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2023-08-31-accounts

Love Squared Limited (Formerly ‘Leading Lights Education And Wellbeing’) (A Charitable Company Limited by Guarantee)

Annual Report and Financial Statements For the Year Ended 31 August 2023

Company Number: 08977922 Charity Registered in England and Wales Number: 1198464

Contents

Contents 1
Reference and Administrative Details 2
Trustee Report 3
Independent Examiner’s Report 21
Statement of Financial Activities 22
Balance Sheet 23
Statement of Cash Flow 24
Notes to the Financial Statements 25-35

1

Reference and Administrative Details For the Year Ended 31 August 2023
Trustees and Directors H Marsden (Chair)
S W Armstrong
P El Jichi
M J James
S F Moosvi
G Purchase
L Reynolds
Senior Leadership Team Chief Executive Officer - S Hopkins (until July
2023)
Charity Development Director – C McMurray
(from August 2023)
Operations & Finance Lead – L Cassini (until
December 2022) & B Sweet (from January
2023)
Case Manager - B Sweet
Project Support Manager - E Kennedy
Company Number 08977922
Charity Number 1198464
Principal Office and Registered Unit 1
Office Avonmead House
Stokes Croft
Bristol
England
BS1 3QD
Independent Examiner Michelle Ferris BSc (Hons) FCA DChA
Albert Goodman LLP
Goodwood House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX

2

Chair’s Introduction

Nearly a decade ago, the wonderful Sarah Louise Hopkins started a movement to improve outcomes for children and young people who were neurodiverse, had special educational needs or were undergoing mental health challenges. Many were underachieving academically and suffering exclusion, leading to a downward spiral of mental ill health and isolation. Sarah Louise’s approach was imaginative, innovative, and holistic, and hallmarked by its commitment to delivering services with unwavering love and kindness.

Her vision and energy created the charity that is now Love Squared.

This year, Sarah Louise took the decision to leave the organisation she founded and led with such dedication in the highly capable hands of its Senior Leadership Team. While we miss her immeasurably, we are immensely grateful that she left us with a solid and immutable vision, an amazing team, and on a sound financial footing. Sarah Louise’s vision - that of active listening, designing imaginative tailor-made solutions, taking a holistic approach to challenges, and delivering support with kindness and love - will always run through everything we do here at Love Squared.

We wish our amazing founder all the happiness in the world in her new life!

The successful transition from a founder-led organisation which still maintains its driving passion and purpose is due in no small part to the resilience and hard work of our team of staff, practitioners and volunteers. Thank you. You make a difference every day.

My thanks must also go to my fellow trustees, whose wisdom, expertise and time are invaluable in helping to equalise opportunity and improve outcomes for the talented children and young people we support.

Helen Marsden

3

Compliance and Public Benefit

The trustees, who are also directors for the purposes of the Companies Act, present their report and the unaudited financial statements of the charity for the year ended 31 August 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity’s memorandum and articles of association, the Statement of Recommended Practice (SORP FRS 102 2019), and are in accordance with the special provision relating to small companies within Part 15 of the Companies Act 2006.

The trustees report that the charitable activities, described in the “Mission statement”, “Activities” and “Achievements and performance” paragraphs, are for the public benefit. The trustees also confirm that they have complied with section 17(5) of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission.

Structure, governance and management

Leading Lights Education and Wellbeing passed a change of name resolution on 27 January 2023 and is now known as Love Squared Limited.

Love Squared Limited is an independent charity, registered number 1198464 and a company limited by guarantee, registered number 08977922.

The governing document is the memorandum and articles of association was dated 4 April 2014, where the company was originally incorporated as a Community Interest Company. The company gained charitable status on 31 March 2022 and the original governing document has been superseded with the articles of association as amended by special resolution dated 10 December 2021.

The following trustees who are also directors for the purposes of company law, served during the year and since the year end:

H Marsden (Chair) S W Armstrong P El Jichi M J James S F Moosvi G Purchase L Reynolds

The existing trustees are responsible for the recruitment of new trustees. The Board has experience in safeguarding, finance, marketing, HR and education. We also have one of our former young people sitting on our board to represent the voice of our service users.

The trustees give their time freely and receive no remuneration or other financial benefits.

The remuneration of key management personnel is reviewed and set by the trustees by benchmarking against key management personnel in similar organisations.

Our trustees are responsible for our overall management and leadership and meet at least eight times a year. The CEO reported directly to the trustees but there was a change of management in the 8th month of the financial year when the CEO went on maternity leave and a Senior Leadership team was formed. The senior leadership team reports directly to the trustees and carries out the day-to-day running of the organisation and policy implementation, supported by our core team, including case managers and project coordinators.

