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Registered number: 00111232










TANNERS (SHREWSBURY) LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2023

 
TANNERS (SHREWSBURY) LIMITED
 
 
COMPANY INFORMATION


Directors
J J Tanner 
K E A Tanner 
R J Morgan 




Company secretary
R J Morgan



Registered number
00111232



Registered office
26 Wyle Cop

Shrewsbury

Shropshire

SY1 1XD




Independent auditors
WR Partners
Chartered Accountants & Statutory Auditors

Belmont House

Shrewsbury Business Park

Shrewsbury

Shropshire

SY2 6LG




Bankers
Lloyds TSB
Pride Hill

Shrewsbury

SY1 1DG





 
TANNERS (SHREWSBURY) LIMITED
 

CONTENTS



Page
Group strategic report
 
1 - 3
Directors' report
 
4 - 5
Independent auditors' report
 
6 - 10
Consolidated statement of comprehensive income
 
11
Consolidated balance sheet
 
12 - 13
Company balance sheet
 
14 - 15
Consolidated statement of changes in equity
 
16
Company statement of changes in equity
 
17
Consolidated statement of cash flows
 
18 - 19
Notes to the financial statements
 
20 - 43


 
TANNERS (SHREWSBURY) LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023

Introduction
 
The principal activity of the Company during the year was that of a holding company for a group engaged in wholesaling and retailing of wines, spirits, beers and mineral waters.

Business review
 
We aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. Our review is consistent with the size and complexity of the business and is written in the context of the risks and uncertainties we face.
Whilst the financial year to 31st May 2023 saw a decline in revenue and profits on the previous year the overall level of sales and profitability was at historically strong levels for the Group.   The business was coming off the back of a record year of revenue and profits and with the economic headwinds facing many wholesale and retail businesses it was always going to be a significant challenge to achieve a similar level of profitability.
Tanners has continued to demonstrate resilience through the recent turbulent years.  We have navigated through Covid and Brexit as well as other supply chain disruption (for example from the closure of the Suez Canal), as well as several short harvests in key wine growing areas, either from frost and hailstone or wildfires.  We have now had to contend with a level of inflation not seen for a generation and shortages of glass and other raw materials used in the bottling processes due to the Russia / Ukraine conflict.  Through all of these events the team at Tanners has demonstrated resilience, flexibility and adaptability and the Board would like to thank all of them for their on-going commitment and contribution to the Group.
Turnover for the year to 31st May 2023 was 6.1% below prior year at £24.1m (2022: £25.7m).  Following the record sales in the year to 31st May 2022 we had budgeted for a decline in sales and we were close to expectations – the year ending 31st May 2023 was the second highest on record for Tanners.  Web sales saw a decline following the very significant growth we saw during the pandemic but remain at a level considerably ahead of 2019.  The sales mix has returned to more historic levels and Tanners enjoys a healthy blend of wholesale, retail, “private house” and en primeur revenue streams.
In order to manage the significant inflationary pressures that we saw there was a need, along with our competitors and most retail businesses, to increase prices at rates above historical levels.  This did lead to a small improvement in the gross profit margin but the very significant levels of cost increases in labour and overheads meant that operating margins declined from 5.4% in the prior year to 2.1%.
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the Group as a whole; turnover, gross profit margin and profit before tax.  

During the year the Group’s gross profit decreased to £7.1m (2022: £7.5m) although gross profit margin improved to 29.6%. Operating profit of £0.5m (2022: £1.4m) showed a decrease of £881k reflecting the significant inflationary pressures as well as £0.2m of building repairs that had been deferred due to Covid.  Profit after tax for the year was £387k, a decrease of £763k on the prior year.
The financial position of the business remains solid with a net cash balance of £318k (2022: £1,179k) at year end.   There was a cash outflow of £0.5m following a restructuring of the overall ownership of the business
The Company made a profit after tax of £98k (2022: loss of £6k). 

