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Registered number: 07306044









HEDONISM DRINKS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

 
HEDONISM DRINKS LIMITED
 
 
COMPANY INFORMATION


Directors
T Artemev (resigned 15 June 2022)
E Chichvarkin 
T Fokina 




Registered number
07306044



Registered office
5 White Horse Street

London

W1J 7LQ




Independent auditors
BKL Audit LLP
Chartered Accountants & Statutory Auditor

35 Ballards Lane

London

N3 1XW





 
HEDONISM DRINKS LIMITED
 

CONTENTS



Page
Group Strategic Report
 
 
1 - 2
Directors' Report
 
 
3 - 4
Independent Auditors' Report
 
 
5 - 8
Consolidated Statement of Comprehensive Income
 
 
9
Consolidated Statement of Financial Position
 
 
10 - 11
Company Statement of Financial Position
 
 
12 - 13
Consolidated Statement of Changes in Equity
 
 
14
Company Statement of Changes in Equity
 
 
15
Consolidated Statement of Cash Flows
 
 
16 - 17
Notes to the Financial Statements
 
 
18 - 36


 
HEDONISM DRINKS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2022

Introduction
 
Hedonism Drinks Ltd’s ("the Company") principal activity remains the retail of alcoholic beverages in the UK and across the globe through its retail unit located in the United Kingdom and its website, whilst our subsidiaries 85 Piccadilly Ltd and 5 White Horse Ltd are within the hospitality industry. Together the Company and its subsidiaries are referred to as "the Group".

Business review
 
The board of directors reviews the Group’s performance on a regular basis and compares its own results to similar businesses within the same industry, to ensure that the Company is performing well within its chosen line(s) of business.
The Group has enjoyed strong trading over the past financial year with pent up demand post-covid having a significant impact on sales throughout 2021 and indeed into the 2022 financial year. The return of international business clientele together with constantly increasing demand has led to an increase in YOY revenue of 62% for the Group however the gross margin has decreased to 35% from 42%. The directors hold the view that the business will continue to grow at the current rate through the coming year. The group has reported a pre-tax profit of £3,045,208, compared to £1,897,481 profit in 2020-21.

Principal risks and uncertainties
 
Business Environment
The drinks industry is a highly competitive environment with numerous retail outlets and online businesses offering similar products as we do. We therefore as a business ensure that we maintain a broad and unique product range, and offer excellent customer service which is second to none to enable us to stay ahead of all our competitors.
Sales Strategy
The retail space from which we vend our products remains unique in the industry and attracts customers not only from the United Kingdom and Europe but from all around the world. Our product range (collection) is extremely broad to meet the needs of a wide variety of customers from across the globe and our pricing structure is constantly being monitored and reviewed to ensure competitiveness in the market.
The business lays absolute emphasis on customer satisfaction and has consistently provided outstanding customer service to its customers since its inception. Now in our eleventh year of trading, our unrivalled customer service includes (but is not limited to) the fact that the products which we offer for sale are readily available to be delivered to customers, at short notice; and in addition to this, we offer a quality guarantee on every product on our stock list to give our clients complete peace of mind.
The sales team has grown in the past year by 33% in order to better accommodate demand in the market – our team of fine wine & rare spirits experts is made up of some of the industry’s most knowledgeable and respected individuals with many years of experience, who have an in-depth knowledge of the products we sell and can provide valuable advice to customers.
Purchasing Strategy
The business has an expansive spectrum of suppliers in both primary and secondary markets and a vast collection of products which promotes its excellent turnover results. This however comes with its own risks and logistical challenges. In order to mitigate the risks mentioned above we have put in place an extremely robust supply chain management system and employ some of the industry’s most experienced professionals to be part of our buying and logistics team.
Administration
At the administrative level, the business employs excellent support staff and qualified professionals to run the finance and administrative functions of the business.
Page 1

 
HEDONISM DRINKS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022


Financial key performance indicators
 
The board of directors reviews the business performance on a monthly basis and on an annual basis compares our Group results to similar business within the same industry. With current gross profit margin of 27% (Company) and 35% (Group) the directors hold the view that the business is performing well within its industry.
Risk
As per the Companies Act 2006; we are required to disclose principal risks which the business is exposed to and steps taken to mitigate these risks. Our board of directors is responsible for developing the Group’s strategy on managing risks and enforcing controls. The board regularly reviews the risks and in the subsequent paragraphs, the key risks of the Group are discussed along with steps taken to mitigate the risks.
Foreign exchange
The business sources its products from across the world which exposes it to foreign currency risks. To mitigate this risk the Company uses financial instruments such as forwards. We are also constantly on the lookout to use foreign exchange dealers who offer the markets most favourable rates so as to improve our product margins. All sales prices both in our retail outlet and online are denominated in Sterling. This strategy helps to eliminate the risk of losses from foreign exchange movements, on transactions generated by customers purchasing from outside the United Kingdom.
Subsidiary
85 Piccadilly Ltd T/A Hide our fine dining restaurant in central Mayfair was awarded its first Michelin star just six months after opening and has been named Restaurant of the year by GQ magazine 2019, amongst other accolades. With a well know chef Ollie Dabbous’ menu, views over Green Park, a stunning interior and the largest wine list in Europe, it is a popular dining destination for local residents, businesses and tourists alike.
The task to deliver Michelin standard cuisine on this scale is a challenging task, the directors of the business are taking every opportunity to increase turnover and reduce the overheads of the business.
The future outlook is therefore a vast improvement in profitability in the short term, with a steady and consistent return in the medium to long term. The Parent Company will continue to support the restaurant business, until such a time when it becomes a profitable venture in its own right.
In April 2021, the Company’s second subsidiary, 5 White Horse Ltd, opened trading as a wine bar in London W1. Supported by the kitchen infrastructure of Hide close by and offering a world-class selection of wines (supplied by Hedonism) the White Horse is fast becoming a popular wine bar and private event destination. 


This report was approved by the board and signed on its behalf.





T Fokina
Director

Date: 30 November 2023

Page 2

 
HEDONISM DRINKS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2022

The directors present their report and the financial statements for the year ended 31 July 2022.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £2,631,700 (2021 - £906,358).

Directors

The directors who served during the year were:

T Artemev (resigned 15 June 2022)
E Chichvarkin 
T Fokina 

Future developments

The business continues to look out for oppurtunities to increase its turnover, gross profit and net profit margins across the group.

Page 3

 
HEDONISM DRINKS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

Under section 487(2) of the Companies Act 2006BKL Audit LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 







T Fokina
Director

Date: 30 November 2023

Page 4

 
HEDONISM DRINKS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HEDONISM DRINKS LIMITED
 

Opinion


We have audited the financial statements of Hedonism Drinks Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 July 2022, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent Company's affairs as at 31 July 2022 and of the Group's 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent 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.


Page 5

 
HEDONISM DRINKS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HEDONISM DRINKS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion 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 Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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 Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
HEDONISM DRINKS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HEDONISM DRINKS LIMITED (CONTINUED)


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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
 
Enquiring of management and those charged with governance around actual and potential litigation and claims; 
Enquiring of staff to identify any instances of non-compliance with laws and regulations;
Reviewing the general  ledger in detail for all transactions with related parties;
Performing walkthrough testing to ensure systems and controls are operating as recorded where appropriate;
Performing audit work over the risk of management ovverride of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Page 7

 
HEDONISM DRINKS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HEDONISM DRINKS LIMITED (CONTINUED)


Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statementsWe are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


Use of our report
 

This report is made solely to the Company's directors, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's directors those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's directors, as a body, for our audit work, for this report, or for the opinions we have formed.






