Company Registration No. NI604784 (Northern Ireland)
BELFAST DISTILLERY COMPANY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2021
PAGES FOR FILING WITH REGISTRAR
BELFAST DISTILLERY COMPANY LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
BELFAST DISTILLERY COMPANY LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 1 -
2021
2020
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
4
35,253
41,485
Tangible assets
5
1,941,730
1,790,923
Investments
6
86
86
1,977,069
1,832,494
Current assets
Stocks
2,249,782
2,582,343
Debtors
7
8,038,367
4,388,850
Cash at bank and in hand
196,542
1,840,658
10,484,691
8,811,851
Creditors: amounts falling due within one year
8
(2,247,952)
(3,814,192)
Net current assets
8,236,739
4,997,659
Net assets
10,213,808
6,830,153
Capital and reserves
Called up share capital
9
15,211,494
10,800,000
Profit and loss reserves
(4,997,686)
(3,969,847)
Total equity
10,213,808
6,830,153
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 period ended 31 December 2021 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 period 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.
BELFAST DISTILLERY COMPANY LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2021
31 December 2021
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 29 September 2022 and are signed on its behalf by:
Mr W Bocra Jr
Director
Company Registration No. NI604784
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 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 7DG.
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 £1,027,839 during the period. 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
Reporting period
The period covered by these financial statements is
the 14 month period
ended 31
December
2021
. The comparative
figures
relate to the year ended 31 October 2020 and are, therefore,
not entirely comparable.
The accounting reference date was changed for administrative purposes.
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
1
Accounting policies (Continued)
- 4 -
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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.
1.5
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; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
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
1.6
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.
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:
Plant and machinery
5%-20% per annum straight line
Fixtures and fittings
10% per annum straight line
Website
20% per annum straight line
The company does not depreciate assets under construction 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
.
1.7
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.
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
1
Accounting policies (Continued)
- 5 -
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.8
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.
1.9
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 cost and replacement 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.
1.10
Cash and cash equivalents
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.
1.11
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.
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
1
Accounting policies (Continued)
- 6 -
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.
1.12
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.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
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
in the period
are included in profit or loss.
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 7 -
2
Exceptional items
2021
2020
£
£
Creditors written off
(385,606)
-
Settlement payments
-
115,848
(385,606)
115,848
In the period the company entered into negotiations with a number of creditors to reduce the liability owed by the company. Following those negotiations, balances that are no longer payable were written off and credited to the profit and loss account.
During the prior year the company made settlement payments totalling £115,848 in relation to historic disputes.
3
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2021
2020
Number
Number
Total
3
3
4
Intangible fixed assets
Branding
£
Cost
At 1 November 2020
73,761
Additions
2,634
At 31 December 2021
76,395
Amortisation and impairment
At 1 November 2020
32,276
Amortisation charged for the period
8,866
At 31 December 2021
41,142
Carrying amount
At 31 December 2021
35,253
At 31 October 2020
41,485
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 8 -
5
Tangible fixed assets
Assets under construction
Plant and machinery
Fixtures and fittings
Website
Total
£
£
£
£
£
Cost
At 1 November 2020
1,851,620
57,500
5,128
1,914,248
Additions
166,630
(728)
870
166,772
At 31 December 2021
2,018,250
57,500
4,400
870
2,081,020
Depreciation and impairment
At 1 November 2020
101,725
21,600
123,325
Depreciation charged in the period
14,817
1,148
15,965
At 31 December 2021
101,725
36,417
1,148
139,290
Carrying amount
At 31 December 2021
1,916,525
21,083
3,252
870
1,941,730
At 31 October 2020
1,749,895
35,900
5,128
1,790,923
6
Fixed asset investments
2021
2020
£
£
Shares in group undertakings and participating interests
86
86
7
Debtors
2021
2020
as restated
Amounts falling due within one year:
£
£
Trade debtors
5,840
11,326
Other debtors
8,032,527
4,377,524
8,038,367
4,388,850
8
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
526,091
770,201
Taxation and social security
16,643
198,535
Other creditors
1,705,218
2,845,456
2,247,952
3,814,192
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 9 -
9
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary A shares of £1 each
15,211,494
10,800,000
15,211,494
10,800,000
During the year, the company issued 4,411,494 Ordinary A shares of £1 each for at nominal value.
At the balance sheet date 3,302,032 Ordinary A shares of £1 each remained unpaid.
10
Related party transactions
During the year, the company issued an additional £4,411,494 of Ordinary share capital to its shareholder. At the year end, £3,302,032 of the share capital remained unpaid.
During the year, the company paid fees of £21,898 to one director.
Exemption
The directors have taken advantage of the exemption from disclosing related
party transactions with other
wholly owned group companies, in accordance
with FRS 102 Section 1A
T
he Financial Reporting Standard applicable
in the UK and Republic of Ireland.
No other transactions with related parties were undertaken such as are required to be disclosed under FRS
102 Section 1A.
11
Prior period adjustment
Adjustments have been made to the prior period figures as set out below.
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Oct 2020
£
£
£
Fixed assets
Tangible assets
1,894,629
(103,706)
1,790,923
Current assets
Stocks
2,691,601
(109,258)
2,582,343
Debtors due within one year
4,267,254
121,596
4,388,850
Net assets
6,921,521
(91,368)
6,830,153
Capital and reserves
Profit and loss reserves
(3,878,479)
(91,368)
(3,969,847)
Notes to reconciliation
Turnover
Turnover for the prior year was understated by £121,596.
Stock
Stock at the prior period end was overstated by £109,258.
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
11
Prior period adjustment (Continued)
- 10 -
Loss on disposal
A prior period adjustment has been processed to reflect the disposal of fixed assets that were scrapped in the prior period, which has resulted in a loss on disposal of £103,706 in the prior year.