Company registration number 05712472 (England and Wales)
THE SECRET CELLAR LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
PAGES FOR FILING WITH REGISTRAR
THE SECRET CELLAR LIMITED
CONTENTS
Page
Directors' report
1
Accountants' report
2
Balance sheet
3 - 4
Notes to the financial statements
5 - 9
THE SECRET CELLAR LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The directors present their annual report and financial statements for the year ended 30 June 2023.

 

During the normal course of the year in December 2021 we established an Employee Ownership Trust that transferred ownership of the business to and for the benefit of employees. A new trustee board has been established to ensure we step through the opportunities this new ownership model provides to all current and future employees. We look to run the business with our existing management team structure supported by the new Trustee Board. Our journey of employee ownership is underway.

Fair review of the business

This business was acquired by Winchester Wines Group Ltd in November 2016 to complement its other wine business, Milton Sandford Wines Ltd, already held by the group. Rather than merging the two independently trading companies it remains the optimal approach currently to retain separate company registrations, as both companies serve different segments of the wine industry. This also ensures accurate reporting and management of businesses operating within the same overall industry. The Secret Cellar, within the retail space and Milton Sandford Wines within the hotel/restaurant/bar - the 'on-trade' segment.

 

The company has had a satisfactory year in a retail market that has seen numerous challenges with a new cost of living crisis emerging.

 

Waste regulatory compliance has been undertaken and the company is a member of an authorized scheme. All employees are at or exceed the national living wage guidelines for the UK.

 

The Secret Cellar Ltd has operated in the premium wine retail space since its creation. Its Average selling price’ per bottle is higher than supermarkets or multiple off-license operators. It is a premium operator in the market for customers who understand, like and value their wines.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mrs M L Winchester
Mr J H Winchester

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
Mr J H Winchester
Director
2 February 2024
THE SECRET CELLAR LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF THE SECRET CELLAR LIMITED FOR THE YEAR ENDED 30 JUNE 2023
- 2 -

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of The Secret Cellar Limited for the year ended 30 June 2023 which comprise, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.

This report is made solely to the Board of Directors of The Secret Cellar Limited, as a body. Our work has been undertaken solely to prepare for your approval the financial statements of The Secret Cellar Limited and state those matters that we have agreed to state to the Board of Directors of The Secret Cellar Limited, as a body. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than The Secret Cellar Limited and its Board of Directors as a body, for our work or for this report.

It is your duty to ensure that The Secret Cellar Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of The Secret Cellar Limited. You consider that The Secret Cellar Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of The Secret Cellar Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Kirk Rice LLP
6 February 2024
The Courtyard
High Street
Ascot
Berkshire
SL5 7HP
THE SECRET CELLAR LIMITED
BALANCE SHEET
AS AT
30 JUNE 2023
30 June 2023
- 3 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
4,209
2,385
Current assets
Stocks
259,159
243,753
Debtors
6
53,641
55,262
Cash at bank and in hand
93,212
87,068
406,012
386,083
Creditors: amounts falling due within one year
7
(235,793)
(203,998)
Net current assets
170,219
182,085
Total assets less current liabilities
174,428
184,470
Provisions for liabilities
(398)
(453)
Net assets
174,030
184,017
Capital and reserves
Called up share capital
108
108
Share premium account
1,952
1,952
Profit and loss reserves
171,970
181,957
Total equity
174,030
184,017

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 30 June 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 SECRET CELLAR LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 JUNE 2023
30 June 2023
- 4 -
The financial statements were approved by the board of directors and authorised for issue on 2 February 2024 and are signed on its behalf by:
Mr J H Winchester
Director
Company registration number 05712472 (England and Wales)
THE SECRET CELLAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 5 -
1
Accounting policies
Company information

The Secret Cellar Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Old Chalk Mine, Warren Row Road, Knowl Hill, Reading, RG10 8QS.

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

Atruet 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 net invoiced sales of goods, excluding value added tax, and is recognised upon delivery to the customer.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. The goodwill was fully amortised at 30 June 2018.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Fixtures and fittings
15% on cost
Computers
20% on cost
Motor vehicles
25% reducing balance

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
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.

THE SECRET CELLAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 6 -
1.7
Stocks

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

1.8
Cash and cash equivalents

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.

1.9
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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

THE SECRET CELLAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 7 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Employees

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

2023
2022
Number
Number
Total
7
8
THE SECRET CELLAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
4
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2022 and 30 June 2023
265,000
Amortisation and impairment
At 1 July 2022 and 30 June 2023
265,000
Carrying amount
At 30 June 2023
-
0
At 30 June 2022
-
0
5
Tangible fixed assets
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2022
128,529
5,514
18,469
152,512
Additions
2,380
549
-
0
2,929
At 30 June 2023
130,909
6,063
18,469
155,441
Depreciation and impairment
At 1 July 2022
128,529
4,982
16,616
150,127
Depreciation charged in the year
268
374
463
1,105
At 30 June 2023
128,797
5,356
17,079
151,232
Carrying amount
At 30 June 2023
2,112
707
1,390
4,209
At 30 June 2022
-
0
532
1,853
2,385
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
19,688
22,404
Other debtors
33,953
32,858
53,641
55,262
THE SECRET CELLAR LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
185,003
139,661
Taxation and social security
36,845
31,710
Other creditors
13,945
32,627
235,793
203,998

The company entered into a debenture which contains fixed and floating charges over the company's assets. The debenture was entered into in January 2022 and remains outstanding as at year end.

8
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
£
£
126,167
191,667
9
Parent company

The immediate and ultimate parent is Winchester Wines EOT, a trust incorporated in England and Wales.

 

The registered office of the parent company is:

The Old Chalk Mine, Warren Row Road, Knowl Hill, Reading, Berkshire, RG10 8QS

 

The ultimate controlling parties are Mr J H Winchester, Mr B R Cowl and Ms J Smart, who are the shareholders of the company Winchester Wines EOT Limited, which owns the shares in Winchester Wines EOT.

2023-06-302022-07-01false06 February 2024CCH SoftwareCCH Accounts Production 2023.300No description of principal activityMrs M L WinchesterMr J H WinchesterMr J H Winchesterfalse057124722022-07-012023-06-3005712472bus:Director12022-07-012023-06-3005712472bus:CompanySecretaryDirector12022-07-012023-06-3005712472bus:Director22022-07-012023-06-3005712472bus:CompanySecretary12022-07-012023-06-30057124722023-06-30057124722022-06-3005712472core:FurnitureFittings2023-06-3005712472core:ComputerEquipment2023-06-3005712472core:MotorVehicles2023-06-3005712472core:FurnitureFittings2022-06-3005712472core:ComputerEquipment2022-06-3005712472core:MotorVehicles2022-06-3005712472core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-3005712472core:CurrentFinancialInstrumentscore:WithinOneYear2022-06-3005712472core:CurrentFinancialInstruments2023-06-3005712472core:CurrentFinancialInstruments2022-06-3005712472core:ShareCapital2023-06-3005712472core:ShareCapital2022-06-3005712472core:SharePremium2023-06-3005712472core:SharePremium2022-06-3005712472core:RetainedEarningsAccumulatedLosses2023-06-3005712472core:RetainedEarningsAccumulatedLosses2022-06-3005712472core:Goodwill2022-07-012023-06-3005712472core:FurnitureFittings2022-07-012023-06-3005712472core:ComputerEquipment2022-07-012023-06-3005712472core:MotorVehicles2022-07-012023-06-30057124722021-07-012022-06-3005712472core:NetGoodwill2022-06-3005712472core:NetGoodwill2023-06-3005712472core:NetGoodwill2022-06-3005712472core:FurnitureFittings2022-06-3005712472core:ComputerEquipment2022-06-3005712472core:MotorVehicles2022-06-30057124722022-06-3005712472core:WithinOneYear2023-06-3005712472core:WithinOneYear2022-06-3005712472bus:PrivateLimitedCompanyLtd2022-07-012023-06-3005712472bus:SmallCompaniesRegimeForAccounts2022-07-012023-06-3005712472bus:FRS1022022-07-012023-06-3005712472bus:AuditExemptWithAccountantsReport2022-07-012023-06-3005712472bus:FullAccounts2022-07-012023-06-30xbrli:purexbrli:sharesiso4217:GBP