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REGISTERED NUMBER: 01034375 (England and Wales)













UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

FOR

SOVEREIGN CONSTRUCTION LIMITED

SOVEREIGN CONSTRUCTION LIMITED (REGISTERED NUMBER: 01034375)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4


SOVEREIGN CONSTRUCTION LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 30 JUNE 2023







DIRECTORS: S M Ward
P R Goodenough





SECRETARY: Mrs J V Goodenough





REGISTERED OFFICE: Sovereign House
Avenue Lane
Eastbourne
East Sussex
BN21 3UL





REGISTERED NUMBER: 01034375 (England and Wales)





ACCOUNTANTS: Watson Associates (Professional Services) Ltd
30 - 34 North Street
Hailsham
East Sussex
BN27 1DW

SOVEREIGN CONSTRUCTION LIMITED (REGISTERED NUMBER: 01034375)

BALANCE SHEET
30 JUNE 2023

2023 2022
Notes £    £   
FIXED ASSETS
Tangible assets 4 180,623 161,531

CURRENT ASSETS
Stocks 563,426 267,000
Debtors 5 306,208 325,072
Cash at bank 79,532 27,895
949,166 619,967
CREDITORS
Amounts falling due within one year 6 (886,086 ) (369,754 )
NET CURRENT ASSETS 63,080 250,213
TOTAL ASSETS LESS CURRENT
LIABILITIES

243,703

411,744

CREDITORS
Amounts falling due after more than one
year

7

(56,980

)

(60,327

)

PROVISIONS FOR LIABILITIES (32,213 ) (23,906 )
NET ASSETS 154,510 327,511

CAPITAL AND RESERVES
Called up share capital 8 100 100
Retained earnings 154,410 327,411
SHAREHOLDERS' FUNDS 154,510 327,511

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

SOVEREIGN CONSTRUCTION LIMITED (REGISTERED NUMBER: 01034375)

BALANCE SHEET - continued
30 JUNE 2023


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

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 20 February 2024 and were signed on its behalf by:





S M Ward - Director


SOVEREIGN CONSTRUCTION LIMITED (REGISTERED NUMBER: 01034375)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

1. STATUTORY INFORMATION

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

2. ACCOUNTING POLICIES

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

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
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.
Plant and machinery - at variable rates on reducing balance
Fixtures and fittings - at variable rates on reducing balance
Motor vehicles - at variable rates on reducing balance

Stocks
Work in progress is valued at the lower of cost and net realisable value.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, and loans to related parties.

Debt instruments that are payable or receivable within one year, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received; other debt instruments are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the balance sheet only when there is an 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.


SOVEREIGN CONSTRUCTION LIMITED (REGISTERED NUMBER: 01034375)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

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

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

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

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

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 11 (2022 - 16 ) .

SOVEREIGN CONSTRUCTION LIMITED (REGISTERED NUMBER: 01034375)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

4. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 July 2022 40,000 36,535 86,825 381,615 544,975
Additions - - - 57,215 57,215
Disposals - - - (112,890 ) (112,890 )
At 30 June 2023 40,000 36,535 86,825 325,940 489,300
DEPRECIATION
At 1 July 2022 40,000 32,761 69,930 240,753 383,444
Charge for year - 474 2,117 17,285 19,876
Eliminated on disposal - - - (94,643 ) (94,643 )
At 30 June 2023 40,000 33,235 72,047 163,395 308,677
NET BOOK VALUE
At 30 June 2023 - 3,300 14,778 162,545 180,623
At 30 June 2022 - 3,774 16,895 140,862 161,531

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 July 2022 150,895
Additions 57,215
Transfer to ownership (73,698 )
At 30 June 2023 134,412
DEPRECIATION
At 1 July 2022 52,824
Charge for year 8,329
Transfer to ownership (27,941 )
At 30 June 2023 33,212
NET BOOK VALUE
At 30 June 2023 101,200
At 30 June 2022 98,071

SOVEREIGN CONSTRUCTION LIMITED (REGISTERED NUMBER: 01034375)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023

5. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 145,359 171,964
Other debtors 160,849 153,108
306,208 325,072

6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts 24,111 43,689
Hire purchase contracts 14,130 10,868
Trade creditors 700,012 166,133
Taxation and social security 139,401 144,099
Other creditors 8,432 4,965
886,086 369,754

7. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans 9,911 34,022
Hire purchase contracts 47,069 26,305
56,980 60,327

8. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
100 Ordinary A shares £1 100 100

9. GOVERNMENT GRANTS

Other income includes amounts received from the Government's Coronavirus Job Retention Scheme. The company has also benefited from the deferment of VAT payments under the Government's deferral scheme.

The income is received in the form of grants as follows;

2023 2022
£

Job Retention Scheme - 14,813


- 14,813