Page 1

 
TANNERS (SHREWSBURY) LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023

Principal risks and uncertainties
 
The business environment in which we operate in continues to be challenging and unpredictable.  Over recent years we have Covid-19 and the uncertainties following the “Brexit” referendum, as well as the more recent surging energy and fuel costs and a significant weakening in consumer confidence which have all contributed to the uncertainty affecting most UK consumer-facing businesses.  
The considerable risks posed by Covid-19 do appear to have allayed, with the successful roll out of the vaccine across the United Kingdom (and across the world).  There does remain a risk of further variants, or indeed the threat of a different pandemic, impacting our wholesaling business in particular, although we have seen that some of this shortfall on the “Trade” side of the business is compensated for by higher sales online and through the retail branches as consumers have continued to consume our products, but at home.
Brexit has been the second on-going significant source of risk and uncertainty.  We increased our stock holding to try to mitigate some of the cost pressures that a weaker sterling, increased paperwork and longer lead times have had on our industry and we also imported in larger quantities to mitigate in part the considerable increased shipping costs that have impacted the UK and global economies following Covid-19, Brexit and the Suez shipping blockage.  The sterling / euro exchange rate is a considerable influence on the profitability of our business and this is subject to macro-economic and political fluctuations that our hedging strategy can only partially mitigate.  Over the past 12 months these risks have somewhat reduced and sterling has traded more strongly in recent weeks.  We hedge out our foreign currency exposure on a rolling basis but the macro-economic backdrop remains a significant uncertainty.
The third considerable risk that we have faced over the past year has been the significant increase in energy costs across the world and in particular in the United Kingdom.  The impact on Tanners is both on our direct costs (we have seen an increase of more than 100% in our energy costs) but also on indirect costs from energy increases – the basic cost of living has meant we have given a higher than normal pay rise to our staff and we are seeing on-going inflationary pressures across all our costs.  We have had to pass on some of these costs to our customers to mitigate the cost pressures, but as noted last year this did have a significant impact in level of profits.  The rate of inflation is remaining stubbornly high and this remains a key risk to the business as margins will inevitably come under pressure as not all these inflationary pressures can be passed on to consumers.
The fourth significant risk that is impacting our business is increased regulation and bureaucracy.  Several of the challenges posed by Brexit have been worked through but there are on-going changes to the systems required to import goods.  Since the financial year end there have been changes to the rate of duty charged on alcohol and this has generally led to higher prices; a 75cl bottle of wine at 12.5% ABV has seen an increase of 44p in duty (excluding VAT).  This is an additional cost that has to be passed onto the consumer and will contribute to significantly higher prices across the drinks industry at a time of exceptional inflation. 
We reported last year of risks from plans such as the Scottish Deposit Return Scheme, and a similar (but different) scheme to be introduced in Wales.  The immediate risks of these schemes has abated and there does appear to have been a political realisation of the significant addition to the bureaucratic burden for businesses which would result in higher prices to the customer.  We continue to engage with the UK and devolved governments on the impact of constant changes to the regulatory environment around duty, deposit schemes and packaging that we face.
The recent few months have highlighted further the on-going risks and uncertainties from the weather; wine and beer are ultimately agricultural products and the impact of the weather on the quality and quantity of each harvest remains high, although the significant improvements in viticultural techniques around the world has led to some partial mitigation of variances in quality.  The risks of drought, wildfires and flooding, as well as the war in Ukraine impacting wheat and barley harvests, means that the whole industry exists against a constant backdrop of uncertainty.  Tanners are well diversified with suppliers all around the world but we cannot be immune to price pressures from reduced yields in particular.
 
Page 2

 
TANNERS (SHREWSBURY) LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen events outside our control. However, the business has shown a tremendous ability to be flexible and adapt and respond to changes in market conditions and to look for opportunities as they arise.  
The Company and Group finance its operations through a mixture of retained profit, bank overdraft, fixed asset under hire purchase agreement and various items such as trade debtors and trade creditors that arise directly from its operations. The Company and Group's exposure to interest rate fluctuations is managed by regular review in conjunction with the Company and Group's bankers. The exposure to exchange rate fluctuations is managed by the conservative use of forward exchange rate contracts. The control of risk and efficient working capital management are integral to the Company and Group's business and the directors regularly review and agree policies for managing such risks.  Further information regarding the Group’s approach to financial risk management is included in note 33 to the financial statements.


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



................................................
J J Tanner
Director

Date: 9 February 2024

Page 3

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023

The directors present their report and the financial statements for the year ended 31 May 2023.

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 judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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.

Dividends

During the year, the Group paid dividends totalling of £543,463 (2022: £114,241).

Directors

The directors who served during the year were:

J J Tanner 
K E A Tanner 
R J Morgan 

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.