4

Our vision is of a world where no child or young person loses out on a world of potential owing to poor mental health.

What’s the Love Squared difference?

Everyone has a right to tell their story and be heard with curiosity and sensitivity.

Our vision, mission and values are the core drivers for Love Squared’s range of services for children and young people. These include:

Our mission is to change the national landscape of how children experience the mental health system, putting kindness at the forefront of every interaction.

We’re starting a movement and building awareness by listening to children’s voices and those of the people who love them. Our goal is to transform the experience of young people affected by mental health challenges.

Our services were specifically designed to deliver the three outcomes most likely to have the biggest impact on the children and young people we support. These are to:

Our values centre on putting love at the heart of all we do.

By delivering imaginatively designed packages of support, we nurture our children and young people to achieve all that they can. It takes courage for them to re-engage with a system that they may feel has rejected them, and our dedicated and expert team reward their bravery with unwavering patience and love.

Improvement in one of these key areas has a positive impact on the other two. By working on all three simultaneously, we can ensure that the greatest gains can be made for our children and young people, giving them the best possible chance to fulfil their potential.

This is the Love Squared formula.

5

There is an ongoing emergency in children’s mental health.

In 2022, one in six children in England aged between seven and 16 had a mental health problem, and there are 1.49 million pupils with special educational needs and disabilities. Both of these numbers have been increasing over the last five years.

The link between mental health and special educational needs and disabilities (SEND) has been well established, but can be explained simply. If a child’s mental health difficulties become a barrier to learning, then they may need SEND support. Conversely, children and young people with SEND can be at higher risk of developing mental health problems.

At Love Squared, we understand that link. Alongside the mental health support we provide, we work holistically with all the bodies involved in engineering re-engagement with education. We can't change the past, and we don’t have magic wands, but we do believe that every child and family has the right to access services designed and delivered with love and imagination.

6

Our aims and impact

Having moved from CIC to charity in 2022/23 we had three aims for the year.

Conduct skills based recruitment, ensuring our people have the skills needed for our growth and development.

Expand the support offered, continuing to offer a range of support to children, young people and their families impacted by mental health challenges, designed to deliver on three key differences of reducing social isolation, improving mental health and increasing their ability to thrive in education.

Rebrand the charity, putting ‘love’ front and centre of all we do, and growing our reputation and reach locally and nationally.

7

Over the academic year ending July 2023 we supported 518 children and young people through our wide range of services.

Ninety five per cent of our children and their families reported a positive change in their mental health since working with us.

In response to an increase in referrals from schools who are struggling to find and provide mental health support for their young people, we set up a project to provide therapeutic mentoring and workshops within schools for free.

Through discussions with local schools it became apparent that they not only need one-to-one support for the children most in need, but also early intervention work to help build resilience and offer a safe, nurturing space to discuss current issues.

8

Last year, 87% of the children and young people we support reported feeling less socially isolated, and 47% felt significantly . less socially isolated

Whilst each of our children and young people are unique and our support is tailored as much as possible to their individual circumstances, social isolation is a common factor.

Once a child stops regularly attending school for health reasons then they can lose touch with their friends. Re-connecting can be anxiety producing in itself.

A negative feedback loop is created, in which social isolation leads to a deterioration in mental health which then makes the act of socialising more of a challenge. The downward cycle continues.

9

At Love Squared we work to arrest and reverse that cycle.

We encourage and facilitate social communication and interactions, so improving mental health. As mental health improves, so our children and young people are more able to engage in their community. Through our mentoring, telephone helpline and groups, we can directly focus on reducing social isolation.

In 2022/2023, 81% of our children and young people reported that they are more able to thrive in education. The challenges that they’ve faced over the last few years have been unprecedented. The impact of Covid and the imposed social isolation of home learning was a challenge faced globally. Combined with the cost of living crisis, it has left a substantial cohort of children worried and uncertain about their future. Last year, 125,000 children and young people were severely absent (missing 50% or more sessions). This number has almost doubled since autumn 2019 (pre-pandemic) and is leaving a generation less well prepared for adult life, both academically and socially.

10

Throughout the pandemic and the cost of living crisis we have continued to offer bespoke support to children with attached funding, using their interests to build packages of project based learning to engage them and reignite their love of learning. These children and young people are the ones not able to attend mainstream educational settings either due to their health needs or because specialist or mainstream schools cannot meet their needs.

Schools also need help to ensure their students can thrive within mainstream education settings. Working with our incredibly talented therapist we created and are delivering a series of workshops to support them.

