Company Registration No. 08543735 (England and Wales)
EAST LONDON LIQUOR COMPANY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
The Granary
Hones Yard
1 Waverley Lane
Farnham
Surrey
GU9 8BB
EAST LONDON LIQUOR COMPANY LIMITED
CONTENTS
Page
Company information
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 12
EAST LONDON LIQUOR COMPANY LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr S. Chillery
Mr A. Wolpert
Mr J. Akerlund
Mr R. Grain
Mr. M Francis-Baum
Company number
08543735
Registered office
Unit GF1 Bow Wharf
221 Grove Road
London
E3 5SN
Accountants
TC Group
The Granary
Hones Yard
1 Waverley Lane
Farnham
Surrey
GU9 8BB
EAST LONDON LIQUOR COMPANY LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
249,745
282,292
Tangible assets
4
423,759
465,429
Investments
5
3,150,001
3,150,001
3,823,505
3,897,722
Current assets
Stocks
867,046
1,054,206
Debtors
6
533,337
604,480
Cash at bank and in hand
20,256
9,617
1,420,639
1,668,303
Creditors: amounts falling due within one year
7
(1,580,112)
(837,425)
Net current (liabilities)/assets
(159,473)
830,878
Total assets less current liabilities
3,664,032
4,728,600
Creditors: amounts falling due after more than one year
8
(471,438)
(516,939)
Net assets
3,192,594
4,211,661
Capital and reserves
Called up share capital
30,054
30,054
Share premium account
8,531,088
8,531,088
Profit and loss reserves
10
(5,368,548)
(4,349,481)
Total equity
3,192,594
4,211,661
EAST LONDON LIQUOR COMPANY LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2023
31 March 2023
- 3 -
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.
The financial statements were approved by the board of directors and authorised for issue on 20 October 2023 and are signed on its behalf by:
Mr A. Wolpert
Director
Company Registration No. 08543735
The notes on pages 4 to 12 form part of these financial statements
EAST LONDON LIQUOR COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
1
Accounting policies
Company information
East London Liquor Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit GF1 Bow Wharf, 221 Grove Road, London, E3 5SN.
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 time of approving the financial statements, the directors have a reasonable expectation that the company 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.
1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT, excise duties and trade discounts.
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.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
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:
Corporate branding
Over 10 years
Recipe development
Over 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.
EAST LONDON LIQUOR COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
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:
Leasehold land and buildings
Over the term of the lease
Plant and machinery
20% reducing balance
Fixtures, fittings and equipment
20% reducing balance
Computer equipment
33% straight line
Motor vehicles
20% reducing balance
Distilling equipment
5% 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.
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). 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.
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
EAST LONDON LIQUOR COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 6 -
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, 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.
EAST LONDON LIQUOR COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 7 -
1.11
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.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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.
1.15
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.
1.16
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.
EAST LONDON LIQUOR COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
16
23
3
Intangible fixed assets
Corporate branding
Recipe development
Total
£
£
£
Cost
At 1 April 2022 and 31 March 2023
194,053
131,421
325,474
Amortisation and impairment
At 1 April 2022
24,564
18,618
43,182
Amortisation charged for the year
19,405
13,142
32,547
At 31 March 2023
43,969
31,760
75,729
Carrying amount
At 31 March 2023
150,084
99,661
249,745
At 31 March 2022
169,489
112,803
282,292
EAST LONDON LIQUOR COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
4
Tangible fixed assets
Leasehold land and buildings
Plant and machinery
Fixtures, fittings and equipment
Computer equipment
Motor vehicles
Distilling equipment
Total
£
£
£
£
£
£
£
Cost
At 1 April 2022
52,308
545,670
370,767
32,749
27,634
62,205
1,091,333
Additions
18,292
1,867
1,470
10,004
31,633
Disposals
(743)
(743)
At 31 March 2023
52,308
563,962
372,634
33,476
27,634
72,209
1,122,223
Depreciation and impairment
At 1 April 2022
13,767
276,892
261,523
26,207
19,773
27,742
625,904
Depreciation charged in the year
2,092
36,418
22,191
4,324
1,572
6,706
73,303
Eliminated in respect of disposals
(743)
(743)
At 31 March 2023
15,859
313,310
283,714
29,788
21,345
34,448
698,464
Carrying amount
At 31 March 2023
36,449
250,652
88,920
3,688
6,289
37,761
423,759
At 31 March 2022
38,541
268,778
109,244
6,542
7,861
34,463
465,429
EAST LONDON LIQUOR COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
3,150,001
3,150,001
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 April 2022 & 31 March 2023
3,150,001
Carrying amount
At 31 March 2023
3,150,001
At 31 March 2022
3,150,001
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
473,580
515,913
Other debtors
7,727
28,334
Prepayments and accrued income
24,530
32,733
505,837
576,980
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
27,500
27,500
Total debtors
533,337
604,480
EAST LONDON LIQUOR COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
5,526
5,594
Obligations under hire purchase agreements
46,923
58,963
Trade creditors
299,373
278,993
Amounts owed to group undertakings
135,355
37,105
Taxation and social security
249,860
327,914
Other creditors
806,631
99,393
Accruals and deferred income
36,444
29,463
1,580,112
837,425
There is a fixed and floating charge against the property of the company in relation to the bank overdraft.
The obligations under hire purchase agreements are secured against the assets to which they relate.
There is a fixed and floating charge over all of the assets and property of the company, in relation to an invoice financing facility. The liability at the year end of £147,140 at the year end end is included within other creditors due within one year (2022 - £51,513).
Included within other creditors is £500,000 in respect of convertible loan notes. At the company's discretion, the principal amount together with interest on the notes shall be redeemed in full on the earliest of the following dates:
1. completion of further fund raising;
2. such date, prior to the final redemption date as notified to the noteholder by the company.
3. 5th October 2023.
8
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
37,807
42,739
Obligations under hire purchase agreements
45,889
92,812
Other creditors
387,742
381,388
471,438
516,939
EAST LONDON LIQUOR COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
9
Deferred taxation
Balances:
There were no deferred tax movements in the year.
Deferred tax in respect of tax losses has been restricted to the same amount of deferred tax that has been recognised on accelerated capital allowances, as it is not probable that any excess will be recovered against future taxable profits.
10
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
(4,349,481)
(3,507,242)
Loss for the year
(1,019,067)
(842,239)
At the end of the year
(5,368,548)
(4,349,481)
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
£
£
55,000
121,000
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