Company Registration No. SC210027 (Scotland)
TULLIBARDINE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
TULLIBARDINE LIMITED
COMPANY INFORMATION
Directors
G J Picard
M B Picard
Company number
SC210027
Registered office
Citypoint
65 Haymarket Terrace
Edinburgh
EH12 5HD
Auditor
Azets Audit Services
5 Whitefriars Crescent
Perth
PH2 0PA
Business address
Tullibardine Limited
Blackford
Perthshire
PH4 1QG
TULLIBARDINE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
TULLIBARDINE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 1 -
The directors present the strategic report for the year ended 31 December 2019.
Fair review of the business
The directors are pleased by the operating profit achieved of £
2,464,480
(2018 - £3,027,493). All areas of the business have performed as hoped and the shareholders funds has increased to £
19,498,458
(2018 - £17,642,584).
The company continues to seek new opportunities and markets to develop further the success of the company's brand around the world. Everyone within the business works to this same shared goal.
The directors consider it would potentially be detrimental to the business to provide a more detailed review.
Principal risks and uncertainties
The directors have procedures in place to ensure that the major risks faced by the company are identified, assessed and managed in an appropriate manner.
Credit risk exposes the company to the risk of non-payment for goods supplied. The directors strive to minimise this risk by evaluating the credit risk of potential new customers and ensuring credit control procedures are diligently observed, thereby ensuring that the risk is significantly reduced.
Financial risk management
The company finances its business through retained profits and an inter-company loan account. Other financial instruments, for example trade debtors and trade creditors, arise in the course of the company's operations.
The company is exposed to credit risk from credit sales. It is a company policy to assess the credit risk of new customers and to take account of this information in any dealings with new customers. At 31 December 2019, there were no significant concentrations of credit risk. The maximum exposure to risk is represented by the carrying amount of each asset in the balance sheet.
The directors constantly monitor the liquidity and cash flow of the business.
Key Performance Indicators
The company considers gross profit margin to be the most important key performance indicator. Although turnover has fallen by 4% on 2018, gross profit margin has only declined by 1%, resulting in another profitable year and increase in net assets held.
TULLIBARDINE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
COVID-19
At the time of signing this report the country is currently facing uncertainties surrounding COVID-19 and the impact that this will have on the company's trade, customers, suppliers and wider economy.
The company believe that it has sufficient reserves and resources together with proposed Government support schemes to able to prepare the accounts on a going concern basis.
G J Picard
Director
13 March 2020
TULLIBARDINE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2019.
Principal activities
The principal activity of the company continued to be that of distillation, maturation and sale of malt whisky together with the operation of a retail outlet.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
G J Picard
M B Picard
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
TULLIBARDINE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 4 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
G J Picard
Director
13 March 2020
TULLIBARDINE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TULLIBARDINE LIMITED
- 5 -
Opinion
We have audited the financial statements of Tullibardine Limited (the 'company') for the year ended 31 December 2019 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 December 2019 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the financial statements
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company's ability to continue as a going concern. For example, given the current situation with COVID-19 still being in its infancy, it is difficult to evaluate all the potential implications on the company's trade, customers, suppliers and the wider economy.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the
financial statements
does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
TULLIBARDINE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TULLIBARDINE LIMITED
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
TULLIBARDINE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TULLIBARDINE LIMITED
- 7 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Donald Boyd (Senior Statutory Auditor)
for and on behalf of Azets Audit Services
16 December 2020
Statutory Auditor
5 Whitefriars Crescent
Perth
PH2 0PA
TULLIBARDINE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2019
- 8 -
2019
2018
Notes
£
£
Turnover
3
24,885,893
25,969,310
Cost of sales
(18,447,974)
(19,034,822)
Gross profit
6,437,919
6,934,488
Administrative expenses
(3,974,459)
(3,907,625)
Other operating income
1,020
630
Operating profit
4
2,464,480
3,027,493
Interest payable and similar expenses
6
(310,838)
(272,114)
Profit before taxation
2,153,642
2,755,379
Tax on profit
7
(297,768)
(540,694)
Profit for the financial year
1,855,874
2,214,685
The profit and loss account has been prepared on the basis that all operations are continuing operations.
TULLIBARDINE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 9 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
8
7,585,715
7,691,899
Current assets
Stocks
9
30,549,643
29,131,276
Debtors
10
9,080,850
7,614,636
Cash at bank and in hand
3,343,410
2,122,898
42,973,903
38,868,810
Creditors: amounts falling due within one year
11
(30,660,192)
(28,528,935)
Net current assets
12,313,711
10,339,875
Total assets less current liabilities
19,899,426
18,031,774
Provisions for liabilities
12
(400,968)
(389,190)
Net assets
19,498,458
17,642,584
Capital and reserves
Called up share capital
15
186
186
Share premium account
16
1,567,812
1,567,812
Revaluation reserve
17
62,961
62,961
Profit and loss reserves
18
17,867,499
16,011,625
Total equity
19,498,458
17,642,584
The financial statements were approved by the board of directors and authorised for issue on 13 March 2020 and are signed on its behalf by:
G J Picard
Director
Company Registration No. SC210027
TULLIBARDINE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 10 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2018
186
1,567,812
62,961
13,796,940
15,427,899
Year ended 31 December 2018:
Profit and total comprehensive income for the year
-
-
-
2,214,685
2,214,685
Balance at 31 December 2018
186
1,567,812
62,961
16,011,625
17,642,584
Year ended 31 December 2019:
Profit and total comprehensive income for the year
-
-
-
1,855,874
1,855,874
Balance at 31 December 2019
186
1,567,812
62,961
17,867,499
19,498,458
TULLIBARDINE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 11 -
2019
2018
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
23
(1,388,737)
1,285,164
Interest paid
(310,838)
(272,114)
Income taxes paid
(710,999)
(596,423)
Net cash (outflow)/inflow from operating activities
(2,410,574)
416,627
Investing activities
Purchase of tangible fixed assets
(741,329)
(1,271,196)
Proceeds on disposal of tangible fixed assets
178,277
269,693
Net cash used in investing activities
(563,052)
(1,001,503)
Financing activities
Proceeds from borrowings
26,683,154
16,882,343
Repayment of borrowings
(22,489,016)
(14,747,937)
Net cash generated from financing activities
4,194,138
2,134,406
Net increase in cash and cash equivalents
1,220,512
1,549,530
Cash and cash equivalents at beginning of year
2,122,898
573,368
Cash and cash equivalents at end of year
3,343,410
2,122,898
TULLIBARDINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 12 -
1
Accounting policies
Company information
Tullibardine Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Citypoint, 65 Haymarket Terrace, Edinburgh, EH12 5HD.
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.
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, modified to include the revaluation of freehold properties at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company's ability to continue as a going concern. For example, given the current situation with COVID-19 still being in its infancy, it is difficult to evaluate all the potential implications on the company's trade, customers, suppliers and the wider economy.
1.3
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.
1.4
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.
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:
Freehold property
No depreciation
Leasehold property
No depreciation
Plant and machinery
5% to 33% on cost
Fixtures and fittings
10% to 25% on cost
Casks
8.33% on cost
TULLIBARDINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 13 -
Land is not depreciated. Freehold buildings and leasehold property are maintained in a state of good repair and it is considered that the lives of these assets are so long and the residual values, based on prices prevailing at the time of acquisition, are so high that the depreciation is not significant; consequently these buildings are not depreciated.
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
Stocks
Whisky stocks
are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises
purchase price
and, where applicable, di
stillery
costs and those overheads that have been incurred in bringing the
whisky stocks
to their present location and condition.
Other stocks are valued
at the lower of cost and estimated selling price
after making due allowance for obsolete and slow moving items.
1.6
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
TULLIBARDINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
TULLIBARDINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.8
Provisions
Provisions are recognised when the
company
has a legal or constructive present obligation as a result of a past event, it is probable that the
company
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i
s
measured at present value
,
the unwinding of the discount is recognised as a finance cost in profit or loss in the period
in which
it arises.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
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.
TULLIBARDINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 16 -
1.11
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
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
The analysis of turnover by geographical market has not been disclosed as the directors consider that this could be seriously prejudicial to the company's interests.
4
Operating profit
2019
2018
Operating profit for the year is stated after charging:
£
£
Exchange losses
91,850
299,417
Fees payable to the company's auditor for the audit of the company's financial statements
14,500
12,000
Depreciation of owned tangible fixed assets
669,236
616,947
Operating lease charges
490,000
490,000
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Distillery
14
13
Bottling
6
6
Administrative
7
7
Shop
12
10
39
36
TULLIBARDINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
5
Employees
(Continued)
- 17 -
Their aggregate remuneration comprised:
2019
2018
£
£
Wages and salaries
1,439,930
1,222,712
Social security costs
135,210
114,128
Pension costs
39,109
23,878
1,614,249
1,360,718
6
Interest payable and similar expenses
2019
2018
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
320,203
272,114
Other finance costs:
Other interest
(9,365)
-
310,838
272,114
7
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
339,831
543,428
Adjustments in respect of prior periods
(33,841)
-
Total current tax
305,990
543,428
Deferred tax
Origination and reversal of timing differences
(8,222)
(2,734)
Total tax charge
297,768
540,694
TULLIBARDINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
7
Taxation
(Continued)
- 18 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
Profit before taxation
2,153,642
2,755,379
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
409,192
523,522
Tax effect of expenses that are not deductible in determining taxable profit
(2,383)
26,252
Permanent capital allowances in excess of depreciation
(66,978)
(6,346)
Under/(over) provided in prior years
(33,841)
-
Deferred tax adjustments in respect of prior years
(8,222)
(2,734)
Taxation charge for the year
297,768
540,694
8
Tangible fixed assets
Freehold property
Leasehold property
Plant and machinery
Fixtures and fittings
Casks
Total
£
£
£
£
£
£
Cost or valuation
At 1 January 2019
758,978
2,932,705
2,103,008
37,500
4,873,421
10,705,612
Additions
-
-
204,783
-
536,546
741,329
Disposals
-
-
-
-
(178,277)
(178,277)
At 31 December 2019
758,978
2,932,705
2,307,791
37,500
5,231,690
11,268,664
Depreciation and impairment
At 1 January 2019
-
201,232
1,094,797
37,500
1,680,184
3,013,713
Depreciation charged in the year
-
-
251,478
-
417,758
669,236
At 31 December 2019
-
201,232
1,346,275
37,500
2,097,942
3,682,949
Carrying amount
At 31 December 2019
758,978
2,731,473
961,516
-
3,133,748
7,585,715
At 31 December 2018
758,978
2,731,473
1,008,211
-
3,193,237
7,691,899
TULLIBARDINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
8
Tangible fixed assets
(Continued)
- 19 -
The carrying value of land and buildings comprises:
2019
2018
£
£
Freehold
180,000
180,000
Freehold property with a cost of £117,039 is stated in the balance sheet at its estimated open market value of £180,000 based on information received from professional valuers in 2004 and as determined by the directors.
The directors have considered the value of all fixed assets without actually revaluing those assets. The directors are satisfied that the aggregate value of the fixed assets at 31 December 2019 is not less than the aggregate amount at which they are stated.
If revalued assets were stated on a historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2019
2018
£
£
Cost
117,039
117,039
Accumulated depreciation
-
-
Carrying value
117,039
117,039
The revaluation surplus is disclosed in note 17.