We also offer targeted one-to-one therapeutic mentoring to those in most need or at greatest risk of absenteeism. The workshops range from social media use to transition work, of particular benefit to a school that was closing, with the entire cohort moving to new settings.

The feedback we have received from the schools and the children has been so positive that it has inspired us to expand this project to include more schools and more therapeutic mentoring.

11

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Objective 2: Skills based
recruitment
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We exist to put the love back into children’s services. We make the most difference when we think about what else we can do. All our staff, volunteers and stakeholders agree that our strategic direction should always incorporate the love we demonstrate in all our actions.

We know we can do more by becoming a more vocal and visible presence in the communities in which we work. If we want to change the landscape of children’s services then we need to speak with a louder voice.

We have therefore recruited to fill skills gaps in fundraising, marketing and strategic development. We plan to better showcase our academic and therapeutic expertise, enabling us to raise more funds to expand the work we do.

13

Objective 3: Rebrand the charity

Our new name reflects the love we put into all aspects of our work and the love we show towards all our children and young people. Using the word ‘ love ’ was important to us all. It was a controversial choice, picked deliberately to provoke debate and conversations. Love shouldn’t be a word we shy away from. We want it at the forefront of all of our minds, all the time.

One particular highlight was having a community stall at Bristol Pride in July 2023. Around 18% of our young people identify as LGBTQI+ which means they are at higher risk of mental health difficulties compared to

young people outside that community. This was a great opportunity to talk to them and other professionals about the work we do and offer support and advice - as well as enjoying the celebratory atmosphere!

14

Why we love working at Love Squared

“I have been asked many times to talk about what makes us different, what that Love Squared formula is, as if it’s something that can be bottled, catalogued and measured. The actual answer is simple but best explained experientially. But as this is our Trustee report I will do my best to explain it with a description of how I came to understand it.

I came to Love Squared a somewhat disheartened primary school teacher having experienced the lack of time, money, training and support offered to help children impacted with mental health challenges. I joined the organisation four years ago after reading a job advert like no other. This one was filled with genuine love and care for the work people do with children and that’s what made it stand out. Reading the advert I could see that whoever wrote it was a passionate advocate not just for children, young people and their families, but for everyone who worked in children’s services. From the very first time I met our founder, Sarah Louise, it was clear that she was on a mission to change the world. She was and is kindness personified and every interaction she had with someone was based around the simple premise of “What more can I do to give this person a moment of calm, joy, or love in the day?”

It was instilled in me from day one that every interaction should be this way, be the moment that someone looks back on and thinks, “Today wasn’t all bad”. We take time, we ask after people, we celebrate what people do and build them up rather than ignore or tear them down. Most of all we listen. A good day at work is one where I can go home after having a long conversation with a parent or professional and they have told me their worries and they feel listened to. I have walked alongside people on the edge and held them, and given them something to hold on to and along the way. I know we make a difference and that difference is love.

It might not seem much, but that’s the secret of Love Squared. We care, we listen, we value and it is embedded in our every word, look and action.”

Operations Manager

15

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“I always knew what I wanted to be when I grew up - a vet. I loved animals (still do!) and thought it was the sensible choice - what could be better than helping them get better? Turns out I wasn’t the best at science! But growing up I had a pretty strong feeling of what I wanted to do with my life. I wanted to help, I wanted to show love, to make a difference. We lost my cousin to suicide when I was quite young. She was incredibly close to me and I think i just wanted to help others where I couldn’t help her. But it stuck, and I went into youth work, then mental health and SEN in and out of education.

Everywhere I went I saw the same gaps where young people got lost, the same frustrations with people not feeling seen or heard. Lots of good people trying their best, but within systems that weren't built to fit the people who need them the most.

Then I found Love Squared. I heard about the values and mission of this charity that I happened to stumble across, and it was the most exciting thing. I met Ben and the core team, heard about Sarah Louise's vision and thought 'Finally. These people get it!'

Starting as a practitioner I was so happy to be able to work with young people towards their goals, listening to them, supporting their families and advocating for them where I could. Even more than this I was able to actively contribute to a programme where young people who fell through the gaps I had always seen were provided for - it’s amazing!

Coming alongside these amazing families and taking the time to get to know them and their young people, going at their pace and working towards their goals rather than a set benchmark or curriculum, was incredible and I heard such positivity from people who only wished they had been able to come to Love Squared sooner! Our work is truly life changing.

Becoming a core team member, I can honestly say that I have never been in a workplace where I have been so able to fully be myself. It was clear that we aren’t just Love Squared by name. It is in everything we do. Every interaction and decision is made with love at the centre.