Page 4

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023


Auditors

The auditorsWR Partnerswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





................................................
J J Tanner
Director

Date: 9 February 2024

Page 5

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TANNERS (SHREWSBURY) LIMITED
 

Opinion


We have audited the financial statements of Tanners (Shrewsbury) Limited ('the parent company') and its subsidiaries ('the Group') for the year ended 31 May 2023, which comprise the Group Statement of comprehensive income, the Group and company Balance sheets, the Group Statement of cash flows, the Group and 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 May 2023 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 6

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TANNERS (SHREWSBURY) 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 Report.  Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.  If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.  If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


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.


Page 7

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TANNERS (SHREWSBURY) LIMITED (CONTINUED)


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 4, 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 8

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TANNERS (SHREWSBURY) 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:

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the company and group and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR). 
We understood how the company and group are complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements. 
We assessed the susceptibility of the company and group's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.


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.


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


Page 9

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TANNERS (SHREWSBURY) LIMITED (CONTINUED)


Use of our report
 

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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 members, as a body, for our audit work, for this report, or for the opinions we have formed.





John Fletcher FCA (Senior statutory auditor)
  
for and on behalf of
WR Partners
 
Chartered Accountants
Statutory Auditors
  
Belmont House
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

 
Date: 
9 February 2024
Page 10

 
TANNERS (SHREWSBURY) LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2023

2023
2022
Note
£
£

  

Turnover
 4 
24,123,374
25,682,727

Cost of sales
  
(16,974,232)
(18,229,709)

Gross profit
  
7,149,142
7,453,018

Distribution costs
  
(549,338)
(635,390)

Administrative expenses
  
(6,138,211)
(5,493,044)

Other operating income
 5 
44,630
72,131

Operating profit
 6 
506,223
1,396,715

Income from fixed assets investments
  
-
931

Profit on sale of fixed asset investments
  
13,690
-

Interest receivable and similar income
 11 
15,438
10,329

Interest payable and similar expenses
 12 
(6,936)
(3,614)

Other finance income
  
(45,579)
17,855

Profit before taxation
  
482,836
1,422,216

Tax on profit
 13 
(96,330)
(272,158)

Profit for the financial year
  
386,506
1,150,058

Profit for the year attributable to:
  

Owners of the parent company
  
386,506
1,150,058

  
386,506
1,150,058

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 20 to 43 form part of these financial statements.

Page 11

 
TANNERS (SHREWSBURY) LIMITED
REGISTERED NUMBER: 00111232

CONSOLIDATED BALANCE SHEET
AS AT 31 MAY 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 15 
11,582
5,742

Tangible assets
 16 
3,281,041
3,316,741

Investments
 17 
22,000
32,510

  
3,314,623
3,354,993

Current assets
  

Stocks
 18 
4,472,438
4,662,785

Debtors: amounts falling due within one year
 19 
4,430,215
4,688,100

Cash at bank and in hand
 20 
317,891
1,178,391

  
9,220,544
10,529,276

Creditors: amounts falling due within one year
 21 
(4,815,026)
(6,434,022)

Net current assets
  
 
 
4,405,518
 
 
4,095,254

Total assets less current liabilities
  
7,720,141
7,450,247

Creditors: amounts falling due after more than one year
 22 
-
(21,970)

Provisions for liabilities
  

Deferred taxation
 24 
(164,036)
(152,715)

  
 
 
(164,036)
 
 
(152,715)

Net assets
  
7,556,105
7,275,562

Page 12

 
TANNERS (SHREWSBURY) LIMITED
REGISTERED NUMBER: 00111232
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2023

2023
2022
Note
£
£

Capital and reserves
  

Called up share capital 
 25 
19,444
19,444

Revaluation reserve
 26 
1,211,153
1,211,153

Capital Redemption Reserve
 26 
54,738
54,738

Profit and loss account
 26 
6,270,770
5,990,227

  
7,556,105
7,275,562


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




................................................
J J Tanner
Director

Date: 9 February 2024

The notes on pages 20 to 43 form part of these financial statements.

