The Institute Of Masters Of Wine
A Company Limited by Guarantee
Annual Report and Financial Statements
For the year ended 31 March 2023
Company Registration No. 01059707 (England and Wales)
The Institute of Masters of Wine
The Institute Of Masters Of Wine
A Company Limited by Guarantee
Company Information
Directors
S Charters MW
D Forer MW
M Gorman-McAdams MW
P Harden MW
C Hermann MW
N Hughes MW
C Maurer MW
A Pritzker MW
R Smith MW
E Symington MW
C Van Zyl MW
G Zhu MW
N Quille MW
(Appointed 14 September 2022)
J Gore-Booth
(Appointed 17 October 2022)
Secretary
P Harden MW
Company number
01059707
Registered office
6 Riverlight Quay
London
United Kingdom
SW11 8EA
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
The Institute of Masters of Wine
The Institute Of Masters Of Wine
A Company Limited by Guarantee
Contents
Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Balance sheet
9
Notes to the financial statements
10 - 17
The Institute of Masters of Wine
The Institute Of Masters Of Wine
A Company Limited by Guarantee
Directors' Report
For the year ended 31 March 2023
Page 1
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the company is the encouragement and promotion of excellence in wine and the preparation of candidates to sit professional examinations.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
S Charters MW
D Forer MW
A Garforth MW
(Resigned 14 September 2022)
M Gorman-McAdams MW
N Hadley MW
(Resigned 14 September 2022)
P Harden MW
C Hermann MW
N Hughes MW
C Maurer MW
A Pritzker MW
R Smith MW
E Symington MW
C Van Zyl MW
G Zhu MW
N Quille MW
(Appointed 14 September 2022)
J Gore-Booth
(Appointed 17 October 2022)
Reserves policy
The Institute will use its accumulated reserves for the long-term benefit of the membership. The first use will be to provide security against future downturns in revenue or unexpected costs. Any reserves considered by the Directors to be surplus to these requirements will be used in projects that the Directors consider to have a long-term beneficial strategic impact for the Institute as a whole.
The Institute of Masters of Wine
The Institute Of Masters Of Wine
A Company Limited by Guarantee
Directors' Report (Continued)
For the year ended 31 March 2023
Page 2
Going concern
In determining the appropriate basis of preparation of the financial statements, the directors are required to consider whether the Institute can continue in operational existence for the foreseeable future, being a minimum period of 12 months from the date of approval of the financial statements.
Subsequent to the year end, the Institute continues to focus on strengthening financial management with a priority on systems and controls including improved use of the finance software. A focus on the recruitment and retention of senior staff (the senior management team) has ensured sufficient institutional memory is retained whilst at the same time bringing in a new Executive Director (October 2022) and Head of Finance and Resources (April 2023). The re-structuring of the finance team in March/April 2023 has been part of driving this competency-based approach and ensuring that the requisite skills and knowledge are available in house.
Management has considered the Institute’s financial performance since the balance sheet date and the likely impact on revenues as a result of the global economic disruption and the cost of living crisis. Management has prepared cash flow projections for the financial period to 31 March 2025 and reviewed its ability to manage a positive cash position.
The Institute has continued to repay the CBIL £250,000 loan on a monthly basis with the final payment being made in September 2023 thereby reducing outgoings by over £10,000 per month. Additional cashflow has been realised with the full repayment of a loan from MWEC subsequent to the year end, which stood at £300,000 at the balance sheet date. Management is confident that the receipt of this financing plus a significant increase in income from student fees over the next 18 months will provide the Institute with sufficient resources to enable it to meet its liabilities as they fall due and continue to operate for at least the next twelve months.
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 company’s auditor 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 company’s auditor is aware of that information.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
By order of the board
P Harden MW
Secretary
22 September 2023
The Institute of Masters of Wine
The Institute Of Masters Of Wine
A Company Limited by Guarantee
Directors' Responsibilities Statement
For the year ended 31 March 2023
Page 3
The directors are responsible for preparing the Directors' 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 company and of the profit or loss of the company 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;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Institute of Masters of Wine
The Institute Of Masters Of Wine
A Company Limited by Guarantee
Independent Auditor's Report
To the Members of The Institute of Masters of Wine
Page 4
Opinion
We have audited the financial statements of The Institute of Masters of Wine (the 'company') for the year ended 31 March 2023 which comprise the Profit and Loss Account, the Balance Sheet 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 FRS 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 company's affairs as at 31 March 2023 and of its 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 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 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.
The Institute of Masters of Wine
The Institute Of Masters Of Wine
A Company Limited by Guarantee
Independent Auditor's Report (Continued)
To the Members of The Institute of Masters of Wine
Page 5
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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors' Report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
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 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 company or to cease operations, or have no realistic alternative but to do so.
The Institute of Masters of Wine
The Institute Of Masters Of Wine
A Company Limited by Guarantee
Independent Auditor's Report (Continued)
To the Members of The Institute of Masters of Wine
Page 6
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.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
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. 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.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
The Institute of Masters of Wine
The Institute Of Masters Of Wine
A Company Limited by Guarantee
Independent Auditor's Report (Continued)
To the Members of The Institute of Masters of Wine
Page 7
Explanation as to what extent 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, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The objectives of our audit in respect of fraud are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Use of our report
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.
Janice Riches (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
22 September 2023
Chartered Accountants
Statutory Auditor
6th Floor
9 Appold Street
London
EC2A 2AP
The Institute of Masters of Wine
The Institute Of Masters Of Wine
A Company Limited by Guarantee
Profit and loss account
For the year ended 31 March 2023
Page 8
2023
2022
£
£
Income
2,202,477
1,483,259
Cost of sales
(1,016,137)
(808,059)
Gross surplus
1,186,340
675,200
Administrative expenses
(1,149,219)
(954,071)
Other operating income
4,524
Operating Surplus/(Loss)
37,121
(274,347)
Interest receivable and similar income
13,429
7,001
Interest payable and similar expenses
(6,828)
(8,599)
Surplus/(Loss) before taxation
43,722
(275,945)
Taxation
Surplus/(Loss) for the financial year
43,722
(275,945)
The Institute of Masters of Wine
The Institute Of Masters Of Wine
A Company Limited by Guarantee
Balance Sheet
As at 31 March 2023
Page 9
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
8,862
8,321
Current assets
Debtors falling due after more than one year
4
350,000
Debtors falling due within one year
4
791,460
470,738
Cash at bank and in hand
381,014
399,329
1,172,474
1,220,067
Creditors: amounts falling due within one year
5
(1,059,635)
(1,092,995)
Net current assets
112,839
127,072
Total assets less current liabilities
121,701
135,393
Creditors: amounts falling due after more than one year
6
(75,086)
(132,500)
Net assets
46,615
2,893
Capital and reserves
Profit and loss reserves
46,615
2,893
These financial statements have been prepared 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 22 September 2023 and are signed on its behalf by:
P Harden MW
Director
Company Registration No. 01059707
The Institute of Masters of Wine
The Institute Of Masters Of Wine
A Company Limited by Guarantee
Notes to the Financial Statements
For the year ended 31 March 2023
Page 10
1
Accounting policies
Company information
The Institute of Masters of Wine is a company limited by guarantee domiciled and incorporated in England and Wales. The registered office is 6 Riverlight Quay, London, United Kingdom, SW11 8EA. The liability of members is limited to £1 per member.
1.1
Accounting convention
These financial statements have been prepared in accordance with Section 1A of 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. The principal accounting policies adopted are set out below.
1.2
Going concern
In determining the appropriate basis of preparation of the financial statements, the directors are required to consider whether the Institute can continue in operational existence for the foreseeable future, being a minimum period of 12 months from the date of approval of the financial statements.true
Management has considered the Institute’s financial performance since the balance sheet date and the likely impact on revenues, as a result of the ongoing economic disruption and the UK cost of living crisis.
IMW continues to move away from the pandemic imposed virtual events to more in person learning and events. It held a successful International Symposium in June 2023 which has helped to further enhance the reputation of the organisation, and there is also an overall increase in student numbers and - consequently - course income. Applications for the 2023/24 course are higher than 2022 and 2021, with the quality of candidates being particularly good, which is expected to result in a strong and growing student population thereby generating higher course income.
Alongside the above, the Institute is ramping up the focus on Supporter activity with a return to the face-to-face Supporter lunch in October 2023 and a Supporter Summit planned for June 2024. These and other improvements to how it manages and generates income are designed to ensure that Supporter income is retained and increased over the next 12 months.
Subsequent to the year end the Institute received £300,000 as early full repayment from MWEC of the loan outstanding at the balance sheet date.
Management has reviewed future cashflows for the period to 31 March 2025 and is confident that the receipt of funds from increased student income together with the repayment of the loan from MWEC, will provide the Institute with sufficient resources to enable it to meet its liabilities as they fall due and continue to operate for at least the next twelve months and consequently the financial statements have been prepared on a going concern basis.
The Institute of Masters of Wine
The Institute Of Masters Of Wine
A Company Limited by Guarantee
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
1
Accounting policies
(Continued)
Page 11
1.3
Income recognition
Income is recognised at the fair value of the consideration received or receivable for services provided, and is shown net of VAT and other sales related taxes.
Income from membership subscriptions is recognised over the period of the subscription. Education and exams income is recognised on a percentage completion basis over the period of the course. Events and trips income is recognised when the event/trip has occured.
1.4
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:
Leasehold improvements
5 years straight line
Office equipment
4 years 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.
The company only capitalises items which have a cost of £1,000 or above.
1.5
Cash at bank and in hand
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.
1.6
Financial instruments
Basic financial instruments are measured at amortised cost. The company has no other financial instruments or basic financial instruments measured at fair value.
1.7
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.
The Institute of Masters of Wine
The Institute Of Masters Of Wine
A Company Limited by Guarantee
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
1
Accounting policies
(Continued)
Page 12
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.
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 reserves, in which case the deferred tax is also dealt with in reserves. 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.
1.8
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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 leases asset are consumed.
1.12
Government grants
Grants relating to revenue are recognised in income on a systematic basis over the period in which the entity recognises the related costs for which the grant is intended to compensate. This includes £Nil (2022: £4,524) of government assistance relating to interest on the CBILS loan.
1.13
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.
The Institute of Masters of Wine
The Institute Of Masters Of Wine
A Company Limited by Guarantee
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 13
2
Employees
The average monthly number of persons employed by the company during the year was 13 (2022 - 10).
2023
2022
Number
Number
Total
13
10
3
Tangible fixed assets
Leasehold improvements
Office equipment
Total
£
£
£
Cost
At 1 April 2022
136,995
27,934
164,929
Additions
4,336
4,336
At 31 March 2023
136,995
32,270
169,265
Depreciation and impairment
At 1 April 2022
136,995
19,613
156,608
Depreciation charged in the year
3,795
3,795
At 31 March 2023
136,995
23,408
160,403
Carrying amount
At 31 March 2023
8,862
8,862
At 31 March 2022
8,321
8,321
There is a fixed and floating charge over all the assets of the company in favour of HSBC Bank Plc which was created in June 2016.
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
355,685
173,952
Amounts due from the Masters of Wine Endowment Company
300,000
Other debtors
72,093
87,178
Prepayments and accrued income
63,682
209,608
791,460
470,738
The Institute of Masters of Wine
The Institute Of Masters Of Wine
A Company Limited by Guarantee
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
4
Debtors
(Continued)
Page 14
2023
2022
Amounts falling due after more than one year:
£
£
Amount due from Masters of Wine Endowment Company
350,000
Total debtors
791,460
820,738
The loan to the Masters of Wine Endowment Company was fully repaid by that company subsequent to the year end.
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
62,500
125,000
Other borrowings
15,601
Other taxation and social security
43,354
32,039
Other creditors
169,466
319,034
Accruals and deferred income
768,714
616,922
1,059,635
1,092,995
Included within Other creditors is an amount of £21,836 relating to pension payments due (2022: £2,627).
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
62,500
Other borrowings
35,086
Deferred income
40,000
70,000
75,086
132,500
The bank loan is unsecured and repayable by September 2023. It is interest free for the first year. Interest is charged at 3.49% above BoE base rate after the first year.
The Institute of Masters of Wine
The Institute Of Masters Of Wine
A Company Limited by Guarantee
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 15
7
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
104,230
105,487
Between two and five years
5,795
6,120
110,025
111,607
The Institute of Masters of Wine
The Institute Of Masters Of Wine
A Company Limited by Guarantee
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 16
8
Related party transactions
Masters of Wine Endowment Company
(Under common control)
During the year, expenses incurred by Masters of Wine Endowment Company were paid on its behalf by The Institute of Masters of Wine. Rental income of £96,000 (2022: £96,000) was charged to the Institute of Masters of Wine by the Masters of Wine Endowment Company under the formal lease for the property at 6 Riverlight Quay, London, SW11 8EA.
Amounts due from Masters of Wine Endowment Company include a loan balance of £300,000 (2022: £350,000). At the balance sheet date, the amount due from Masters of Wine Endowment Company was £293,820 (2022: £335,200).
Directors
All directors were members in the year and paid the agreed subscription rate. All Directors have the option to attend events during the year on the same basis as other members of The Institute. The following related party transactions were undertaken during the year ended 31 March 2023:
Name
Expenses
Honoraria
Expenses
Honoraria
2023
2023
2022
2022
Honorary officers
£
£
£
£
Philip Harden MW
319
200
182
300
Cathy Van Zyl MW
5,597
-
2,336
750
Neil Hadley MW
169
-
4,004
-
Name
Expenses and Honoraria
2023
2022
Council
£
£
Steve Charters MW
1,090
1,192
Caro Maurer MW
1,750
1,222
Rod Smith MW
7,092
6,833
David Forer MW
1,148
680
Caroline Hermann MW
6,920
3,201
Natasha Hughes MW
3,278
1,050
Emma Symington MW
1,267
1,909
Mary Gorman Mc-Adams MW
1,589
3,435
Andrea Pritzker MW
10,224
7,645
Adrian Garforth MW
5,475
10,726
Gus Zhu MW
50
-
Expenses include amounts paid directly by the Institute as well as amounts borne by the relevant Director and reclaimed.
In addition to the above, a consultancy fee of £67,500 (2022: £125,000) was paid to Blackrock Wines Ltd, a company in which Adrian Garforth is Director, for executive director services provided.
No Directors received complimentary tickets to events held by the Institute during the year.
The Institute of Masters of Wine
The Institute Of Masters Of Wine
A Company Limited by Guarantee
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 17
9
Financial commitments, guarantees and contingencies
An unlimited multilateral guarantee dated 18 May 2016 was given by Master of Wine Endowment Company and The Institute of Masters of Wine in respect of the mortgage taken out by the Masters of Wine Endowment Company with HSBC PLC. The amount outstanding at the balance sheet date, subject to this guarantee, was £866,416 (2022: £911,733).
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