Alongside this culture of love based provision I have seen wonderful practitioners show incredible imagination finding solutions for families where traditional education hasn’t worked, by taking time and effort to listen and work together to make a plan. I’ve seen such a caring, nurturing spirit from people who truly want to ensure every young person we connect with has the right support. I have worked alongside incredibly brave core team members going above and beyond in difficult situations again and again to ensure we are doing the best as a charity.

Everyone around me here truly embodies what we are about and I am so proud to be alongside them doing what I have always wanted to do - helping people, showing love, making a difference - what could be better?”

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Fundraising
activities
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Our supporters have continued to play a huge part in the success of the charity this year and we would like to thank each and every one of them. We have been fortunate enough to win grants from the following organisations during this financial year:

Nisbet Trust Children in Need Quartet Community Fund Garfield Weston Wesport Warburtons Community Fund Bristol Water Bclear

These have been pivotal in ensuring that we have been able to reach 518 children and young people through our range of services, making a significant difference in the lives of the families we support.

We also wanted to celebrate the other ways in which we have received support from our community and thank an amazing artist, David Puck , who volunteered their time to design and paint a mural on the outside of our building in our new brand colours and to Coovar , who donated anti-graffiti spray to keep it looking as amazing as possible for as long as possible.

Special thanks to Haymarket for their continued support. Another huge thank you to a local school, who were able to donate resources to us they no longer needed, including some lovely instruments and exercise books. And another thank you to one of our volunteers, Kirsty , who donated plants (and her time to keep them watered, fed and happy) to make the space feel as warm and welcoming as possible.

And finally, a huge thank you to everyone who donated money, time, help, support and their love and kindness to us over this last year, including the amazing core team, practitioners, volunteers and trustees! We can not thank you enough!

18

Financial review

The financial statements show income of £795,624, a 11% increase on the previous year (2022: £717,016). This income comprised £1,200 from other income, such as advertising boards (2022: £1,100), £25,927 from grants and donations (2022: £67,464) and £768,497 for the provision of our specialist tuition and mentoring packages from Local Authorities, Schools and the NHS (2021: £648,452).

During the prior year we increased our core team by adding an additional case manager and finance and operations lead, enabling us to increase our capacity, manage more placements and work in more local authorities.

Debtors have increased overall from £39,736 in 2022 to £49,377 in 2023. Trade debtors have increased (2022: £37,671 to 2023: £46,932), in part due to the length of time it takes the various Local Authorities to pay invoices.

In total, funding bids have contributed £25,927 in the year compared to £67,464 in 2022, enabling us to set up a number of new projects and increase the support we can offer to children and young people with unattached funding.

Reserves Policy

The Board has agreed on a reserves policy in order to maintain the stability of the organisation in the event of a major business interruption. Reserves cover all core costs of the organisation, to include but not be limited to, rent, salaries of core team, utilities as well as the costs of our Glow projects for between 3 and 6 months. This level of reserves would allow a period of time to support service users through any transition and to source alternative funding streams.

The level of reserves held by the charity is based on current operating costs, and will be reviewed annually by the Board as services change in response to income generation. This figure will also be reviewed by the finance and operations lead on a quarterly basis and/or if there are significant changes to business circumstances.

At the start of this financial year that equated to requiring a fund of between £77k and £155k with the free reserves on 1st September 2022 being £131,026. The fixed costs of running the charity have increased during the year due to an increase in staffing costs and 3 to 6 months reserves required now equates to £92k to £184k.

At the end of the year the total free reserves increased to £234,568 (total funds minus fixed assets, restricted funds and creditors falling due over one year).

19

Statement of Trustees’ Responsibilities

The trustees (who are directors of Love Squared Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (incorporating the Directors’ Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the income and expenditure of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities and are responsible for the maintenance and integrity of the corporate and financial information on the charity’s website.

04/06/2024 Signed by order of the trustees on .............................................

......................................................

H Marsden Chair of Trustees

20

Independent examiners report to the Trustees of Love Squared Limited

I report to the charity trustees on my examination of the accounts of Love Squared Limited (“the Company”) for the year ended 31 August 2023.

Responsibilities and basis of report

As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (“the 2006 Act”).

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (“the 2011 Act”). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement

Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

......................................