Page 13

 
TANNERS (SHREWSBURY) LIMITED
REGISTERED NUMBER: 00111232

COMPANY BALANCE SHEET
AS AT 31 MAY 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 16 
2,860,000
3,010,000

Investments
 17 
199,549
199,599

  
3,059,549
3,209,599

Current assets
  

Debtors: amounts falling due within one year
 19 
1,366,254
903,940

  
1,366,254
903,940

Creditors: amounts falling due within one year
 21 
(1,523,336)
(1,202,778)

Net current liabilities
  
 
 
(157,082)
 
 
(298,838)

Total assets less current liabilities
  
2,902,467
2,910,761

  

Provisions for liabilities
  

Deferred taxation
 24 
(118,326)
(118,326)

  
 
 
(118,326)
 
 
(118,326)

Net assets
  
2,784,141
2,792,435

Page 14

 
TANNERS (SHREWSBURY) LIMITED
REGISTERED NUMBER: 00111232
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2023

2023
2022
Note
£
£


Capital and reserves
  

Called up share capital 
 25 
19,444
19,444

Revaluation reserve
 26 
1,211,153
1,211,153

Capital redemption reserve
 26 
28,024
28,024

Profit and loss account brought forward
  
1,533,814
1,653,935

Profit/(loss) for the year
  
97,669
(5,880)

Other changes in the profit and loss account

  

(105,963)
(114,241)

Profit and loss account carried forward
  
1,525,520
1,533,814

  
2,784,141
2,792,435


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




................................................
J J Tanner
Director

Date: 9 February 2024

The notes on pages 20 to 43 form part of these financial statements.

Page 15

 
TANNERS (SHREWSBURY) LIMITED
 

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


Called up share capital
Capital redemption reserve
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 June 2021
19,444
54,738
1,211,153
4,954,410
6,239,745


Comprehensive income for the year

Profit for the year
-
-
-
1,150,058
1,150,058
Total comprehensive income for the year
-
-
-
1,150,058
1,150,058


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(114,241)
(114,241)


Total transactions with owners
-
-
-
(114,241)
(114,241)



At 1 June 2022
19,444
54,738
1,211,153
5,990,227
7,275,562


Comprehensive income for the year

Profit for the year
-
-
-
386,506
386,506
Total comprehensive income for the year
-
-
-
386,506
386,506


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(105,963)
(105,963)


Total transactions with owners
-
-
-
(105,963)
(105,963)


At 31 May 2023
19,444
54,738
1,211,153
6,270,770
7,556,105


The notes on pages 20 to 43 form part of these financial statements.

Page 16

 
TANNERS (SHREWSBURY) LIMITED
 

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


Called up share capital
Capital redemption reserve
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 June 2021
19,444
28,024
1,211,153
1,653,935
2,912,556


Comprehensive income for the year

Loss for the year

-
-
-
(5,880)
(5,880)


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(114,241)
(114,241)


Total transactions with owners
-
-
-
(114,241)
(114,241)



At 1 June 2022
19,444
28,024
1,211,153
1,533,814
2,792,435


Comprehensive income for the year

Profit for the year
-
-
-
97,669
97,669
Total comprehensive income for the year
-
-
-
97,669
97,669


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(105,963)
(105,963)


Total transactions with owners
-
-
-
(105,963)
(105,963)


At 31 May 2023
19,444
28,024
1,211,153
1,525,520
2,784,141


The notes on pages 20 to 43 form part of these financial statements.

Page 17

 
TANNERS (SHREWSBURY) LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
386,506
1,150,058

Adjustments for:

Amortisation of intangible assets
3,560
4,847

Depreciation of tangible assets
147,371
141,023

(Profit) on disposal of tangible assets
(20,539)
(8,292)

(Profit) on disposal of unlisted investments
(13,690)
-

Interest paid
6,936
3,614

Interest received
(15,438)
(10,329)

Taxation charge
96,330
272,158

Decrease/(increase) in stocks
190,347
(1,280,780)

Decrease/(increase) in debtors
239,942
(1,992,458)

(Decrease)/increase in creditors
(1,316,361)
1,648,532

Corporation tax (paid)
(393,041)
(286,938)

Foreign exchange revaluation (gains) and losses
45,579
(17,855)

Dividends received
-
(931)

Net cash generated from operating activities

(642,498)
(377,351)


Cash flows from investing activities

Purchase of intangible fixed assets
(9,400)
-

Purchase of tangible fixed assets
(266,848)
(54,437)

Sale of tangible fixed assets
175,716
8,540

Sale of unlisted and other investments
24,200
-

Interest received
15,438
10,329

HP interest paid
(1,391)
(2,877)

Dividends received
-
931

Net cash from investing activities

(62,285)
(37,514)
Page 18

 
TANNERS (SHREWSBURY) LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023


2023
2022

£
£



Cash flows from financing activities

Repayment of loans
-
(700,000)

Repayment of/new finance leases
(44,209)
(52,723)

Dividends paid
(105,963)
(114,241)

Interest paid
(5,545)
(737)

Net cash used in financing activities
(155,717)
(867,701)

Net (decrease) in cash and cash equivalents
(860,500)
(1,282,566)

Cash and cash equivalents at beginning of year
1,178,391
2,460,957

Cash and cash equivalents at the end of year
317,891
1,178,391


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
317,891
1,178,391

317,891
1,178,391


Page 19

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

1.


