Company registration number SC576015 (Scotland)
SCOT BREW LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
SCOT BREW LIMITED
CONTENTS
Page
Company information
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 10
SCOT BREW LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
6
13,383
-
0
Tangible assets
7
2,047,723
2,193,418
2,061,106
2,193,418
Current assets
Stocks
8
143,727
125,060
Debtors
9
79,589
237,751
Cash at bank and in hand
66,219
58,930
289,535
421,741
Creditors: amounts falling due within one year
10
(384,205)
(428,862)
Net current liabilities
(94,670)
(7,121)
Total assets less current liabilities
1,966,436
2,186,297
Creditors: amounts falling due after more than one year
11
(4,360,366)
(3,960,379)
Provisions for liabilities
12
(137,432)
(116,853)
Net liabilities
(2,531,362)
(1,890,935)
Capital and reserves
Called up share capital
14
1,000
1,000
Profit and loss reserves
(2,532,362)
(1,891,935)
Total equity
(2,531,362)
(1,890,935)

The notes on pages 3 to 10 form part of these financial statements.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 29 July 2024 and are signed on its behalf by:
Rory Forrest
Director
Company Registration No. SC576015
SCOT BREW LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 November 2021
1,000
(1,292,833)
(1,291,833)
Year ended 31 October 2022:
Loss and total comprehensive income for the year
-
(599,102)
(599,102)
Balance at 31 October 2022
1,000
(1,891,935)
(1,890,935)
Year ended 31 October 2023:
Loss and total comprehensive income for the year
-
(640,427)
(640,427)
Balance at 31 October 2023
1,000
(2,532,362)
(2,531,362)

The notes on pages 3 to 10 form part of these financial statements.

SCOT BREW LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
1
Accounting policies
Company information

Scot Brew Limited is a private company limited by shares incorporated in Scotland. The registered office is 2nd Floor, Blenheim House, Fountainhall Road, Aberdeen, United Kingdom, AB15 4DT. The principal place of business is Scot Brew Limited, 8-10 Dunedin Street, Edinburgh, EH7 4JB. The company's registration number is SC576015.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The statement of financial positiontrue as at 31 October 2023 presents net current liabilities of £94,670 (2022: £7,121) and net liabilities of £2,531,362 (£1,890,935). The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons.

 

The company meets its day to day working capital requirements with the support of the company's parent company, Signature Pubs Liimited, who have agreed not to seek repayment of loan payable and provide additional support as required for a period of at least twelve months from the date of signing the financial statements.

 

For the above reason, the directors consider it appropriate to prepare the financial statements on the going concern basis.

1.3
Turnover

Turnover is measured at the fair value of the consideration received or receivable, exclusive of VAT and trade discounts, for goods and services supplied during the year in the normal course of business.

 

Turnover is recognised on delivery of goods.                            

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

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

Brand development
5 years
1.5
Tangible fixed assets

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

SCOT BREW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 4 -

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

Heritable land and buildings
50 years
Property improvements
20 years
Plant and equipment
3-10 years

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

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. 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 the profit and loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.7
Stocks

Stocks are stated at the lower of cost and net realisable value. Net realisable value represents the estimated amount which would currently be obtained from disposal of an asset after deducting estimated costs of disposal.

1.8
Cash and cash equivalents

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

1.9
Financial instruments

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

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

SCOT BREW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 5 -
Impairment of financial assets

Financial assets, other than those held at fair value through the profit and loss account 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 the profit and 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 company 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 company after deducting all of its liabilities.

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 company’s contractual obligations expire or are discharged or cancelled.

1.10
Taxation

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

Current tax

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

SCOT BREW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 6 -
Deferred tax

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

 

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

1.11
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 company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

2
Judgements and key sources of estimation uncertainty

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

 

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

 

The following are considered to be either judgements that have had the most significant effect on the amounts recognised in the financial statements, or estimates that are dependent upon assumptions which could change in the next financial year and have a material effect on the carrying amounts of assets and liabilities at the balance sheet date.        

