Company registration number 02216458 (England and Wales)
LOVEUROPE GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
LOVEUROPE GROUP LIMITED
COMPANY INFORMATION
Directors
Mr P C Towsey
Mr S E Owens
Secretary
Mrs L Towsey
Company number
02216458
Registered office
19 Hayward's Place
London
United Kingdom
EC1R 0EH
Auditor
Azets Audit Services
1 Nelson Street
Southend-On-Sea
Essex
United Kingdom
SS1 1EG
LOVEUROPE GROUP LIMITED
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Group statement of comprehensive income
6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Notes to the financial statements
12 - 22
LOVEUROPE GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the group continued to be that of an independent advertising creative production group.

Results and dividends

The results for the year are set out on page 6.

Preference dividends were paid amounting to £20,000. 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:

Mr P C Towsey
Mr S E Owens
Political donations

None of the donations in the year related to a political party.

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the group will be put at a General Meeting.

Statement of directors' responsibilities

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

LOVEUROPE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
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 auditor of the company 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 auditor of the company is aware of that information.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
Mr S E Owens
Director
6 October 2023
LOVEUROPE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LOVEUROPE GROUP LIMITED
- 3 -
Opinion

We have audited the financial statements of Loveurope Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise 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 and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

LOVEUROPE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LOVEUROPE GROUP LIMITED
- 4 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent company and their 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:

 

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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

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.

LOVEUROPE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LOVEUROPE GROUP LIMITED
- 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:

 

 

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.

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.

Julian Golding (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
6 October 2023
Chartered Accountants
Statutory Auditor
1 Nelson Street
Southend-On-Sea
Essex
United Kingdom
SS1 1EG
LOVEUROPE GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
2022
2021
Notes
£
£
Turnover
10,613,723
9,321,709
Cost of sales
(7,440,833)
(6,369,658)
Gross profit
3,172,890
2,952,051
Administrative expenses
(1,902,832)
(1,649,328)
Other operating income
-
55,624
Operating profit
1,270,058
1,358,347
Interest payable and similar expenses
(33,199)
(7,179)
Profit before taxation
1,236,859
1,351,168
Tax on profit
(252,532)
(279,976)
Profit for the financial year
984,327
1,071,192
Profit for the financial year is attributable to:
- Owners of the parent company
967,219
1,042,640
- Non-controlling interests
17,108
28,552
984,327
1,071,192
Total comprehensive income for the year is attributable to:
- Owners of the parent company
967,219
1,042,640
- Non-controlling interests
17,108
28,552
984,327
1,071,192
LOVEUROPE GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
2022
2021
£
£
Profit for the year
984,327
1,071,192
Other comprehensive income
-
-
Total comprehensive income for the year
984,327
1,071,192
Total comprehensive income for the year is attributable to:
- Owners of the parent company
967,219
1,042,640
- Non-controlling interests
17,108
28,552
984,327
1,071,192
LOVEUROPE GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 8 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
7
66,177
89,649
Tangible assets
8
393,479
114,211
Investments
9
13,342
13,342
472,998
217,202
Current assets
Stocks
217,088
223,957
Debtors
10
3,592,377
3,035,943
Cash at bank and in hand
149,308
798,492
3,958,773
4,058,392
Creditors: amounts falling due within one year
12
(1,920,532)
(2,384,020)
Net current assets
2,038,241
1,674,372
Total assets less current liabilities
2,511,239
1,891,574
Creditors: amounts falling due after more than one year
13
(143,043)
(79,516)
Net assets
2,368,196
1,812,058
Capital and reserves
Called up share capital
15
28,651
28,651
Share premium account
208,586
208,586
Capital redemption reserve
11,763
11,763
Profit and loss reserves
2,035,700
1,476,670
Equity attributable to owners of the parent company
2,284,700
1,725,670
Non-controlling interests
83,496
86,388
2,368,196
1,812,058

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

The financial statements were approved by the board of directors and authorised for issue on 6 October 2023 and are signed on its behalf by:
06 October 2023
Mr S E Owens
Director
Company registration number 02216458 (England and Wales)
LOVEUROPE GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
8
64,544
48,427
Investments
9
794,131
976,424
858,675
1,024,851
Current assets
Debtors
10
181,240
315,758
Creditors: amounts falling due within one year
12
(916,048)
(1,047,626)
Net current liabilities
(734,808)
(731,868)
Net assets
123,867
292,983
Capital and reserves
Called up share capital
15
28,651
28,651
Share premium account
208,586
208,586
Capital redemption reserve
11,763
11,763
Profit and loss reserves
(125,133)
43,983
Total equity
123,867
292,983

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £103,073 (2021 - £274,573 profit).

