global CSR and DEI committees, we regularly see what differences we can make across our environments. Working together we look to ensure everyone at the group feels liberated and respected without fear of being judged. The group also promotes education of the future workforce, working with local schools and offering work experience opportunities through internships and Graduate Academy schemes to support diverse hiring at entry level.
Shareholders
Wider share ownership remains an ambition for the group to support and facilitate future key employee shareholders through the Enterprise Management Incentive scheme which has been operational and active since 2014. The Leadership team regularly considers opportunities for employees to participate to positively influence the growth of the group and return to shareholders.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 11.
Interim ordinary dividends were paid amounting to £241,000. The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
See note 23 for details of events after the reporting date.
In accordance with the company's articles, a resolution proposing that Beavis Morgan Audit Limited be reappointed as auditor of the group will be put at a General Meeting.
We have audited the financial statements of Salt Solutions Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 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 and notes to the financial statements, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for 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
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.
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.
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, company law and pensions legislation
Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include tax legislation and the Conduct of Employment Agencies and Employment Businesses Regulations 2003.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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.
The notes on pages 18 to 37 form part of these financial statements.
The notes on pages 18 to 37 form part of these financial statements.
The notes on pages 18 to 37 form part of these financial statements.
The notes on pages 18 to 37 form part of these financial statements.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £324,564 (2023 - £379,602 profit).
The notes on pages 18 to 37 form part of these financial statements.
The notes on pages 18 to 37 form part of these financial statements.
The notes on pages 18 to 37 form part of these financial statements.
Salt Solutions Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 9 Wootton Street, London, SE1 8TG.
On 11 July 2025, the company changed its name from Salt Recruitment Group Limited to Salt Solutions Group Limited.
The group consists of Salt Solutions Group Limited and all of its subsidiaries (see note 14).
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 company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company, Salt Solutions Group Limited, together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in associates.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Any subsidiary that has a different functional currency to the presentational currency of the group is retranslated in accordance with note 1.18.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases. Control includes control achieved by the actual exercise of dominant influence over the affairs of subsidiary undertakings.
Where the directors consider that control via dominant influence is no longer exercised, but the group retains significant influence, the relevant entities are accounted for using equity accounting from the date of change.
Entities other than subsidiary undertakings in which the group has a participating interest, and over whose operating and financial policies the group exercises a significant influence, are treated as associates. In the group financial statements, associates are accounted for using the equity method.
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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover comprises revenue recognised by the group in respect of recruitment services provided, exclusive of Value Added Tax, and is recognised when candidates commence permanent employment, and contract revenue is recognised in the period the contractor undertakes the work. A provision is recognised where a rebate is due should the candidate cease permanent employment within the agreed terms of business.
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.
Investments in subsidiaries are measured at cost less accumulated impairment in the separate financial statements of the parent company.
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, or where there is the power to exercise, or the actual exercise of, dominant influence or control over the entity.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are recognised initially in the group balance sheet at cost (including transaction costs). Subsequently, they are accounted for using the equity method.
In the separate financial statements, the parent company measures investments in associates at cost less impairment.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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.
Financial assets and liabilities are offset and 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 trade and other debtors, loans advanced to fellow group members 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 assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 trade and other creditors, loans from fellow group members and invoice finance facilities, 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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
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 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, 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 if, and only if, there is 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 costs of short-term employee benefits are recognised as a liability and an expense.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
In preparing the financial statements of the individual entities, transactions in currencies other than the functional currency of the individual entities (foreign currencies) are recognised at the spot rate at the dates of the transactions, or at an average rate where this rate approximates the actual rate at the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Exchange differences are recognised in profit or loss in the period in which they arise.
For the purpose of presenting consolidated financial statements, the assets and liabilities of the group’s foreign operations are translated from their functional currency to Sterling using the closing exchange rate. Income and expenses are translated using the average rate for the period. Exchange differences arising on the translation of group companies are recognised in other comprehensive income.
