LOVE Creative Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 04207025 (England and Wales)

Audited Financial Statements

for the Year Ended 31 December 2022

for

LOVE CREATIVE LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Directors:

Mr P Chorlton FCCA

Mr D A Palmer

Mr T N Cairns

Registered office:

3rd Floor

31 Dale Street

Manchester

M1 1EY

Registered number:

04207025 (England and Wales)

Auditors:

Haines Watts

Northern Assurance Buildings

9-21 Princess Street

Manchester

M2 4DN

Fixed assets

Tangible assets

5

183,078

205,488

Current assets

Stocks

110,601

105,402

Debtors

6

2,035,978

2,360,715

Cash at bank

2,426,254

2,854,659

4,572,833

5,320,776

Creditors

Amounts falling due within one year

7

1,613,236

2,392,437

Net current assets

2,959,597

2,928,339

Total assets less current liabilities

3,142,675

3,133,827

Provisions for liabilities

45,003

37,648

Net assets

3,097,672

3,096,179

Capital and reserves

Called up share capital

9

1,780

1,780

Share premium

163,760

163,760

Capital redemption reserve

608

608

Retained earnings

2,931,524

2,930,031

Shareholders' funds

3,097,672

3,096,179

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

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 11 September 2023 and were signed on its behalf by:

Mr P Chorlton FCCA - Director

1.	Statutory information

LOVE Creative Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3.	Accounting policies

Basis of preparing the financial statements

The financial statements have been prepared on a going concern basis.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions on deferred income, accrued income and work-in-progress. The amount of revenue recognised is directly proportionate to the costs incurred. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There are not considered to be any critical judgements in applying the company's accounting policies. The company makes estimates and assumptions concerning the future. The resulting accounting estimates will by definition, seldom equal the actual results.

Turnover

Turnover represents amounts chargeable, net of value added tax, in respect of the provision of services to customers.Turnover is recognised when services are rendered to the customer.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Leasehold improvements

-

20% straight line

Office equipment

-

33% straight line

Fixtures and fittings

-

20% straight line

Computer equipment

-

33% straight line

Assets not yet in use are not being depreciated.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Financial instruments

The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets

Basic financial assets, including trade and other debtors and cash and bank balances, are initially recognised at transaction price, 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.

Such assets are subsequently carried forward at amortised cost using the effective interest method.

There are no assets which are initially measured at fair value.

Financial Liabilities

Basic financial liabilities, including trade and other creditors, 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 receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for good or services that have been acquired in the ordinary course of business from suppliers. Accounts 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.

Work-in-progress

Work-in-Progress relates to costs incurred on a project, either if the project is completed or reached a certain stage, it will then be transferred to the Profit and Loss.

4.	Employees and directors

The average number of employees during the year was 78 (2021 - 71 ) .

5.	Tangible fixed assets

Fixtures

Leasehold

Office

and

Computer

improvements

equipment

fittings

equipment

Totals

£

£

£

£

£

Cost

At 1 January 2022

278,134

53,629

117,758

552,714

1,002,235

Additions

-

-

8,668

77,119

85,787

At 31 December 2022

278,134

53,629

126,426

629,833

1,088,022

Depreciation

At 1 January 2022

269,755

26,920

115,651

384,421

796,747

Charge for year

8,379

5,458

3,607

90,753

108,197

At 31 December 2022

278,134

32,378

119,258

475,174

904,944

Net book value

At 31 December 2022

-

21,251

7,168

154,659

183,078

At 31 December 2021

8,379

26,709

2,107

168,293

205,488

6.

Debtors: amounts falling due within one year

2022

2021

£

£

Trade debtors

1,585,281

1,930,891

Other debtors

450,697

429,824

2,035,978

2,360,715

7.

Creditors: amounts falling due within one year

2022

2021

£

£

Trade creditors

180,513

328,575

Corporation tax

2,869

197,961

Social security and other taxes

87,832

109,340

VAT

69,625

155,003

Other creditors

30,602

25,008

Accruals and deferred income

1,241,795

1,576,550

1,613,236

2,392,437

8.	Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:

2022

2021

£

£

Within one year

227,661

33,029

Between one and five years

455,322

-

In more than five years

303,548

-

986,531

33,029

9.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

143

A ordinary

£1

143

143

125

C ordinary

£1

125

125

120

F ordinary

£1

120

120

51

G ordinary

£1

51

51

143

H ordinary

£1

143

143

40

I ordinary

£1

40

40

1

J ordinary

£1

1

1

245

K ordinary

£1

245

245

328

L ordinary

£1

328

328

464

M ordinary

£1

464

464

120

N ordinary

£1

120

120

1,780

1,780

All shares are ranked pari passu.

10.	Disclosure under Section 444(5B) of the Companies Act 2006

The Report of the Auditors was unqualified.

David Fort FCA (Senior Statutory Auditor)

for and on behalf of Haines Watts

11.	Pension commitments

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £187,649 (2021 - £198,900).

Contributions totalling £29,507 (2021 - £23,239) were payable to the schemes at the end of the year and are included in creditors.

12.	Related party disclosures

There is a balance of £nil (2021: £69,530) included in other debtors. This is a loan balance that is interest free and repayable on demand.

There was a bad debt written of £28,280 (2021: £NIL), that was due from a related party.

The parties are related through common directors.