Limited Liability Partnership registration number OC382028 (England and Wales)
BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
Balfour Hospitality Limited
Hush Heath Hospitality (Kent) Limited
LLP registration number
OC382028
Registered office
73 Cornhill
London
EC3V 3QQ
Auditor
Gerald Edelman LLP
73 Cornhill
London
EC3V 3QQ
BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
CONTENTS
Page
Members' report
1 - 2
Independent auditor's report
3 - 5
Profit and loss account
6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 20
BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The members present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the limited liability partnership is that of the running of The Balfour Winery on the Hush Heath Estate. Its place of business being Balfour Winery, Five Oak Lane, Staplehurst, TNH12 0HT.

Members' drawings, contributions and repayments

The members' drawing policy allows each member to draw a proportion of their profit share, subject to the cash requirements of the business.

 

A member's capital requirement is linked to their share of profit and the financing requirement of the limited liability partnership. There is no opportunity for appreciation of the capital subscribed. Just as incoming members introduce their capital at "par", so the retiring members are repaid their capital at "par".

Designated members

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

Balfour Hospitality Limited
Hush Heath Hospitality (Kent) Limited
Auditor

The auditor, Gerald Edelman LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of members' responsibilities

The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members 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 limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members are required to:

 

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

Each of the members in office at the date of approval of this annual report confirms that:

 

BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Going concern

Having reviewed the company's financial forecasts and expected future cash flows, the members are confident that the LLP has adequate resources to continue in operational existence for the foreseeable future, a period of not less than 12 months from the date of signing these financial statements. Accordingly, the going concern basis has been adopted in preparing the financial statements for the year ended 31 December 2022.

Approved by the members on
15 April 2024
15 April 2024
and signed on behalf by:
Balfour Hospitality Limited
Designated Member
BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BALFOUR WINERY LLP
- 3 -
Opinion

We have audited the financial statements of Balfour Winery LLP (the 'limited liability partnership') for the year ended 31 December 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the limited liability partnership in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the members' 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 limited liability partnership’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 members with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The members 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.

BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BALFOUR WINERY LLP
- 4 -
Matters on which we are required to report by exception

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

 

Responsibilities of members

As explained more fully in the members' responsibilities statement, the members 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 members 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 members are responsible for assessing the limited liability partnership'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 members either intend to liquidate the limited liability partnership or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 auditor's 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 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.

 

We planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with law or regulations.

Extent to which the audit was considered capable of detecting irregularities, including fraud

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BALFOUR WINERY LLP
- 5 -
Audit response to risks identified
Fraud due to management override

To address the risk of fraud through management bias and override of controls, we:

Irregularities and non-compliance with laws and regulations

In response to the risk of irregularities and non compliance with laws and regulations, we designed procedures which included, but are not limited to:

The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK). Furthermore, the more removed that laws and regulations are from financial transactions, the less likely that we would become aware of non-compliance.

 

Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the entity and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the designated members.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the limited liability partnership's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the limited liability partnership's members those matters we are required to state to them in an auditor's 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 limited liability partnership and the limited liability partnership's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Grant Lee FCA
Senior Statutory Auditor
For and on behalf of Gerald Edelman LLP
15 April 2024
Chartered Accountants
Statutory Auditor
73 Cornhill
London
EC3V 3QQ
BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
2022
2021
Notes
£
£
Turnover
3
4,372,645
4,072,010
Direct cost of sales
(2,562,571)
(2,004,366)
Stock movement
889,595
(617,241)
Cost of sales
(1,672,976)
(2,621,607)
Gross profit
2,699,669
1,450,403
Administrative expenses
(2,484,489)
(1,896,713)
Other operating income
32,295
197,777
Intra group management fees
(25,000)
(25,000)
Operating profit/(loss)
4
222,475
(273,533)
Interest payable and similar expenses
7
(68,764)
(29,506)
Profit/(loss) for the financial year before members' remuneration and profit shares available for discretionary division among members
153,711
(303,039)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
2022
2021
£
£
Profit/(loss) for the financial year available for discretionary division among members
153,711
(303,039)
Other comprehensive income
-
-
Total comprehensive income for the year
153,711
(303,039)
BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 8 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
8
7,450,834
7,209,390
Current assets
Stocks
9
3,799,203
2,909,608
Debtors
10
2,231,739
2,402,232
Cash at bank and in hand
1,086,648
428,425
7,117,590
5,740,265
Creditors: amounts falling due within one year
11
(1,368,610)
(929,385)
Net current assets
5,748,980
4,810,880
Total assets less current liabilities
13,199,814
12,020,270
Creditors: amounts falling due after more than one year
12
(2,488,333)
(1,462,500)
Net assets attributable to members
10,711,481
10,557,770
Represented by:
Members' other interests
15
Members' capital classified as equity
4,703,351
4,549,640
Revaluation reserve
6,008,130
6,008,130
10,711,481
10,557,770
The financial statements were approved by the members and authorised for issue on
15 April 2024
15 April 2024
and are signed on their behalf by:
Balfour Hospitality Limited
Designated member
Limited Liability Partnership registration number OC382028 (England and Wales)
BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
Members' capital
Revaluation reserve
Other reserves
Total
£
£
£
£
Balance at 1 January 2021
4,852,679
6,008,130
-
10,860,809
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
-
(303,039)
(303,039)
Profit allocations
-
-
303,039
303,039
Other division of profits
(303,039)
-
-
(303,039)
Balance at 31 December 2021
4,549,640
6,008,130
-
10,557,770
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
153,711
153,711
Profit allocations
-
-
(153,711)
(153,711)
Other division of profits
153,711
-
-
153,711
Balance at 31 December 2022
4,703,351
6,008,130
-
10,711,481
BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
1
Accounting policies
Limited liability partnership information