Michelle Ferris BSc (Hons) FCA DChA

Albert Goodman LLP Chartered Accountants Goodwood House Blackbrook Park Avenue Taunton Somerset TA1 2PX

Date: 06.06.2024

21

Love Squared Limited

Statement of Financial Activities (including Income and Expenditure account) For the Year Ended 31 August 2023

Notes
Income
Donations
2
Charitable activities
3
Other income
Total income
Expenditure
4
Total expenditure
Net income / (expenditure)
for the year before transfers
Corporation tax
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 £
6,693
768,497
1,200
776,390
648,723
648,723
127,667
-
127,667
81,341
209,008
Unres-
tricted		 £
19,234
-
-
19,234
38,526
38,526
(19,292)
-
(19,292)
25,319
6,027
Re-
stricted		 2023
£
25,927
768,497
1,200
795,624
687,249
687,249
108,375
-
108,375
106,660
215,035
Total		 £
14,057
648,452
1,100
663,609
631,435
631,435
32,174
(2,377)
29,797
51,544
81,341
Unres-
tricted		 £
53,407
-
-
53,407
28,088
28,088
25,319
-
25,319
-
25,319
Re-
stricted		 2022
£
67,464
648,452
1,100
717,016
659,523
659,523
57,493
(2,377)
55,116
51,544
106,660
Total

The results for the year derive from continuing activities and there are no gains or losses other than those shown above.

The statement of financial activities incorporates the income and expenditure account.

Prepared By Albert Goodman LLP

22

Love Squared Limited – Company Number: 08977922 Balance Sheet As at 31 August 2023

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Notes 2023 2022
£ £
Fixed assets
Tangible fixed assets 7 21,813 20,583
Intangible fixed assets 8 8,919 9,302
30,732 29,885
Current assets
Stock 419 839
Debtors 9 49,377 39,736
Cash at bank and in hand 237,819 156,944
287,615 197,519
Creditors
Amounts falling due within one year 10 (47,020) (41,174)
Net current assets 240,595 156,345
Creditors
Amounts falling due after more than one year 10 (56,292) (79,570)
Net assets 215,035 106,660
Funds
Unrestricted funds 11 209,008 81,341
Restricted funds 11 6,027 25,319
Total charity funds 215,035 106,660
----- End of picture text -----

These accounts have been prepared and delivered in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

For the year ending 31 August 2023 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

04/05/2024

Approved by the Board for issue on ……………………… .. and signed on its behalf by:

…………………………… H Marsden Chair of Trustees

……………………… . M James Trustee

Prepared By Albert Goodman LLP

23

Love Squared Limited Statement of Cash Flow For the Year Ended 31 August 2023

Notes
Cash flows from operating activities
Net movements in funds for the year
Adjustments to cash flows from non-cash items:
Depreciation and amortisation
7/8
Working capital adjustments:
Decrease / (increase) in stock
Decrease / (increase) in debtors
9
(Decrease) / increase in creditors
10
Net cash flow from operations
Cash flows from investing activities
Purchase of fixed assets
7
Net cash flow from investing activities
Cash flows from financing activities
Repayment of borrowing
Net cash flow from financing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period
Cash & Cash equivalents reconciliation:
Cash at bank & in hand
Total cash & cash equivalents at the end of the reporting period		 2023
£
108,375
9,211
117,586
420
(9,641)
(2,002)
106,363
(10,057)
(10,057)
(15,430)
(15,430)
80,875
156,944
237,819
237,819
237,819		 2022
£
55,116
8,120
63,236
419
839
(10,657)
53,837
-
-
-
-
53,837
103,107
156,944
156,944
156,944

Prepared By Albert Goodman LLP

24

Love Squared Limited Notes to the Financial Statements For the Year Ended 31 August 2023

1 Accounting policies

1.1

General information and basis of accounting

Love Squared Limited is a company limited by guarantee incorporated in the United Kingdom under the Companies Act. Each member of the charity undertakes to contribute an amount not exceeding £1 t o the charity’s asse ts if it should be wound up while they are a member or within one year after they cease to be a member. The address of the registered office is given on page 2. The nature of the char ity’s operations and its principal activities are set out in the Trustees Report on pages 3-20.

The financial statements have been prepared on the historical cost basis and in accordance with the accounting and reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)- (Charites SORP (FRS 102)) and the Companies Act 2006.

The entity was previously as Community Interest Company, and was registered as a charity with the Charity Commission for England and Wales on 31 March 2022. The accounts have been prepared as if the entity had always held charitable status, with the SORP having been applied throughout.

The adjustment to complete the accounts in accordance with the SORP for the current and comparative periods has not resulted in any restatement of figures within the accounts, and additional disclosure has been provided where required

The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

1.2

Going concern

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the cha rity’s abil ity to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Income

Income from donations is recognised in the accounts when receivable and the amount can be reliably measured.

Income from grants and government grants is accounted for when unconditionally due and reasonable assurance can be gained that it will be received.

