Company Registration No. 08267356 (England and Wales)
LOVETT ENTERPRISES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
PAGES FOR FILING WITH REGISTRAR
LOVETT ENTERPRISES LIMITED
CONTENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
Page
Accountants' report
1
Profit and loss account
2
Balance sheet
3 - 4
Notes to the financial statements
5 - 9
LOVETT ENTERPRISES LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF LOVETT ENTERPRISES LIMITED FOR THE YEAR ENDED 31 DECEMBER 2018
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Lovett Enterprises Limited for the year ended 31 December 2018 which comprise the Profit and Loss Account and the Balance Sheet and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance/.
This report is made solely to the Board of Directors of Lovett Enterprises Limited, as a body, in accordance with the terms of our engagement letter dated 10 May 2016. Our work has been undertaken solely to prepare for your approval the financial statements of Lovett Enterprises Limited
and state those matters that we have agreed to state to the Board of Directors of Lovett Enterprises Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Lovett Enterprises Limited and its Board of Directors as a body, for
our work or for this report.
It is your duty to ensure that Lovett Enterprises Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets,
liabilities, financial position and loss
of Lovett Enterprises Limited. You consider that Lovett Enterprises Limited is exempt from the statutory audit
requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Lovett Enterprises Limited. For this reason, we have not verified the accuracy or completeness of the
accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
..................................................
21 October 2019
Dales Evans & Co Limited
Date
Chartered Accountants
88-90 Baker Street
London
W1U 6TQ
LOVETT ENTERPRISES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2018
- 2 -
2018
2017
£
£
Gross profit
602,284
591,172
Administrative expenses
(595,149)
(448,926)
Operating profit
7,135
142,246
Interest receivable and similar income
2,654
-
Interest payable and similar expenses
(141,187)
(117,101)
(Loss)/profit before taxation
(131,398)
25,145
Tax on loss/profit
50,954
(94,475)
Loss for the financial year
(80,444)
(69,330)
Adjusted EBITDA - earnings before tax, interest accrued to shareholders and depreciation
(Loss)/profit before taxation
(131,398)
25,145
Interest accrued to shareholders
135,562
117,101
Depreciation
110,420
110,420
Adjusted EBITDA
114,584
252,666
LOVETT ENTERPRISES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2018
31 December 2018
- 3 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,142,354
1,252,774
Investments
4
1,850,361
28,815
2,992,715
1,281,589
Current assets
Debtors
472,768
151,669
Cash at bank and in hand
38,472
119,268
511,240
270,937
Creditors: amounts falling due within one year
(391,084)
(181,094)
Net current assets
120,156
89,843
Total assets less current liabilities
3,112,871
1,371,432
Creditors: amounts falling due after more than one year
(3,486,400)
(1,660,139)
Provisions for liabilities
(36,162)
(40,540)
Net liabilities
(409,691)
(329,247)
Capital and reserves
Called up share capital
5
240
240
Profit and loss reserves
(409,931)
(329,487)
Total equity
(409,691)
(329,247)
In accordance with section 444 of the Companies Act 2006 all
of
the members of the company have consented to the
preparation of abridged financial statements pursuant to paragraph 1A of Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations (S.I. 2008/409)(b).
For the financial year ended 31 December 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have 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.
LOVETT ENTERPRISES LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2018
31 December 2018
2018
2017
Notes
£
£
£
£
- 4 -
The financial statements were approved by the board of directors and authorised for issue on 18 October 2019 and are signed on its behalf by:
G Lovett
Director
Company Registration No. 08267356
LOVETT ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
- 5 -
1
Accounting policies
Company information
Lovett Enterprises Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
88-90 Baker Street, London, W1U 6TQ.
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 a
mounts
in these financial statements are
rounded to the nearest
pound
.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value, except where this would lead to the company incurring undue cost or effort. The principal accounting policies adopted are set out below.
1.2
Turnover
Revenue is measured at the fair value of the consideration received or receivable and represents amounts for services provided net of discounts and VAT.
Income from services is recognised when they are performed and entitlement has arisen under the terms of the contract.
1.3
Tangible fixed assets
Tangible fixed assets
are measured at cost
,
net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their
estimated
residual values over their useful lives on the following bases:
Land and buildings - leasehold
over the life of the lease
Leasehold improvements
over the life of the lease
Fixtures, fittings and equipment
33.3% straight line
1.4
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
LOVETT ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 6 -
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
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.
1.6
Financial instruments
The company 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 company's balance sheet 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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, 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
paymen
ts 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. A
m
ounts 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.
1.7
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.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
LOVETT ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 7 -
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
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 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 when the
company
has 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.
1.9
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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 lease
s
asset are consumed.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 3 (2017 - 1).
LOVETT ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 8 -
3
Tangible fixed assets
Land and buildings - leasehold
Leasehold improve-ments
Fixtures, fittings and equipment
Total
£
£
£
£
Cost
At 1 January 2018 and 31 December 2018
106,932
1,201,738
134,059
1,442,729
Depreciation and impairment
At 1 January 2018
8,466
92,117
89,372
189,955
Depreciation charged in the year
5,347
60,387
44,686
110,420
At 31 December 2018
13,813
152,504
134,058
300,375
Carrying amount
At 31 December 2018
93,119
1,049,234
1
1,142,354
At 31 December 2017
98,466
1,109,621
44,687
1,252,774
4
Fixed asset investments
2018
2017
£
£
Investments in subsidiaries
1,850,361
28,815
Movements in fixed asset investments
Shares in group undertakings
Other investments other than loans
Total
£
£
£
Cost or valuation
At 1 January 2018
65
28,750
28,815
Additions
1,821,546
-
1,821,546
At 31 December 2018
1,821,611
28,750
1,850,361
Carrying amount
At 31 December 2018
1,821,611
28,750
1,850,361
At 31 December 2017
65
28,750
28,815
5
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
240 ordinary shares of £1 each
240
240
LOVETT ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 9 -
6
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:
2018
2017
£
£
545,417
750,417
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