Company registration number 01859736 (England and Wales)
LOVE AND TATE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 JANUARY 2024
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 2024
- 1 -
The director has pleasure in presenting her report and financial statements for the year ended 31 January 2024.
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 types 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 through our Pitman Training business in digital, administration, business and management skills; also career transition and apprenticeship programmes. We create bespoke courses for corporate groups and for people at all stages of their careers - new apprentices to Board Level. Our aim is to inspire peak performance and to support individuals and businesses to achieve their goals.
The year to January 2024 showed improvement on the previous year. To summarise: Turnover at £2.25m (2023: £2.07m) was up 8.77%; Gross profit at £0.42m (2023: £0.45m) was down by 6.07% as margins were squeezed on the acquisition of new clients; Overheads at £0.48m (2023: £0.62m) were down by 22%. This resulted in a loss for the year of £65K (2023: £122K) – an improvement of 46%. By the end of the year we had signed three new major contracts to take effect in 2024/2025 which alone will put us into profit.
Good news from our learning team in London, Stratford which was a start-up in 2022. This investment is now paying off, it is well established and getting great reviews, so it is poised to expand with word of mouth and a confident sales and marketing effort.
Our cash position which had deteriorated with the pandemic and business disruption of the last few years has stabilised. This is the result of increased business through wider reach with new technology, cost cutting and reduction in office space. However the growth in our temporary support staffing business, on occasions with 60-day payment terms puts pressure on cash, so we have also negotiated new financing arrangements which will support rapid growth in this area.
LOVE AND TATE LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
Strategy
We are client and relationship driven and we forge new clients and strong relationships through nimble, speedy and quality service. With talent in short supply we take the same stance with candidates and learners, focusing on retention so that we get maximum recommendation and referrals. We aim to provide a more bespoke niche service than our competitors – and to operate accessibly with a human touch. The new projects for 2024/25 are examples of this and have already added over £500,000 in revenue in the first 5 months of 2024.
A key area for growth is our apprenticeship business. We have spent time last year focusing on the quality and content of our apprenticeship programmes to meet Ofsted standards. We are in a great position with these programmes and are able to customise them for specialist industries and professions, such as medical and legal. We have added new Accounting standards at Levels 2, 3 and 4 plus Data Technician and Analyst standards to meet the explosive need for digital and data expertise. We have a clear plan to grow apprenticeships and other funded training with fresh marketing and sales campaigns,
Our distance learning and virtual training seminars are ideal in the hybrid working scenario, and provide the facility to bring national and international teams together more cost effectively and with lighter carbon footprint.
With the country going for growth, our services highlight the business benefits of investment into strong teams and strong skills and the opportunity to reap the return of higher productivity, performance and staff engagement, especially with new hybrid working experiments.
Business environment and outlook
The outlook continues to be focused on change and the impact of the pace of it. For our business the outlook is promising as the investment in people in work, technology and skills development are all key to future growth in all sectors of the economy.
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
30 July 2024
LOVE AND TATE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 JANUARY 2024
31 January 2024
- 3 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
3
15,000
22,500
Tangible assets
4
3,862
5,222
18,862
27,722
Current assets
Debtors
5
660,989
412,742
Cash at bank and in hand
33,154
35,035
694,143
447,777
Creditors: amounts falling due within one year
6
(449,764)
(402,642)
Net current assets
244,379
45,135
Total assets less current liabilities
263,241
72,857
Creditors: amounts falling due after more than one year
7
(296,906)
(41,144)
Net (liabilities)/assets
(33,665)
31,713
Capital and reserves
Called up share capital
8
205,001
205,001
Profit and loss reserves
(238,666)
(173,288)
Total equity
(33,665)
31,713
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 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges their 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 30 July 2024
M Y Love
Director
Company Registration No. 01859736
LOVE AND TATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 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
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
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.
1.4
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 2024
1
Accounting policies
(Continued)
- 5 -
1.5
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.
1.6
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).
1.7
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.
1.8
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 2024
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.
1.9
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.
1.10
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.
1.11
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.
1.12
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 2024
1
Accounting policies
(Continued)
- 7 -
1.13
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
11
11
3
Intangible fixed assets
Franchise fee
£
Cost
At 1 February 2023 and 31 January 2024
37,500
Amortisation and impairment
At 1 February 2023
15,000
Amortisation charged for the year
7,500
At 31 January 2024
22,500
Carrying amount
At 31 January 2024
15,000
At 31 January 2023
22,500
LOVE AND TATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 February 2023
15,149
19,755
34,904
Additions
160
160
Disposals
(15,149)
(15,149)
At 31 January 2024
19,915
19,915
Depreciation and impairment
At 1 February 2023
15,148
14,534
29,682
Depreciation charged in the year
1,519
1,519
Eliminated in respect of disposals
(15,148)
(15,148)
At 31 January 2024
16,053
16,053
Carrying amount
At 31 January 2024
3,862
3,862
At 31 January 2023
1
5,221
5,222
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
575,786
336,940
Other debtors
8,400
Prepayments and accrued income
76,803
75,802
660,989
412,742
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
5,238
5,108
Trade creditors
18,640
15,469
Taxation and social security
287,825
179,072
Other creditors
110,272
184,202
Accruals and deferred income
27,789
18,791
449,764
402,642
LOVE AND TATE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 9 -
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
35,906
41,144
Other creditors
261,000
296,906
41,144
8
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
205,001
205,001
205,001
205,001
9
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:
2024
2023
£
£
39,585