Balfour Winery LLP is a limited liability partnership incorporated in England and Wales. The registered office is 73 Cornhill, London, EC3V 3QQ.

 

The limited liability partnership's principal activities are disclosed in the Members' Report.

1.1
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of the leasehold interest and improvements at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the members have a reasonable expectation that the limited liability partnership has adequate resources to continue in operational existence for the foreseeable future. Thus the members continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts accounted for on an accruals basis.

 

Turnover is derived from the running of the Balfour Winery, which includes sales of wine and also sales from running of tour services.

 

1.4
Members' participating interests

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).

 

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.

Once an unavoidable obligation has been created in favour of members through allocation of profits or other means, any undrawn profits remaining at the reporting date are shown as ‘Loans and other debts due to members’ to the extent they exceed debts due from a specific member.

1.5
Tangible fixed assets

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

BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 11 -

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

Leasehold interest and improvements
Over life of lease
Plant and machinery
4% reducing balance
Fixtures, fittings & equipment
25% reducing balance
Motor vehicles
25% reducing balance

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

1.6
Impairment of fixed assets

At each reporting period end date, the limited liability partnership reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the limited liability partnership estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

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

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

1.8
Cash at bank and in hand

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

BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -
1.9
Financial instruments

The limited liability partnership has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument.

 

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.

Basic financial assets

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

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

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

Classification of financial liabilities

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

BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the limited liability partnership are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the limited liability partnership.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

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

1.12
Retirement benefits and post retirement payments to members

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

1.13
Leases

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

 

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

1.14
Government grants

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

 

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

BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -
1.15
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

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

 

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

3
Turnover

An analysis of the limited liability partnership's turnover is as follows:

2022
2021
£
£
Turnover analysed by class of business
Sale of winery products
4,372,645
4,072,010
2022
2021
£
£
Other significant revenue
Grants received
16,000
197,777
4
Operating profit/(loss)
2022
2021
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange gains
(20,002)
-
Government grants
(16,000)
(197,777)
Fees payable to the LLP's auditor for the audit of the LLP's financial statements
27,595
14,999
Depreciation of owned tangible fixed assets
237,541
238,985
Profit on disposal of tangible fixed assets
(5,493)
(322)
BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
5
Employees

The average number of persons (excluding members) employed by the partnership during the year was:

2022
2021
Number
Number
67
61

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
1,112,854
962,118
Social security costs
107,847
90,193
Pension costs
18,284
19,494
1,238,985
1,071,805
6
Information in relation to members
2022
2021
Number
Number
Average number of members during the year
-
-
7
Interest payable and similar expenses
2022
2021
£
£
Interest on bank overdrafts and loans
67,747
29,854
Loan arrangement fees
833
-
Other finance costs:
Interest on finance leases and hire purchase contracts
184
(348)
Total finance costs
68,764
29,506
BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
8
Tangible fixed assets
Leasehold interest and improvements
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 January 2022
5,396,383
2,369,862
336,006
30,162
8,132,413
Additions
375,093
44,505
36,353
30,325
486,276
Disposals
-
(4,287)
-
(15,995)
(20,282)
At 31 December 2022
5,771,476
2,410,080
372,359
44,492
8,598,407
Depreciation and impairment
At 1 January 2022
321,269
378,931
202,357
20,466
923,023
Depreciation charged in the year
107,944
81,278
39,263
9,056
237,541
Eliminated in respect of disposals
-
(792)
-
(12,199)
(12,991)
At 31 December 2022
429,213
459,417
241,620
17,323
1,147,573
Carrying amount
At 31 December 2022
5,342,263
1,950,663
130,739
27,169
7,450,834
At 31 December 2021
5,075,114
1,990,931
133,649
9,696
7,209,390

The leasehold interest and improvements have been valued on 31 December 2021 by the members. The valuation was arrived at on the basis of a valuation carried out at 31 December 2018 by independent valuers, Strutt & Parker, who are not connected with the limited liability partnership. The valuation conforms to International Valuation Standards and was based on the depreciated replacement cost due to the specialised nature of the property and is not based on the evidence of sales of similar assets in the market.