Geeta Morgan FCA (Senior Statutory Auditor)
  
for and on behalf of
BKL Audit LLP
 
Chartered Accountants
Statutory Auditor
  
London

30 November 2023
Page 8

 
HEDONISM DRINKS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2022

2022
2021
Note
£
£

  

Turnover
 4 
54,959,393
33,895,539

Cost of sales
  
(35,460,764)
(19,585,084)

Gross profit
  
19,498,629
14,310,455

Administrative expenses
  
(16,387,833)
(13,253,489)

Other operating income
 5 
92,045
1,046,244

Operating profit
 6 
3,202,841
2,103,210

Interest receivable and similar income
  
30
129

Interest payable and similar expenses
 10 
(157,663)
(205,858)

Profit before taxation
  
3,045,208
1,897,481

Tax on profit
 11 
(413,508)
(991,123)

Profit for the financial year
  
2,631,700
906,358

Profit for the year attributable to:
  

Owners of the parent Company
  
2,631,700
906,358

  
2,631,700
906,358

There was no other comprehensive income for 2022 (2021:£NIL).

The notes on pages 18 to 36 form part of these financial statements.

Page 9

 
HEDONISM DRINKS LIMITED
REGISTERED NUMBER: 07306044

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 13 
15,093,261
16,074,697

  
15,093,261
16,074,697

Current assets
  

Stocks
 15 
12,121,610
14,153,653

Debtors: amounts falling due within one year
 16 
3,629,038
3,637,269

Cash at bank and in hand
 17 
718,282
2,077,028

  
16,468,930
19,867,950

Creditors: amounts falling due within one year
 18 
(21,243,754)
(26,480,270)

Net current liabilities
  
 
 
(4,774,824)
 
 
(6,612,320)

Total assets less current liabilities
  
10,318,437
9,462,377

Creditors: amounts falling due after more than one year
 19 
(3,842,641)
(5,750,685)

Provisions for liabilities
  

Deferred taxation
 21 
(1,874,757)
(1,742,353)

  
 
 
(1,874,757)
 
 
(1,742,353)

Net assets excluding pension asset
  
4,601,039
1,969,339

Net assets
  
4,601,039
1,969,339


Capital and reserves
  

Called up share capital 
 22 
1
1

Profit and loss account
  
4,601,038
1,969,338

Equity attributable to owners of the parent Company
  
4,601,039
1,969,339


Page 10

 
HEDONISM DRINKS LIMITED
REGISTERED NUMBER: 07306044
    
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 JULY 2022

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 





T Fokina
Director

Date: 30 November 2023

The notes on pages 18 to 36 form part of these financial statements.

Page 11

 
HEDONISM DRINKS LIMITED
REGISTERED NUMBER: 07306044

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 13 
2,915,760
3,403,900

Investments
 14 
2
2

  
2,915,762
3,403,902

Current assets
  

Stocks
 15 
11,996,600
14,032,627

Debtors: amounts falling due within one year
 16 
19,281,968
19,847,453

Cash at bank and in hand
 17 
698,870
2,009,359

  
31,977,438
35,889,439

Creditors: amounts falling due within one year
 18 
(10,080,733)
(15,608,407)

Net current assets
  
 
 
21,896,705
 
 
20,281,032

Total assets less current liabilities
  
24,812,467
23,684,934

  

Creditors: amounts falling due after more than one year
 19 
(3,842,641)
(5,750,685)

Provisions for liabilities
  

Deferred taxation
 21 
(370,472)
(415,921)

  
 
 
(370,472)
 
 
(415,921)

Net assets
  
20,599,354
17,518,328


Capital and reserves
  

Called up share capital 
 22 
1
1

Profit and loss account brought forward
  
17,518,327
14,625,966

Profit for the year

  

3,081,026
2,892,361

Profit and loss account carried forward
  
20,599,353
17,518,327


Page 12

 
HEDONISM DRINKS LIMITED
REGISTERED NUMBER: 07306044
    
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 JULY 2022

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 





T Fokina
Director

Date: 30 November 2023

The notes on pages 18 to 36 form part of these financial statements.