Income from charitable activities is recognised when either unconditionally due or when the service is completed depending on the nature of funding. Where funds are received in advance, for a specified period, these funds are deferred and recognised in the period to which they relate.

Income from investments is recognised in the accounts when receivable.

Prepared By Albert Goodman LLP

25

Love Squared Limited Notes to the Financial Statements For the Year Ended 31 August 2023

1.4 Expenditure

Expenditure is accounted for on the accruals basis. Liabilities are recognised in the accounting period to which they relate.

1.5 Tangible fixed assets

Tangible fixed assets are valued at cost less depreciation. No assets are capitalised under £100. Depreciation is calculated to write off the cost or valuation of fixed assets over their estimated useful lives at the following rate:

Computer Equipment - 20% straight line Fixtures & Fittings - 20% straight line Leasehold Improvements - straight line over term of the lease

1.6 Intangible fixed assets

Intangible assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Intangible assets are initially recorded at cost and are subsequently measured at cost net of amortisation and any provision for impairment.

Amortisation is provided on intangible fixed assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life, as follows:

Purchase of website design & content -straight line over 3 years

1.7 Stocks

Stocks are valued at the cost and net realisable value, after making due allowance for obsolete and slow-moving items. Stock is accounted for on a FIFO basis.

1.8 Debtors

Trade debtors, other debtors and accrued income are recognised at the settlement amount due and prepayments are valued at the amount prepaid.

1.9 Cash at bank and in hand

Cash at bank and in hand compromise cash on hand and call deposits that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

1.10 Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are recognised at their settlement amount. Where grants are received in advance, for a specified period, these funds are deferred and recognised in the period to which they relate.

1.11 Taxation

The company is a registered charity and is therefore not liable to corporation tax to the extent that income and gains are applied for charitable purposes.

1.12 Fund accounting

General funds are unrestricted funds receivable or generated for the objects of the company without further specified purpose and are available as general funds.

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets this criterion is charged to the fund, together with a fair allocation of management and support costs.

Prepared By Albert Goodman LLP

26

Love Squared Limited Notes to the Financial Statements For the Year Ended 31 August 2023

1.13 Financial instruments

The charity only holds basic financial instruments as defined in FRS 102. The financial assets and liabilities of the charity and their measurements are as follows:

Financial assets – trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank – is classified as a basic financial instrument and is measured at face value.

Financial liabilities – trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument.

2 Donations (including grants)

Grants
Donations		 £
3,902
2,791
Unres-
tricted		 £
19,234
-
19,234
Res-
tricted		 £
23,136
2,791
25,927
Total
2023		 £
11,665
2,392
14,057
Unres-
tricted		 £
£
53,407
65,072
-
2,392
53,407
67,464
Total
2022
Res-
tricted
6,693

3 Income from charitable activities

Outreach - One to One
Outreach - Group
Onsite - Café
Contracted Project
- Bristol Scholars		 £
734,348
-
50
34,100
768,497
Unres-
tricted		 £
-
-
-
-
-
Res-
tricted		 £
734,348
-
50
34,100
768,497
Total
2023		 £
604,786
1,403
-
42,263
648,452
Unres-
tricted		 £
£
-
604,786
-
1,403

-
-
-
42,263
-
648,452
Res-
tricted
Total
2022

Prepared By Albert Goodman LLP

27

Love Squared Limited Notes to the Financial Statements For the Year Ended 31 August 2023

4 Direct charitable expenditure

Direct costs
Employment costs
Other costs
Included in other costs:
Premises expenses
Rent and Rates
Light & heat
Repairs & Maintenance
Cleaning
General administrative expenses
IT Software
Insurance
Printing, postage & stationery
Advertising & marketing
Telephone & Internet
Travel and subsistence
Accountancy fees
Legal fees
Consultancy fees
Board expenses
Subscriptions
Bank charges
Bad debts written off
Other office costs
Depreciation & amortisation
Other interest payable
Other interest costs		 £
405,319
183,426
59,978
648,723
£
14,552
1,066
3,196
992
2,711
3,343
160
1,694
4,956
538
6,646
1,800
-
282
670
425
990
671
9,210
5,542
533
59,978
Unres-
tricted
Unres-
tricted		 £
4,162
32,884
1,480
38,526
£
-
1,000
-
-
-
-
-
-
480
-
-
-
-
-
-
-
-
-
-
-
-
1,480
Res-
tricted
Res-
tricted		 £
409,481
216,310
61,458
687,249
£
14,552
2,066
3,196
992
2,711
3,343
160
1,694
5,436
538
6,646
1,800
-
282
670
425
990
671
9,210
5,542
533
61,458
Total
2023
Total
2023		 £
370,618
209,167
51,650
631,435
£
14,632
1,705
412
160
1,147
2,798
760
743
5,521
680
5,737
8
238
66
1,293
358
-
-
8,120
4,950
2,322
51,650
Unres-
tricted
Unres-
tricted		 £
2,100
25,388
600
28,088
£
-
600
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
600
Res-
tricted
Res-
tricted		 £
372,718
234,555
52,250
Total
2022
659,523
Total
2022
£
14,632
2,305
412
160
1,147
2,798
760
743
5,521
680
5,737
8
238
66
1,293
358
-
-
8,120
4,950
2,322
52,250