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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Judgement has been required in respect of determining whether the group exercises control over certain subsidiaries. In the directors' view, control is achieved by the actual exercise of dominant influence over the affairs of certain of its subsidiary undertakings.
At the reporting date, both the group and parent company have material balances receivable from related parties and group undertakings. Significant judgement is required in assessing the recoverability of these balances and whether there are indicators of impairment. At the reporting date, a loan made to a connected company was judged to be irrecoverable and has been written off in the profit and loss account. See note 4 for amounts written off during the year. The amounts due from related parties and group undertakings are disclosed in note 24.
Fixed asset investments, relating to investments in subsidiaries and associates, are material to both the parent company and group financial statements. Judgement is required in assessing whether impairment of these investments is necessary. The carrying value of investments in subsidiaries and associates is disclosed in note 13.
The whole of turnover is attributable to the principal activity of the group.
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 credit for the year based on the profit or loss and the standard rate of tax as follows:
Shares in associates relate to the groups investment in Salt APAC Pte Limited. £665,107 of the carrying value of the investment relates to implicit goodwill which is being amortised over its remaining useful life of 8.5 years. At the balance sheet date, the carrying value of the implicit goodwill was £508,610.
Details of the company's subsidiaries at 31 December 2024 are as follows:
The subsidiary, Salt Search Limited, was disposed of after the reporting date .See note 23 for further details.
Details of the company's associates at 31 December 2024 are as follows:
Included within loans and overdrafts are amounts owed under an invoice finance facility, which are secured over the trade debtors to which the contracts relate. The facility in respect of certain countries is secured by a debenture dated 10th January 2017 over the assets of Salt Search Limited, Salt Creating Futures Limited and Salt Staffing Inc., and by a guarantee from Salt Recruitment Group Limited. The amounts owed under the agreements at 31 December 2024 was £2,664,847 (2023: £3,138,165).
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.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon. Deferred tax is recognised at 25% (2023: 25%).
All shares carry full voting and dividend rights. On a return of assets, distributions are defined in the company's Articles of Association.
Subsequent to the year end, the group disposed of a subsidiary undertaking for no consideration following cessation of trade within that subsidiary.
Additionally, shares held by former employee shareholders were cancelled following cessation of employment.
These events are considered non-adjusting events for the year ended 31 December 2024.
The amounts owed by related parties above are included within other debtors. During the year provision was made against £448,317 due from related parties.
The balances due from related parties by virtue of common shareholders and directors are unsecured, bear an interest rate of 1.50% over the Bank of England Base Rate, and are due for repayment on dates between 1 and 30 months after drawdown.
The balances due from a close family member of a shareholder bear no interest and are repayable on demand.
The balances due from associates bear no interest and are repayable on demand.
At the balance sheet date shareholders owed the group £176,291 (2023: £225,000).
Company
As permitted by FRS 102, the company has taken advantage of paragraph 33.1A, and not disclosed transactions between wholly-owned members of the group.
At the reporting date, the company was owed £110,000 (2023: £nil) from associates and £1,707,362 (2023: £nil) from related parties by virtue of common control.During the year provision was made against £448,317 due from related parties
Dividends amounting to £241,000 (2023: £129,153) were paid to the shareholders in the year.
The company has granted options under an Enterprise Management Incentive Scheme. Share options granted from time to time are placed in the employee's hands until exercise or expiry. Options remaining unexercised after a period of 10 years from the date of grant expire. Furthermore, share options are forfeited if the employee leaves the company before the options vest,
At the balance sheet date, the total number of shares issuable under outstanding options are 152 Ordinary A3 shares (2023: 304 Ordinary A3 shares) of £0.10 each at a purchase price of £23 per share; 342 Ordinary A3 (2023: 342 Ordinary A3 shares) of £0.10 each at a purchase price of £70.70 per share; and 152 Ordinary A4 shares (2023: 152 Ordinary A4 shares) of £0.10 each at a purchase price of £70.70 per share.