General information

Tanners (Shrewsbury) Limited ("the Company"), is a private company limited by shares and is registered and incorporated in England.
The principal activity of the Group during the year was wholesaling and retailing of wines, spirits, beers and mineral waters in the United Kingdom. The principal business address and registered office for the company is 26 Wyle Cop, Shrewsbury, Shropshire, SY1 1XD.

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 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 profit and loss account 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 balance sheet, 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 profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 June 2013.

 
2.3

Going concern

After reviewing budgets and forecasts the directors are confident that the group can continue trading for at least the next 12 months and that therefore the going concern basis is appropriate.

Page 20

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The company and group's functional and presentational currency is GBP.

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.

 
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. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue in respect of En Primeur sales is recognised when invoiced and the amount is payable by the customer. The cost of the goods to be delivered is included in cost of sales and creditors. Payment has usually been made to the supplier before the delivery of the goods. The commercial risk of the goods passes from the company to the customer once ordered and therefore the directors believe it appropriate to recognise En Primeur revenue when invoiced, rather than on shipping of the goods to the customer. 

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Page 21

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are 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 profit or loss using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss 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.

 
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 profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 22

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss 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 balance sheet 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 balance sheet 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 balance sheet date.

 
2.12

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Software
-
5
years
Website
-
3
years

Page 23

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.13

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.

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.

The estimated useful lives range as follows:

Freehold property
-
Not depreciated
Motor vehicles
-
Three to seven years
Fixtures and fittings
-
Five to twenty years
Assets under construction
-
Not depreciated

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.

The Companies Act 2006 requires all properties to be depreciated, if the depreciation is material. Freehold property is not depreciated. The directors consider that these properties are maintained in such a state of repair that their residual value is at least equal to their net book value. As a result, the corresponding depreciation would not be material and therefore is not charged to profit and loss.

 
2.14

Revaluation of tangible fixed assets

Freehold properties held at the date of transition to FRS102 are held at deemed cost based on the fair value of the properties on transition to FRS102. The properties are subsequently measured at cost or deemed cost, net of depreciation and any impairment losses. 

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Page 24

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.16

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. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet 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 profit or loss.

 
2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.18

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.

 
2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.20

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 profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet 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 Balance sheet.

Page 25

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.21

Financial instruments

The Group 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.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.

 
2.22

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 26

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

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. 
Significant accounting estimates and assumptions
The group makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have the potential risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are detailed below. 
a) Stock provision
At each reporting date, the group assesses whether stocks are impaired or if an impairment loss recognised in prior periods has reversed. A review is undertaken with the Buying Director and members of the sales team to establish slow moving lines or where there is a an indication of impairment. 
b) Bad debt provision
The group undertakes monthly reviews of all outstanding debtor balances and employs a full-time credit controller to monitor all debtor balances. A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of contract.
c
) Freehold land and buildings
An external valuation was obtained on the freehold land and buildings at the transition to FRS102 (being effective as at 1 June 2013). This is based on open market value and is subject to the judgement and experience of the surveyor. The directors consider whether any provision is required against this valuation on an annual basis and have concluded that for the accounting period ending 31 May 2022, no indication of impairment exists.
Significant areas of judgement
a) Recognition of En Primeur revenue
Revenue in respect of En Primeur sales is recognised when invoiced and the amount is payable by the customer. The cost of the goods to be delivered is included in cost of sales and creditors. Payment has usually been made to the supplier before the delivery of the goods. The commercial risk of the goods passes from the group to the customer once ordered and therefore the directors believe it applicable to recognise En Primeur revenue when invoiced, rather than on shipping of the goods to the customer. 


4.


Turnover

The turnover and profit before tax are attributable to the principal activity of the Group.  

All turnover arose within the United Kingdom.

Page 27

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

5.


