IRIS Accounts Production v23.3.1.45 SC090255 Board of Directors 1.6.22 31.5.23 31.5.23 true false true true false false false true false iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWhSC0902552022-05-31SC0902552023-05-31SC0902552022-06-012023-05-31SC0902552021-05-31SC0902552021-06-012022-05-31SC0902552022-05-31SC090255ns10:Originalns15:Scotland2022-06-012023-05-31SC090255ns14:PoundSterlingns10:Original2022-06-012023-05-31SC090255ns10:Originalns10:Director12022-06-012023-05-31SC090255ns10:Original2022-06-012023-05-31SC090255ns10:Original2023-05-31SC090255ns10:Originalns10:PrivateLimitedCompanyLtd2022-06-012023-05-31SC090255ns10:Originalns10:FRS1022022-06-012023-05-31SC090255ns10:Originalns10:Audited2022-06-012023-05-31SC090255ns10:Originalns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-06-012023-05-31SC090255ns10:LargeMedium-sizedCompaniesRegimeForAccountsns10:Original2022-06-012023-05-31SC090255ns10:Originalns10:FullAccounts2022-06-012023-05-31SC090255ns10:Original12022-06-012023-05-31SC090255ns10:Originalns10:Director22022-06-012023-05-31SC090255ns10:Originalns10:Director32022-06-012023-05-31SC090255ns10:Originalns10:Director42022-06-012023-05-31SC090255ns10:Originalns10:Director52022-06-012023-05-31SC090255ns10:Originalns10:Director62022-06-012023-05-31SC090255ns10:Originalns10:Director72022-06-012023-05-31SC090255ns10:CompanySecretary1ns10:Original2022-06-012023-05-31SC090255ns10:Originalns10:RegisteredOffice2022-06-012023-05-31SC090255ns10:Original2021-06-012022-05-31SC090255ns10:Original2022-05-31SC090255ns10:Originalns5:CurrentFinancialInstruments2023-05-31SC090255ns10:Originalns5:CurrentFinancialInstruments2022-05-31SC090255ns10:Originalns5:Non-currentFinancialInstruments2023-05-31SC090255ns10:Originalns5:Non-currentFinancialInstruments2022-05-31SC090255ns5:ShareCapitalns10:Original2023-05-31SC090255ns5:ShareCapitalns10:Original2022-05-31SC090255ns10:Originalns5:RetainedEarningsAccumulatedLosses2023-05-31SC090255ns10:Originalns5:RetainedEarningsAccumulatedLosses2022-05-31SC090255ns5:ShareCapitalns10:Original2021-05-31SC090255ns10:Originalns5:RetainedEarningsAccumulatedLosses2021-05-31SC090255ns10:Original2021-05-31SC090255ns10:Originalns5:RetainedEarningsAccumulatedLosses2021-06-012022-05-31SC090255ns10:Originalns5:RetainedEarningsAccumulatedLosses2022-06-012023-05-31SC090255ns10:Originalns5:NetGoodwill2022-06-012023-05-31SC090255ns5:IntangibleAssetsOtherThanGoodwillns10:Original2022-06-012023-05-31SC090255ns10:Originalns5:LeaseholdImprovements2022-06-012023-05-31SC090255ns10:Originalns5:FurnitureFittings2022-06-012023-05-31SC090255ns10:Originalns5:MotorVehicles2022-06-012023-05-31SC090255ns10:Originalns5:ReportableOperatingSegment12022-06-012023-05-31SC090255ns10:Originalns5:ReportableOperatingSegment12021-06-012022-05-31SC090255ns10:Originalns5:TotalReportableOperatingSegmentsIncludingAnyUnallocatedAmount2022-06-012023-05-31SC090255ns10:Originalns5:TotalReportableOperatingSegmentsIncludingAnyUnallocatedAmount2021-06-012022-05-31SC090255ns10:Originalns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2022-06-012023-05-31SC090255ns10:Originalns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2021-06-012022-05-31SC090255ns10:Originalns10:HighestPaidDirector2022-06-012023-05-31SC090255ns10:Originalns10:HighestPaidDirector2021-06-012022-05-31SC090255ns10:Originalns5:HirePurchaseContracts2022-06-012023-05-31SC090255ns10:Originalns5:HirePurchaseContracts2021-06-012022-05-31SC090255ns5:OwnedAssetsns10:Original2022-06-012023-05-31SC090255ns5:OwnedAssetsns10:Original2021-06-012022-05-31SC090255ns10:Originalns5:LeasedAssets2022-06-012023-05-31SC090255ns10:Originalns5:LeasedAssets2021-06-012022-05-31SC090255ns10:Originalns5:NetGoodwill2022-05-31SC090255ns10:Originalns5:NetGoodwill2023-05-31SC090255ns10:Originalns5:NetGoodwill2022-05-31SC090255ns10:Originalns5:LeaseholdImprovements2022-05-31SC090255ns10:Originalns5:PlantMachinery2022-05-31SC090255ns10:Originalns5:FurnitureFittings2022-05-31SC090255ns10:Originalns5:MotorVehicles2022-05-31SC090255ns10:Original2022-05-31SC090255ns10:Originalns5:PlantMachinery2022-06-012023-05-31SC090255ns10:Originalns5:LeaseholdImprovements2023-05-31SC090255ns10:Originalns5:PlantMachinery2023-05-31SC090255ns10:Originalns5:FurnitureFittings2023-05-31SC090255ns10:Originalns5:MotorVehicles2023-05-31SC090255ns10:Originalns5:LeaseholdImprovements2022-05-31SC090255ns10:Originalns5:PlantMachinery2022-05-31SC090255ns10:Originalns5:FurnitureFittings2022-05-31SC090255ns10:Originalns5:MotorVehicles2022-05-31SC090255ns10:Originalns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-05-31SC090255ns10:Originalns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-05-31SC090255ns10:Originalns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2023-05-31SC090255ns10:Originalns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2022-05-31SC090255ns10:Originalns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2023-05-31SC090255ns10:Originalns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2022-05-31SC090255ns10:Originalns5:WithinOneYear2023-05-31SC090255ns10:Originalns5:WithinOneYear2022-05-31SC090255ns5:BetweenOneFiveYearsns10:Original2023-05-31SC090255ns5:BetweenOneFiveYearsns10:Original2022-05-31SC090255ns10:Originalns5:AllPeriods2023-05-31SC090255ns10:Originalns5:AllPeriods2022-05-31SC090255ns5:Securedns10:Original2023-05-31SC090255ns5:Securedns10:Original2022-05-31SC090255ns10:Originalns5:DeferredTaxation2022-05-31SC090255ns10:Originalns5:DeferredTaxation2023-05-31
REGISTERED NUMBER: SC090255 (Scotland)