Prepared By Albert Goodman LLP

28

Love Squared Limited Notes to the Financial Statements For the Year Ended 31 August 2023

5 Wages and salaries

Wages and salaries
Employers NI
Pension
Staff training and recruitment		 2023
2022
£
£
195,572
202,724
12,616
13,282
4,344
3,820
3,778
14,729
216,310
234,555

No individual employee was paid over £60,000 (2022: none)

The average number of employees for the year was as follows:

2023 2022
Number of employees 9 9

Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the charity to the scheme and amounted to £4,344 (2022: £3,820).

Contributions totalling £1,134 (2022: £1,278) were payable to the scheme at the end of the year and are included in creditors.

Key management personnel

The key management personnel of the charity are considered to be the Chief Executive Officer, the Charity Development Office, the Operations and Finance Lead, the Case Manager and the Project Support Manager. The total cost to the charity of employee benefits for key management personnel was £92,879 (2022: £72,733).

Trustee directors

Prior to the company gaining charitable status on 31 March 2022, S Hopkins, Chief Executive, was a director of the company. She received remuneration and travel expenses in relation to her role as Chief Executive Officer which was permitted under the current legislation at the time of payments. S Hopkins resigned as a director upon the company gaining charitable status and remained in the Chief Executive Officer role until July 2023.

During the year, one trustee claimed travel expenses totalling £107 (2022: £66).

Prepared By Albert Goodman LLP

29

Love Squared Limited Notes to the Financial Statements For the Year Ended 31 August 2023

6 Net incoming resources before transfers

----- Start of picture text -----
|||| |---|---|---| |2023|2022| |£|£| |This is stated after charging:| |Depreciation and amortisation|9,210|15,227| |Other accountancy services|1,846|1,537| |Independent Examiners fees|4,500|4,200|

----- End of picture text -----

7 Tangible assets

----- Start of picture text -----
|||||| |---|---|---|---|---| |Computer|Fixtures &|Leasehold| |Equipment|Fittings|Improvements|Total| |£|£|£|£| |Cost| |As at 31.08.2022|9,000|1,495|18,057|28,552| |Additions|1,628|-|3,065|4,693| |As at 31.08.2023|10,628|1,495|21,122|33,245| |Depreciation| |As at 31.08.2022|4,370|567|3,032|7,969| |Charge for year|1,588|299|1,577|3,464| |As at 31.08.2023|5,958|866|4,609|11,433| |Net book value| |As at 31.08.2022|4,630|928|15,025|20,583| |As at 31.08.2023|4,670|629|16,513|21,813|

----- End of picture text -----

Prepared By Albert Goodman LLP

30

Love Squared Limited Notes to the Financial Statements For the Year Ended 31 August 2023

8 Intangible Assets

Cost
As at 31.08.2022
Additions
As at 31.08.2023
Amortisation
As at 31.08.2022
Charge for the year
As at 31.08.2023
Net book value
As at 31.08.2023
As at 31.08.2022		 Intangibles
£
16,560
5,364
21,924
7,258
5,747
13,005
8,919
9,302		 Total
£
16,560
5,364
21,924
7,258
5,747
13,005
8,919
9,302
9
Debtors
Trade debtors
Prepayments
Accrued income
Other debtors		 2023
£
46,932
1,630
-
815
49,377		 2022
£
37,671
1,065
1,000
-
39,736

Prepared By Albert Goodman LLP

31

Love Squared Limited Notes to the Financial Statements For the Year Ended 31 August 2023

10 Creditors- amounts due in less that one year

Trade creditors
Social security & other taxes
Accruals & deferred income
Other creditors
Loan note
Corporation tax
Creditors- amounts due in more than one year
Loan note
Other creditors
Total amount due
Less due in < 1 year
Due 1-2 years
Due 2-5 years		 2023
£
5,893
5,261
10,301
1,134
24,431
-
47,020
2023
£
59,570
21,154
80,723
80,723
(24,431)
56,292
24,431
31,861
56,292		 2022
£
5,696
6,077
9,162
2,432
15,430
2,377
41,174
2022
£
75,000
20,000
95,000
95,000
(15,430)
79,570
24,431
55,139
79,570

The loan note relates to loan from WCS Nominees Limited with a total balance of £59,570 owing at 31 August 2023, and is due to be repaid in monthly instalments until December 2025. Interest is charged at a fixed rate of 4.5% per annum. The loan is unsecured.