If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

2022
2021
£
£
Cost
2,173,427
1,758,115
Accumulated depreciation
(318,674)
(268,060)
Carrying value
1,854,753
1,490,055
9
Stocks
2022
2021
£
£
Finished goods and goods for resale
3,799,203
2,909,608
BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
10
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
382,048
733,213
Amounts owed by group undertakings
1,659,857
1,601,169
Other debtors
160,749
11,145
Prepayments and accrued income
29,085
56,705
2,231,739
2,402,232

The amounts owed by group undertakings is interest free and there are no terms of repayment. This includes an amount of £1,473,985 (2021: 1,584,278) due from members.

11
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans
13
-
37,500
Obligations under finance leases
-
1,528
Trade creditors
830,444
583,375
Other taxation and social security
289,320
171,349
Other creditors
24,078
6,955
Accruals and deferred income
224,768
128,678
1,368,610
929,385

 

BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
12
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loans and overdrafts
13
2,488,333
1,462,500

The bank loan is secured with fixed charge over the leasehold property of the LLP.

13
Loans and overdrafts
2022
2021
£
£
Bank loans
2,488,333
1,500,000
Payable within one year
-
37,500
Payable after one year
2,488,333
1,462,500

The loan is secured with a fixed charge over the leasehold property of the Winery.

The final repayment date is 5 years after the first tranche of the loan amount was drawn. The interest on the loan is 2.95% over the lender's base rate.

14
Loans and other debts due to members

In the event of a winding up the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.

15
Reconciliation of Members' Interests
EQUITY
TOTAL
Members' other interests
MEMBERS'
INTERESTS
Members' capital
Revaluation
reserve
Other reserves
Total
2022
£
£
£
£
Members' interests at 1 January 2022
4,549,640
6,008,130
-
10,557,770
Profit for the financial year available for discretionary division among members
-
-
153,711
153,711
Members' interests after profit for the year
4,549,640
6,008,130
153,711
10,711,481
Allocation of profit for the financial year
-
-
(153,711)
(153,711)
Other divisions of profits
153,711
-
-
153,711
Members' interests at 31 December 2022
4,703,351
6,008,130
-
10,711,481
BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 19 -
16
Financial commitments, guarantees and contingent liabilities

There is a composite guarantee between Balfour Winery LLP and its parent company, Balfour Hospitality Limited.

BALFOUR WINERY LLP
FORMERLY HUSH HEATH ESTATE LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
17
Related party transactions
Transactions with related parties

During the year the LLP purchased grapes and apples amounting to £372,366 (2021: £335,634), under a grower agreement, from L Balfour-Lynn who is a majority shareholder of Balfour Hospitality Limited.

 

During the year the LLP reimbursed expenses of £2,224 incurred by L Balfour-Lynn.

 

Management fees of £200,000 (2021: £150,000) was paid to Warwick Balfour Management Limited, a company controlled by L Balfour-Lynn.

 

At year end an amount of £24,028 (2021: £8,772) was due from L Balfour-Lynn.

 

During the year, fees amounting to £170,970 (2021: £52,003) were charged to companies controlled by L Balfour-Lynn. At the year end these companies owed £112,364 (2021: £15,067) to the LLP.

 

The LLP has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

18
Ultimate controlling party

The parent company of Balfour Winery LLP is Balfour Hospitality Limited, a company registered in England and Wales, and its registered office is Balfour Winery, Five Oak Lane, Staplehurst, Kent, United Kingdom, TN12 0HT .

2022-12-312022-01-01falseCCH SoftwareCCH Accounts Production 2023.300falseOC3820282022-01-012022-12-31OC382028bus:PartnerLLP12022-01-012022-12-31OC382028bus:PartnerLLP22022-01-012022-12-31OC3820282022-12-31OC3820282021-01-012021-12-31OC382028bus:LimitedLiabilityPartnershipLLP2022-01-012022-12-31OC382028bus:FRS1022022-01-012022-12-31OC382028bus:Audited2022-01-012022-12-31OC382028bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP