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Registration number: 08689169

Axholme Brewing Company Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 March 2023

 

Axholme Brewing Company Limited

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 8

 

Axholme Brewing Company Limited

(Registration number: 08689169)
Balance Sheet as at 31 March 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

293,314

349,425

Current assets

 

Stocks

5

115,505

79,334

Debtors

6

125,906

70,896

Cash at bank and in hand

 

20,936

8,588

 

262,347

158,818

Creditors: Amounts falling due within one year

7

(359,216)

(288,387)

Net current liabilities

 

(96,869)

(129,569)

Total assets less current liabilities

 

196,445

219,856

Creditors: Amounts falling due after more than one year

7

(185,922)

(243,746)

Provisions for liabilities

(21,645)

(11,338)

Net liabilities

 

(11,122)

(35,228)

Capital and reserves

 

Called up share capital

100

100

Retained earnings

(11,222)

(35,328)

Shareholders' deficit

 

(11,122)

(35,228)

For the financial year ending 31 March 2023 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the Company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The Directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the Directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 24 July 2023 and signed on its behalf by:
 

 

Axholme Brewing Company Limited

(Registration number: 08689169)
Balance Sheet as at 31 March 2023

.........................................
M Richards
Director

.........................................
W Douglas
Director

 

Axholme Brewing Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

1

General information

The company is a private company limited by share capital incorporated in England and the company registration number is 08689169.

The address of its registered office is:
26 South St Mary's Gate
Grimsby
N E Lincs
DN31 1LW

These financial statements were authorised for issue by the Board on 24 July 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

These financial statements cover the individual entity, Axholme Brewing Company Limited.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in sterling and are rounded to the nearest pound.

Going concern

Specifically in connection with the current economic climate, the directors have considered the impact of COVID-19 on the business and they are satisfied that the company has sufficient financial headroom to continue trading for at least the next twelve months. For this reason the financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The Company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the Company's activities.

Government grants

Government grants which become receivable as compensation for expenses or losses already incurred, or for the purpose of giving immediate financial support to the entity with no future related costs, are recognised as income in the period in which they become receivable

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

Axholme Brewing Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the Company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings

7 years

Plant and Machinery

10-25% Straight Line

Motor Vehicles

25% Straight Line

Fixtures and fittings

25% Straight Line

Office equipment

25% Straight Line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Axholme Brewing Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Axholme Brewing Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

3

Staff numbers

The average number of persons employed by the Company (including Directors) during the year, was 55 (2022 - 34).

4

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 April 2022

195,003

343,737

9,550

548,290

Additions

27,311

5,984

-

33,295

At 31 March 2023

222,314

349,721

9,550

581,585

Depreciation

At 1 April 2022

67,261

124,640

6,964

198,865

Charge for the year

28,995

58,024

2,387

89,406

At 31 March 2023

96,256

182,664

9,351

288,271

Carrying amount

At 31 March 2023

126,058

167,057

199

293,314

At 31 March 2022

127,742

219,097

2,586

349,425

Included within the net book value of land and buildings above is £126,058 (2022 - £127,742) in respect of long leasehold land and buildings.
 

5

Stocks

2023
£

2022
£

Other inventories

115,505

79,334

6

Debtors

Current

2023
£

2022
£

Trade debtors

45,168

37,191

Prepayments

12,417

2,400

Other debtors

68,321

31,305

 

125,906

70,896

 

Axholme Brewing Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Bank loans and overdrafts

8

68,103

73,011

Trade creditors

 

100,527

68,520

Taxation and social security

 

63,440

18,075

Other creditors

 

121,816

123,563

Accruals and deferred income

 

5,330

5,218

 

359,216

288,387

Due after one year

 

Loans and borrowings

8

185,922

243,746

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

8

185,922

243,746

2023
£

2022
£

Due after more than five years

Bank borrowings

25,935

36,333

8

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

185,606

239,876

HP and finance lease liability (1-2 yrs)

316

3,870

185,922

243,746

2023
£

2022
£

Current loans and borrowings

Bank borrowings

61,573

61,031

Bank overdrafts

2,975

6,842

Other borrowings

63,785

80,844

HP and finance lease

3,555

5,138

131,888

153,855

Bank borrowings

 

Axholme Brewing Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Included within bank borrowings are two loans totalling £150,378 (2022: £189,402) advanced by the company's bankers in respect of the Coronavirus Business Interruption Loan. These loans are repayable in equal instalments over 60 months with repayments commencing June 2021 and November 2021 respectively.

Included within loans is an amount of £79,106 (2022: £89,505) from Key Fund Investments Limited. The loan is secured by way of a personal guarantee.

Creditors under hire purchase and finance lease agreement, are secured by a fixed charge on the assets they finance.

The aggregate amount of secured liabilites is £251,050 (2022: £316,757).

9

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £4,167 (2022 - £14,167).

10

Related party transactions

Key management compensation

2023
£

2022
£

Salaries and other short term employee benefits

27,285

39,204

Transactions with Directors

2023

At 1 April 2022
£

Advances to Director
£

At 31 March 2023
£

M Richards

M Richards

19,557

19,472

39,029

       
     

S Shadan

S Shadan

11,531

17,547

29,078

       
     

 

2022

At 1 October 2020
£

Advances to Director
£

At 31 March 2022
£

M Richards

M Richards

-

19,557

19,557

       
     

S Shadan

S Shadan

-

11,531

11,531

       
     

 

Directors' remuneration

The Directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

27,285

39,204