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COMPANY REGISTRATION NUMBER: 07226686
LOVE SUCCESS LIMITED
FILLETED UNAUDITED FINANCIAL STATEMENTS
31 December 2023
LOVE SUCCESS LIMITED
BALANCE SHEET
31 December 2023
2023
2022
Note
£
£
£
Fixed assets
Tangible assets
6
3,964
7,462
Current assets
Debtors
7
785,342
1,213,989
Cash at bank and in hand
470,217
286,945
------------
------------
1,255,559
1,500,934
Creditors: amounts falling due within one year
8
896,108
1,050,039
------------
------------
Net current assets
359,451
450,895
---------
---------
Total assets less current liabilities
363,415
458,357
Creditors: amounts falling due after more than one year
9
200,000
300,000
Provisions
Taxation including deferred tax
991
1,418
---------
---------
Net assets
162,424
156,939
---------
---------
Capital and reserves
Called up share capital
50,000
50,000
Profit and loss account
112,424
106,939
---------
---------
Shareholders funds
162,424
156,939
---------
---------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the profit and loss account has not been delivered.
For the year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
LOVE SUCCESS LIMITED
BALANCE SHEET (continued)
31 December 2023
These financial statements were approved by the board of directors and authorised for issue on 29 February 2024 , and are signed on behalf of the board by:
Ms J M Atherton
Mrs J C Jones
Director
Director
Company registration number: 07226686
LOVE SUCCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
1. General information
The company is a public company limited by shares, registered in England and Wales. The address of the registered office is A3 Broomsleigh Business Park, Worsley Bridge Road, London, SE26 5BN. The company's principal place of business is Capital Tower, 8th Floor, 91 Waterloo Road, London, SE1 8RT.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Principal activity
The company's principal activity during the year continued to be recruitment services, including providing permanent, temporary, contract, fixed term contract and payroll services.
4. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported, in particular those relating to the bad debt provision. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover represents sales to external customers at invoiced amounts less value added tax. Sales are recognised based on hours worked at external customers in respect of temporary staff placements, and when a candidate starts their new employment in respect of permanent placements.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Furniture and fixtures
-
33% straight line
Office equipment
-
33% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the balance sheet and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Defined contribution pension schemes
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
5. Employee numbers
The average number of persons employed by the company during the year amounted to 14 (2022: 14 ).
In addition to the above, the company employed an average of 127 (31.12.2022 - 155) staff on temporary placements during the year .
6. Tangible assets
Furniture and fixtures
Office equipment
Total
£
£
£
Cost
At 1 January 2023
5,143
24,427
29,570
Additions
2,377
2,377
Disposals
( 5,143)
( 5,143)
-------
--------
--------
At 31 December 2023
26,804
26,804
-------
--------
--------
Depreciation
At 1 January 2023
5,143
16,965
22,108
Charge for the year
5,875
5,875
Disposals
( 5,143)
( 5,143)
-------
--------
--------
At 31 December 2023
22,840
22,840
-------
--------
--------
Carrying amount
At 31 December 2023
3,964
3,964
-------
--------
--------
At 31 December 2022
7,462
7,462
-------
--------
--------
7. Debtors
2023
2022
£
£
Trade debtors
708,634
1,104,163
Other debtors
76,708
109,826
---------
------------
785,342
1,213,989
---------
------------
8. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
100,000
100,000
Trade creditors
4,222
31,722
Corporation tax
4,320
36,360
Social security and other taxes
535,215
530,985
Other creditors
252,351
350,972
---------
------------
896,108
1,050,039
---------
------------
9. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
200,000
300,000
---------
---------
10. Share based payments
The Company operates an equity-settled, share-based compensation scheme. This has been registered with HM Revenue & Customs as an Enterprise Management Incentive Scheme ("Scheme") under the provisions of Schedule 5, Income Tax (Earnings and Pensions) Act 2003.
Options have been granted under the scheme on 16th November 2015, 31st August 2021, 3rd February 2022 and 23rd July 2023. The options vest only on an "exit event", being broadly a sale of the Company or its business, or the Company's shares being quoted on a public investment exchange. The options lapse if the holder leaves employment for any reason or if the options are not exercised within a period of 10 years from the date of grant. During the period 150,000 (2022 - 450,000) share options lapsed and 150,000 (2022 - 450,000) new options were granted resulting in 4,950,000 (2022 - 4,950,000) open share options at the balance sheet date.
Expected volatility was estimated from the historical volatility of a similar quoted company over three years. The options are not subject to any market conditions and accordingly no adjustment has been made in this respect. The total estimated value of the above options which had not been expensed at 31 December 2023 was £1,222 (2022 - £1,555).
11. Financial instruments
The carrying amount for each category of financial instrument is as follows:
2023
2022
£
£
Financial assets measured at fair value through profit or loss
Financial assets measured at fair value through profit or loss
1,200,440
1,410,881
------------
------------
Financial liabilities measured at fair value through profit or loss
Financial liabilities measured at fair value through profit or loss
601,879
832,694
---------
---------
12. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
102,845
72,042
Later than 1 year and not later than 5 years
80,581
---------
--------
183,426
72,042
---------
--------
13. Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2023
Balance brought forward
Advances/ (credits) to the directors
Balance outstanding
£
£
£
Ms J M Atherton
Mrs J C Jones
----
----
----
----
----
----
2022
Balance brought forward
Advances/ (credits) to the directors
Balance outstanding
£
£
£
Ms J M Atherton
( 214)
214
Mrs J C Jones
11,739
( 11,739)
--------
--------
----
11,525
( 11,525)
--------
--------
----