Company Registration No. 04704072 (England and Wales)
E.W.G.A. LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 SEPTEMBER 2023
PAGES FOR FILING WITH REGISTRAR
E.W.G.A. LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
E.W.G.A. LIMITED
BALANCE SHEET
AS AT
28 SEPTEMBER 2023
28 September 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
-
0
9,999
Tangible assets
4
1,484,416
1,391,161
1,484,416
1,401,160
Current assets
Stocks
1,556,881
1,020,968
Debtors
5
1,737,032
1,952,055
Cash at bank and in hand
14,874
37,079
3,308,787
3,010,102
Creditors: amounts falling due within one year
6
(3,624,358)
(3,241,969)
Net current liabilities
(315,571)
(231,867)
Total assets less current liabilities
1,168,845
1,169,293
Creditors: amounts falling due after more than one year
7
(650,086)
(833,154)
Provisions for liabilities
(141,459)
(101,252)
Net assets
377,300
234,887
Capital and reserves
Called up share capital
10,000
10,000
Revaluation reserve
684,573
705,622
Profit and loss reserves
(317,273)
(480,735)
Total equity
377,300
234,887

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 28 September 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.

E.W.G.A. LIMITED
BALANCE SHEET (CONTINUED)
AS AT
28 SEPTEMBER 2023
28 September 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 26 February 2024 and are signed on its behalf by:
Mr A C Moeckell
Director
Company Registration No. 04704072
E.W.G.A. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 SEPTEMBER 2023
- 3 -
1
Accounting policies
Company information

E.W.G.A. Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hyning Home Farm, Dock Acres, Warton, Carnforth, LA6 1HP.

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, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

The directors do not consider there to be a material uncertainty at this time, and there is 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.true

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
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. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5-10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

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.

E.W.G.A. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 4 -

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:

Freehold land and buildings
2% straight line
Leasehold land and buildings
20% straight line
Plant and equipment
15% straight line
Fixtures and fittings
15% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
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).

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchases on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand. 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.

E.W.G.A. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans 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
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
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.

E.W.G.A. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 6 -
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.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

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

1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

E.W.G.A. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 7 -
1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.17

Environmental, Social and Governance Statement

EWGA Wines has always had green initiatives and sustainability at its core. In 1972 when the company was founded, it was all about circular economy and recycling. 50 years later, we evaluated every part of our operations to lower our carbon footprint and improve sustainability. In the last 12 months, we accelerated our efforts and reached our goal of becoming a carbon-neutral operation by the end of 2023.

We work with wine producers who care about sustainability and are taking steps to reduce their carbon footprint. All our major partner growers are accredited by their domestic bodies. EWGA aim to introduced genuine carbon-neutral wines to the market in 2024 with no carbon offsetting.

We use sea freight where possible and ship our key wine ranges un-bottled in flexitanks. This method of shipping emits the lowest amount of CO2 per tonne-kilometre compared to any other transport method. European loads are consolidated and use mainly rail or sea freight, reducing emissions by 75% compared to road transport.

We use recyclable and sustainably sourced cardboard instead of plastic. We removed all single-use plastics from our portfolio. Around 90% of all waste generated in the business is recycled and educate our staff about sustainability. Our premises are equipped with a heat-saving exchange system which saves around 38% of the company’s energy consumption. Additionally, all the lighting in our building was replaced by low-energy LED lightbulbs.

In 2021, we introduced our first electric van for local deliveries, and have worked out that deliveries using it equate to around 66% fewer carbon emissions (compared to buying from a traditional wholesaler). More EVs followed in 2022, and now every sales team member is driving an EV. We have installed an 70kw solar array on one roof of our warehouses that powers our buildings and helps charge our electric fleet to further reduce our carbon footprint and future-proof our electrical demand with the advent of large-capacity vans.

Research and collaborative work on sustainable practices is very important. In 2022, we were amongst the first to sign up for the Harpers Sustainability Charter when it launched, showcasing our commitment to engage with and drive sustainable progress in the drinks industry. We are also a part of the SME climate hub, where we committed to halving our emissions by 2030 and achieving net zero by 2050.

In 2022, our MD joined a £14m research and development project organised by the University of Lancaster called the Eco-1 North West to collaborate with other businesses for a clean and sustainable future. We are also working with the MaCaW project at UCLAN to help us move towards a low-carbon economic model thanks to a thorough audit of the business which is ongoing. As a result, we will know exactly what next steps we must take to reach our goal of becoming a carbon-neutral operation by the end of 2023. To verify this, we have registered and are undergoing ISO 14001 accreditation which we expect to complete during 2024.

Investing in staff training, development and well-being is key. We have many long-serving employees with two of them celebrating 22 years with the company and many more with over 10 years of service. Our annual expenditure on training has more than tripled in the last 12 months.

 

In 2023, we participated in various community projects. From donating prizes to local charities to sponsoring local sports teams like the Silverdale Cricket Club.