Other operating income

2023
2022
£
£

Other operating income
13,277
36,416

Rent receivable
28,362
25,129

Royalty receivable
2,991
10,586

44,630
72,131



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Fair value losses / (gains) on foreign exchange contracts
45,579
(17,855)

Operating lease payments: Land and buildings
115,704
111,545

Operating lease payments: Vehicle leasing costs
62,298
55,372

(Profit) on disposal of fixed assets
(20,539)
(8,292)


7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the company's auditors for the audit of the consolidated and parent company's financial statements
22,250
20,250

Page 28

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

8.


Employees

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


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
3,401,461
3,166,320
724,455
654,298

Social security costs
338,090
320,393
86,499
78,092

Cost of defined contribution scheme
109,163
102,852
34,445
34,445

3,848,714
3,589,565
845,399
766,835


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


        2023
        2022
            No.
            No.







Distribution staff
29
29



Administrative staff
81
77

110
106


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
423,776
414,423

Group contributions to defined contribution pension schemes
32,838
32,360

456,614
446,783


During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £284,465 (2022 - £289,988).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £24,000 (2022 - £24,000).

Page 29

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

10.


Income from investments

2023
2022
£
£





Dividends received from unlisted investments
-
931

-
931



11.


Interest receivable

2023
2022
£
£


Interest on loans provided to directors
15,438
10,329

15,438
10,329


12.


Interest payable and similar expenses

2023
2022
£
£


Hire purchase and finance lease charges
1,391
2,877

Interest payable and similar charges
5,545
737

6,936
3,614

Page 30

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

13.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
85,009
286,941

Adjustments in respect of previous periods
-
9,230


85,009
296,171


Total current tax
85,009
296,171

Deferred tax


Origination and reversal of timing differences
11,321
(18,816)

Effect of change in tax rate
-
(5,197)

Total deferred tax
11,321
(24,013)


Taxation on profit on ordinary activities
96,330
272,158
Page 31

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
 
13.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 20% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
482,836
1,422,216


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 20% (2022 - 19%)
96,567
270,221

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
12,465
5,499

Adjustments to tax charge in respect of prior periods
-
9,230

Timing differences net of movement in tax rates
(10,964)
(11,039)

Book profit on chargeable assets
(1,370)
(1,576)

Dividends from UK companies
-
(177)

Marginal relief
(368)
-

Total tax charge for the year
96,330
272,158


Factors that may affect future tax charges

From 1 April 2023, the main rate of Corporation Tax increased from 19% to 25% for Companies with profits exceeding £250,000. As a result, the deferred tax balances have been calculated at 25%.


14.


Dividends

2023
2022
£
£


On ordinary share capital
105,963
114,241

105,963
114,241

Page 32

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

15.


Intangible assets

Group





Computer software

£



Cost


At 1 June 2022
456,115


Additions
9,400


Disposals
(151)



At 31 May 2023

465,364



Amortisation


At 1 June 2022
450,373


Charge for the year on owned assets
3,560


On disposals
(151)



At 31 May 2023

453,782



Net book value



At 31 May 2023
11,582



At 31 May 2022
5,742



All of the group's intangible fixed assets are held in the subsidiary entities.

Page 33

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

16.


Tangible fixed assets

Group






Freehold property
Motor vehicles
Fixtures and fittings
Assets under construction
Total

£
£
£
£
£



Cost or valuation


At 1 June 2022
3,010,000
723,129
1,124,240
-
4,857,369


Additions
-
160,843
50,377
55,628
266,848


Disposals
(150,000)
(86,916)
(28,587)
-
(265,503)



At 31 May 2023

2,860,000
797,056
1,146,030
55,628
4,858,714



Depreciation


At 1 June 2022
-
566,642
973,986
-
1,540,628


Charge for the year on owned assets
-
35,401
66,106
-
101,507


Charge for the year on financed assets
-
45,864
-
-
45,864


Disposals
-
(81,739)
(28,587)
-
(110,326)



At 31 May 2023

-
566,168
1,011,505
-
1,577,673



Net book value



At 31 May 2023
2,860,000
230,888
134,525
55,628
3,281,041



At 31 May 2022
3,010,000
156,487
150,254
-
3,316,741

The historical cost of assets that have been revalued and that are now held at deemed cost is £1,482,235.
Included within Freehold property is land & buildings totalling £2,860,000 on which no depreciation is to be charged.

Page 34

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

           16.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Motor vehicles
65,817
115,961

65,817
115,961


Company






Freehold property

£

Cost or valuation


At 1 June 2022
3,010,000


Disposals
(150,000)



At 31 May 2023

2,860,000






At 31 May 2023

-



Net book value



At 31 May 2023
2,860,000



At 31 May 2022
3,010,000






Page 35

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

17.


Fixed asset investments

Group





Unlisted investments

£



Cost or valuation


At 1 June 2022
32,510


Disposals
(10,510)



At 31 May 2023
22,000




Company





Investments in subsidiary companies
Unlisted investments
Total

£
£
£



Cost or valuation


At 1 June 2022
197,549
2,050
199,599


Disposals
-
(50)
(50)



At 31 May 2023
197,549
2,000
199,549





Subsidiary undertakings


The following were subsidiary undertakings of the company:

Name

Class of shares

Holding

Tanners Wines Limited
Ordinary
100%
Terry Platts Wine Merchants Limited
Ordinary
100%
Mardol Wines Limited
Ordinary
100%
Pulling and Company Limited
Ordinary
100%
Tanners Cymru Limited
Ordinary
100%

Tanners Wines Limited's principal activity is the wholesaling and retailing of wines, beers, spirits and minerals. All other subsidiaries were dormant throughout the year.
                                                                                                               

Page 36

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

18.


Stocks

Group
Group
2023
2022
£
£

Finished goods and goods for resale
4,472,438
4,662,785

4,472,438
4,662,785


An impairment loss of £4,513 (2022: £6,043) was recognised in cost of sales against stock during the year. 


19.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
2,020,298
2,117,046
-
-

Amounts owed by group undertakings
437,500
-
437,500
-

Other debtors
1,865,846
2,394,733
923,754
903,940

Foreign currency forward contracts
-
17,943
-
-

Prepayments and accrued income
101,571
158,378
-
-

Tax recoverable
5,000
-
5,000
-

4,430,215
4,688,100
1,366,254
903,940


Advance payments to suppliers are disclosed within other debtors.


20.


Cash and cash equivalents

Group
Group
2023
2022
£
£

Cash at bank and in hand
317,891
1,178,391

317,891
1,178,391


Page 37

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

21.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
3,385,829
4,231,360
-
-

Amounts owed to group undertakings
-
-
1,492,528
1,083,140

Corporation tax
95,640
403,672
30,808
119,638

Other taxation and social security
541,940
946,034
-
-

Obligations under finance lease and hire purchase contracts
14,769
37,008
-
-

Other creditors
165,579
167,278
-
-

Accruals and deferred income
611,269
648,670
-
-

4,815,026
6,434,022
1,523,336
1,202,778


Obligations under finance lease and hire purchase contracts due wihtin one year are secured against the assets to which they relate.


22.


Creditors: Amounts falling due after more than one year

Group
Group
2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
-
21,970

-
21,970


Obligations under finance lease and hire purchase contracts due in more than one year are secured against the assets to which they relate.


23.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2023
2022
£
£

Within one year
14,769
37,008

Between 1-5 years
-
21,970

14,769
58,978

Page 38

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

24.


Deferred taxation


Group



2023


£






At beginning of year
(152,715)


Charged to the profit or loss
(11,321)



At end of year
(164,036)

Company


2023


£






At beginning of year
(118,326)



At end of year
(118,326)

The provision for deferred taxation is made up as follows:

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
45,710
34,389
-
-

Short term timing differences
(14,123)
(14,123)
(14,123)
(14,123)

Deferred tax impact on deemed cost of freehold assets
132,449
132,449
132,449
132,449

164,036
152,715
118,326
118,326

Page 39

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

25.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



16,644 (2022 - 16,644) Ordinary shares of £1.00 each
16,644
16,644
1,400 (2022 - 1,400) Ordinary B shares of £1.00 each
1,400
1,400
1,400 (2022 - 1,400) Ordinary C shares of £1.00 each
1,400
1,400

19,444

19,444

Under the Articles of Association of the company, holders of "B" and "C" shares do not carry voting rights.  Dividends on "B" and "C" shares require the unanimous approval of all the holders and whenever a dividend is declared on "B" shares, the "C" shares automatically qualify for a dividend equal to one-seventh of the dividend declared on the "B" shares.



26.


Reserves

Revaluation reserve

The revaluation reserve represents non-distributable amounts relating to freehold property revaluations, net of deferred tax movements.

Capital redemption reserve

The capital redemption reserve represents the nominal value of shares redeemed by the Company.

Profit and loss account

The profit and loss account represents the accumulated profits of the Group since incorporation less distributions made to shareholders.

27.


Analysis of net debt




At 1 June 2022
Cash flows
At 31 May 2023
£

£

£

Cash at bank and in hand

1,178,391

(860,500)

317,891

Finance leases

(58,978)

44,209

(14,769)


1,119,413
(816,291)
303,122

Page 40

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

28.


Contingent liabilities

At the year end the Group had entered into a number of forward contracts to purchase Euros at protected rates of exchange. Gains and losses on these forward contracts have been recognised in the profit and loss account and for the Group result in a creditor of £27,636 (2022: debtor of £17,943) disclosed as a current liability.
The loss on these foreign exchange contracts of £45,579 has been disclosed through the profit and loss account for this period.


29.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group  in an independently administered fund. The pension cost charge represents contributions payable by the group  to the fund and amounted to £109,163 (2022: £102,852).


30.


Commitments under operating leases

At 31 May 2023 the Group and the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Land and Buildings

Not later than 1 year
105,414
105,950

Later than 1 year and not later than 5 years
101,645
207,059

207,059
313,009


Group
Group
2023
2022
£
£

Other

Not later than 1 year
4,450
8,651

Later than 1 year and not later than 5 years
139,908
34,091

144,358
42,742

Page 41

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

31.


Related party transactions

J J Tanner (Chairman of the company and shareholder) is also a Director of Merchant Vintners Company Limited.  Merchant Vintners Company Limited is a wine buying group consisting of independent wine merchants.  Tanners (Shrewsbury) Limited holds a 1/20th stake in Merchant Vintners Company Limited (all members have an equal share).  Tanners Wines Limited is a wholly owned subsidiary of Tanners (Shrewsbury) Limited, and made purchases on standard commercial terms from Merchant Vintners Company Limited during the year amounting to £677,676 (2022: £748,436) and at 31 May 2022 the balance owed to Merchant Vintners Company Limited was £47,025 (2022: £46,216).  
During previous financial years, the Company advanced loans of £660,000 to J J Tanner. Interest is being charged on this loan at a rate payable by the Company on its overdraft facility and during the year interest of £15,438 (2022: £12,471) had been charged.  The balance outstanding from J J Tanner to the company at 31 May 2023 was £681,030 (2022: £681,030) and this is disclosed within other debtors of the company and group.
In addition, corporation tax payable of £227,310 (2022: £222,310) has been accrued for in respect of Section 455 of the Corporation Taxes Act 2010 following the grant of the loan to J J Tanner. On repayment of the loan this tax will be repayable by HMRC and the debtor is included in other debtors on the balance sheet.


32.


Controlling party

The Company is under the control of its parent company, Tanners Wines (Holdings) Limited (company number 14486879), a company incorporated and registered in England and Wales. The Company's ultimate controlling party is J J Tanner by virtue of his controlling interest in the Company's ultimate parent undertaking.

Page 42

 
TANNERS (SHREWSBURY) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

33.


Financial Risk Management

The group has exposure to three main areas of risk - foreign exchange currency exposure, liquidity risk and customer credit exposure. To a lesser extent the group is exposed to interest rate risk. 
Foreign exchange transactional currency exposure
The group is exposed to currency exchange rate risk due to a significant proportion of its trade payables being denominated in non-sterling currencies. The net exposure of each currency is monitored and managed by the use of forward foreign exchange contracts with bank cash and overdraft accounts available in non-sterling currencies as part of the group's bank facilities. The forward foreign exchange contracts all mature within twelve months and are taken out to cover known or highly likely exposures to foreign currency payments. 
Liquidity risk
The objective of the group in managing liquidity risk is to ensure that it can meets its financial obligations as and when they fall due. The group expects to meet its financial obligations through operating cash flows and use of the bank overdraft facility. Cash flow forecasts, including currency forecasts are reviewed on a regular basis to monitor the level of headroom to the total facility. 
Customer credit exposure
The group may offer credit terms to its customers which allow payment of the debt after delivery of the goods or services. The group is at risk to the extent that a customer may be unable to pay the debt on the specified due date. The risk is mitigated by strong on-going customer relationships, regular monitoring of any delayed payments and use of external, credit reference checking agencies. 
Interest rate risk
The group borrows from its bankers using overdrafts and monitors the expected future direction of interest rates. Given the low level of interest rates over the past few years, the group has not entered into interest rate swaps but would consider this if management believe it is appropriate. 

Page 43