Company registration number
05024016
Sovereign Design Play Systems Limited
Report and Accounts
31 March 2023
.
Sovereign Design Play Systems Limited
Report and accounts
Contents
Page
Company information 1
Balance sheet 2
Notes to the accounts 3
.
Sovereign Design Play Systems Limited
Company Information
Directors
Mr D Hine
Mr A Humphreys
Accountants
Accountancy 4 Success Limited
Accountants and Business Advisors
33 Wolverhampton Road
Cannock
Staffordshire
WS11 1AP
Registered office
40 Towerfield Road
Shoeburyness
Southend on Sea
Essex
SS3 9QT
Registered number
05024016
.
Sovereign Design Play Systems Limited
Registered number: 05024016
Balance Sheet
as at 31 March 2023
Notes 2023 2022
£ £
Fixed assets
Tangible assets 3 603,914 599,782
Current assets
Stocks 1,637,000 1,935,298
Debtors 4 2,057,591 2,445,071
Cash at bank and in hand 279,922 111,441
3,974,513 4,491,810
Creditors: amounts falling due within one year 5 (2,883,296) (3,762,343)
Net current assets 1,091,217 729,467
Total assets less current liabilities 1,695,131 1,329,249
Creditors: amounts falling due after more than one year 6 (978,614) (1,029,398)
Provisions for liabilities (95,542) (38,963)
Net assets 620,975 260,888
Capital and reserves
Called up share capital 100 100
Revaluation reserve 7 157,769 174,218
Profit and loss account 463,106 86,570
Shareholders' funds 620,975 260,888
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Mr A Humphreys
Director
Approved by the board on 23 October 2023
Sovereign Design Play Systems Limited
Notes to the Accounts
for the year ended 31 March 2023
1 Accounting policies
Company Information
Sovereign Design Play Systems Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 40 Towerfield Road, Shoeburyness, Southend on Sea, Essex, SS3 9QT
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
The accounts have been prepared on a going concern basis as the directors believe that the company will continue to have sufficient support from the directors, shareholders and bank in order to meet its liabilities as they fall due.
1.3 Turnover
Turnover represents net invoiced sales of playground equipment, excluding value added tax.
Revenue from sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4 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 provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Buildings freehold 4% to 6% on cost
Plant and machinery 33% on reducing balance and 5 years straight line
Fixtures, fittings & equipment 20% on reducing balance
Leasehold property 15% on reducing balance
Motor vehicles 33% on reducing balance
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 the profit or loss.
1.5 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). 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash- generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6 Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at cost, adjusted where applicable for any loss of service potential.
At each reporting date, as assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7 Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8 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 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 where the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit or 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
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit or loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
Rentals payable under operating leases, including any lease incentives received, are charged to income 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 asset are consumed.
1.12 Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the profit and loss account.
2 Employees 2023 2022
Number Number
Average number of persons employed by the company 46 47
3 Tangible fixed assets
Land and buildings Plant and machinery etc Motor vehicles Total
£ £ £ £
Cost
At 1 April 2022 560,526 632,923 450,164 1,643,613
Additions - 67,372 71,150 138,522
Disposals - - (13,650) (13,650)
At 31 March 2023 560,526 700,295 507,664 1,768,485
Depreciation
At 1 April 2022 241,278 462,398 340,155 1,043,831
Charge for the year 31,259 58,628 34,059 123,946
On disposals - - (3,206) (3,206)
At 31 March 2023 272,537 521,026 371,008 1,164,571
Net book value
At 31 March 2023 287,989 179,269 136,656 603,914
At 31 March 2022 319,248 170,525 110,009 599,782
The land and buildings were last revalued to their current market value by the directors in 2019 based on discussions with Dedman Gray Commercial, Chartered Surveyors & Commercial Property Consultants.
At the year end the value of Freehold land included within Freehold land and buildings amounted to £6,900 (2020: £6,900).
4 Debtors 2023 2022
£ £
Trade debtors 1,661,785 1,799,958
Amounts owed by group undertakings and undertakings in which the company has a participating interest 2,182 4,922
Other debtors 393,624 640,191
2,057,591 2,445,071
5 Creditors: amounts falling due within one year 2023 2022
£ £
Bank loans and overdrafts 6,210 6,210
Trade creditors 2,296,293 2,810,923
Obligations under finance lease and hire purchase contracts 86,830 48,143
Amounts due to group undertakings and undertakings in which the company has a participating interest 39,364 129,463
Other taxes and social security costs 335,915 616,298
Other creditors 118,684 151,306
2,883,296 3,762,343
6 Creditors: amounts falling due after one year 2023 2022
£ £
Bank loans 34,928 40,039
Obligations under finance lease and hire purchase contracts 36,307 81,980
Other creditors 907,379 907,379
978,614 1,029,398
7 Revaluation reserve 2023 2022
£ £
At 1 April 2022 174,218 190,667
Deferred taxation arising on the revaluation of land and buildings (16,449) (16,449)
At 31 March 2023 157,769 174,218
8 Provisions for liabilities 2023 2022
£ £
Deferred tax liabilities 95,542 38,963
95,542 38,963
9 Called up share capital 2023 2022
£ £
Ordinary share capital issued
and fully paid
100 Ordinary shares of £1 each 100 100
8 Related party transactions
All related party transactions were carried out on commercial terms.
Sovereign Design Play Systems Limited 05024016 false 2022-04-01 2023-03-31 2023-03-31 VT Final Accounts April 2022 No description of principal activity 05024016 2021-04-01 2022-03-31 05024016 core:RevaluationReserve 2021-04-01 2022-03-31 05024016 core:WithinOneYear 2022-03-31 05024016 core:AfterOneYear 2022-03-31 05024016 core:ShareCapital 2022-03-31 05024016 core:OtherReservesSubtotal 2022-03-31 05024016 core:RetainedEarningsAccumulatedLosses 2022-03-31 05024016 core:RevaluationReserve 2021-03-31 05024016 2022-04-01 2023-03-31 05024016 bus:PrivateLimitedCompanyLtd 2022-04-01 2023-03-31 05024016 bus:AuditExemptWithAccountantsReport 2022-04-01 2023-03-31 05024016 bus:Director6 2022-04-01 2023-03-31 05024016 bus:Director7 2022-04-01 2023-03-31 05024016 core:LandBuildings 2022-04-01 2023-03-31 05024016 core:PlantMachinery 2022-04-01 2023-03-31 05024016 core:Vehicles 2022-04-01 2023-03-31 05024016 core:RevaluationReserve 2022-04-01 2023-03-31 05024016 bus:FRS102 2022-04-01 2023-03-31 05024016 bus:FullAccounts 2022-04-01 2023-03-31 05024016 2023-03-31 05024016 core:WithinOneYear 2023-03-31 05024016 core:AfterOneYear 2023-03-31 05024016 core:ShareCapital 2023-03-31 05024016 core:OtherReservesSubtotal 2023-03-31 05024016 core:RetainedEarningsAccumulatedLosses 2023-03-31 05024016 core:LandBuildings 2023-03-31 05024016 core:PlantMachinery 2023-03-31 05024016 core:Vehicles 2023-03-31 05024016 core:RevaluationReserve 2023-03-31 05024016 2022-03-31 05024016 core:LandBuildings 2022-03-31 05024016 core:PlantMachinery 2022-03-31 05024016 core:Vehicles 2022-03-31 05024016 core:RevaluationReserve 2022-03-31 iso4217:GBP xbrli:pure