Sovereign Business Jets Limited - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 04806292 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

FOR

SOVEREIGN BUSINESS JETS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

J P Ball

J Benbow

D E Jacobson

REGISTERED OFFICE:

Buncton Barn

Buncton Lane

Bolney

Haywards Heath

RH17 5RE

REGISTERED NUMBER:

04806292 (England and Wales)

ACCOUNTANTS:

Watson Associates (Professional Services) Ltd

30 - 34 North Street

Hailsham

East Sussex

BN27 1DW

FIXED ASSETS

Tangible assets

4

42,354

61,186

CURRENT ASSETS

Stocks

3,156,702

-

Debtors

5

1,003,033

218,487

Cash at bank and in hand

1,487,160

50,398

5,646,895

268,885

CREDITORS

Amounts falling due within one year

6

(8,307,179

)

(2,560,667

)

NET CURRENT LIABILITIES

(2,660,284

)

(2,291,782

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(2,617,930

)

(2,230,596

)

CREDITORS

Amounts falling due after more than one year

7

(42,219

)

(50,000

)

NET LIABILITIES

(2,660,149

)

(2,280,596

)

CAPITAL AND RESERVES

Called up share capital

10

400

400

Retained earnings

(2,660,549

)

(2,280,996

)

SHAREHOLDERS' FUNDS

(2,660,149

)

(2,280,596

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2022 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.

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 23 December 2022 and were signed on its behalf by:

J P Ball - Director

1.	STATUTORY INFORMATION

Sovereign Business Jets 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.

Significant judgements and estimates

No significant judgements have had to be made by management in preparing these financial statements.

There were no key assumptions made concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

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.

Fixtures and fittings

-

20% on cost

Computer equipment

-

33% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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.

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

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Going concern

Aviation By Westminster Limited has confirmed that they will continue to provide support to enable the company to fulfill its financial obligations as and when they fall due. On this basis the directors are of the opinion that the financial statements should be drawn up on a going concern basis.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 2 (2021 - 10 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 April 2021

and 31 March 2022

92,735

22,446

115,181

DEPRECIATION

At 1 April 2021

33,307

20,688

53,995

Charge for year

18,546

286

18,832

At 31 March 2022

51,853

20,974

72,827

NET BOOK VALUE

At 31 March 2022

40,882

1,472

42,354

At 31 March 2021

59,428

1,758

61,186

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

697,962

23,991

Other debtors

305,071

194,496

1,003,033

218,487

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts (see note 8)

6,618

-

Trade creditors

1,205,287

321,215

Amounts owed to group undertakings

1,966,788

2,030,751

Taxation and social security

-

51,152

Other creditors

5,128,486

157,549

8,307,179

2,560,667

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans (see note 8)

42,219

50,000

8.

LOANS

An analysis of the maturity of loans is given below:

2022

2021

£

£

Amounts falling due within one year or on demand:

Bank loans

6,618

-

Other loans

4,883,619

-

4,890,237

-

Amounts falling due between one and two years:

Bank loans - 1-2 years

6,618

-

Amounts falling due between two and five years:

Bank loans - 2-5 years

35,601

50,000

Amounts included in bank loans relate to a government-backed loan to assist with the impact of the Coronavirus pandemic. This loan was drawn down in May 2020. The loan is repayable by May 2026 with no repayments due in the first 12 months. The loan incurs interest at 2.5% per annum with the UK government funding the interest for the first 12 months.

Amounts included in other loans relate to draw down facilities drawn down for the procurement of stock. Each draw down is repayable within 5 business days of the sale of stock for which the draw down was made, plus a profit share of 33.34% on the net profit of the sale. Interest is charged at 5% per annum or Secured Overnight Financing Rate Data (SOFR) + 8%.

9.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2022

2021

£

£

Within one year

44,000

40,000

Between one and five years

48,000

92,000

92,000

132,000

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

400

Ordinary

1

400

400

11.	RELATED PARTY DISCLOSURES

As at 31 March 2022, the company owed £1,966,788 (2021: £1,951,188) to Aviation By Westminster Limited, a company under common control. During the period, interest accrued on the balance totalling £173,068 (2021: £121,806). The balance is unsecured, has no fixed repayment date and attracts interest at between 5-10% dependent on usage.

As at 31 March 2022, the company owed £nil (2021: £79,563) to Calibre Investments Limited, a company under common control. The balance is unsecured, has no fixed repayment date and does not attract interest.

As at 31 March 2022, the company owed £226,698 (2021: £150,000) to one of the directors. This amount is unsecured, attracts no interest and is repayable on demand.