Registration number: 03369489

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 S Spring L Buskin S Hawryliw P Jana

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 2024

	Note	2024 £	2023 £
Fixed assets
Tangible assets	4	1,032,841	1,231,028
Current assets
Stocks	5	490,000	500,000
Debtors	6	277,092	681,581
Cash at bank and in hand		161,238	416,964
		928,330	1,598,545
Prepayments and accrued income		18,056	19,386
Creditors: Amounts falling due within one year		(198,042)	(164,371)
Net current assets		748,344	1,453,560
Total assets less current liabilities		1,781,185	2,684,588
Creditors: Amounts falling due after more than one year		-	(333,871)
Provisions for liabilities		(229,741)	(240,983)
Net assets		1,551,444	2,109,734
Capital and reserves
Called up share capital	7	100	100
Retained earnings		1,551,344	2,109,634
Shareholders' funds		1,551,444	2,109,734

For the financial year ending 31 December 2024 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.

Approved and authorised by the Board on 30 September 2025 and signed on its behalf by:
 

Sovereign Gears Limited

(Registration number: 03369489)
Abridged Balance Sheet as at 31 December 2024

......................................... 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 2024

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 30 September 2025.

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 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 2024

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.

Trade creditors

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

Sovereign Gears Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 December 2024

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 9 (2023 - 10).

Sovereign Gears Limited

Notes to the Unaudited Abridged Financial Statements for the Year Ended 31 December 2024

4	Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Motor vehicles  £	Total £
Cost or valuation
At 1 January 2024	35,346	2,345,941	206,603	2,587,890
Additions	-	23,015	50,911	73,926
Disposals	-	(130,925)	(99,279)	(230,204)
At 31 December 2024	35,346	2,238,031	158,235	2,431,612
Depreciation
At 1 January 2024	4,941	1,234,824	117,095	1,356,860
Charge for the year	3,535	105,692	21,144	130,371
Eliminated on disposal	-	(45,025)	(43,435)	(88,460)
At 31 December 2024	8,476	1,295,491	94,804	1,398,771
Carrying amount
At 31 December 2024	26,870	942,540	63,431	1,032,841
At 31 December 2023	30,405	1,111,115	89,508	1,231,028

Included within the net book value of land and buildings above is £26,870 (2023 - £30,405) in respect of short leasehold land and buildings.
 

Investment properties

2024 £

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

5

Stocks

	2024 £	2023 £
Other inventories	490,000	500,000

6

Debtors

Debtors includes £Nil (2023 - £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 2024

	2024		2023
	No.	£	No.	£
Ordinary of £0.10 each	1,000	100	1,000	100