ALLIANCE WINE COMPANY LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2023






ALLIANCE WINE COMPANY LIMITED (REGISTERED NUMBER: SC090255)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3 to 4

Report of the Independent Auditors 5 to 8

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13 to 24


ALLIANCE WINE COMPANY LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MAY 2023







DIRECTORS: Charles Jonathan Kennett
Christian Bouteiller
Giles Cooke
Miriam Spiers
Fergal Anthony Tynan
Linda Cowan
Edward Llewellyn


SECRETARY: Christian Bouteiller


REGISTERED OFFICE: 7 Beechfield Road
Willowyard Estate
Beith
Ayrshire
KA15 1LN


REGISTERED NUMBER: SC090255 (Scotland)


AUDITORS: Milne Craig
Chartered accountants
Statutory auditor
Abercorn House
79 Renfrew Road
Paisley
Renfrewshire
PA3 4DA


BANKERS: HSBC
1 Centenary Square
Birmingham
B1 1HQ

ALLIANCE WINE COMPANY LIMITED (REGISTERED NUMBER: SC090255)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023

The directors present their strategic report for the year ended 31 May 2023.

The principal activity of the company is that of a wine merchant.

REVIEW OF BUSINESS
The key financial highlights are as follows:
2023 2022 2021
£ £ £

Turnover 44,254,003 45,754,013 31,193,267
Turnover growth -3.3% 31.0% 2.2%
Profit before tax 1,720,096 2,235,014 1,186,910

The net assets of the company have increased from £3,420,600 at 31 May 2022 to £3,896,928 at 31 May 2023.