Page 13

 
HEDONISM DRINKS LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2022


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£


At 1 August 2020
1
1,062,980
1,062,981
1,062,981


Comprehensive income for the year

Profit for the year
-
906,358
906,358
906,358
Total comprehensive income for the year
-
906,358
906,358
906,358



At 1 August 2021
1
1,969,338
1,969,339
1,969,339


Comprehensive income for the year

Profit for the year
-
2,631,700
2,631,700
2,631,700
Total comprehensive income for the year
-
2,631,700
2,631,700
2,631,700


At 31 July 2022
1
4,601,038
4,601,039
4,601,039


The notes on pages 18 to 36 form part of these financial statements.

Page 14

 
HEDONISM DRINKS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2022


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 August 2020
1
14,625,966
14,625,967


Comprehensive income for the year

Profit for the year
-
2,892,361
2,892,361
Total comprehensive income for the year
-
2,892,361
2,892,361



At 1 August 2021
1
17,518,327
17,518,328


Comprehensive income for the year

Profit for the year
-
3,081,026
3,081,026
Total comprehensive income for the year
-
3,081,026
3,081,026


At 31 July 2022
1
20,599,353
20,599,354


The notes on pages 18 to 36 form part of these financial statements.

Page 15

 
HEDONISM DRINKS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2022

2022
2021
£
£

Cash flows from operating activities

Profit for the financial year
2,631,700
906,358

Adjustments for:

Depreciation of tangible assets
1,231,103
1,219,155

Government grants
(10,455)
(846,381)

Interest paid
157,663
205,858

Interest received
(30)
(129)

Taxation charge
413,508
991,123

Decrease in stocks
2,032,043
1,585,528

Decrease/(increase) in debtors
13,352
(199,850)

Decrease/(increase) in amounts owed by groups
610
(610)

(Decrease) in creditors
(4,027,996)
(7,399,068)

Increase in amounts owed to groups
316,029
182

(Decrease)/increase in amounts owed to join ventures
(1,447,362)
1,638,603

Corporation tax (paid)
(578,313)
(426,000)

Net cash generated from operating activities

731,852
(2,325,231)


Cash flows from investing activities

Purchase of tangible fixed assets
(249,667)
(666,444)

Government grants received
10,455
846,381

Purchase of fixed asset investments
-
(1)

Interest received
30
129

Net cash from investing activities

(239,182)
180,065
Page 16

 
HEDONISM DRINKS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2022


2022
2021

£
£



Cash flows from financing activities

New secured loans
-
1,810,702

Repayment of loans
(1,693,753)
-

Interest paid
(157,663)
(205,858)

Net cash used in financing activities
(1,851,416)
1,604,844

Net (decrease) in cash and cash equivalents
(1,358,746)
(540,322)

Cash and cash equivalents at beginning of year
2,077,028
2,617,350

Cash and cash equivalents at the end of year
718,282
2,077,028


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
718,282
2,077,028


The notes on pages 18 to 36 form part of these financial statements.

Page 17

 
HEDONISM DRINKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

1.


General information

Hedonism Drinks Ltd’s ("the Company") principal activity remains the retail of alcoholic beverages in the UK and across the globe through its retail unit located in the United Kingdom and its website, whilst our subsidiaries 85 Piccadilly Ltd and 5 White Horse Ltd are within the hospitality industry. Together the Company and its subsidiaries are referred to as "the Group".
The Company is a private company limited by shares and is incorporated in England and Wales. 
The Registered Office address is 5 White Horse Street, London, England, W1J 7LQ.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland ("FRS 102") and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 18

 
HEDONISM DRINKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

2.Accounting policies (continued)

 
2.3

Going concern

The Company financial statements show a profit for the year before tax of £3,081,026 (2021: £2,892,361) and net assets of £20,599,354 (2021: £17,518,328). The Group showed a profit after tax of £2,631,700 (2021: £906,358) and had net assets as at 31 July 2022 of £4,601,039 (2021: £1,969,339). As at 31 July 2022, Mr Chichvarkin, a director and the ultimate controlling owner, was owed £8,863,593 (2021: £14,692,584). Mr Chichvarkin has pledged his ongoing support for the Company and Group and has confirmed that he will not seek repayment of any amounts due to him if it would prejudice the company to make the repayments. 

