Company registration number SC210027 (Scotland)
TULLIBARDINE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
TULLIBARDINE LIMITED
COMPANY INFORMATION
Directors
G J Picard
M B Picard
Company number
SC210027
Registered office
Citypoint
65 Haymarket Terrace
Edinburgh
United Kingdom
EH12 5HD
Auditor
Azets Audit Services
5 Whitefriars Crescent
Perth
United Kingdom
PH2 0PA
Business address
Tullibardine Limited
Blackford
Auchterarder
Perthshire
United Kingdom
PH4 1QG
TULLIBARDINE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 34
TULLIBARDINE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -
The directors present the strategic report for the year ended 31 December 2022.
Fair review of the business
The directors are pleased by the operating profit achieved of £5,393,044 (2021 - £8,099,878). All areas of the business have performed as hoped and the shareholders funds have increased to £31,399,909 (2021 - £27,462,333).
The group continues to seek new opportunities and markets to develop further the success of the group'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 group 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 group 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 group's operations.
The group is exposed to credit risk from credit sales. It is a group 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 2022, 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 group considers gross profit margin to be the most important key performance indicator. Despite turnover decreasing by 4% on 2021, the gross profit margin has increased by 1% and it has been another profitable year with an increase in net assets held.
G J Picard
Director
19 June 2023
TULLIBARDINE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2022.
Principal activities
The principal activity of the company and group continued to be that of distillation, maturation and sale of malt whisky together with the operation of a retail outlet.
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 further dividend.
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
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 group and company, and of the profit or loss of the group 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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 auditor of the company 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 auditor of the company is aware of that information.
TULLIBARDINE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
On behalf of the board
G J Picard
Director
19 June 2023
TULLIBARDINE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TULLIBARDINE LIMITED
- 4 -
Opinion
We have audited the financial statements of Tullibardine Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 group's and the parent company's affairs as at 31 December 2022 and of the group's 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 group and parent 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
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
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' report 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.
TULLIBARDINE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TULLIBARDINE LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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' responsibilities statement, 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 parent 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 parent 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 is available on the Financial Reporting Council’s website at: https://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
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. We determined that the most significant legal and regulatory frameworks that are applicable to the entity include The Scotch Whisky Regulations 2009, Health and Safety Regulations, EC Regulation 110/2008, SEPA Regulations, Data Protection Act 2018 and HMRC regulations. In order to comply with the noted legal and regulatory frameworks the entity submit forms to HMRC each month and keep a substantial amount of records to show the movement of alcohol at each stage of production onto the sale to the end user. Quarterly distillery returns are checked against accounting records to ensure the information is reflected in the management accounts. To meet SEPA regulations regular testing of the burn is done to ensure the discharge levels are within the parameters. An on-site Health & Safety Office ensures that all staff training is up to date.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries throughout the accounting period and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias;
Performed analytical procedures to identify any unusual or unexpected relationships within the profit and loss account as well as the material balance sheet items;
The engagement team was selected ensuring that collectively they had appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations;
Enhanced testing over the valuation of stock to ensure that there were no instances of fraud or error.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Following our enquiries with management and those charged with governance, as well as our review of the manual journals that had been posted through the systems, we did not identify any instances of fraud or any material misstatements.