PRINCIPAL RISKS AND UNCERTAINTIES
The company is exposed to the following risks, taking in to account the cost of living crisis:

- A loss of revenue and cash flow due to lower economic activity within our key market, the UK, and in particular the hospitality sector due to people have less disposable income;

The company has a diversified business model and has continued to trade well despite the cost of living crisis. Sales through our off-trade customers both in the UK and Internationally have experienced very strong growth and have mitigated some of the adverse impact of the cost of living crisis on our trade with the hospitality sector.

Overall the Directors believe the company has responded well to the challenges thus far and has sufficient liquidity and operational capability to withstand any further shocks on the business.

FINANCIAL INSTRUMENTS
The company's principal financial instruments comprise bank balances, trade creditors and trade debtors. The main purpose of these instruments is to finance the company's operations.

Trade debtors are managed in respect of credit and cashflow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

ENVIRONMENT
The company recognises the importance of its environmental responsibilities and has policies in place to manage its impact on the environment.

ON BEHALF OF THE BOARD:





Fergal Anthony Tynan - Director


13 December 2023

ALLIANCE WINE COMPANY LIMITED (REGISTERED NUMBER: SC090255)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MAY 2023

The directors present their report with the financial statements of the company for the year ended 31 May 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of wine merchants.

DIVIDENDS
In May 2023 the following dividends were paid:

'A' ordinary £3.50 per share
'B' ordinary £219,521 per share
'C' ordinary £142,054 per share
'D' ordinary £177,090 per share
'E' ordinary £176,617 per share
'G' ordinary £162,586 per share

The total dividends paid were £895,383.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 June 2022 to the date of this report.

Charles Jonathan Kennett
Christian Bouteiller
Giles Cooke
Miriam Spiers
Fergal Anthony Tynan
Linda Cowan
Edward Llewellyn

DONATIONS AND EXPENDITURE
Non political donations amounting to £1,550 ( 2022 - £15,000) were paid during the year.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ALLIANCE WINE COMPANY LIMITED (REGISTERED NUMBER: SC090255)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MAY 2023


AUDITORS
The auditors, Milne Craig, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Fergal Anthony Tynan - Director


13 December 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ALLIANCE WINE COMPANY LIMITED

Opinion
We have audited the financial statements of Alliance Wine Company Limited (the 'company') for the year ended 31 May 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 May 2023 and of its profit 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.

Basis for opinion
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 Auditors' 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.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ALLIANCE WINE COMPANY LIMITED


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 Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where 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 directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ALLIANCE WINE COMPANY LIMITED


Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion,

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we consider the following:
- the nature of the industry and sector, control environment and business performance including the key drivers for Directors' remuneration, bonus levels and performance targets;
- results of our enquiries of management about their own identification and assessment of the risks of irregularities;
- any matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any
instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual,
suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and
regulations;
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we consider the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the cut-off of revenue recognition. In common with all audits under ISAs(UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosure in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, tax legislation and Health and Safety legislation.

In addition to the above, our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provision of relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring of management concerning actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- reading minutes of meeting of those charged with governance;
- in addressing the fraud risk in revenue cut-off, we have tested a sample of revenue/stock recorded pre year end and post year end and agreed to invoice, and stock records to assess timing of cut-off and ensure that revenue is only recognised when goods have been dispatched; and
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ALLIANCE WINE COMPANY LIMITED


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 a Report of the Auditors 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.




Kirsty Mackie - BAcc CA (Senior Statutory Auditor)
for and on behalf of Milne Craig
Chartered accountants
Statutory auditor
Abercorn House
79 Renfrew Road
Paisley
Renfrewshire
PA3 4DA

13 December 2023

ALLIANCE WINE COMPANY LIMITED (REGISTERED NUMBER: SC090255)

INCOME STATEMENT
FOR THE YEAR ENDED 31 MAY 2023

2023 2022
Notes £    £   

TURNOVER 3 44,254,003 45,754,013

Cost of sales (35,465,865 ) (37,231,258 )
GROSS PROFIT 8,788,138 8,522,755

Distribution costs (897,317 ) (775,314 )
Administrative expenses (6,378,748 ) (5,768,360 )
1,512,073 1,979,081