The directors have reviewed forecasts and trading in the period since the year end and in light of this review are confident that the group has adequate resources to continue in operational existence for the foreseeable future and that it is appropriate to continue to use the going concern basis for the preparation of these financial statements. The financial statements have therefore been prepared on the going concern basis.


 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is Sterling.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 19

 
HEDONISM DRINKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

2.Accounting policies (continued)

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Revenue from the sale of goods is recognised when the goods are made available to the customer. 
For in-store purchases this is upon payment and for online purchases, this is when the goods are shipped to the customer.
Revenue arising from the sale of food and drink is net of value added tax and income arising as a result of service charges relating to the sale of this food and drink.
Revenue is recognised when food and drink is provided to the customer.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to the Consolidated Statement of Comprehensive Income on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term.

 
2.7

Coronavirus Jobs Retention Scheme

Furlough income is receivable as compensation for salary expenses already incurred and to give immediate financial support to the Company with no future related costs. This income is recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.

 
2.8

Interest income

Interest income is recognised in the Consolidated Statement of Comprehensive Income using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to the Consolidated Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 20

 
HEDONISM DRINKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

2.Accounting policies (continued)

 
2.10

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in the Consolidated Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 21

 
HEDONISM DRINKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
5%
Plant and machinery
-
33%
Fixtures and fittings
-
33%
Computer equipment
-
33%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Consolidated Statement of Comprehensive Income.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

Page 22

 
HEDONISM DRINKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

2.Accounting policies (continued)

 
2.16

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Consolidated Statement of Comprehensive Income in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

 
2.17

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
(i) Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances are initially recognised at transaction price, 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.
Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Statement of Comprehensive Income.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, 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 receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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.
 
Page 23

 
HEDONISM DRINKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

2.Accounting policies (continued)


2.17
Financial instruments (continued)

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
(iii) Offsetting
Financial assets and liabilities are offset and 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.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Statement of Financial Position date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
(i) Tangible fixed assets
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 may vary depending on a number of factors. 
Fixed assets are considered for impairment when events or circumstances indicate that there may be adjustments required to their carrying value. This review requires an assessment of the recoverable amount of the asset, and where the carrying value exceeds its estimated recoverable amount, the asset is written down to that value. The recoverable amount is the greater of its fair value less costs to sell and value in use.
The outcome of such an assessment is subjective and the result is sensitive to the assumed future cashflows for the value in use.

Page 24

 
HEDONISM DRINKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

4.


Turnover

An analysis of turnover by class of business is as follows:


2022
2021
£
£

Online and store sales
41,106,914
27,154,014

Restaurant sales
13,852,479
6,741,525

54,959,393
33,895,539


Analysis of turnover by country of destination:

2022
2021
£
£

United Kingdom
49,438,054
26,439,478

Rest of Europe
832,209
3,173,688

Rest of the world
4,689,130
4,282,373

54,959,393
33,895,539



5.


Other operating income

2022
2021
£
£

Rental income
81,590
199,863

Government grants receivable
10,455
846,381

92,045
1,046,244



6.


Operating profit

The operating profit is stated after charging:

2022
2021
£
£

Depreciation
1,231,103
1,219,155

Exchange differences
(19,710)
107,842

Other operating lease rentals
1,600,656
1,180,639

Page 25

 
HEDONISM DRINKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2022
2021
£
£

Fees payable to the Company's auditors for the audit of the consolidated, parent Company's financial statements and its subsidiaries
55,500
26,000



2022
2021
£
£
Fees payable to the Group's auditor and its associates in respect of:
Taxation compliance services

9,500

6,500
 


8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£


Wages and salaries
8,124,962
6,535,460
3,816,379
3,112,711

Social security costs
817,560
652,318
485,391
361,039

Cost of defined contribution scheme
127,554
109,289
65,563
55,612

9,070,076
7,297,067
4,367,333
3,529,362


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2022
        2021
        2022
        2021
            No.
            No.
            No.
            No.









Employees
218
183
63
55

Page 26

 
HEDONISM DRINKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

9.