9
Stocks
2019
2018
£
£
Whisky stocks
30,087,821
28,595,329
Other stocks
461,822
535,947
30,549,643
29,131,276
TULLIBARDINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 20 -
10
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
7,867,903
6,715,784
Corporation tax recoverable
101,581
-
Amounts owed by group undertakings
878,441
668,123
Other debtors
133,487
154,348
Prepayments and accrued income
99,438
76,381
9,080,850
7,614,636
11
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
4,461,245
6,764,331
Amounts owed to group undertakings
24,527,901
20,180,238
Corporation tax
-
303,428
Other taxation and social security
49,981
33,027
Accruals and deferred income
1,621,065
1,247,911
30,660,192
28,528,935
12
Provisions for liabilities
2019
2018
Notes
£
£
Packaging waste regulation costs
20,000
-
Deferred tax liabilities
13
380,968
389,190
400,968
389,190
Movements on provisions apart from deferred tax liabilities:
Packaging waste regulation costs
£
Additional provisions in the year
20,000
TULLIBARDINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 21 -
13
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2019
2018
Balances:
£
£
Accelerated capital allowances
380,968
389,190
2019
Movements in the year:
£
Liability at 1 January 2019
389,190
Credit to profit or loss
(8,222)
Liability at 31 December 2019
380,968
TULLIBARDINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 22 -
14
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
39,109
23,878
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
15
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
185 Ordinary shares of £1 each
185
185
1 Preferred convertible redeemable share of £1 each
1
1
186
186
The Preferred Convertible Redeemable Ordinary Share shall become redeemable only on the occurrence of an exit event.
The redemption price of the Preferred Convertible Redeemable Ordinary Share is determined as being a sum equal to the capital gains tax liability suffered by the holder in respect of the shares held. If there is no capital gains liability, the redemption price shall be
£
1.
16
Share premium account
2019
2018
£
£
At the beginning and end of the year
1,567,812
1,567,812
17
Revaluation reserve
2019
2018
£
£
At the beginning and end of the year
62,961
62,961
18
Profit and loss reserves
2019
2018
£
£
At the beginning of the year
16,011,625
13,796,940
Profit for the year
1,855,874
2,214,685
At the end of the year
17,867,499
16,011,625
TULLIBARDINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 23 -
19
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2019
2018
£
£
Within one year
490,000
350,000
Between two and five years
1,960,000
1,400,000
In over five years
4,900,000
3,850,000
7,350,000
5,600,000
20
Capital commitments
Amounts contracted for but not provided in the financial statements:
2019
2018
£
£
Acquisition of tangible fixed assets
48,266
-
TULLIBARDINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 24 -
21
Related party transactions
Transactions with group companies
true
The company has taken advantage of exemption, under the terms of FRS 102, not to disclose related party transactions with wholly owned subsidiaries within the group.
Transactions with other related parties
The company leases property from Spirits Development & Management Company (SDMC) Limited. The shares of this company are owned 80% by Michel Picard and 20% by Picard Vins & Spiritueux SA. Rental payable during the year totalled £490,000 (2018: £490,000). The balance due to Spirits Development & Management Company (SDMC) Limited at 31 December 2019 was £147,000 (2018: £147,000).
22
Ultimate controlling party
Picard Vins & Spiritueux SA (incorporated in France) is regarded by the directors as being the company's ultimate parent company.
The immediate parent company of Tullibardine Limited is Terroirs Distillers SAS (incorporated in France).
Copies of the accounts of Picard Vins & Spiritueux SA, which is the largest group into which these financial statements are consolidated, are available from its office at 5 Chemin du Chateau, 21190 Chassagne-Montractet, France. The smallest group into which these financial statements are consolidated is Terroirs Distillers SAS and copies of its accounts are available from its office at 5 Chemin du Chateau, 21190 Chassagne-Montrachet, France.
23
Cash (absorbed by)/generated from operations
2019
2018
£
£
Profit for the year after tax
1,855,873
2,214,685
Adjustments for:
Taxation charged
297,768
540,694
Finance costs
310,838
272,114
Depreciation and impairment of tangible fixed assets
669,236
616,947
Increase in provisions
20,000
-
Movements in working capital:
Increase in stocks
(1,418,367)
(4,075,016)
(Increase)/decrease in debtors
(1,364,633)
2,444,797
Decrease in creditors
(1,759,452)
(729,057)
Cash (absorbed by)/generated from operations
(1,388,737)
1,285,164
TULLIBARDINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 25 -
24
Analysis of changes in net debt
2019
£
Opening net funds
Cash at bank and in hand
2,122,898
Changes in net debt arising from:
Cash flows of the entity
1,220,512
Closing net funds as analysed below
3,343,410
Closing net funds
Cash at bank and in hand
3,343,410
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