Other operating income 274,637 323,461
OPERATING PROFIT 1,786,710 2,302,542


Interest payable and similar expenses 5 (66,614 ) (67,528 )
PROFIT BEFORE TAXATION 6 1,720,096 2,235,014

Tax on profit 7 (348,385 ) (431,294 )
PROFIT FOR THE FINANCIAL YEAR 1,371,711 1,803,720

ALLIANCE WINE COMPANY LIMITED (REGISTERED NUMBER: SC090255)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,371,711 1,803,720


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,371,711

1,803,720

ALLIANCE WINE COMPANY LIMITED (REGISTERED NUMBER: SC090255)

BALANCE SHEET
31 MAY 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 1 1
Tangible assets 11 70,311 82,204
70,312 82,205

CURRENT ASSETS
Stocks 12 4,336,952 3,658,207
Debtors 13 8,605,370 8,562,971
Cash at bank 756,985 1,510,992
13,699,307 13,732,170
CREDITORS
Amounts falling due within one year 14 9,325,857 9,317,626
NET CURRENT ASSETS 4,373,450 4,414,544
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,443,762

4,496,749

CREDITORS
Amounts falling due after more than one
year

15

(541,667

)

(1,066,667

)

PROVISIONS FOR LIABILITIES 20 (5,167 ) (9,482 )
NET ASSETS 3,896,928 3,420,600

CAPITAL AND RESERVES
Called up share capital 21 5,000 5,000
Retained earnings 3,891,928 3,415,600
3,896,928 3,420,600

The financial statements were approved by the Board of Directors and authorised for issue on 13 December 2023 and were signed on its behalf by:





Fergal Anthony Tynan - Director


ALLIANCE WINE COMPANY LIMITED (REGISTERED NUMBER: SC090255)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 June 2021 5,000 2,675,506 2,680,506

Changes in equity
Dividends - (1,063,626 ) (1,063,626 )
Total comprehensive income - 1,803,720 1,803,720
Balance at 31 May 2022 5,000 3,415,600 3,420,600

Changes in equity
Dividends - (895,383 ) (895,383 )
Total comprehensive income - 1,371,711 1,371,711
Balance at 31 May 2023 5,000 3,891,928 3,896,928

ALLIANCE WINE COMPANY LIMITED (REGISTERED NUMBER: SC090255)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

1. STATUTORY INFORMATION

Alliance Wine Company Limited is a private company, limited by shares, registered in Scotland. The company's registration number is SC090255 and registered office address is 7 Beechfield Road, Willowyard Estate, Beith, Ayrshire, KA15 1LN.

The nature of the company's operations and its principal activities is that of wine merchants.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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 £.

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.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Critical accounting judgements and key sources of estimation uncertainty
In preparing these financial statements, the directors have made the following judgements:

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Assets are considered for indications of impairment. If required an impairment review will be carried out and a decision made on possible impairment. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Bad debts are provided for where objective evidence of the need for a provision exists.

Inventories are assessed for evidence of obsolescence and a provision is made against any inventory unlikely to be sold, or where stock is sold post year end at a loss.

ALLIANCE WINE COMPANY LIMITED (REGISTERED NUMBER: SC090255)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023

2. ACCOUNTING POLICIES - continued

Turnover
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Consideration is given to the point at which the company is entitled to receive the income, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Revenue from the provision of services is recognised in the period in which the services are provided when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;
- it is probable that the Company will receive the consideration due;
- the costs incurred can be measured reliably.

Rental income is included in the period in which it is earned.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2002, is being amortised evenly over its estimated useful life of ten years.

Intangible assets
Intangible assets are included at fair value with any change to fair value reflected through the profit and loss account.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Improvements to property - 10% on cost
Fixtures and fittings - 33% on cost and 20% - 25% on cost
Motor vehicles - 25% on cost

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

ALLIANCE WINE COMPANY LIMITED (REGISTERED NUMBER: SC090255)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023

2. ACCOUNTING POLICIES - continued

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 transactions 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.

Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

Foreign currency forward contracts
Foreign currency forward contracts are recognised initially at fair value, net of transaction costs incurred. In successive periods these are measured at fair value through profit or loss.


ALLIANCE WINE COMPANY LIMITED (REGISTERED NUMBER: SC090255)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023

2. ACCOUNTING POLICIES - continued
Taxation
Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

Deferred tax assets are only 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.

