Company registration number SC563299 (Scotland)
ISLAY SPIRITS (NO. 2) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
ISLAY SPIRITS (NO. 2) LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
ISLAY SPIRITS (NO. 2) LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
2,884
3,386
Tangible assets
4
1,031,568
958,877
Investments
5
1
-
0
1,034,453
962,263
Current assets
Stocks
16,996
4,502
Debtors
7
17,888
16,330
Cash at bank and in hand
33,947
51,270
68,831
72,102
Creditors: amounts falling due within one year
8
(1,364,761)
(1,136,414)
Net current liabilities
(1,295,930)
(1,064,312)
Total assets less current liabilities
(261,477)
(102,049)
Provisions for liabilities
(125,588)
-
0
Net liabilities
(387,065)
(102,049)
Capital and reserves
Called up share capital
400
100
Profit and loss reserves
(387,465)
(102,149)
Total equity
(387,065)
(102,049)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

ISLAY SPIRITS (NO. 2) LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023
31 March 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 21 September 2023 and are signed on its behalf by:
Ms C  James
Director
Company Registration No. SC563299
ISLAY SPIRITS (NO. 2) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
1
Accounting policies
Company information

Islay Spirits (No. 2) Limited is a private company limited by shares incorporated in Scotland. The registered office is Vintage House, 21 Park Road, Milngavie, Glasgow, G62 6PJ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

At the balance sheet date the company has net liabilities, however the parent company has confirmed that they will continue to provide financial support to the company to allow it to meet its ongoing financial liabilities. Consequently, these financial statements have been prepared on a going concern basis and no adjustments have been made which may arise should the company cease to trade.true

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.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Trademarks
Over the estimated useful life of 10 Years
1.5
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 land and buildings
2% Straight Line
Plant and equipment
20% Reducing Balance
Casks
10% Straight Line

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.

ISLAY SPIRITS (NO. 2) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -

Freehold property consists of a warehouse which required significant upgrade and investment before it could be used for its intended purpose of distilling. The renovation of the building and installation of plant and machinery was completed at the end of the previous financial year.

 

In the opinion of the directors, in order for the financial statements to show a true and fair view of the state of affairs of the company, depreciation was not to be provided on the property and its plant and machinery until it was fully operational. Therefore, depreciation has been provided in full for the year to 31 March 2023.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
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.

ISLAY SPIRITS (NO. 2) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
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.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
-
0
-
0
3
Intangible fixed assets
Trademarks
£
Cost
At 1 April 2022 and 31 March 2023
5,015
Amortisation and impairment
At 1 April 2022
1,629
Amortisation charged for the year
502
At 31 March 2023
2,131
Carrying amount
At 31 March 2023
2,884
At 31 March 2022
3,386
ISLAY SPIRITS (NO. 2) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
4
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Casks
Total
£
£
£
£
Cost
At 1 April 2022
491,829
467,048
-
0
958,877
Additions
105,702
71,225
2,080
179,007
At 31 March 2023
597,531
538,273
2,080
1,137,884
Depreciation and impairment
At 1 April 2022
-
0
-
0
-
0
-
0
Depreciation charged in the year
11,213
94,964
139
106,316
At 31 March 2023
11,213
94,964
139
106,316
Carrying amount
At 31 March 2023
586,318
443,309
1,941
1,031,568
At 31 March 2022
491,829
467,048
-
0
958,877
5
Fixed asset investments
2023
2022
£
£
Other investments other than loans
1
-
0
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 April 2022
-
Additions
60
At 31 March 2023
60
Impairment
At 1 April 2022
-
Impairment losses
59
At 31 March 2023
59
Carrying amount
At 31 March 2023
1
At 31 March 2022
-
ISLAY SPIRITS (NO. 2) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
6
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Islay Rum Company Limited
Vintage House 21 Park Road, Milngavie, Glasgow, Scotland, G62 6PJ
Distilling, rectifying and blending of spirits
Ordinary
100.00
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
17,888
16,330
8
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
30,570
1,459
Amounts owed to group undertakings
1,327,941
1,129,273
Other creditors
6,250
5,682
1,364,761
1,136,414
9
Securities

The Vintage Malt Whisky Company Limited holds a charge over all assets of the company.

10
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

2023
2022
Amounts due to related parties
£
£
Other related parties
1,327,941
1,129,273

The above loans are unsecured, interest free and have no fixed terms of repayment.

11
Parent company

The parent company is Vintage Malt Whisky Company Limited registered at Vintage House 21 Park Road, Milngavie, Glasgow, Scotland, G62 6PJ.

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