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
19 June 2023
Chartered Accountants
Statutory Auditor
5 Whitefriars Crescent
Perth
United Kingdom
PH2 0PA
TULLIBARDINE LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
2022
2021
Notes
£
£
Turnover
3
33,246,105
34,487,845
Cost of sales
(24,122,252)
(25,588,174)
Gross profit
9,123,853
8,899,671
Administrative expenses
(4,315,798)
(2,126,216)
Other operating income
5,088
23,961
Gain/(loss) on foreign exchange
4
579,901
1,302,462
Operating profit
5
5,393,044
8,099,878
Interest payable and similar expenses
8
(502,531)
(160,849)
Amounts written off investments
9
(1,543,129)
Profit before taxation
4,890,513
6,395,900
Tax on profit
10
(952,937)
(1,429,662)
Profit for the financial year
3,937,576
4,966,238
Profit for the financial year is attributable to:
- Owners of the parent company
3,868,058
5,206,986
- Non-controlling interests
69,518
(240,748)
3,937,576
4,966,238
TULLIBARDINE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
2022
2021
£
£
Profit for the year
3,937,576
4,966,238
Other comprehensive income
Total comprehensive income for the year
3,937,576
4,966,238
Total comprehensive income for the year is attributable to:
- Owners of the parent company
3,868,058
5,206,986
- Non-controlling interests
69,518
(240,748)
3,937,576
4,966,238
TULLIBARDINE LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 10 -
2022
2021
Notes
£
£
£
£
Fixed assets
Goodwill
11
146,689
165,025
Tangible assets
12
9,289,550
9,059,485
9,436,239
9,224,510
Current assets
Stocks
15
43,633,394
39,543,975
Debtors
16
6,892,963
4,895,308
Cash at bank and in hand
4,993,787
1,793,806
55,520,144
46,233,089
Creditors: amounts falling due within one year
17
(32,128,866)
(26,482,371)
Net current assets
23,391,278
19,750,718
Total assets less current liabilities
32,827,517
28,975,228
Creditors: amounts falling due after more than one year
18
(450,018)
(677,878)
Provisions for liabilities
Provisions
20
20,000
20,000
Deferred tax liability
21
957,590
815,017
(977,590)
(835,017)
Net assets
31,399,909
27,462,333
Capital and reserves
Called up share capital
23
186
186
Share premium account
1,567,812
1,567,812
Revaluation reserve
62,961
62,961
Profit and loss reserves
29,985,960
26,117,902
Equity attributable to owners of the parent company
31,616,919
27,748,861
Non-controlling interests
(217,010)
(286,528)
31,399,909
27,462,333
TULLIBARDINE LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2022
31 December 2022
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 19 June 2023 and are signed on its behalf by:
G J Picard
Director
TULLIBARDINE LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 12 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
12
8,174,550
7,944,485
Investments
13
240
240
8,174,790
7,944,725
Current assets
Stocks
15
43,633,394
39,543,975
Debtors
16
6,886,813
4,890,058
Cash at bank and in hand
4,871,661
1,782,601
55,391,868
46,216,634
Creditors: amounts falling due within one year
17
(31,680,540)
(26,026,137)
Net current assets
23,711,328
20,190,497
Total assets less current liabilities
31,886,118
28,135,222
Provisions for liabilities
Provisions
20
20,000
20,000
Deferred tax liability
21
957,590
815,017
(977,590)
(835,017)
Net assets
30,908,528
27,300,205
Capital and reserves
Called up share capital
23
186
186
Share premium account
1,567,812
1,567,812
Revaluation reserve
62,961
62,961
Profit and loss reserves
29,277,569
25,669,246
Total equity
30,908,528
27,300,205
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,608,323 (2021 - £4,758,330 profit).