If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed.

Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

With the exception of changes arising on the initial recognition of a business combination, the tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income).

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

Deferred tax assets and deferred tax liabilities are offset only if the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Leases
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the profit and loss account over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

ALLIANCE WINE COMPANY LIMITED (REGISTERED NUMBER: SC090255)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023

2. ACCOUNTING POLICIES - continued

Impairment of assets
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

Non-financial assets
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Financial assets
For financial assets carried at amortised cost, the amount of impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal.

An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Sale of wines 44,254,003 45,754,013
44,254,003 45,754,013

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom & Others 44,254,003 45,754,013
44,254,003 45,754,013

ALLIANCE WINE COMPANY LIMITED (REGISTERED NUMBER: SC090255)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 3,605,752 3,243,383
Social security costs 351,460 293,381
Other pension costs 209,616 459,831
4,166,828 3,996,595

The average number of employees during the year was as follows:
2023 2022

Office and management 26 21
Administration and warehouse staff 37 35
Salespeople 19 18
82 74

2023 2022
£    £   
Directors' remuneration 236,202 219,896
Directors' pension contributions to money purchase schemes 87,395 318,495

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 91,290 90,352
Pension contributions to money purchase schemes 14,531 9,120

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 505 1,437
Loan Interest 66,109 65,916
Hire purchase - 175
66,614 67,528

ALLIANCE WINE COMPANY LIMITED (REGISTERED NUMBER: SC090255)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023

6. PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

2023 2022
£    £   
Other operating leases 100,603 62,619
Depreciation - owned assets 36,977 37,800
Depreciation - assets on hire purchase contracts or finance leases - 9,482
Profit on disposal of fixed assets - (11,124 )
Auditors' remuneration 15,000 15,000

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 352,754 434,943
Under/(Over) provision in prior year (54 ) (30 )
Total current tax 352,700 434,913

Deferred tax (4,315 ) (3,619 )
Tax on profit 348,385 431,294

UK corporation tax has been charged at 20% (2022 - 19%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,720,096 2,235,014
Profit multiplied by the standard rate of corporation tax in the UK of 20%
(2022 - 19%)

344,019

424,653

Effects of:
Expenses not deductible for tax purposes 12,137 3,858
Depreciation in excess of capital allowances 987 787
Other timing differences (4,340 ) 5,664
Deferred taxation (4,436 ) (4,009 )
Adjustment in respect of previous periods 18 341
Total tax charge 348,385 431,294

ALLIANCE WINE COMPANY LIMITED (REGISTERED NUMBER: SC090255)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023

8. DIVIDENDS

20232022
Equity shares:£ £
'A' Ordinary £1 shares17,53523,010
'B' Ordinary £1 shares219,521245,339
'C' Ordinary £1 shares142,054226,763
'D' Ordinary £1 shares177,070198,594
'E' Ordinary £1 shares176,617190,894
'G' Ordinary £1 shares162,586179,026
895,3831,063,626

9. DEFINED CONTRIBUTION PENSION SCHEME

The company operates a defined contribution scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund amounted to £209,616 (2022 - £459,831) including contributions in respect of directors and employees. Contributions due to the fund at 31 May 2023 amounted to £15,782 (2022 - £47,945).

10. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 June 2022
and 31 May 2023 100,000
AMORTISATION
At 1 June 2022
and 31 May 2023 99,999
NET BOOK VALUE
At 31 May 2023 1
At 31 May 2022 1

ALLIANCE WINE COMPANY LIMITED (REGISTERED NUMBER: SC090255)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023

11. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 June 2022 171,793 1,936 701,627 67,029 942,385
Additions - - 25,084 - 25,084
At 31 May 2023 171,793 1,936 726,711 67,029 967,469
DEPRECIATION
At 1 June 2022 155,838 565 636,755 67,023 860,181
Charge for year 6,960 967 29,050 - 36,977
At 31 May 2023 162,798 1,532 665,805 67,023 897,158
NET BOOK VALUE
At 31 May 2023 8,995 404 60,906 6 70,311
At 31 May 2022 15,955 1,371 64,872 6 82,204

The net book value of tangible fixed assets includes £NIL in respect of assets held under hire purchase contracts or finance leases.

12. STOCKS
2023 2022
£    £   
Wine for resale 4,336,952 3,658,207

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 6,720,663 6,967,800
Amounts owed by group undertakings 1,684,532 1,118,346
Other debtors 26,920 69,361
Financial derivative - 194,825
Prepayments 173,255 212,639
8,605,370 8,562,971

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 16) 250,000 600,000
Trade creditors 4,290,250 4,819,595
Amounts owed to group undertakings 501,126 674,265
Corporation tax 352,754 434,943
Social security and other taxes 939,025 1,035,662
Other creditors 1,436,808 -
Accrued expenses 1,458,018 1,753,161
Financial derivative 97,876 -
9,325,857 9,317,626

ALLIANCE WINE COMPANY LIMITED (REGISTERED NUMBER: SC090255)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 16) 541,667 1,066,667

16. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 250,000 600,000

Amounts falling due between one and two years:
Bank loans - 1-2 years 541,667 600,000

Amounts falling due between two and five years:
Bank loans - 2-5 years - 466,667

17. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 161,360 168,026
Between one and five years 120,000 645,440
281,360 813,466

18. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 791,667 1,666,667

The bank borrowings are secured by a bond and floating charge over the assets and debtors of the company and also by guarantee of the assignation of a life policy of one of the directors.

Hire purchase creditors are secured over the assets to which they relate.

ALLIANCE WINE COMPANY LIMITED (REGISTERED NUMBER: SC090255)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023

19. FINANCIAL INSTRUMENTS

The carrying amount for each category of financial instrument is as follows:

2023 2022
£ £
£ £
Financial assets
Financial assets that are debt instruments measured at amortised cost 8,432,115 8,350,332
Cash and cash equivalents 756,985 1,510,992
9,189,100 9,861,324
Financial liabilities
Financial liabilities measured at amortised cost 7,867,839 7,564,465

20. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 5,167 9,482

Deferred
tax
£   
Balance at 1 June 2022 9,482
Originating and reversal of (4,315 )
timing differences
Balance at 31 May 2023 5,167

21. CALLED UP SHARE CAPITAL

Number Class Nominal 2023 2022
value £    £   
4,994 'A' Ordinary £1 4,994 4,994
1 'B' Ordinary £1 1 1
1 'C' Ordinary £1 1 1
1 'D' Ordinary £1 1 1
1 'E' Ordinary £1 1 1
1 'F' Ordinary £1 1 1
1 'G' Ordinary £1 1 1
5,000 5.000

All shares have equal rights.

22. CAPITAL COMMITMENTS
2023 2022
£    £   
Contracted but not provided for in the
financial statements - 30,000

ALLIANCE WINE COMPANY LIMITED (REGISTERED NUMBER: SC090255)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2023

23. DERIVATIVES

The company has foreign currency forward contracts in place at the year-end which commit the company to purchase foreign currency at prescribed rates.

The fair value of these forward contracts committed to at the balance sheet date is a financial liability of £97,876 (2022 - £194,825 Dr).

24. RELATED PARTY DISCLOSURES

At 31 May 2023 the company was owed £1,506,605 (2022 - £1,075,553) by an associated company, Alliance Wine Australia Pty Limited, £177,927 (2022 - £42,793 by another associated company Maison De Alliance and £501,126 (2022 - £674,265) from it's parent company Alliance Wine Group Limited.

During the year the company paid rent to Alliance Wine SSAS amounting to £52,104 (2022 - £52,104) and £29,256 (2022 - £29,256) to Bermond Property Limited , a company owned by one of the directors, Chris Bouteiller.

The company also paid marketing fees to Rainbow Technology Systems Limited and Health Hub Limited, companies under the control of one of the directors, Jonathan Kennett, amounting to £nil (2022 - £58,570).

All directors and certain senior employees who have authority and responsibility for planning, directing and controlling the activities of the company are considered to be key management personnel. Total remuneration in respect of these individuals is £236,202 (2022 - £219,896).

25. ULTIMATE CONTROLLING PARTY

The company is ultimately controlled by Alliance Wine Group Limited, a company incorporated in Scotland who own 100% of the share capital.