Company Registration No. 09810882 (England and Wales)
Lost and Grounded Brewers Ltd
Unaudited financial statements
for the year ended 31 October 2023
Pages for filing with the registrar
Lost and Grounded Brewers Ltd
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 10
Lost and Grounded Brewers Ltd
Statement of financial position
As at 31 October 2023
1
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
10,935
15,204
Tangible assets
4
2,250,454
2,092,782
2,261,389
2,107,986
Current assets
Stocks
285,629
319,415
Debtors
5
408,459
335,533
Cash at bank and in hand
180,433
164,415
874,521
819,363
Creditors: amounts falling due within one year
6
(801,368)
(691,980)
Net current assets
73,153
127,383
Total assets less current liabilities
2,334,542
2,235,369
Creditors: amounts falling due after more than one year
7
(628,905)
(562,890)
Net assets
1,705,637
1,672,479
Capital and reserves
Called up share capital
8
10,920
10,920
Share premium account
1,589,078
1,589,078
Revaluation reserve
9
120,850
120,850
Profit and loss reserves
(15,211)
(48,369)
Total equity
1,705,637
1,672,479

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

For the financial year ended 31 October 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

Lost and Grounded Brewers Ltd
Statement of financial position (continued)
As at 31 October 2023
2
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:
Alejandro Troncoso
Director
Company Registration No. 09810882
Lost and Grounded Brewers Ltd
Notes to the financial statements
For the year ended 31 October 2023
3
1
Accounting policies
Company information

Lost and Grounded Brewers Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 91 Whitby Road, Bristol, BS4 4AR.

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 £1.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of micro cube brewery equipment, packaging equipment, kegs and keg line equipment at fair value. The principal accounting policies adopted are set out below.

1.2
Turnover

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

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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

1.3
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.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Trademarks
10 years
Branding
7 years
Company establishing fees
2 to 15 years
1.4
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.

Lost and Grounded Brewers Ltd
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:

Leasehold property
15 years
Leasehold improvements
11 to 15 years
Plant and machinery
2 to 25 years
Fixtures, fittings & equipment
5 years
Computer equipment
3 to 5 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 profit or loss.

1.5
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company 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.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.

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.

1.7
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, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Lost and Grounded Brewers Ltd
Notes to the financial statements (continued)
For the year ended 31 October 2023
1
Accounting policies (continued)
5
1.8
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 statement of financial position 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, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, 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.

1.9
Equity instruments

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

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

Lost and Grounded Brewers Ltd
Notes to the financial statements (continued)
For the year ended 31 October 2023
1
Accounting policies (continued)
6
1.10
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.

1.11
Retirement benefits

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

1.12
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 statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

1.13
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.

1.14
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.

Lost and Grounded Brewers Ltd
Notes to the financial statements (continued)
For the year ended 31 October 2023
7
2
Employees

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

2023
2022
Number
Number
Total
36
34
3
Intangible fixed assets
Trademarks
Branding
Company establishing fees
Total
£
£
£
£
Cost
At 1 November 2022 and 31 October 2023
4,506
24,710
16,713
45,929
Amortisation and impairment
At 1 November 2022
2,835
16,466
11,424
30,725
Amortisation charged for the year
450
2,901
918
4,269
At 31 October 2023
3,285
19,367
12,342
34,994
Carrying amount
At 31 October 2023
1,221
5,343
4,371
10,935
At 31 October 2022
1,671
8,244
5,289
15,204
Lost and Grounded Brewers Ltd
Notes to the financial statements (continued)
For the year ended 31 October 2023
8
4
Tangible fixed assets
Leasehold property
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
£
£
Cost or valuation
At 1 November 2022
15,693
214,618
2,225,359
55,673
21,774
2,533,117
Additions
-
0
24,380
308,060
3,473
3,710
339,623
Disposals
-
0
-
0
(9,656)
-
0
-
0
(9,656)
At 31 October 2023
15,693
238,998
2,523,763
59,146
25,484
2,863,084
Depreciation and impairment
At 1 November 2022
6,710
61,331
330,669
28,895
12,730
440,335
Depreciation charged in the year
1,047
15,859
148,780
10,397
5,345
181,428
Eliminated in respect of disposals
-
0
-
0
(9,133)
-
0
-
0
(9,133)
At 31 October 2023
7,757
77,190
470,316
39,292
18,075
612,630
Carrying amount
At 31 October 2023
7,936
161,808
2,053,447
19,854
7,409
2,250,454
At 31 October 2022
8,983
153,287
1,894,690
26,778
9,044
2,092,782

Within plant and machinery, micro cube brewery equipment, packaging equipment, kegs and keg line equipment with a carrying amount of £359,412 was revalued at 31 October 2023 by the director of the company based on their fair value. Independent valuers were not involved in the valuation. If the equipment were measured using the cost model, the carrying amounts would have been £270,366 (2022 - £283,461), being cost £296,473 (2022 - £296,473) and depreciation £26,107 (2022 - £13,012).

5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
361,511
290,071
Other debtors
46,948
45,462
408,459
335,533
Lost and Grounded Brewers Ltd
Notes to the financial statements (continued)
For the year ended 31 October 2023
9
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
28,446
27,273
Trade creditors
281,039
315,250
Taxation and social security
277,361
217,736
Other creditors
214,522
131,721
801,368
691,980

Included within other creditors is £198,345 (2022: £128,191) secured against fixed assets held by the company.

7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
53,384
72,727
Other creditors
575,521
490,163
628,905
562,890

Included within other creditors is £575,521 (2022: £490,163) secured against fixed assets held by the company.

8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
1,092,012
1,092,012
10,920
10,920

Certain employees of the company participate in the share incentive scheme operated by the company. The share options were granted on 27 January 2023 with 116,900 ordinary shares placed under option. The options are subject to the company's performance in the period to 31 December 2024 and 31 December 2025.

9
Revaluation reserve
2023
2022
£
£
At the beginning of the year
120,850
74,999
Revaluation arising in the year
-
0
45,851
At the end of the year
120,850
120,850
Lost and Grounded Brewers Ltd
Notes to the financial statements (continued)
For the year ended 31 October 2023
10
10
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
655,380
62,386
2023-10-312022-11-01falseCCH SoftwareCCH Accounts Production 2023.300No description of principal activityAlejandro TroncosoHoward CearnsDavid Martinfalse098108822022-11-012023-10-31098108822023-10-31098108822022-10-3109810882core:ComputerSoftware2023-10-3109810882core:PatentsTrademarksLicencesConcessionsSimilar2023-10-3109810882core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-10-3109810882core:ComputerSoftware2022-10-3109810882core:PatentsTrademarksLicencesConcessionsSimilar2022-10-3109810882core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-10-3109810882core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-10-3109810882core:LeaseholdImprovements2023-10-3109810882core:PlantMachinery2023-10-3109810882core:FurnitureFittings2023-10-3109810882core:ComputerEquipment2023-10-3109810882core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-10-3109810882core:LeaseholdImprovements2022-10-3109810882core:PlantMachinery2022-10-3109810882core:FurnitureFittings2022-10-3109810882core:ComputerEquipment2022-10-3109810882core:CurrentFinancialInstrumentscore:WithinOneYear2023-10-3109810882core:CurrentFinancialInstrumentscore:WithinOneYear2022-10-3109810882core:Non-currentFinancialInstrumentscore:AfterOneYear2023-10-3109810882core:Non-currentFinancialInstrumentscore:AfterOneYear2022-10-3109810882core:CurrentFinancialInstruments2023-10-3109810882core:CurrentFinancialInstruments2022-10-3109810882core:Non-currentFinancialInstruments2023-10-3109810882core:Non-currentFinancialInstruments2022-10-3109810882core:ShareCapital2023-10-3109810882core:ShareCapital2022-10-3109810882core:SharePremium2023-10-3109810882core:SharePremium2022-10-3109810882core:RevaluationReserve2023-10-3109810882core:RevaluationReserve2022-10-3109810882core:RetainedEarningsAccumulatedLosses2023-10-3109810882core:RetainedEarningsAccumulatedLosses2022-10-3109810882core:RevaluationReserve2022-10-3109810882core:RevaluationReserve2021-10-3109810882bus:Director12022-11-012023-10-3109810882core:IntangibleAssetsOtherThanGoodwill2022-11-012023-10-3109810882core:ComputerSoftware2022-11-012023-10-3109810882core:PatentsTrademarksLicencesConcessionsSimilar2022-11-012023-10-3109810882core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-11-012023-10-3109810882core:LandBuildingscore:LongLeaseholdAssets2022-11-012023-10-3109810882core:LeaseholdImprovements2022-11-012023-10-3109810882core:PlantMachinery2022-11-012023-10-3109810882core:FurnitureFittings2022-11-012023-10-3109810882core:ComputerEquipment2022-11-012023-10-31098108822021-11-012022-10-3109810882core:ComputerSoftware2022-10-3109810882core:PatentsTrademarksLicencesConcessionsSimilar2022-10-3109810882core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-10-31098108822022-10-3109810882core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-10-3109810882core:LeaseholdImprovements2022-10-3109810882core:PlantMachinery2022-10-3109810882core:FurnitureFittings2022-10-3109810882core:ComputerEquipment2022-10-3109810882core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-11-012023-10-3109810882core:WithinOneYear2023-10-3109810882core:WithinOneYear2022-10-3109810882core:RevaluationReserve2022-11-012023-10-3109810882bus:PrivateLimitedCompanyLtd2022-11-012023-10-3109810882bus:SmallCompaniesRegimeForAccounts2022-11-012023-10-3109810882bus:FRS1022022-11-012023-10-3109810882bus:AuditExemptWithAccountantsReport2022-11-012023-10-3109810882bus:Director22022-11-012023-10-3109810882bus:Director32022-11-012023-10-3109810882bus:FullAccounts2022-11-012023-10-31xbrli:purexbrli:sharesiso4217:GBP