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

The financial statements were approved by the board of directors and authorised for issue on 6 October 2023 and are signed on its behalf by:
06 October 2023
Mr S E Owens
Director
Company registration number 02216458 (England and Wales)
LOVEUROPE GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
Balance at 1 January 2021
29,243
208,586
11,171
576,239
825,239
189,748
1,014,987
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
-
1,042,640
1,042,640
28,552
1,071,192
Dividends
6
-
-
-
(206,684)
(206,684)
(20,500)
(227,184)
Own shares acquired
-
-
-
(46,937)
(46,937)
-
(46,937)
Redemption of shares
15
-
-
592
-
592
-
592
Reduction of shares
15
(592)
-
-
-
(592)
-
(592)
Purchase of shares in subsidiary from non-controlling interest
-
-
-
111,412
111,412
(111,412)
-
Balance at 31 December 2021
28,651
208,586
11,763
1,476,670
1,725,670
86,388
1,812,058
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
967,219
967,219
17,108
984,327
Dividends
6
-
-
-
(408,189)
(408,189)
(20,000)
(428,189)
Balance at 31 December 2022
28,651
208,586
11,763
2,035,700
2,284,700
83,496
2,368,196
LOVEUROPE GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2021
29,243
208,586
11,171
3,027
252,027
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
-
274,573
274,573
Dividends
6
-
-
-
(186,680)
(186,680)
Own shares acquired
-
-
-
(46,937)
(46,937)
Redemption of shares
15
-
-
592
-
592
Reduction of shares
15
(592)
-
-
-
(592)
Balance at 31 December 2021
28,651
208,586
11,763
43,983
292,983
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
103,073
103,073
Dividends
6
-
-
-
(272,189)
(272,189)
Balance at 31 December 2022
28,651
208,586
11,763
(125,133)
123,867
LOVEUROPE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
1
Accounting policies
Company information

Loveurope Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is . 19 Hayward's Place, London, United Kingdom, EC1R 0EH

 

The group consists of Loveurope Group Limited and all of its subsidiaries.

1.1
Accounting convention

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.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Loveurope Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2022. 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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

LOVEUROPE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
1.4
Going concern

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.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover is recognised once the service has been provided to the customer.

Turnover in the statement of comprehensive income is not the same as the total turnover value managed by the Loveurope Group. The total transaction value managed by the Group represents advertising spend under our control but not remuneration for the work performed.

1.6
Intangible fixed assets - goodwill

Acquisitions of subsidiaries and businesses are accounted for using the purchase method. The cost of the business combination is measured at the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquiree plus costs directly attributable to the business combination.

 

Any excess of the cost of the business combination over the acquirer's interest in the net fair value of the identifiable assets and liabilities is recognised as goodwill. If the net fair value of the identifiable assets and liabilities exceeds the cost of the business combination the excess is recognised separately on the face of the consolidated statement of financial position immediately below goodwill.

 

Goodwill is written off to the profit and loss account over its useful economic life. Where net assets in subsidiary companies do not support the value of goodwill then this is written off to the profit and loss account immediately.

 

All goodwill is being amortised over 5 years as that is seen as the timeframe by which customers will associate with the Loveurope brand rather than the previous brand.

1.7
Tangible fixed assets

Tangible fixed assets 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:

Leasehold land and buildings
10% on cost
Leasehold improvements
10% on cost
Plant and equipment
25% on cost
Fixtures and fittings
25% on cost and 12.5% on cost
LOVEUROPE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -
1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

1.9
Impairment of fixed assets

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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Financial instruments

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

 

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

 

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

Trade and other receivables are measured at transaction price less any impairment unless the arrangement constitutes a financing transaction in which case the transaction is measured at the present value of future receipts discounted at the prevailing market rate of interest. Loans are initially measured at fair value and are subsequently measured at amortised cost using the effective interest rate method less any impairment.

Basic financial liabilities

Trade and other payables are measured at transaction price unless the arrangement constitutes a financing transaction in which case the transaction is measured at present value of future payments discounted at prevailing market rat of interest. Other financial liabilities are initially measured at fair value net of their transaction costs. They are subsequently measured at amortised cost using the effective interest method.

LOVEUROPE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -
1.12
Equity instruments

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.

1.13
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 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

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.

1.14
Employee benefits

Short term employee benefits, including holiday entitlement and other non-monetary benefits, and contributions to defined contribution plans are recognised as an expense in the period in which they are incurred.

 

The company recognises an accrual fro accumulated annual leave accrued by employees as a result of services rendered in the current period for which employees can carry forward and use within the next year. The accrual is measured at the salary cost of the respective employee in relation to the period of absence.

1.15
Retirement benefits

The company makes contributions to personal pension plans held by directors and employees of its own and of its subsidiary companies. Contributions for the subsidiary companies are recharged through intercompany accounts. They are then charged to the profit and loss account within each individual company.

1.16
Leases

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.

LOVEUROPE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -
1.17
Government grants

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.

1.18
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.

 

Each entity in the group determines its own functional currency and items included in the financial statements of each entity are measured using the functional currency. The assets and liabilities of overseas subsidiary undertakings are translated into the presentational currency at the rate of exchange ruling at the balance sheet date. Income and expenses for each statement of comprehensive income are translated at exchange rates at the dates of transactions. All resulting exchange difference are recognised in other comprehensive income.

2
Judgements and key sources of estimation uncertainty

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.

Critical judgements

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

Revenue recognition

A key judgement in revenue recognition is to distinguish whether the service has been carried out and therefore to determine whether the revenue should be recognised. Invoices are raised after work is performed to help to eliminate this issue.

Carrying value of goodwill and other intangible assets

The group considers whether goodwill and other intangible assets are impaired. Where an indicator of impairment is identified the estimation of recoverable value requires estimation of the recoverable value of the cash generating units. This requires estimation of future cash flows from the cash generating units and also selection of appropriate discount rates in order to calculate the net present value of those cash flows.

LOVEUROPE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
3
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
20,000
20,000
For other services
All other non-audit services
2,089
2,089
4
Individual statement of comprehensive income

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.

5
Employees

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

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Total
85
74
-
0
-
0

Key management includes only directors and therefore no separate disclosure of key management remuneration will be made.