Directors' remuneration

2022
2021
£
£

Directors' emoluments
493,098
353,000


The highest paid director received remuneration of £493,098 (2021 - £353,000).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2021 - £NIL).


10.


Interest payable and similar expenses

2022
2021
£
£


Bank interest payable
157,663
205,858


11.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
281,104
350,000


Total current tax
281,104
350,000

Deferred tax


Origination and reversal of timing differences
132,404
641,123

Total deferred tax
132,404
641,123


Taxation on profit on ordinary activities
413,508
991,123
Page 27

 
HEDONISM DRINKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2021 - higher than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


Profit on ordinary activities before tax
3,045,208
1,897,481


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
619,127
368,123

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
(31,544)
76,556

Capital allowances for year in excess of depreciation
(11,540)
(5,327)

Income not taxable
-
(35,060)

Movement in deferred tax not recognised
(193,447)
203,131

Remeasurement of deferred tax for change in tax rates
30,912
383,700

Total tax charge for the year
413,508
991,123


Factors that may affect future tax charges

The UK Government announced its intention to increase the rate of UK corporation tax from 19% to 25% with effect from 1 April 2023. The increase in the rate of UK corporation tax was enacted in the Finance Act 2021 which received Royal Assent on 10 June 2021. 


12.


Parent company profit for the year

The profit after tax of the parent Company for the year was £3,081,026 (2021 - £2,892,361).

Page 28

 


 
HEDONISM DRINKS LIMITED


 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022


13.


Tangible fixed assets


Group







Long-term leasehold property
Plant and machinery
Fixtures and fittings
Computer equipment
Motor vehicles
Total

£
£
£
£
£
£



Cost or valuation


At 1 August 2021
21,311,424
887,043
1,337,156
257,607
16,033
23,809,263


Additions
37,163
169,121
3,394
39,989
-
249,667



At 31 July 2022

21,348,587
1,056,164
1,340,550
297,596
16,033
24,058,930



Depreciation


At 1 August 2021
5,633,079
672,610
1,157,764
255,997
15,116
7,734,566


Charge for the year on owned assets
972,918
146,546
104,283
6,439
917
1,231,103



At 31 July 2022

6,605,997
819,156
1,262,047
262,436
16,033
8,965,669



Net book value



At 31 July 2022
14,742,590
237,008
78,503
35,160
-
15,093,261



At 31 July 2021
15,678,345
214,433
179,392
1,610
917
16,074,697

Page 29

 
HEDONISM DRINKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

           13.Tangible fixed assets (continued)


Company






Long-term leasehold property
Plant and machinery
Fixtures and fittings
Motor vehicles
Total

£
£
£
£
£

Cost or valuation


At 1 August 2021
6,567,271
703,486
342,360
16,033
7,629,150


Additions
11,752
16,031
32,511
-
60,294



At 31 July 2022

6,579,023
719,517
374,871
16,033
7,689,444



Depreciation


At 1 August 2021
3,410,467
569,515
230,152
15,116
4,225,250


Charge for the year on owned assets
379,580
96,396
71,541
917
548,434



At 31 July 2022

3,790,047
665,911
301,693
16,033
4,773,684



Net book value



At 31 July 2022
2,788,976
53,606
73,178
-
2,915,760



At 31 July 2021
3,156,804
133,971
112,208
917
3,403,900






Page 30

 
HEDONISM DRINKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

14.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 August 2021
2



At 31 July 2022
2





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

85 Piccadilly Limited
5 White Horse Street, London, England, W1J 7LQ
Ordinary
100%
5 White Horse Limited
5 White Horse Street, London, England, W1J 7LQ
Ordinary
100%


15.


Stocks

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Finished goods and goods for resale
12,121,610
14,153,653
11,996,600
14,032,627


The carrying value of stocks are stated net of impairment losses. There were no impairments made to stock during the year (2021: £Nil).
Stock recognised in cost of sales during the year as an expense was £Nil 
(2021: £Nil).
The difference between the purchase price of stocks and their replacement cost is not material.

