Company registration number 02077395 (England and Wales)
SOVEX DEVELOPMENTS LIMITED
Unaudited Financial Statements
For The Year Ended 31 December 2023
Pages For Filing With Registrar
Sovex Developments Limited
SOVEX DEVELOPMENTS LIMITED
Contents
Page
Balance sheet
2 - 3
Notes to the financial statements
4 - 8
Sovex Developments Limited
SOVEX DEVELOPMENTS LIMITED
Accountants' Report To The Board Of Directors On The Preparation Of The Unaudited Statutory Financial Statements Of Sovex Developments Limited For The Year Ended 31 December 2023
- 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 Sovex Developments Limited for the year ended 31 December 2023 which comprise, 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 https://www.icaew.com/regulation.
This report is made solely to the board of directors of Sovex Developments Limited, as a body, in accordance with the terms of our engagement letter dated 16 September 2024. Our work has been undertaken solely to prepare for your approval the financial statements of Sovex Developments Limited and state those matters that we have agreed to state to the board of directors of Sovex Developments 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 Sovex Developments Limited and its board of directors as a body, for our work or for this report.
It is your duty to ensure that Sovex Developments 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 profit of Sovex Developments Limited. You consider that Sovex Developments 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 Sovex Developments 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.
Chavereys Limited
26 September 2024
Chartered Accountants
The Goods Shed
Jubilee Way
Faversham
Kent
England
ME13 8GD
Sovex Developments Limited
SOVEX DEVELOPMENTS LIMITED
Balance Sheet
As At 31 December 2023
31 December 2023
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,124,287
1,124,287
Investment property
5
585,000
585,000
1,709,287
1,709,287
Current assets
Stocks
6
21,785
116,315
Debtors
7
160,079
41,012
Cash at bank and in hand
172,617
105,608
354,481
262,935
Creditors: amounts falling due within one year
8
(194,557)
(149,105)
Net current assets
159,924
113,830
Total assets less current liabilities
1,869,211
1,823,117
Creditors: amounts falling due after more than one year
9
(293,744)
(337,413)
Provisions for liabilities
(23,136)
(23,136)
Net assets
1,552,331
1,462,568
Capital and reserves
Called up share capital
1,000
1,000
Revaluation reserve
230,464
230,464
Profit and loss reserves
1,320,867
1,231,104
Total equity
1,552,331
1,462,568
The notes on pages 4 to 8 form part of these financial statements.
Sovex Developments Limited
SOVEX DEVELOPMENTS LIMITED
Balance Sheet (Continued)
As At 31 December 2023
31 December 2023
- 3 -
For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
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.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 26 September 2024 and are signed on its behalf by:
J Smith
Director
Company registration number 02077395 (England and Wales)
Sovex Developments Limited
SOVEX DEVELOPMENTS LIMITED
Notes To The Financial Statements
For The Year Ended 31 December 2023
- 4 -
1
Accounting policies
Company information
Sovex Developments Limited is a private company limited by shares incorporated in England and Wales. The registered office is Chavereys Limited, The Goods Shed, Jubilee Way, Faversham, Kent, England, ME13 8GD.
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. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
1.3
Tangible fixed assets
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land
Not depreciated
1.4
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.5
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 the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an 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.
Biological assets are living plants controlled by the company from which it expects to derive future economic benefit. These are measured at the lower of cost and estimated selling price, less costs to sell.
Sovex Developments Limited
SOVEX DEVELOPMENTS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2023
1
Accounting policies
(Continued)
- 5 -
1.6
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 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.
1.7
Interest income is recognised in profit or loss using the effective interest method.
1.8
Agricultural support schemes
Payments received under agricultural support schemes are recognised as income when the business has met all criteria which entitle it to the payments.
Amounts received under the Basic Payment scheme are recognised on 31 December in the year of claim. No provision has been made for penalties arising from the failure to comply with 'cross compliance' conditions, as defined by the RPA, except for where notification has been received.
1.9
Provisions for liabilities
Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the balance sheet.
Sovex Developments Limited
SOVEX DEVELOPMENTS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2023
- 6 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
3
3
3
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
25,617
2,612
Adjustments in respect of prior periods
(856)
Total current tax
25,617
1,756
4
Tangible fixed assets
Freehold land
£
Cost
At 1 January 2023 and 31 December 2023
1,124,287
Depreciation and impairment
At 1 January 2023 and 31 December 2023
Carrying amount
At 31 December 2023
1,124,287
At 31 December 2022
1,124,287
5
Investment property
2023
£
Fair value
At 1 January 2023 and 31 December 2023
585,000
The 2023 valuations were made by the directors, on an open market value for existing use basis.
Sovex Developments Limited
SOVEX DEVELOPMENTS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2023
- 7 -
6
Stocks
2023
2022
£
£
Crop in store
-
66,238
Growing crop
21,785
50,077
21,785
116,315
Growing crops are the company's only biological assets and the movement in the year represents the difference between the cultivation costs for the 2023 and 2024 harvests.
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
4,344
Prepayments and accrued income
155,735
41,012
160,079
41,012
8
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
43,669
41,897
Trade creditors
192
1,167
Corporation tax
25,617
2,612
Other taxation and social security
28
Other creditors
96,739
97,234
Accruals and deferred income
28,340
6,167
194,557
149,105
Bank loans are secured against the company's freehold land and buildings and investment properties.
9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
293,744
337,413
Amounts included above which fall due after five years are as follows:
Payable by instalments
226,068
242,249
Sovex Developments Limited
SOVEX DEVELOPMENTS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2023
- 8 -
10
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Arising on revaluation of investment property
23,136
23,136
There were no deferred tax movements in the year.
11
Related party transactions
At the year end, the directors were owed £1,708 (2022 - £1,708) by the company.
Additionally, Beaute Agri, a partnership of which the directors are partners, was owed £95,031 (2022 - £95,526) from the company at the year end.