 

The amount of depreciation charged in the financial statements for the year totalling £230,576 (2022: £229,835) is based on the directors' assessment of the useful economic lives of the related tangible fixed assets. In light of the recurring losses, the directors have estimated the recoverable value of the company's fixed assets based on their fair value at the balance sheet date and are satisfied that it is at least equal to the net book value in the accounts. On this basis, no impairment provision is considered necessary.        

 

The directors consider that there are no other judgements, estimates and underlying assumptions which have a significant risk of causing a material adjustment to the carrying value of assets and liabilities.        

 

SCOT BREW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 7 -
3
Operating loss
2023
2022
Operating loss for the year is stated after charging/(crediting):
£
£
Amortisation of intangible assets
617
-
0
Depreciation of owned tangible fixed assets
229,959
229,835
Government grants
-
(8,367)
Audit fees
3,000
7,600
4
Employees

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

2023
2022
Total
17
14
5
Directors' remuneration

No director received any remuneration for services as a director from the company during the year or previous year.

6
Intangible fixed assets
Brand development
£
Cost
At 1 November 2022
-
0
Additions
14,000
At 31 October 2023
14,000
Amortisation and impairment
At 1 November 2022
-
0
Amortisation charged for the year
617
At 31 October 2023
617
Carrying amount
At 31 October 2023
13,383
At 31 October 2022
-
0
SCOT BREW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 8 -
7
Tangible fixed assets
Heritable land and buildings
Plant and equipment
Total
£
£
£
Cost
At 1 November 2022
1,289,473
1,643,752
2,933,225
Additions
9,150
75,114
84,264
At 31 October 2023
1,298,623
1,718,866
3,017,489
Depreciation and impairment
At 1 November 2022
173,786
566,021
739,807
Depreciation charged in the year
41,376
188,583
229,959
At 31 October 2023
215,162
754,604
969,766
Carrying amount
At 31 October 2023
1,083,461
964,262
2,047,723
At 31 October 2022
1,115,687
1,077,731
2,193,418
8
Stocks
2023
2022
£
£
Raw materials
75,083
62,355
Work in progress
18,785
16,277
Finished goods and goods for resale
49,859
46,428
143,727
125,060
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
51,376
125,327
Amounts owed by group undertakings
-
0
72,895
Other debtors
4,382
26,033
Prepayments and accrued income
23,831
13,496
79,589
237,751
SCOT BREW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 9 -
10
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
40,340
21,150
Amounts owed to group undertakings
189,797
314,055
Taxation and social security
38,754
24,669
Other creditors
67,893
1,100
Accruals and deferred income
47,421
67,888
384,205
428,862
11
Creditors: amounts falling due after more than one year
2023
2022
£
£
Amounts owed to parent company
4,360,366
3,960,379

The loan from the parent company carries interest at base rate +2% and is repayable on 1 November 2024. The parent company exercised its right to waive interest for the year and subsequent to the year end has deferred repayment of the loan.

12
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
13
137,432
116,853
13
Deferred taxation

The following are the major deferred tax liabilities recognised by the company and movements thereon:

2023
2022
Balances:
£
£
Accelerated capital allowances
137,432
116,853
2023
Movements in the year:
£
Liability at 1 November 2022
116,853
Charge to profit or loss
20,579
Liability at 31 October 2023
137,432

The company has no unrecognised deferred tax assets as at 31 October 2023 (2022: £nil).

SCOT BREW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 10 -
14
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
1,000 Ordinary shares of £1
1,000
1,000
15
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Brian Thomson BA(Hons) CA
Statutory Auditor:
Consilium Audit Limited
16
Related party transactions
Transactions with related parties

The company 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.

 

Other information

No further transactions with related parties were undertaken such as are required to be disclosed under the provisions of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

17
Ultimate controlling party

The company's parent undertaking is Signature Pubs Limited, a company registered in Scotland. Copies of the financial statements of Signature Pubs Limited are available from Companies House, Crown Way, Cardiff, CF14 3UZ. The smallest and largest group within which the results of the company are consolidated is that headed by Signature Pubs Ltd. The parent company is controlled by Nicholas Wood by virtue of his shareholding in the company.

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