Company registration number 01859736 (England and Wales)
LOVE AND TATE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 JANUARY 2023
PAGES FOR FILING WITH REGISTRAR
6th Floor Kings House
9-10 Haymarket
London
United Kingdom
SW1Y 4BP
LOVE AND TATE LIMITED
CONTENTS
Page
Director's report
1 - 2
Statement of financial position
3
Notes to the financial statements
4 - 9
LOVE AND TATE LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 JANUARY 2023
- 1 -

The director has pleasure in presenting her report and financial statements for the year ended 31 January 2023.

Principal activities

The principal activity of the company continued to be that of recruitment consultancy and business skills training.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

M Y Love

Review of the business

Love & Tate is a service-driven recruitment and training consultancy. We work with all sorts of organisations – from global world-class businesses, central and local government to enterprising SMEs, funders and charities.

We offer a high quality and bespoke recruitment consultancy providing permanent and temporary workers, HR services and project management, candidate screening and assessment facilities, intern and contractor payroll management.

 

Complementing this we offer wide-ranging training in computing and IT, administration, business and management skills. We run accredited programmes through our Pitman Training business and also create bespoke courses for people at all stages of their careers - new apprentices and graduates, aspiring managers, senior executives to Board Level, just joining or moving on. In short we help people and businesses to perform at their peak.

 

In truth the year to 31 January 2023 was another patchy year but with sales revenue increasing overall. Our main business in the City is recovering from Brexit and the pandemic – both hit central London disproportionately. The business landscape has changed completely and footfall has not recovered to pre-2018 levels with the popularity of hybrid working.

 

To summarise the performance for the year, the turnover at £2.07m was 16.62% up on the previous year (2022: £1.8m). Gross profit £0.45m (2022: £0.39m) was up by 16.67%. Overheads at £0.62m (2022: £0.56m) were up by 9% which included the expenses of the new Stratford premises and start-up costs. This resulted in a loss for the year of £122K (2022: £122K). On a positive note, we have retained all our key clients, acquired a handful of very large new accounts and have invested in a new training centre.

 

Our cash position has deteriorated over the last 3 years for several reasons, though it is marginally better this year. Clients are stretching payment times, regularly asking for 60- 90 day terms. We were locked in under-utilised space at our City premises and paying back loans made to support the business during the pandemic, with no defaults. We terminated the lease on our permanent City space in March 2023, which will save c £120K in the coming year. There is plenty of flexible space which can be booked on demand to continue to service central London and global clients. We have funded the new development in Stratford.

 

The Future

Sufficient funds have been provided for future development through an interest free loan from the Managing Director for investment in building the business, sales and marketing and continuous application of new technology to streamline administration and our customer experience. This demonstrates confidence in the businesses as the Director’s loan will be the last to be paid as will Director’s salary, to be drawn again when the business returns to profit, likely in the coming year.

 

Reasons for confidence in the future? East London and Stratford learning centre captures both the global possibilities of Canary Wharf and the bustling, striving populations of East London boroughs and Essex. The new learning centre is established and growing fast. The global training market has picked up with quality webinar and distance learning being able to cut across time zones for more inclusive attendance and budget savings.

 

Recruitment is growing again – we have signed up three new PSLs with global businesses in the first quarter of 2023, providing new revenue streams on a growth pattern. We have had a pause in our apprenticeship business while we have reshaped and improved our training in order to be more Ofsted compliant and are now in a position to expand the Standards that we offer and to market the service more strongly. Apprenticeships will be a strong growth area.

 

LOVE AND TATE LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 2 -

Strategy

We have distinct plans to develop the three key areas of the business.

 

Within recruitment we have a distinct plan to develop lasting relationships through organic growth with our key accounts, including those newly acquired within the green technology/energy and the health sectors where we have quickly grown trusted supplier relationships which have already brought new projects for 2023 and into 2024. The service emphasis is working together to bring quality and results for clients.

 

Our training client list comprises SMEs which need support to develop their people and businesses, together with national and international organisations with regular requirements. Our emphasis is to focus on business development, showcasing both our portfolio of tried and tested topics and expertise in customising or designing new learning to meet current or emerging needs. The crucial development areas to support our clients are developing more flexible and improved leadership and management skills and improved IT expertise and capability. For individuals we aim to become the go-to learning platform for those aspiring to better careers in professional arenas such as Data Analysts, web development, accounting and medical admin. We already have bookings well into 2024

 

Up-skilling and good recruitment to deliver both productivity and employee retention and morale is a key business requirement which we are uniquely placed to deliver. And the other cornerstone of the business is to energetically market and build our Apprenticeship business – we are currently putting in more expertise in all areas to develop this.

 

Business environment and outlook

A challenging business and economic environment has become the norm and has also thrown up opportunities. We believe that now we have put in the focus, expertise and funding to deliver a better, sustainable and profitable future.

 

We are also in discussion with another organisation with a similar business and the opportunity for a merger so that we could add further growth through the synergy of the two businesses.

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

On behalf of the board
M Y Love
Director
20 October 2023
LOVE AND TATE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 JANUARY 2023
31 January 2023
- 3 -
2023
2022
As restated
Notes
£
£
£
£
Fixed assets
Intangible assets
3
22,500
30,000
Tangible assets
4
5,222
4,402
27,722
34,402
Current assets
Debtors
5
412,742
385,189
Cash at bank and in hand
35,035
27,678
447,777
412,867
Creditors: amounts falling due within one year
6
(402,642)
(246,822)
Net current assets
45,135
166,045
Total assets less current liabilities
72,857
200,447
Creditors: amounts falling due after more than one year
7
(41,144)
(46,253)
Net assets
31,713
154,194
Capital and reserves
Called up share capital
205,001
205,001
Profit and loss reserves
(173,288)
(50,807)
Total equity
31,713
154,194

The director of the company has elected not to include a copy of the income statement within the financial statements.true

For the financial year ended 31 January 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved and signed by the director and authorised for issue on 20 October 2023
M Y Love
Director
Company Registration No. 01859736
LOVE AND TATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
- 4 -
1
Accounting policies
Company information

Love and Tate Limited is a private company limited by shares incorporated in England and Wales. The registered office is 128 City Road, London, EC1V 2NX.

 

The principal activity of the company continues to be that of recruitment consultancy and business skills training.

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
Turnover
Turnover represents amounts receivable for recruitment and staffing services net of VAT.

Revenue from contracts for the provision of temporary staff services is recognised by reference to hours incurred in a given period at pre agreed contractual rates. Revenue from permanent and term contract recruitment services is recognised at the point of agreed placement or as otherwise stated by individual contracts. Revenue from the provision of training services is recognised on contractual agreement to the terms of service.

1.3
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Franchise fee
Over 5 years
LOVE AND TATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
1
Accounting policies
(Continued)
- 5 -
1.4
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 improvements
Over 4 years
Computer equipment
25% straight line
Fixtures, fittings & equipment
20% straight line

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 credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company 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).

1.6
Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’.

 

Financial instruments are recognised in the company's statement of financial position 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

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.

Classification of financial liabilities

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.

LOVE AND TATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
1
Accounting policies
(Continued)
- 6 -
Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, 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.

1.8
Equity instruments

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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.9
Taxation

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

Current tax

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

Deferred tax
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes, where material.  The deferred tax balance has not been discounted.
1.10
Employee benefits

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

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

LOVE AND TATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
1
Accounting policies
(Continued)
- 7 -
1.12
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 leases asset are consumed.

1.13
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.

2
Employees

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

2023
2022
Number
Number
Total
11
15
3
Intangible fixed assets
Franchise fee
£
Cost
At 1 February 2022 and 31 January 2023
37,500
Amortisation and impairment
At 1 February 2022
7,500
Amortisation charged for the year
7,500
At 31 January 2023
15,000
Carrying amount
At 31 January 2023
22,500
At 31 January 2022
30,000
LOVE AND TATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 8 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 February 2022
15,149
17,171
32,320
Additions
-
0
2,584
2,584
At 31 January 2023
15,149
19,755
34,904
Depreciation and impairment
At 1 February 2022
15,148
12,770
27,918
Depreciation charged in the year
-
0
1,764
1,764
At 31 January 2023
15,148
14,534
29,682
Carrying amount
At 31 January 2023
1
5,221
5,222
At 31 January 2022
1
4,401
4,402
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
336,940
331,024
Prepayments and accrued income
75,802
54,165
412,742
385,189
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
5,108
3,747
Trade creditors
15,469
26,827
Taxation and social security
179,072
141,123
Other creditors
184,202
52,113
Accruals and deferred income
18,791
23,012
402,642
246,822
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
41,144
46,253
LOVE AND TATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 9 -
8
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
39,585
86,982
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