7 false false false false false false false false false false true false false false false false false No description of principal activity 2023-04-01 Sage Accounts Production Advanced 2023 - FRS102_2023 1,000,000 870,000 65,000 935,000 65,000 130,000 xbrli:pure xbrli:shares iso4217:GBP 01462580 2023-04-01 2024-03-31 01462580 2024-03-31 01462580 2023-03-31 01462580 2022-04-01 2023-03-31 01462580 2023-03-31 01462580 2022-03-31 01462580 core:NetGoodwill 2023-04-01 2024-03-31 01462580 bus:Director1 2023-04-01 2024-03-31 01462580 core:NetGoodwill 2023-03-31 01462580 core:NetGoodwill 2024-03-31 01462580 core:LandBuildings core:OwnedOrFreeholdAssets 2023-03-31 01462580 core:LandBuildings core:ShortLeaseholdAssets 2023-03-31 01462580 core:FurnitureFittings 2023-03-31 01462580 core:MotorVehicles 2023-03-31 01462580 core:LandBuildings core:OwnedOrFreeholdAssets 2024-03-31 01462580 core:LandBuildings core:ShortLeaseholdAssets 2024-03-31 01462580 core:FurnitureFittings 2024-03-31 01462580 core:MotorVehicles 2024-03-31 01462580 core:LandBuildings core:OwnedOrFreeholdAssets 2023-04-01 2024-03-31 01462580 core:LandBuildings core:ShortLeaseholdAssets 2023-04-01 2024-03-31 01462580 core:FurnitureFittings 2023-04-01 2024-03-31 01462580 core:MotorVehicles 2023-04-01 2024-03-31 01462580 core:WithinOneYear 2024-03-31 01462580 core:WithinOneYear 2023-03-31 01462580 core:ShareCapital 2024-03-31 01462580 core:ShareCapital 2023-03-31 01462580 core:SharePremium 2024-03-31 01462580 core:SharePremium 2023-03-31 01462580 core:RetainedEarningsAccumulatedLosses 2024-03-31 01462580 core:RetainedEarningsAccumulatedLosses 2023-03-31 01462580 core:NetGoodwill 2023-03-31 01462580 core:LandBuildings core:OwnedOrFreeholdAssets 2023-03-31 01462580 core:LandBuildings core:ShortLeaseholdAssets 2023-03-31 01462580 core:FurnitureFittings 2023-03-31 01462580 core:MotorVehicles 2023-03-31 01462580 bus:SmallEntities 2023-04-01 2024-03-31 01462580 bus:AuditExempt-NoAccountantsReport 2023-04-01 2024-03-31 01462580 bus:SmallCompaniesRegimeForAccounts 2023-04-01 2024-03-31 01462580 bus:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 01462580 bus:FullAccounts 2023-04-01 2024-03-31
COMPANY REGISTRATION NUMBER: 01462580
SOVEREIGN (FINANCIAL SERVICES) LIMITED
Filleted Unaudited Financial Statements
31 March 2024
SOVEREIGN (FINANCIAL SERVICES) LIMITED
Statement of Financial Position
31 March 2024
2024
2023
Note
£
£
£
Fixed assets
Intangible assets
5
65,000
130,000
Tangible assets
6
470,446
1,166,547
---------
------------
535,446
1,296,547
Current assets
Debtors
7
104,119
99,747
Investments
8
284,326
Cash at bank and in hand
839,093
723,238
------------
---------
1,227,538
822,985
Creditors: amounts falling due within one year
9
107,140
124,665
------------
---------
Net current assets
1,120,398
698,320
------------
------------
Total assets less current liabilities
1,655,844
1,994,867
Provisions
Taxation including deferred tax
31,757
30,977
------------
------------
Net assets
1,624,087
1,963,890
------------
------------
SOVEREIGN (FINANCIAL SERVICES) LIMITED
Statement of Financial Position (continued)
31 March 2024
2024
2023
Note
£
£
£
Capital and reserves
Called up share capital
4,060
4,060
Share premium account
111,920
111,920
Profit and loss account
1,508,107
1,847,910
------------
------------
Shareholders funds
1,624,087
1,963,890
------------
------------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
For the year ending 31st March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
- 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 director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
These financial statements were approved by the board of directors and authorised for issue on 1 November 2024 , and are signed on behalf of the board by:
Mr G T Mitchell
Director
Company registration number: 01462580
SOVEREIGN (FINANCIAL SERVICES) LIMITED
Notes to the Financial Statements
Year ended 31st March 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Sovereign House, 28-30 High Street, Sevenoaks, TN13 1HX, Kent.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Revenue recognition
Revenue arises from commissions earned in the year and is recognised on the receipt of the commissions due from the insurance companies and when receipt is certain after the expiry of policy cancellation periods, and after deduction of commissions paid to clients in lieu of fees.
Taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax. Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which future reversal of the underlying timing differences can be deducted. Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Goodwill
Purchased goodwill arising on acquisitions are capitalised and classified as assets on the balance sheet and are amortised over their estimated useful life of up to a maximum of 10 years. This length of time is presumed to be the maximum useful life of purchased goodwill because it is difficult to make projections beyond this period. Goodwill is reviewed for impairment at the end of the first full financial year following each acquisition and subsequently as and when necessary if circumstances emerge that indicate that the carrying value may not be recoverable.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
Equally over 10 years
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property
-
Equally over 50 years
Short leasehold property
-
Equally over term of lease
Fixtures, fittings and equipment
-
20% per annum
Motor vehicles
-
25% per annum
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Investments
Investments are initially recorded at cost. At each reporting date any changes in the fair value are recognised in the profit and loss, if a reliable measure of fair value is available.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Debtors
Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Pension plans
The company contributes to a definded contribution plan for the benefit of the employees. Contributions are recognised in profit and loss as they become payable.
Cash and cash equivalents
Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Creditors
Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment
4. Employee numbers
The average number of persons employed by the company during the year amounted to 7 (2023: 8 ).
5. Intangible assets
Goodwill
£
Cost
At 1st April 2023 and 31st March 2024
1,000,000
------------
Amortisation
At 1st April 2023
870,000
Charge for the year
65,000
------------
At 31st March 2024
935,000
------------
Carrying amount
At 31st March 2024
65,000
------------
At 31st March 2023
130,000
------------
6. Tangible assets
Freehold property
Short leasehold property
Fixtures and fittings
Motor vehicles
Investment properties
Total
£
£
£
£
£
£
Cost
At 1 Apr 2023
382,659
1,419
145,171
152,479
652,205
1,333,933
Additions
1,433
1,433
Disposals
( 652,205)
( 652,205)
---------
-------
---------
---------
---------
------------
At 31 Mar 2024
382,659
1,419
146,604
152,479
683,161
---------
-------
---------
---------
---------
------------
Depreciation
At 1 Apr 2023
32,438
362
73,006
61,580
167,386
Charge for the year
7,790
95
14,719
22,725
45,329
---------
-------
---------
---------
---------
------------
At 31 Mar 2024
40,228
457
87,725
84,305
212,715
---------
-------
---------
---------
---------
------------
Carrying amount
At 31 Mar 2024
342,431
962
58,879
68,174
470,446
---------
-------
---------
---------
---------
------------
At 31 Mar 2023
350,221
1,057
72,165
90,899
652,205
1,166,547
---------
-------
---------
---------
---------
------------
7. Debtors
2024
2023
£
£
Other debtors
104,119
99,747
---------
--------
8. Investments
2024
2023
£
£
Other investments
284,326
---------
----
9. Creditors: amounts falling due within one year
2024
2023
£
£
Corporation tax
26,208
98,915
Social security and other taxes
32,273
10,535
Other creditors
48,659
15,215
---------
---------
107,140
124,665
---------
---------
10. Related party transactions
Included in creditors due within one year, is a balance of £401 (2023 - £401), owed to the director. No interest is charged in respect of this balance.