Company Registration No. 08922615 (England and Wales)
THE WINE COMPANY (UK) LTD
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
LB GROUP
The Octagon Suite E2
2nd Floor Middleborough
Colchester
Essex
CO1 1TG
THE WINE COMPANY (UK) LTD
CONTENTS
Page
Director's report
1 - 2
Statement of financial position
3 - 4
Notes to the financial statements
5 - 10
THE WINE COMPANY (UK) LTD
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -

The director presents his annual report and financial statements for the period ended 31 December 2023.

Director

The director who held office during the period and up to the date of signature of the financial statements was as follows:

Mr J Wheeler
Chairman's Review

 

The Wine Company (UK) Limited

 

My review last year chose three inter-linked themes which I and my colleagues believe are at the heart of our success as a business.

 

Delivering Promises, People First & Reliability, Consistency & Innovation.

 

A year later, on reviewing our results, my colleagues and I see no need to change our themes, our priorities, or our strategies. In a challenging external environment, we have outperformed a number of our rivals in the premium e-commerce wine channel. During this period, we have taken the opportunity to align our financial year end with a number of leading companies in our specialist sector.

 

The company continued to trade well above pre-Covid levels following on from the welcome boost generated by many well organised e-commerce wine businesses during the Covid period.

 

We have retained most of our existing customers and recruited more than 5,500 new customers, since we reported last year.

 

Our margins remain resilient assisted by our continual development of supplier relationships.

 

I am pleased to confirm for the accounting period to December 2023, the company turnover was £8.58m yielding a gross profit of £3.35m during the period.

 

Our marketing strategy is to recruit responsible consumers in all age groups whose wine consumption is quality orientated and who genuinely prefer to ‘choose better wine’. Within our ongoing analysis we appreciate that the majority of our customers share our passion of enjoying better wines at home which are both distinctive and authentic. In addition, we continue to enjoy strong connections with our friends in the dining rooms, restaurants & hotels who have a gastronomic focus and we appreciate each other’s speciality. We will continue our own very high standards of quality wines and outstanding service.

 

As I write this review in late summer, I can report a return to more regular consumer buying patterns as we approach an encouraging start to the autumn of 2024 and as new discerning consumers continue to turn to us to ensure they select wines of genuine quality and value.

 

My own hard-working and dedicated professional team never cease to amaze me and remind everyone who enjoys trading with the simplicity of system-based technologies that The Wine Company and its teams are easily reached by phone or email with a personal touch. Our systems are modern, constantly improving, and simple to interface and our personal relationships are unashamedly old-fashioned and individual in their focus and direction. It’s a combination that works well.

 

I would like to thank my colleagues, our loyal customers, our inspiring wine producers and supportive stakeholders for the ongoing support they all give to both of our wine merchants, MR.WHEELER Wine & From Vineyards Direct.

 

Undoubtedly at this current time we may all face a few more challenging months ahead but, whatever those challenges, we are ready to deliver a highly professional service along with our specialist expertise and our friendly accessible approach.

 

THE WINE COMPANY (UK) LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -
Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
Mr J Wheeler
Director
21 August 2024
THE WINE COMPANY (UK) LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 3 -
31 December 2023
30 June 2022
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
4
256,893
336,606
Tangible assets
5
172,195
103,914
Investments
6
2,000
2,000
431,088
442,520
Current assets
Stocks
673,075
840,691
Debtors
7
1,999,982
1,401,446
Cash at bank and in hand
48,735
109,878
2,721,792
2,352,015
Creditors: amounts falling due within one year
8
(1,897,103)
(1,923,372)
Net current assets
824,689
428,643
Total assets less current liabilities
1,255,777
871,163
Creditors: amounts falling due after more than one year
9
(441,006)
(404,967)
Net assets
814,771
466,196
Capital and reserves
Called up share capital
100
100
Other reserves
153,388
153,388
Profit and loss reserves
661,283
312,708
Total equity
814,771
466,196

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

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

The director acknowledges his 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 period 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.

THE WINE COMPANY (UK) LTD
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 4 -
The financial statements were approved and signed by the director and authorised for issue on 21 August 2024
Mr J Wheeler
Director
Company registration number 08922615 (England and Wales)
THE WINE COMPANY (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 5 -
1
Accounting policies
Company information

The Wine Company (UK) Ltd is a private company limited by shares incorporated in England and Wales. The registered office is The Octagon Suite E2, 2nd Floor Middleborough, Colchester, Essex, CO1 1TG.

1.1
Reporting period

The reporting period length of the financial statements is prepared over an extended period of 18 months therefore will not be wholly comparable to future periods.

1.2
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.3
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.4
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.

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.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

1.6
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.

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:

Fixtures and fittings
10% - 20% Straight line
Motor vehicles
20% Reducing balance
THE WINE COMPANY (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -

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.

1.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
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.

1.9
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.

1.10
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.

1.11
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.

1.12
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.

THE WINE COMPANY (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 7 -
1.13
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 income statement 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.

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.

1.14
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.

1.15
Retirement benefits

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

1.16
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.

1.17
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.

THE WINE COMPANY (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 8 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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
Employees

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

2023
2022
Number
Number
Total
15
13
4
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2022
553,842
Additions
4,129
At 31 December 2023
557,971
Amortisation and impairment
At 1 July 2022
217,236
Amortisation charged for the period
83,842
At 31 December 2023
301,078
Carrying amount
At 31 December 2023
256,893
At 30 June 2022
336,606
THE WINE COMPANY (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 9 -
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 July 2022
265,074
Additions
117,638
Disposals
(24,150)
At 31 December 2023
358,562
Depreciation and impairment
At 1 July 2022
161,160
Depreciation charged in the period
49,357
Eliminated in respect of disposals
(24,150)
At 31 December 2023
186,367
Carrying amount
At 31 December 2023
172,195
At 30 June 2022
103,914
6
Fixed asset investments
2023
2022
£
£
Other investments other than loans
2,000
2,000
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
217,810
191,661
Amounts owed by group undertakings
1,452,433
1,009,168
Other debtors
128,832
72,573
1,799,075
1,273,402
Deferred tax asset
200,907
128,044
1,999,982
1,401,446
THE WINE COMPANY (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 10 -
8
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
375,452
138,089
Trade creditors
820,644
1,257,401
Taxation and social security
128,996
207,659
Other creditors
572,011
320,223
1,897,103
1,923,372

A fixed and floating charge exists over all the property or undertaking of the company in favour of The Royal Bank of Scotland PLC dated 4 November 2022.

9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
409,638
404,967
Other creditors
31,368
-
0
441,006
404,967
10
Directors' transactions

Third Party loans totalling £327,911 at the period end were secured by personal guarantee.

 

No other guarantees have been given or received during the period.

11
Parent company

The parent company is The Wine Company Group Limited.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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