The financial statements were approved by the board of directors and authorised for issue on 19 June 2023 and are signed on its behalf by:
19 June 2023
G J Picard
Director
Company Registration No. SC210027
TULLIBARDINE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
£
£
Balance at 1 January 2021
186
1,567,812
62,961
20,910,916
22,541,875
22,541,875
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
-
5,206,986
5,206,986
(240,748)
4,966,238
Other movements
-
-
-
(45,780)
(45,780)
Balance at 31 December 2021
186
1,567,812
62,961
26,117,902
27,748,861
(286,528)
27,462,333
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
3,868,058
3,868,058
69,518
3,937,576
Balance at 31 December 2022
186
1,567,812
62,961
29,985,960
31,616,919
(217,010)
31,399,909
TULLIBARDINE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2021
186
1,567,812
62,961
20,910,916
22,541,875
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
-
4,758,330
4,758,330
Balance at 31 December 2021
186
1,567,812
62,961
25,669,246
27,300,205
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
3,608,323
3,608,323
Balance at 31 December 2022
186
1,567,812
62,961
29,277,569
30,908,528
TULLIBARDINE LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
1,633,521
2,967,066
Interest paid
(502,531)
(160,849)
Income taxes paid
(1,507,100)
(496,735)
Net cash (outflow)/inflow from operating activities
(376,110)
2,309,482
Investing activities
Purchase of intangible assets
(183,361)
Purchase of tangible fixed assets
(1,200,224)
(2,836,779)
Proceeds on disposal of tangible fixed assets
240,960
207,661
Cash flows attributable to non-controlling interest
(45,780)
Net cash used in investing activities
(959,264)
(2,858,259)
Financing activities
Proceeds from borrowings
16,676,359
21,709,048
Repayment of borrowings
(11,617,692)
(23,197,713)
Proceeds of new bank loans
1,513,326
Repayment of bank loans
(523,312)
(287,121)
Net cash generated from/(used in) financing activities
4,535,355
(262,460)
Net increase/(decrease) in cash and cash equivalents
3,199,981
(811,237)
Cash and cash equivalents at beginning of year
1,793,806
2,605,043
Cash and cash equivalents at end of year
4,993,787
1,793,806
TULLIBARDINE LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
892,868
3,186,147
Interest paid
(475,721)
(121,130)
Income taxes paid
(1,427,490)
(496,735)
Net cash (outflow)/inflow from operating activities
(1,010,343)
2,568,282
Investing activities
Purchase of tangible fixed assets
(1,200,224)
(1,721,779)
Proceeds on disposal of tangible fixed assets
240,960
207,661
Purchase of subsidiaries
(240)
Net cash used in investing activities
(959,264)
(1,514,358)
Financing activities
Proceeds from borrowings
16,676,359
21,709,048
Repayment of borrowings
(11,617,692)
(23,585,414)
Net cash generated from/(used in) financing activities
5,058,667
(1,876,366)
Net increase/(decrease) in cash and cash equivalents
3,089,060
(822,442)
Cash and cash equivalents at beginning of year
1,782,601
2,605,043
Cash and cash equivalents at end of year
4,871,661
1,782,601
TULLIBARDINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
1
Accounting policies
Company information
Tullibardine Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Citypoint, 65 Haymarket Terrace, Edinburgh, United Kingdon, EH12 5HD.
The group consists of Tullibardine Limited and all of its subsidiaries.
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 amounts 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. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Tullibardine Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
TULLIBARDINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 18 -
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the truegroup has adequate resources to continue in operational existence for the foreseeable future. Thus the 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.
1.5
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.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
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.
TULLIBARDINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 19 -
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 equipment
5% to 33% on cost
Fixtures and fittings
10% to 25% on cost
Casks
8.33% on cost
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 recognised in the profit and loss account.
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.9
Impairment of fixed assets
At each reporting period end date, the group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
TULLIBARDINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 20 -
1.10
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, distillery 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.
1.11
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.
1.12
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
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.
TULLIBARDINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 21 -
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 group 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 group 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 payments 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. Amounts 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 subsequently 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 through 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the group 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 group.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
TULLIBARDINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 22 -
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 group’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 if, and only if, there is 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.
1.15
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group 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 is 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.
1.16
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.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
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 leased asset are consumed.
TULLIBARDINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 23 -
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.19
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.20
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.
2
Judgements and key sources of estimation uncertainty
In the application of the group’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
2022
2021
£
£
Other revenue
Grants received
23,906
The analysis of turnover by geographical market has not been disclosed as the directors consider that this could be seriously prejudicial to the group's interests.
4
Exceptional item
2022
2021
£
£
Expenditure
(Gain)/loss on foreign exchange
(579,901)
(1,302,462)
TULLIBARDINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 24 -
5
Operating profit
2022
2021
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(23,906)
Depreciation of owned tangible fixed assets
729,199
674,523
Amortisation of intangible assets
18,336
18,336
Operating lease charges
122,500
6
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
20,295
18,450
7
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Distillery
15
14
15
14
Bottling
9
9
9
9
Administrative
6
7
6
7
Shop
10
9
10
9
Total
40
39
40
39
Their aggregate remuneration comprised:
Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
1,511,319
1,480,154
1,511,319
1,480,154
Social security costs
159,029
146,306
159,029
146,306
Pension costs
36,840
36,831
36,840
36,831
1,707,188
1,663,291
1,707,188
1,663,291
TULLIBARDINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 25 -
8
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
26,810
39,719
Interest payable to group undertakings
470,721
120,750
Other interest on financial liabilities
5,000
380
502,531
160,849
9
Amounts written off investments
2022
2021
£
£
Changes in the fair value of investment properties
(1,543,129)
10
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
810,364
965,900
Adjustments in respect of prior periods
35,000
Total current tax
810,364
1,000,900
Deferred tax
Origination and reversal of timing differences
108,063
306,787
Changes in tax rates
34,510
121,975
Total deferred tax
142,573
428,762
Total tax charge
952,937
1,429,662
TULLIBARDINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
10
Taxation
(Continued)
- 26 -
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:
2022
2021
£
£
Profit before taxation
4,890,513
6,395,900
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
929,197
1,215,221
Tax effect of expenses that are not deductible in determining taxable profit
766
7,556
Adjustments in respect of prior years
35,000
Permanent capital allowances in excess of depreciation
(11,266)
(281,859)
Depreciation on assets not qualifying for tax allowances
-
24,982
Deferred tax adjustments in respect of prior years
33,290
428,762
950
Taxation charge
952,937
1,429,662
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2022 and 31 December 2022
183,361
Amortisation and impairment
At 1 January 2022
18,336
Amortisation charged for the year
18,336
At 31 December 2022
36,672
Carrying amount
At 31 December 2022
146,689
At 31 December 2021
165,025
The company had no intangible fixed assets at 31 December 2022 or 31 December 2021.
TULLIBARDINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 27 -
12
Tangible fixed assets
Group
Freehold property
Leasehold property
Plant and equipment
Fixtures and fittings
Casks
Total
£
£
£
£
£
£
Cost or valuation
At 1 January 2022
1,873,978
2,943,909
3,877,379
43,957
5,354,756
14,093,979
Additions
277,868
922,356
1,200,224
Disposals
(240,960)
(240,960)
At 31 December 2022
1,873,978
2,943,909
4,155,247
43,957
6,036,152
15,053,243
Depreciation and impairment
At 1 January 2022
201,232
1,883,077
38,921
2,911,264
5,034,494
Depreciation charged in the year
303,041
2,131
424,027
729,199
At 31 December 2022
201,232
2,186,118
41,052
3,335,291
5,763,693
Carrying amount
At 31 December 2022
1,873,978
2,742,677
1,969,129
2,905
2,700,861
9,289,550
At 31 December 2021
1,873,978
2,742,677
1,994,302
5,036
2,443,492
9,059,485
Company
Freehold property
Leasehold property
Plant and equipment
Fixtures and fittings
Casks
Total
£
£
£
£
£
£
Cost or valuation
At 1 January 2022
758,978
2,943,909
3,877,379
43,957
5,354,756
12,978,979
Additions
277,868
922,356
1,200,224
Disposals
(240,960)
(240,960)
At 31 December 2022
758,978
2,943,909
4,155,247
43,957
6,036,152
13,938,243
Depreciation and impairment
At 1 January 2022
201,232
1,883,077
38,921
2,911,264
5,034,494
Depreciation charged in the year
303,041
2,131
424,027
729,199
At 31 December 2022
201,232
2,186,118
41,052
3,335,291
5,763,693
Carrying amount
At 31 December 2022
758,978
2,742,677
1,969,129
2,905
2,700,861
8,174,550
At 31 December 2021
758,978
2,742,677
1,994,302
5,036
2,443,492
7,944,485
TULLIBARDINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
12
Tangible fixed assets
(Continued)
- 28 -
The carrying value of land and buildings comprises:
Group
Company
2022
2021
2022
2021
£
£
£
£
Freehold
180,000
180,000
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.
Land and buildings with a carrying amount of £1,115,000 were revalued at 18 December 2020 by Avison
Young, independent valuers not connected with the company on the basis of market value. The valuation
conforms to International Valuation Standards and was based on vacant possession.