6
Dividends
2022
2021
Recognised as distributions to equity holders:
£
£
Interim paid
272,189
286,680
LOVEUROPE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
7
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2022
548,927
Additions
24,000
At 31 December 2022
572,927
Amortisation and impairment
At 1 January 2022
459,278
Amortisation charged for the year
47,472
At 31 December 2022
506,750
Carrying amount
At 31 December 2022
66,177
At 31 December 2021
89,649
Company
Goodwill
£
Cost
At 1 January 2022 and 31 December 2022
127,222
Amortisation and impairment
At 1 January 2022 and 31 December 2022
127,222
Carrying amount
At 31 December 2022
-
0
At 31 December 2021
-
0
LOVEUROPE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 19 -
8
Tangible fixed assets
Group
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
£
Cost
At 1 January 2022
-
0
93,130
1,473,648
419,583
1,986,361
Additions
149,709
20,281
93,271
92,010
355,271
Disposals
-
0
-
0
(1,376,244)
(293,769)
(1,670,013)
At 31 December 2022
149,709
113,411
190,675
217,824
671,619
Depreciation and impairment
At 1 January 2022
-
0
44,703
1,443,398
384,049
1,872,150
Depreciation charged in the year
9,073
4,164
25,880
36,886
76,003
Eliminated in respect of disposals
-
0
-
0
(1,376,244)
(293,769)
(1,670,013)
At 31 December 2022
9,073
48,867
93,034
127,166
278,140
Carrying amount
At 31 December 2022
140,636
64,544
97,641
90,658
393,479
At 31 December 2021
-
0
48,427
30,250
35,534
114,211
Company
Leasehold improvements
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 January 2022
93,130
1,299,185
279,406
1,671,721
Additions
20,281
-
0
-
0
20,281
Disposals
-
0
(1,299,185)
(279,406)
(1,578,591)
At 31 December 2022
113,411
-
0
-
0
113,411
Depreciation and impairment
At 1 January 2022
44,703
1,299,185
279,406
1,623,294
Depreciation charged in the year
4,164
-
0
-
0
4,164
Eliminated in respect of disposals
-
0
(1,299,185)
(279,406)
(1,578,591)
At 31 December 2022
48,867
-
0
-
0
48,867
Carrying amount
At 31 December 2022
64,544
-
0
-
0
64,544
At 31 December 2021
48,427
-
0
-
0
48,427
LOVEUROPE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
9
Fixed asset investments
Group
Company
2022
2021
2022
2021
£
£
£
£
Other investments other than loans
13,342
13,342
794,131
976,424
13,342
13,342
794,131
976,424
10
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,858,720
2,422,561
-
0
-
0
Other debtors
488,907
579,110
181,240
315,758
Prepayments and accrued income
244,750
34,272
-
0
-
0
3,592,377
3,035,943
181,240
315,758
11
Financial instruments
Group
Company
2022
2021
2022
2021
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
3,347,627
3,001,671
181,240
315,758
Equity instruments measured at cost less impairment
13,342
13,342
13,342
13,342
Carrying amount of financial liabilities
Measured at fair value through profit or loss
Measured at amortised cost
1,448,739
1,423,585
916,048
1,047,626
12
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
14
126,761
106,018
-
0
-
0
Other borrowings
14
492,787
749,452
-
0
-
0
Trade creditors
479,232
468,310
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
916,048
1,047,626
Corporation tax payable
254,485
683,711
-
0
-
0
Other taxation and social security
360,351
356,240
-
-
Accruals and deferred income
206,916
20,289
-
0
-
0
1,920,532
2,384,020
916,048
1,047,626
LOVEUROPE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
13
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans and overdrafts
143,043
79,516
-
0
-
0
14
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
269,804
185,534
-
0
-
0
Other loans
492,787
749,452
-
-
762,591
934,986
-
-
Payable within one year
619,548
855,470
-
-
Payable after one year
143,043
79,516
-
0
-
0

A long-term building improvement loan was obtained in the year, managed by Arbuthnot Latham RLS.

 

The long-term loan obtained in the year ended 31st December 2020 is supported by the Coronavirus Business Interruption Loan Scheme (CBILS), managed by the British Business Bank.

 

Invoice discounting facilities are secured by way of both fixed and floating charges over the assets of the company.

 

There is a cross guarantee in place between Loveurope Group Limited and its subsidiary companies within the group on all borrowing outstanding within the group at the balance sheet date.

 

15
Share capital
Group and company
2022
2021
Ordinary share capital
£
£
Issued and fully paid
101,606 of Ordinary 25p each
25,401
25,401
65,000 of Ordinary C 5p each
3,250
3,250
28,651
28,651
LOVEUROPE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 22 -
16
Related party disclosure

The company has taken advantage of the exemption conferred by FRS 102 Paragraph 33.1A which states that disclosures need not be given of transactions that have taken place between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such member.

 

Transactions with non-wholly owned subsidiaries totalled £207,748. This related to cross charged services, such as rent, use of plant and machinery and use of group employees.

2022-12-312022-01-01falseCCH SoftwareCCH Accounts Production 2023.100Mr P C TowseyMr S E OwensMrs L Towsey02216458bus:Consolidated2022-01-012022-12-31022164582022-01-012022-12-3102216458bus:Director12022-01-012022-12-3102216458bus:Director22022-01-012022-12-3102216458bus:CompanySecretary12022-01-012022-12-3102216458bus:RegisteredOffice2022-01-012022-12-3102216458bus:Consolidated2022-12-31022164582022-12-3102216458bus:Consolidated2021-01-012021-12-31022164582021-01-012021-12-3102216458bus:Consolidated2021-12-31022164582021-12-3102216458core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-12-3102216458core:LeaseholdImprovementsbus:Consolidated2022-12-3102216458core:PlantMachinerybus:Consolidated2022-12-3102216458core:FurnitureFittingsbus:Consolidated2022-12-3102216458core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2021-12-3102216458core:LeaseholdImprovementsbus:Consolidated2021-12-3102216458core:PlantMachinerybus:Consolidated2021-12-3102216458core:FurnitureFittingsbus:Consolidated2021-12-3102216458core:LeaseholdImprovements2022-12-3102216458core:PlantMachinery2022-12-3102216458core:FurnitureFittings2022-12-3102216458core:LeaseholdImprovements2021-12-3102216458core:PlantMachinery2021-12-3102216458core:FurnitureFittings2021-12-3102216458core:ShareCapitalbus:Consolidated2022-12-3102216458core:ShareCapitalbus:Consolidated2021-12-3102216458core:SharePremiumbus:Consolidated2022-12-3102216458core:SharePremiumbus:Consolidated2021-12-3102216458core:CapitalRedemptionReservebus:Consolidated2022-12-3102216458core:CapitalRedemptionReservebus:Consolidated2021-12-3102216458core:ShareCapital2022-12-3102216458core:ShareCapital2021-12-3102216458core:SharePremium2022-12-3102216458core:SharePremium2021-12-3102216458core:CapitalRedemptionReserve2022-12-3102216458core:CapitalRedemptionReserve2021-12-3102216458core:RetainedEarningsAccumulatedLosses2022-12-3102216458core:ShareCapitalbus:Consolidated2020-12-3102216458core:SharePremiumbus:Consolidated2020-12-3102216458core:CapitalRedemptionReservebus:Consolidated2020-12-3102216458core:RetainedEarningsAccumulatedLossesbus:Consolidated2020-12-3102216458core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-12-3102216458core:Non-controllingInterestsbus:Consolidated2021-12-3102216458core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-12-3102216458core:Non-controllingInterestsbus:Consolidated2022-12-3102216458core:ShareCapital2020-12-3102216458core:SharePremium2020-12-3102216458core:CapitalRedemptionReserve2020-12-3102216458core:RetainedEarningsAccumulatedLosses2020-12-3102216458core:RetainedEarningsAccumulatedLosses2021-12-3102216458core:Goodwill2022-01-012022-12-3102216458core:LandBuildingscore:LongLeaseholdAssets2022-01-012022-12-3102216458core:LeaseholdImprovements2022-01-012022-12-3102216458core:PlantMachinery2022-01-012022-12-3102216458core:FurnitureFittings2022-01-012022-12-3102216458core:NetGoodwillbus:Consolidated2021-12-3102216458core:NetGoodwillbus:Consolidated2022-12-3102216458core:NetGoodwill2021-12-3102216458core:NetGoodwillbus:Consolidated2022-01-012022-12-3102216458core:NetGoodwillbus:Consolidated2021-12-3102216458core:NetGoodwill2022-12-3102216458core:NetGoodwill2021-12-3102216458core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2021-12-3102216458core:LeaseholdImprovementsbus:Consolidated2021-12-3102216458core:PlantMachinerybus:Consolidated2021-12-3102216458core:FurnitureFittingsbus:Consolidated2021-12-3102216458bus:Consolidated2021-12-3102216458core:LeaseholdImprovements2021-12-3102216458core:PlantMachinery2021-12-3102216458core:FurnitureFittings2021-12-31022164582021-12-3102216458core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-01-012022-12-3102216458core:LeaseholdImprovementsbus:Consolidated2022-01-012022-12-3102216458core:PlantMachinerybus:Consolidated2022-01-012022-12-3102216458core:FurnitureFittingsbus:Consolidated2022-01-012022-12-3102216458core:CurrentFinancialInstruments2022-12-3102216458core:CurrentFinancialInstruments2021-12-3102216458core:CurrentFinancialInstrumentsbus:Consolidated2022-12-3102216458core:CurrentFinancialInstrumentsbus:Consolidated2021-12-3102216458core:WithinOneYearbus:Consolidated2022-12-3102216458core:WithinOneYearbus:Consolidated2021-12-3102216458core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3102216458core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-3102216458core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-12-3102216458core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2021-12-3102216458core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3102216458core:Non-currentFinancialInstrumentscore:AfterOneYear2021-12-3102216458core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-12-3102216458core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2021-12-3102216458bus:PrivateLimitedCompanyLtd2022-01-012022-12-3102216458bus:FRS1022022-01-012022-12-3102216458bus:Audited2022-01-012022-12-3102216458bus:ConsolidatedGroupCompanyAccounts2022-01-012022-12-3102216458bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP