Company registration number 03687964 (England and Wales)
OTTER BREWERY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
PAGES FOR FILING WITH REGISTRAR
OTTER BREWERY LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
OTTER BREWERY LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2023
31 January 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
453,389
1,200,578
Current assets
Stocks
305,562
262,204
Debtors
5
581,049
663,318
Cash at bank and in hand
248,142
131,323
1,134,753
1,056,845
Creditors: amounts falling due within one year
6
(970,491)
(1,326,418)
Net current assets/(liabilities)
164,262
(269,573)
Total assets less current liabilities
617,651
931,005
Creditors: amounts falling due after more than one year
7
(37,732)
(358,796)
Provisions for liabilities
8
(101,659)
(85,980)
Government grants
(36,504)
(41,666)
Net assets
441,756
444,563
Capital and reserves
Called up share capital
10
1,000
1,000
Capital redemption reserve
300
300
Profit and loss reserves
440,456
443,263
Total equity
441,756
444,563
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 January 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.
OTTER BREWERY LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 JANUARY 2023
31 January 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 12 October 2023 and are signed on its behalf by:
Mr D F A McCaig
Mr P J McCaig
Director
Director
Company Registration No. 03687964
OTTER BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
- 3 -
1
Accounting policies
Company information
Otter Brewery Limited is a private company limited by shares incorporated in England and Wales. The registered office is Otter Brewery, Luppitt, Honiton, Devon, England, EX14 4SA.
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
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes.
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.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
Over the 25 year term of the ground lease
Plant and machinery
15% per annum on written down value
Fixtures, fittings & equipment
Computer equipment: 25% per annum on cost
Other: 15% per annum on written down value
Motor vehicles
25% per annum on written down value
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.4
Stocks
Stock is valued at the lower of cost, including direct labour and attributable overheads, and net realisable value.
1.5
Equity instruments
Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.6
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
OTTER BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
1
Accounting policies
(Continued)
- 4 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
1.7
Employee benefits
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.
1.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.9
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 leases asset are consumed.
1.10
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.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
27
27
OTTER BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 5 -
3
Intangible fixed assets
Goodwill
£
Cost
At 1 February 2022 and 31 January 2023
80,000
Amortisation and impairment
At 1 February 2022 and 31 January 2023
80,000
Carrying amount
At 31 January 2023
At 31 January 2022
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 February 2022
1,706,546
3,418,162
5,124,708
Additions
24,181
24,181
Disposals
(1,706,546)
(227,268)
(1,933,814)
At 31 January 2023
3,215,075
3,215,075
Depreciation and impairment
At 1 February 2022
1,027,046
2,897,084
3,924,130
Depreciation charged in the year
17,067
81,248
98,315
Eliminated in respect of disposals
(1,044,113)
(216,646)
(1,260,759)
At 31 January 2023
2,761,686
2,761,686
Carrying amount
At 31 January 2023
453,389
453,389
At 31 January 2022
679,500
521,078
1,200,578
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
476,030
379,878
Other debtors
105,019
283,440
581,049
663,318
OTTER BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 6 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
10,000
441,035
Trade creditors
484,203
425,443
Taxation and social security
305,141
407,500
Other creditors
171,147
52,440
970,491
1,326,418
Bank loans and overdrafts include bank loans balances of £nil (2022: £124,000) which are secured upon the assets of the company.
Other creditors include hire purchase obligations of £4,403 (2022: £4,065) which are secured on the assets to which they relate.
7
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
30,000
346,661
Obligations under finance leases
7,732
12,135
37,732
358,796
Bank loans and overdrafts include bank loans balances of £nil (2022: £306,662) which are secured upon the assets of the company.
Other creditors include hire purchase obligations of £7,732 (2022: £12,135) which are secured on the assets to which they relate.
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
13,207
8
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
9
101,659
85,980
OTTER BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 7 -
9
Deferred taxation
The following is the analysis of the deferred tax balances for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
101,659
85,980
2023
Movements in the year:
£
Liability at 1 February 2022
85,980
Credit to profit or loss
(8,719)
Effect of change in tax rate - profit or loss
24,398
Liability at 31 January 2023
101,659
10
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Class A shares of £1 each
510
510
510
510
Ordinary Class B shares of £1 each
490
490
490
490
1,000
1,000
1,000
1,000
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Within one year
25,184
Between two and five years
32,136
22,415
In over five years
555,000
130,820
587,136
178,419
12
Related party transactions
OTTER BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
12
Related party transactions
(Continued)
- 8 -
During the year, the company wrote off 50% of a loan to a related limited company which is owned and directed by family members of the directors of Otter Brewery Limited. As at the balance sheet date, the balance on the loan due to the company was £61,730 (2022: £123,460). The loan is interest free, unsecured and repayable on demand.
13
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
One director
-
210
3,060
(3,270)
-
210
3,060
(3,270)
-
The advances made are unsecured and repayable upon demand.