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Registration number: 03369489

Sovereign Gears Limited

Unaudited Filleted Abridged Financial Statements

for the Year Ended 31 December 2022

 

Sovereign Gears Limited

Contents

Company Information

1

Abridged Balance Sheet

2 to 3

Notes to the Unaudited Abridged Financial Statements

4 to 8

 

Sovereign Gears Limited

Company Information

Directors

L Spring

R Spring

S Spring

Company secretary

L Spring

Registered office

Unit 3 Winston Avenue
Croft
Leicester
LE9 3ZG

Accountants

Cheryl Major Ltd
Chartered Accountant
16 Elliot Close
Whetstone
Leicester
Leicestershire
LE8 6QX

 

Sovereign Gears Limited

(Registration number: 03369489)
Abridged Balance Sheet as at 31 December 2022

Note

2022
£

2021
£

Fixed assets

 

Tangible assets

4

1,367,439

1,163,675

Investment property

-

417,325

 

1,367,439

1,581,000

Current assets

 

Stocks

5

510,000

500,000

Debtors

6

601,942

632,387

Cash at bank and in hand

 

371,479

429,757

 

1,483,421

1,562,144

Prepayments and accrued income

 

14,473

22,140

Creditors: Amounts falling due within one year

(132,215)

(193,054)

Net current assets

 

1,365,679

1,391,230

Total assets less current liabilities

 

2,733,118

2,972,230

Creditors: Amounts falling due after more than one year

(343,913)

(303,381)

Provisions for liabilities

(207,968)

(184,792)

Net assets

 

2,181,237

2,484,057

Capital and reserves

 

Called up share capital

7

100

100

Retained earnings

2,181,137

2,483,957

Shareholders' funds

 

2,181,237

2,484,057

For the financial year ending 31 December 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

All of the company’s members have consented to the preparation of an Abridged Balance Sheet in accordance with Section 444(2A) of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

 

Sovereign Gears Limited

(Registration number: 03369489)
Abridged Balance Sheet as at 31 December 2022

Approved and authorised by the Board on 29 September 2023 and signed on its behalf by:
 

.........................................
L Spring
Company secretary and director

.........................................
S Spring
Director

 

Sovereign Gears Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 December 2022

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 3 Winston Avenue
Croft
Leicester
LE9 3ZG

These financial statements were authorised for issue by the Board on 29 September 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These abridged financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These abridged financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

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

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

Sovereign Gears Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 December 2022

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

10% reducing balance

Motor vehicles

25% reducing balance

Fixtures and fittings

20% reducing balance

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

 

Sovereign Gears Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 December 2022

Trade creditors

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

Borrowings

Borrowings are initially recorded at fair value, net of transaction costs. Borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.


Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

The company operates a defined contribution pension plan. Contributions are payable into the company's pension scheme and are charged to the profit and loss account in the period they relate.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 10 (2021 - 10).

 

Sovereign Gears Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 December 2022

4

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2022

-

2,121,822

70,495

2,192,317

Additions

14,067

218,581

152,363

385,011

At 31 December 2022

14,067

2,340,403

222,858

2,577,328

Depreciation

At 1 January 2022

-

971,769

56,875

1,028,644

Charge for the year

1,407

138,343

41,495

181,245

At 31 December 2022

1,407

1,110,112

98,370

1,209,889

Carrying amount

At 31 December 2022

12,660

1,230,291

124,488

1,367,439

At 31 December 2021

-

1,150,055

13,620

1,163,675

Included within the net book value of land and buildings above is £12,660 (2021 - £Nil) in respect of short leasehold land and buildings.
 

Investment properties

2022
£

There has been no valuation of investment property by an independent valuer.

5

Stocks

2022
£

2021
£

Other inventories

510,000

500,000

6

Debtors

Debtors includes £Nil (2021 - £Nil) due after more than one year.

7

Share capital

Allotted, called up and fully paid shares

 

Sovereign Gears Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 December 2022

 

2022

2021

 

No.

£

No.

£

Ordinary of £0.10 each

1,000

100

1,000

100