The other creditor relates to a loan from an employee with a total balance of £21,154 owing at 31 August 2023, and is due for repayment in monthly instalments commencing January 2026 and ceasing in December 2026. Interest is charged at a fixed rate of 4% per annum (commencing January 2023). The loan in unsecured.

Prepared By Albert Goodman LLP

32

Love Squared Limited Notes to the Financial Statements For the Year Ended 31 August 2023

11 Statement of Funds

Balance
01.09.2022
£
Restricted funds
Children in Need - Year 3
5,002
Social Enterprise Support Fund
8,377
Quartet Community Foundation
4,095
Quartet Express Fund
1,000
WeSport Together Fund
6,845
Nisbet Trust
-
Children in Need
-
Quartet Social Action Small Grants
-
Garfield Weston Foundation
-
Quartet Express Grant
-
Warburtons Community Fund
-
Bristol Water
-
Bclear
-
Total restricted funds
25,319
Unrestricted funds
General
81,341
Total Funds
106,660		 Income
£
-
-
-
-
-
2,774
500
720
10,000
3,840
400
500
500
19,234
776,390
795,624		 Expend-
iture
£
(5,002)
(8,377)
(4,095)
(1,000)
(6,845)
(2,774)
(500)
(480)
(6,664)
(2,600)
(189)
-
-
(38,526)
(648,723)
(687,249)		 Tax/
Transfers
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Balance
31.08.2023
£
-
-
-
-
-
-
-
240
3,336
1,240
211
500
500
6,027
209,008
215,035
Statement of Funds - prior year
Balance
01.09.2021
£
Restricted funds
Children in Need - Year 3
-
Social Enterprise Support Fund
-
Quartet Community Foundation
-
Quartet Express Fund
-
WeSport Together Fund
-
University of Bristol
-
Total restricted funds
-
Unrestricted funds
General
51,544
Total Funds
51,544		 Income
£
15,002
20,000
7,020
3,280
6,845
1,260
53,407
663,609
717,016		 Expend-
iture
£
(10,000)
(11,623)
(2,925)
(2,280)
-
(1,260)
(28,088)
(631,435)
(659,523)		 Tax/
Transfers
£
-
-
-
-
-
-
-
(2,377)
(2,377)		 Balance
31.08.2022
£
5,002
8,377
4,095
1,000
6,845
-
25,319
81,341
106,660

Prepared By Albert Goodman LLP

33

Love Squared Limited Notes to the Financial Statements For the Year Ended 31 August 2023

Purpose of material funds:

12 Analysis of net assets between funds

Fixed assets
Net current assets
Creditors - amounts
falling more than 1 year		 £
30,732
234,568
(56,292)
209,008
Unres-
tricted		 £
-
6,027
-
6,027
Res-
tricted		 £
30,732
240,595
(56,292)
215,035
Total
2023		 £
29,885
131,026
(79,570)
56,022
Unres-
tricted		 £
£
-
29,885
25,319
156,345
-
(79,570)
50,638
106,660
Res-
tricted
Total
2022

13 Operating lease commitments

At 31 August 2023 the charity was committed to making the following minimal rental payments under non-cancellable leases as follows:

Operating leases:
Premises:
Within one year
2-5 years
Over 5 years		 Total 2023
£
12,000
48,000
66,000
126,000		 Total 2022
£
12,000
48,000
78,000
138,000

Prepared By Albert Goodman LLP

34

Love Squared Limited Notes to the Financial Statements For the Year Ended 31 August 2023

14 Related party transactions

Within other creditors due over one year, £21,154 is due to the former Chief Executive Officer, S Hopkins, and is due for repayment in monthly instalments commencing January 2026 and ceasing in December 2026. Interest is charged at a fixed rate of 4% per annum (commencing January 2023). The loan in unsecured.

15 Company limited by guarantee

The Company is limited by guarantee and has no share capital. Every member of the company undertakes to contribute to the assets of the company, in the event of a winding up, such an amount as may be required not exceeding £1.

Prepared By Albert Goodman LLP

35