Page 31

 
HEDONISM DRINKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

16.


Debtors

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£


Trade debtors
10,193
11,561
9,910
11,561

Amounts owed by group undertakings
-
610
16,456,191
16,906,228

Other debtors
2,879,769
1,735,020
2,444,401
1,380,485

Prepayments and accrued income
739,076
1,890,078
371,466
1,549,179

3,629,038
3,637,269
19,281,968
19,847,453



17.


Cash and cash equivalents

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Cash at bank and in hand
718,282
2,077,028
698,870
2,009,359



18.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Bank loans
1,908,045
1,693,754
1,908,045
1,693,754

Trade creditors
4,656,979
4,755,193
3,510,210
3,830,721

Amounts owed to group undertakings
-
182
-
53,980

Amounts owed to joint ventures
191,241
1,638,603
191,241
1,638,603

Corporation tax
276,693
573,902
276,693
573,902

Other taxation and social security
1,247,806
1,348,053
547,711
227,405

Other creditors
11,500,567
15,032,045
2,459,338
6,358,703

Accruals and deferred income
1,462,423
1,438,538
1,187,495
1,231,339

21,243,754
26,480,270
10,080,733
15,608,407


Amounts included within other creditors that are due to the director / owner are interest free with no fixed repayment terms.
Page 32

 
HEDONISM DRINKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

19.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Bank loans
3,842,641
5,750,685
3,842,641
5,750,685




20.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Amounts falling due within one year

Bank loans
1,908,045
1,693,754
1,908,045
1,693,754

Amounts falling due 1-2 years

Bank loans
963,374
1,908,043
963,374
1,908,043

Amounts falling due 2-5 years

Bank loans
2,879,267
3,842,642
2,879,267
3,842,642


5,750,686
7,444,439
5,750,686
7,444,439


There are three separate bank loans on which interest is accruing at a rate of between 4% and 5.75%. The loans are being repaid in monthly instalments with the latest repayment date in 2027.
The bank hold a fixed and floating charge over the property and assets of the Group.

Page 33

 
HEDONISM DRINKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

21.


Deferred taxation


Group



2022
2021


£

£






At beginning of year
(1,742,353)
(1,101,230)


Charged to profit or loss
(132,404)
(641,123)



At end of year
(1,874,757)
(1,742,353)

Company


2022
2021


£

£






At beginning of year
(415,921)
(108,579)


Charged to profit or loss
45,449
(307,342)



At end of year
(370,472)
(415,921)

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Accelerated capital allowances
(1,927,015)
(1,946,398)
(413,320)
(491,295)

Tax losses carried forward
2,953
131,962
-
-

Short term timing differences
49,305
72,083
42,848
75,374

(1,874,757)
(1,742,353)
(370,472)
(415,921)

Page 34

 
HEDONISM DRINKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

22.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



1 (2021 - 1) Ordinary share of £1.00
1
1



23.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The total pension cost for the Company was £65,563 (2021: £55,612). Contributions totalling £10,579 (2021: £9,320) were payable to the fund at the year end date.


24.


Commitments under operating leases

At 31 July 2022 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Not later than 1 year
1,327,000
1,409,500
1,327,000
1,409,500

Later than 1 year and not later than 5 years
5,204,000
5,256,000
5,204,000
5,204,000

Later than 5 years
9,558,343
10,833,343
9,558,343
10,833,343

16,089,343
17,498,843
16,089,343
17,446,843


The following changes in lease payments arising from rent concessions occurring as a direct consequence of the COVID-19 pandemic have been recognised as a reduction in expense in profit or loss.

Group
Group
2022
2021
£
£

Changes in lease payments arising from COVID-19 related rent concessions
-
267,975


25.


Related party transactions

Included in creditors is a balance of £8,863,593 (2021: £14,692,584) owed to a director.
The amounts due to a director is an interest free loan to the group. There is no fixed repayment date attached to the loan.

Page 35

 
HEDONISM DRINKS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

26.


Controlling party

The ultimate controlling party is E Chichvarkin. 

 
Page 36