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 2022 is not less than the aggregate amount at which they are stated.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
2022
2021
£
£
Group
Cost
3,439,698
3,439,698
Accumulated depreciation
(863,889)
(797,436)
Carrying value
2,575,809
2,642,262
Company
Cost
117,039
117,039
Carrying value
117,039
117,039
13
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
14
240
240
TULLIBARDINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
13
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2022 and 31 December 2022
240
Carrying amount
At 31 December 2022
240
At 31 December 2021
240
14
Subsidiaries
Details of the company's subsidiaries at 31 December 2022 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Spirits Development & Management Company (SDMC) Limited
Citypoint, 65 Haymarket Terrace, Edinburgh, Scotland, EH12 5HD
Ordinary
80.00
15
Stocks
Group
Company
2022
2021
2022
2021
£
£
£
£
Whisky stocks
42,539,251
38,913,207
42,539,251
38,913,207
Other stocks
1,094,143
630,768
1,094,143
630,768
43,633,394
39,543,975
43,633,394
39,543,975
16
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
5,760,857
3,382,469
5,760,857
3,382,469
Amounts owed by group undertakings
983,720
1,041,107
982,820
1,041,107
Other debtors
63,014
192,020
63,014
192,020
Prepayments and accrued income
85,372
279,712
80,122
274,462
6,892,963
4,895,308
6,886,813
4,890,058
TULLIBARDINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 30 -
17
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans
19
252,875
548,327
Trade creditors
6,902,778
5,992,004
6,902,778
5,992,004
Amounts owed to group undertakings
23,420,537
18,104,803
23,342,275
18,305,102
Corporation tax payable
269,164
965,900
187,631
886,290
Other taxation and social security
86,202
68,983
61,852
44,483
Accruals and deferred income
1,197,310
802,354
1,186,004
798,258
32,128,866
26,482,371
31,680,540
26,026,137
18
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
19
450,018
677,878
19
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
702,893
1,226,205
Payable within one year
252,875
548,327
Payable after one year
450,018
677,878
20
Provisions for liabilities
Group
Company
2022
2021
2022
2021
£
£
£
£
20,000
20,000
20,000
20,000
Movements on provisions:
Group
£
At 1 January 2022 and 31 December 2022
20,000
TULLIBARDINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
20
Provisions for liabilities
(Continued)
- 31 -
Packaging waste regulation costs
Company
£
At 1 January 2022 and 31 December 2022
20,000
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2022
2021
Group
£
£
Accelerated capital allowances
957,590
815,017
Liabilities
Liabilities
2022
2021
Company
£
£
Accelerated capital allowances
957,590
815,017
Group
Company
2022
2022
Movements in the year:
£
£
Liability at 1 January 2022
815,017
815,017
Charge to profit or loss
142,573
142,573
Liability at 31 December 2022
957,590
957,590
22
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
36,840
36,831
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
TULLIBARDINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 32 -
23
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
185
185
185
185
Preferred convertible redeemable share of £1 each
1
1
1
1
186
186
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.
24
Capital commitments
Amounts contracted for but not provided in the financial statements:
Group
Company
2022
2021
2022
2021
£
£
£
£
Acquisition of tangible fixed assets
132,000
132,000
25
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-Montrachet, 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.
TULLIBARDINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 33 -
26
Cash generated from group operations
2022
2021
£
£
Profit for the year after tax
3,937,576
4,966,238
Adjustments for:
Taxation charged
952,937
1,429,662
Finance costs
502,531
160,849
Amortisation and impairment of intangible assets
18,336
18,336
Depreciation and impairment of tangible fixed assets
729,199
674,523
Movements in working capital:
Increase in stocks
(4,089,419)
(7,399,477)
(Increase)/decrease in debtors
(1,997,655)
4,251,834
Increase/(decrease) in creditors
1,580,016
(1,134,899)
Cash generated from operations
1,633,521
2,967,066
27
Cash generated from operations - company
2022
2021
£
£
Profit for the year after tax
3,608,323
4,758,330
Adjustments for:
Taxation charged
871,404
1,350,052
Finance costs
475,721
121,130
Depreciation and impairment of tangible fixed assets
729,199
674,523
Movements in working capital:
Increase in stocks
(4,089,419)
(7,399,477)
(Increase)/decrease in debtors
(1,996,755)
4,257,084
Increase/(decrease) in creditors
1,294,395
(575,495)
Cash generated from operations
892,868
3,186,147
28
Analysis of changes in net funds - group
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
1,793,806
3,199,981
4,993,787
Borrowings excluding overdrafts
(1,226,205)
523,312
(702,893)
567,601
3,723,293
4,290,894
TULLIBARDINE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 34 -
29
Analysis of changes in net funds - company
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
1,782,601
3,089,060
4,871,661
2022-12-312022-01-01falseCCH SoftwareCCH Accounts Production 2023.100G J PicardM B PicardSC210027bus:Consolidated2022-01-012022-12-31SC2100272022-01-012022-12-31SC210027bus:Director12022-01-012022-12-31SC210027bus:Director22022-01-012022-12-31SC210027bus:RegisteredOffice2022-01-012022-12-31SC210027bus:Consolidated2022-12-31SC2100272022-12-31SC210027bus:Consolidated2021-01-012021-12-31SC210027core:Exceptionalbus:Consolidated12022-01-012022-12-31SC210027core:Exceptionalbus:Consolidated12021-01-012021-12-31SC2100272021-01-012021-12-31SC210027core:Goodwillbus:Consolidated2022-12-31SC210027core:Goodwillbus:Consolidated2021-12-31SC210027bus:Consolidated2021-12-31SC2100272021-12-31SC210027core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-12-31SC210027core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-12-31SC210027core:PlantMachinerybus:Consolidated2022-12-31SC210027core:FurnitureFittingsbus:Consolidated2022-12-31SC210027core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipmentbus:Consolidated2022-12-31SC210027core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2021-12-31SC210027core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2021-12-31SC210027core:PlantMachinerybus:Consolidated2021-12-31SC210027core:FurnitureFittingsbus:Consolidated2021-12-31SC210027core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipmentbus:Consolidated2021-12-31SC210027core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-31SC210027core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-31SC210027core:PlantMachinery2022-12-31SC210027core:FurnitureFittings2022-12-31SC210027core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-12-31SC210027core:LandBuildingscore:OwnedOrFreeholdAssets2021-12-31SC210027core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-12-31SC210027core:PlantMachinery2021-12-31SC210027core:FurnitureFittings2021-12-31SC210027core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2021-12-31SC210027core:WithinOneYearbus:Consolidated2022-12-31SC210027core:WithinOneYearbus:Consolidated2021-12-31SC210027core:AfterOneYearbus:Consolidated2022-12-31SC210027core:AfterOneYearbus:Consolidated2021-12-31SC210027core:WithinOneYear2022-12-31SC210027core:WithinOneYear2021-12-31SC210027core:CurrentFinancialInstruments2022-12-31SC210027core:CurrentFinancialInstruments2021-12-31SC210027core:ShareCapitalbus:Consolidated2022-12-31SC210027core:ShareCapitalbus:Consolidated2021-12-31SC210027core:SharePremiumbus:Consolidated2022-12-31SC210027core:SharePremiumbus:Consolidated2021-12-31SC210027core:RevaluationReservebus:Consolidated2022-12-31SC210027core:RevaluationReservebus:Consolidated2021-12-31SC210027core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-12-31SC210027core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-12-31SC210027core:Non-controllingInterestsbus:Consolidated2022-12-31SC210027core:Non-controllingInterestsbus:Consolidated2021-12-31SC210027core:ShareCapital2022-12-31SC210027core:ShareCapital2021-12-31SC210027core:SharePremium2022-12-31SC210027core:SharePremium2021-12-31SC210027core:RevaluationReserve2022-12-31SC210027core:RevaluationReserve2021-12-31SC210027core:RetainedEarningsAccumulatedLosses2022-12-31SC210027core:RetainedEarningsAccumulatedLosses2021-12-31SC210027core:ShareCapitalbus:Consolidated2020-12-31SC210027core:SharePremiumbus:Consolidated2020-12-31SC210027core:RevaluationReservebus:Consolidated2020-12-31SC210027core:RetainedEarningsAccumulatedLossesbus:Consolidated2020-12-31SC210027bus:Consolidated2020-12-31SC210027core:Non-controllingInterestsbus:Consolidated2020-12-31SC210027core:ShareCapital2020-12-31SC210027core:SharePremium2020-12-31SC210027core:RevaluationReserve2020-12-31SC210027core:RetainedEarningsAccumulatedLosses2020-12-31SC2100272020-12-31SC210027core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-01-012021-12-31SC210027core:Non-controllingInterestsbus:Consolidated2021-01-012021-12-31SC210027bus:Consolidated12022-01-012022-12-31SC210027bus:Consolidated12021-01-012021-12-31SC210027core:ExplicitlyIdentifiedAsNon-exceptionalbus:Consolidated2022-01-012022-12-31SC210027core:ExplicitlyIdentifiedAsNon-exceptionalbus:Consolidated2021-01-012021-12-31SC210027bus:Consolidated2021-12-31SC2100272021-12-31SC210027core:Goodwill2022-01-012022-12-31SC210027core:LandBuildingscore:OwnedOrFreeholdAssets2022-01-012022-12-31SC210027core:LandBuildingscore:LongLeaseholdAssets2022-01-012022-12-31SC210027core:PlantMachinery2022-01-012022-12-31SC210027core:FurnitureFittings2022-01-012022-12-31SC210027core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-01-012022-12-31SC210027core:UKTaxbus:Consolidated2022-01-012022-12-31SC210027core:UKTaxbus:Consolidated2021-01-012021-12-31SC210027core:Goodwillbus:Consolidated2021-12-31SC210027core:Goodwillbus:Consolidated2022-01-012022-12-31SC210027core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2021-12-31SC210027core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2021-12-31SC210027core:PlantMachinerybus:Consolidated2021-12-31SC210027core:FurnitureFittingsbus:Consolidated2021-12-31SC210027core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipmentbus:Consolidated2021-12-31SC210027core:LandBuildingscore:OwnedOrFreeholdAssets2021-12-31SC210027core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-12-31SC210027core:PlantMachinery2021-12-31SC210027core:FurnitureFittings2021-12-31SC210027core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2021-12-31SC210027core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-01-012022-12-31SC210027core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-01-012022-12-31SC210027core:PlantMachinerybus:Consolidated2022-01-012022-12-31SC210027core:FurnitureFittingsbus:Consolidated2022-01-012022-12-31SC210027core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipmentbus:Consolidated2022-01-012022-12-31SC210027core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-01-012022-12-31SC210027core:Subsidiary12022-01-012022-12-31SC210027core:Subsidiary112022-01-012022-12-31SC210027core:CurrentFinancialInstrumentsbus:Consolidated2022-12-31SC210027core:CurrentFinancialInstrumentsbus:Consolidated2021-12-31SC210027core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-31SC210027core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-31SC210027core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-12-31SC210027core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2021-12-31SC210027core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-31SC210027core:Non-currentFinancialInstrumentscore:AfterOneYear2021-12-31SC210027core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-12-31SC210027core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2021-12-31SC210027bus:AllOrdinaryShares2022-01-012022-12-31SC210027bus:OtherShareClass12022-01-012022-12-31SC210027bus:AllOrdinaryShares2022-12-31SC210027bus:AllOrdinaryShares2021-12-31SC210027bus:OtherShareClass12022-12-31SC210027bus:OtherShareClass12021-12-31SC210027bus:PrivateLimitedCompanyLtd2022-01-012022-12-31SC210027bus:FRS1022022-01-012022-12-31SC210027bus:Audited2022-01-012022-12-31SC210027bus:ConsolidatedGroupCompanyAccounts2022-01-012022-12-31SC210027bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP