Company Registration No. NI604784 (Northern Ireland)
BELFAST DISTILLERY COMPANY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
PAGES FOR FILING WITH REGISTRAR
BELFAST DISTILLERY COMPANY LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2019
31 October 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
4
48,859
32,099
Tangible assets
5
1,896,940
1,556,101
Investments
6
86
-
1,945,885
1,588,200
Current assets
Stocks
3,504,411
2,023,430
Debtors
7
4,553,082
7,218,558
Cash at bank and in hand
377,737
224,681
8,435,230
9,466,669
Creditors: amounts falling due within one year
8
(2,058,893)
(2,197,914)
Net current assets
6,376,337
7,268,755
Total assets less current liabilities
8,322,222
8,856,955
BELFAST DISTILLERY COMPANY LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 OCTOBER 2019
31 October 2019
2019
2018
Notes
£
£
£
£
- 2 -
Capital and reserves
Called up share capital
9
10,800,000
10,904,469
Profit and loss reserves
(2,477,778)
(2,047,514)
Total equity
8,322,222
8,856,955
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 October 2019 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.
The financial statements were approved by the board of directors and authorised for issue on 30 October 2020 and are signed on its behalf by:
Mr W Jr. Bocra
Director
Company Registration No. NI604784
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
- 3 -
1
Accounting policies
Company information
Belfast Distillery Company Limited is a
private
company
limited by shares
incorporated in Northern Ireland.
The registered office is
Innovation Factory, Forthriver Business Park, 385 Springfield Road, Belfast, Co Antrim, BT12 7DJ.
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.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The financial statements present information about the company as an individual entity and not about its group
.
1.2
Going concern
These financial statements have been prepared on a going concern basis, notwithstanding the fact that the company incurred losses of £534,733 during the year. The nature of the company is such that significant capital expenditure and costs are required in early years to establish and promote the company before it is in a position to generate income. Projections indicate that the company will generate significant profits once it is fully operational.
The company is supported by investment from its parent company and, through this investment, the company has adequate resources to meet its obligations and continue its development for at least the next twelve months from signing these financial statements.
Thus the directors continue to adopt the going concern basis of accounting in preparing these financial statements.
1.3
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably.
Amortisation 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:
Branding
10 Years
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
1
Accounting policies (Continued)
- 4 -
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:
Alterations to leasehold property
2% per annum straight line
Plant and machinery
5%-20% per annum straight line
Fixtures and fittings
10% per annum straight line
The company does not depreciate plant and machinery that are not yet in use, as the company believes the assets retain their value until they are in use.
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
.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
1
Accounting policies (Continued)
- 5 -
1.7
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 replacement cost and 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.
1.8
Cash at bank and in hand
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method 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.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, 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
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
1
Accounting policies (Continued)
- 6 -
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
2
Exceptional costs/(income)
2019
2018
£
£
Creditors written off
(291,659)
(466,862)
The company entered into negotiations with a number of creditors to reduce the liability owed by the company, the balances are considered no longer payable.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 2
(2018 - 4).
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 7 -
4
Intangible fixed assets
Branding
£
Cost
At 1 November 2018
50,025
Additions
23,736
At 31 October 2019
73,761
Amortisation and impairment
At 1 November 2018
17,926
Amortisation charged for the year
6,976
At 31 October 2019
24,902
Carrying amount
At 31 October 2019
48,859
At 31 October 2018
32,099
5
Tangible fixed assets
Alterations to leasehold property
Plant and machinery
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 November 2018
1,220,727
410,136
14,525
1,645,388
Additions
371,581
6,000
4,068
381,649
At 31 October 2019
1,592,308
416,136
18,593
2,027,037
Depreciation and impairment
At 1 November 2018
84,082
-
5,205
89,287
Depreciation charged in the year
26,628
12,500
1,682
40,810
At 31 October 2019
110,710
12,500
6,887
130,097
Carrying amount
At 31 October 2019
1,481,598
403,636
11,706
1,896,940
At 31 October 2018
1,136,645
410,136
9,320
1,556,101
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 8 -
6
Fixed asset investments
2019
2018
£
£
Investments
86
-
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 November 2018
-
Additions
86
At 31 October 2019
86
Carrying amount
At 31 October 2019
86
At 31 October 2018
-
During the year the company purchased 100 shares at €1 par value in J&J McConnell Limited, a subsidiary of the company.
7
Debtors
2019
2018
Amounts falling due within one year:
£
£
Other debtors
4,553,082
7,218,558
8
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
702,602
608,967
Taxation and social security
6,927
-
Other creditors
1,349,364
1,588,947
2,058,893
2,197,914
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 9 -
9
Called up share capital
2019
2018
£
£
Ordinary share capital
645,130,156 Ordinary shares paid of 1p each
6,126,017
3,759,653
434,869,844 Ordinary shares unpaid of 1p each
4,673,983
7,144,816
10,800,000
10,904,469
During the year the company cancelled 10,446,922 ordinary shares at £0.01 par value, being the shares issued prior to the allotment of shares on 6 February 2018.
The company then converted the remaining 1,080,000,000 ordinary shares at £0.01 par value to 10,800,000 ordinary shares at £1.00 par value. These shares were then reclassified into ordinary A shares.
10
Events after the reporting date
Following the year end the outbreak of Coronavirus was declared a global pandemic. This has not had a material impact on the company.
11
Related party transactions
Directors
At the year end the balance due from the company to
the
director
s
was
£nil
(
2018 - £nil
).
At the balance sheet date the shareholders of the company, Belfast Investors LLC, owed the company £4,348,698 (2018 - £7,144,815) in unpaid shares.
During the year, the company entered into transactions totalling £411,283
(2018 - £nil)
with Conecuh Brands LLC, a company in which two directors are shareholders. The balance owed to Conecuh Brands LLC at the balance sheet date was £2,007
(2018 - £nil)
.
No other transactions with related parties were undertaken such as are required to be disclosed under FRS
102 Section 1A.