E.W.G.A. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 SEPTEMBER 2023
- 8 -
2
Employees

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

2023
2022
Number
Number
Total
44
44
3
Intangible fixed assets
Goodwill
£
Cost
At 29 September 2022 and 28 September 2023
243,000
Amortisation and impairment
At 29 September 2022
233,001
Amortisation charged for the year
9,999
At 28 September 2023
243,000
Carrying amount
At 28 September 2023
-
0
At 28 September 2022
9,999
4
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 29 September 2022
1,250,000
79,820
314,454
87,821
1,732,095
Additions
-
0
9,735
116,795
68,028
194,558
At 28 September 2023
1,250,000
89,555
431,249
155,849
1,926,653
Depreciation and impairment
At 29 September 2022
25,000
73,709
227,747
14,478
340,934
Depreciation charged in the year
24,996
3,744
37,907
34,656
101,303
At 28 September 2023
49,996
77,453
265,654
49,134
442,237
Carrying amount
At 28 September 2023
1,200,004
12,102
165,595
106,715
1,484,416
At 28 September 2022
1,225,000
6,111
86,707
73,343
1,391,161
E.W.G.A. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 SEPTEMBER 2023
4
Tangible fixed assets
(Continued)
- 9 -

The freehold land and buildings are valued at the year end with reference to local rates, demand and use.

 

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

2023
2022
£
£
Cost
495,643
495,643
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
998,035
1,110,423
Other debtors
738,997
841,632
1,737,032
1,952,055
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
1,271,418
684,568
Trade creditors
1,271,045
1,265,320
Taxation and social security
87,861
250,396
Other creditors
994,034
1,041,685
3,624,358
3,241,969

Within creditors falling due within one year are bank loans and overdrafts of £1,271,418 (2022: £684,568) and amounts due under hire purchase contracts of £30,899 (2022: £16,140) which are secured on the assets of the company.

E.W.G.A. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 SEPTEMBER 2023
- 10 -
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
349,699
556,103
Obligations under finance leases
58,887
35,651
Other creditors
241,500
241,400
650,086
833,154

Within creditors falling due after more than one year are bank loans and overdrafts of £349,699 (2022: £556,103) and amounts due under hire purchase contracts of £54,749 (2022: £35,651) which are secured on the assets of the company.

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
£
£
390,000
455,000
9
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

2023
2022
Amounts due to related parties
£
£
Key management personnel
241,500
241,400
2023-09-282022-09-29false26 February 2024CCH SoftwareCCH Accounts Production 2023.300No description of principal activityMr A C MoeckellMs J A McLaughlinMr J MoeckellMr K A Moeckellfalse047040722022-09-292023-09-28047040722023-09-28047040722022-09-2804704072core:NetGoodwill2023-09-2804704072core:NetGoodwill2022-09-2804704072core:LandBuildingscore:OwnedOrFreeholdAssets2023-09-2804704072core:PlantMachinery2023-09-2804704072core:FurnitureFittings2023-09-2804704072core:MotorVehicles2023-09-2804704072core:LandBuildingscore:OwnedOrFreeholdAssets2022-09-2804704072core:PlantMachinery2022-09-2804704072core:FurnitureFittings2022-09-2804704072core:MotorVehicles2022-09-2804704072core:CurrentFinancialInstrumentscore:WithinOneYear2023-09-2804704072core:CurrentFinancialInstrumentscore:WithinOneYear2022-09-2804704072core:Non-currentFinancialInstrumentscore:AfterOneYear2023-09-2804704072core:Non-currentFinancialInstrumentscore:AfterOneYear2022-09-2804704072core:CurrentFinancialInstruments2023-09-2804704072core:CurrentFinancialInstruments2022-09-2804704072core:Non-currentFinancialInstruments2023-09-2804704072core:Non-currentFinancialInstruments2022-09-2804704072core:ShareCapital2023-09-2804704072core:ShareCapital2022-09-2804704072core:RevaluationReserve2023-09-2804704072core:RevaluationReserve2022-09-2804704072core:RetainedEarningsAccumulatedLosses2023-09-2804704072core:RetainedEarningsAccumulatedLosses2022-09-2804704072bus:Director12022-09-292023-09-2804704072core:Goodwill2022-09-292023-09-2804704072core:LandBuildingscore:OwnedOrFreeholdAssets2022-09-292023-09-2804704072core:LandBuildingscore:LongLeaseholdAssets2022-09-292023-09-2804704072core:PlantMachinery2022-09-292023-09-2804704072core:FurnitureFittings2022-09-292023-09-2804704072core:MotorVehicles2022-09-292023-09-28047040722021-09-292022-09-2804704072core:NetGoodwill2022-09-2804704072core:NetGoodwill2022-09-292023-09-2804704072core:LandBuildingscore:OwnedOrFreeholdAssets2022-09-2804704072core:PlantMachinery2022-09-2804704072core:FurnitureFittings2022-09-2804704072core:MotorVehicles2022-09-28047040722022-09-2804704072core:WithinOneYear2023-09-2804704072core:WithinOneYear2022-09-2804704072core:Non-currentFinancialInstruments12023-09-2804704072core:Non-currentFinancialInstruments12022-09-2804704072bus:PrivateLimitedCompanyLtd2022-09-292023-09-2804704072bus:SmallCompaniesRegimeForAccounts2022-09-292023-09-2804704072bus:FRS1022022-09-292023-09-2804704072bus:AuditExemptWithAccountantsReport2022-09-292023-09-2804704072bus:Director22022-09-292023-09-2804704072bus:Director32022-09-292023-09-2804704072bus:Director42022-09-292023-09-2804704072bus:FullAccounts2022-09-292023-09-28xbrli:purexbrli:sharesiso4217:GBP