Company Registration No. 03687964 (England and Wales)
OTTER BREWERY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
PAGES FOR FILING WITH REGISTRAR
OTTER BREWERY LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
OTTER BREWERY LIMITED
BALANCE SHEET
AS AT 31 JANUARY 2020
31 January 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,520,596
1,708,851
Current assets
Stocks
249,079
246,416
Debtors
5
863,829
950,770
Cash at bank and in hand
121,070
104,585
1,233,978
1,301,771
Creditors: amounts falling due within one year
6
(1,372,764)
(1,331,323)
Net current liabilities
(138,786)
(29,552)
Total assets less current liabilities
1,381,810
1,679,299
Creditors: amounts falling due after more than one year
7
(499,642)
(680,876)
Provisions for liabilities
8 & 9
(113,459)
(118,522)
Deferred income
(54,318)
(66,675)
Net assets
714,391
813,226
Capital and reserves
Called up share capital
10
1,000
1,300
Capital redemption reserve
300
-
Profit and loss reserves
713,091
811,926
Total equity
714,391
813,226
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 January 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
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.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
OTTER BREWERY LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 JANUARY 2020
31 January 2020
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 25 November 2020 and are signed on its behalf by:
Mr D F A McCaig
Mr P J McCaig
Director
Director
Company Registration No. 03687964
OTTER BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
- 3 -
1
Accounting policies
Company information
Otter Brewery Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Mathayes, Luppitt, Honiton, Devon, EX14 4SA.
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 a
mounts
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
Going concern
These financial statements are prepared on the going concern basis. The outbreak of Covid-19 and the subsequent lockdown in England in March 2020 caused the main customer base of the company to suspend operations. The directors are confident that once lockdown is eased and their customers are able to begin trading again that trading will return in time to its pre-lockdown levels. Furthermore, the company has the full support of its directors and shareholders during this difficult time and the directors have taken steps to safeguard the company as far as possible.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciatio
n
.
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:
Leasehold land and buildings
Over the 25 year term of the ground lease
Plant and machinery
15% per annum on written down value
Fixtures, fittings & equipment
Computer equipment: 25% per annum on cost
Other: 15% per annum on written down value
Motor vehicles
25% per annum on written down value
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
OTTER BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
1
Accounting policies
(Continued)
- 4 -
1.5
Stocks
Stock is valued at the lower of cost, including direct labour and attributable overheads, and net realisable value.
1.6
Equity instruments
Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.7
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.
1.8
Employee benefits
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.11
Government grants
Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets.
OTTER BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
- 5 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
31
35
3
Intangible fixed assets
Goodwill
£
Cost
At 1 February 2019 and 31 January 2020
80,000
Amortisation and impairment
At 1 February 2019 and 31 January 2020
80,000
Carrying amount
At 31 January 2020
-
At 31 January 2019
-
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 February 2019
1,706,546
3,416,764
5,123,310
Additions
-
16,732
16,732
At 31 January 2020
1,706,546
3,433,496
5,140,042
Depreciation and impairment
At 1 February 2019
822,236
2,592,223
3,414,459
Depreciation charged in the year
68,270
136,717
204,987
At 31 January 2020
890,506
2,728,940
3,619,446
Carrying amount
At 31 January 2020
816,040
704,556
1,520,596
At 31 January 2019
884,310
824,541
1,708,851
OTTER BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
- 6 -
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
636,589
644,045
Other debtors
227,240
306,725
863,829
950,770
6
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans and overdrafts
689,904
600,546
Trade creditors
328,219
338,612
Taxation and social security
266,144
280,845
Other creditors
88,497
111,320
1,372,764
1,331,323
The bank overdrafts amounting to £575,904 (2019: £488,546) are secured upon the assets of the company.
The bank loans are secured upon the assets of the company.
Obligations under finance agreements are secured upon the assets to which they relate.
7
Creditors: amounts falling due after more than one year
2020
2019
Notes
£
£
Bank loans and overdrafts
437,436
554,955
Obligations under finance leases
-
14,810
Other borrowings
62,206
111,111
499,642
680,876
The bank loans totalling £551,437 (2019: £666,955) are secured upon the assets of the company.
Obligations under finance agreements totalling £13,890 (2019: £50,100) are secured upon the assets to which they relate.
Amounts included above which fall due after five years are as follows:
Payable by instalments
53,610
106,955
OTTER BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
- 7 -
8
Provisions for liabilities
2020
2019
£
£
Deferred tax liabilities
9
113,459
118,522
9
Deferred taxation
The following is the analysis of the deferred tax balances for financial reporting purposes:
Liabilities
Liabilities
2020
2019
Balances:
£
£
Accelerated capital allowances
113,459
118,522
2020
Movements in the year:
£
Liability at 1 February 2019
118,522
Credit to profit or loss
(5,063)
Liability at 31 January 2020
113,459
10
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
1,000 Ordinary Class A shares of £1 each
1,000
1,000
200 Ordinary Class B shares of £1 each
-
200
55 Ordinary Class C shares of £1 each
-
55
25 Ordinary Class D shares of £1 each
-
25
20 Ordinary Class E shares of £1 each
-
20
1,000
1,300
During the year, the B, C, D and E shares were bought back by the company and cancelled on the same day.
OTTER BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
- 8 -
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2020
2019
£
£
Within one year
36,014
-
Between two and five years
119,925
250,390
In over five years
156,984
93,600
312,923
343,990
12
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
3 directors
2.50
127,538
103,052
1,871
(177,669)
54,792
127,538
103,052
1,871
(177,669)
54,792
The advances made are unsecured and repayable upon demand.