REGISTERED NUMBER: |
Unaudited Financial Statements for the Year Ended 31 December 2023 |
for |
MORRISON GLASGOW DISTILLERS LIMITED |
REGISTERED NUMBER: |
Unaudited Financial Statements for the Year Ended 31 December 2023 |
for |
MORRISON GLASGOW DISTILLERS LIMITED |
MORRISON GLASGOW DISTILLERS LIMITED (REGISTERED NUMBER: SC426476) |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Managing Director's Report | 2 |
Balance Sheet | 3 |
Notes to the Financial Statements | 5 |
Chartered Accountants' Report | 11 |
MORRISON GLASGOW DISTILLERS LIMITED |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
Paxton House |
11 Woodside Crescent |
Charing Cross |
Glasgow |
G3 7UL |
MORRISON GLASGOW DISTILLERS LIMITED (REGISTERED NUMBER: SC426476) |
Managing Director's Report |
for the Year Ended 31 December 2023 |
A challenging year as we continue to feel the effects from geopolitical events and the economic hangover post Covid. Production costs increased significantly, primarily driven by the record high malted barley prices combined with electricity and gas costs. |
The year saw the first softening of both export and domestic markets for Scotch Whisky following the Covid boom. Rising interest rates and other financial pressures combined with significant market "overstocking" resulted in soft export sales which has been felt across the industry. |
Internally we continue to make progress with our production volumes, surpassing 500,000 litres for the first time. Of that production we reduced the sale of spirit to third parties and increased our holdings to over 375,000 litres of Clydeside Single Malt for warehouse maturation. Our maturing inventory has a current value of £9,424,000 million per the whisky matrix index. |
The visitor centre continued to show growth year on year with well over 50,000 paid tours and close to 80,000 visitors on site throughout the year. The customer experience remains highly rated as seen on review sites like TripAdvisor. This summer we released our second core product, Napier, a sherry matured single malt which has been well received by both visitors and exporters. |
Clearly there are some headwinds to be navigated, however, we remain bullish on the long-term future of the industry and the single malt category. We continue to follow the approach of building up our maturing inventory and focusing on brand growth over the coming years. |
Our Chairman Tim Morrison and Investor Director Scott Grier both stepped down from their board positions at the end of the year. We thank them both for all their efforts over the years and all they have done for the company. |
.................................................... Mr S A Morrison |
29 August 2024 |
MORRISON GLASGOW DISTILLERS LIMITED (REGISTERED NUMBER: SC426476) |
Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
Tangible assets | 5 |
CURRENT ASSETS |
Stocks |
Debtors | 6 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 7 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
8 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 10 |
Share premium |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
MORRISON GLASGOW DISTILLERS LIMITED (REGISTERED NUMBER: SC426476) |
Balance Sheet - continued |
31 December 2023 |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
MORRISON GLASGOW DISTILLERS LIMITED (REGISTERED NUMBER: SC426476) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Morrison Glasgow Distillers Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and estimates |
The preparation of the financial statements, in compliance with FRS 102, requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies. The directors are of the opinion there are no critical accounting estimates. The directors have exercised their judgement in relation to the allocation of attributable labour costs to bulk spirit and to maturing product and this has been done in order to ensure that a true and fair view is presented. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, net of discount and value added taxes. Turnover includes revenue earned from the sale of goods and rendering of services in connection with the distillery and the visitor centre and shop. |
Timing of revenue recognition |
Sales are recognised depending on the individual customer terms at the time of dispatch, delivery or when the risk of loss transfers. |
Revenue from the sale of cased goods is recognised when the goods are shipped. Revenue from the sale of bulk spirit is recognised when the goods are dispatched or when the ownership of the stock is transferred to the purchaser. |
Revenue from the visitor centre, which can comprise the sale of goods or the rendering of services in the form of visitor tours, tastings and hosting events, are recognised at the point of sale or the point of the services being provided in accordance with the stage of completion of the contract. |
Intangible fixed assets |
The intangible fixed assets held in the balance sheet relate to patents purchased by the company. These have been capitalised as it is expected future benefits will flow to the entity over the assets useful economic life.The intangible assets are being amortised at the following rates. |
Patents & licenses - 5% on reducing balance |
MORRISON GLASGOW DISTILLERS LIMITED (REGISTERED NUMBER: SC426476) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are stated at historical cost less accumulated depreciation and any impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation is charged to profit or loss over the estimated useful economic lives, as follows: |
Fixtures & Fittings - 5% reducing balance |
Computer equipment - 25% reducing balance |
Website development - 25% reducing balance |
Plant and machinery - casks - 5% straight line basis |
Plant and machinery - remainder - 5% reducing balance basis. |
The company purchased land during the year ended 30 June 2015 for £1,081,705 and this is included within freehold property in fixed assets. Land is considered to have an indefinite life and accordingly is not depreciated. The remaining freehold property costs of £5,861,281 represents development of buildings on the site and these costs are depreciated at an annual rate of 2% on a reducing balance basis. |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined, which is the higher of its fair value less costs to sell and its value in use. |
Any impairment loss is recognised immediately as an expense within profit or loss |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs incurred in bringing each product to its present location and condition as follows; |
Raw materials - Purchase cost on an average cost basis,. |
Work in Progress and finished goods - cost of direct materials and, where applicable, direct labour costs and attributable overheads based on a normal level of activity. |
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. |
MORRISON GLASGOW DISTILLERS LIMITED (REGISTERED NUMBER: SC426476) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Trade and other debtors/creditors |
Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash balances and call deposits |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised within profit or loss. |
For financial assets that are measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the assets original effective interest rate. If a financial asset has a variable interest rate, the discount rate of measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the assets carrying amount and the best estimate of the amount that the company would receive for the asset if it were to be sold at the balance sheet date. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
MORRISON GLASGOW DISTILLERS LIMITED (REGISTERED NUMBER: SC426476) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Provisions |
A provision is recognised when the company has a legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | INTANGIBLE FIXED ASSETS |
Patents |
and |
licences |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
Amortisation for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
5. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
MORRISON GLASGOW DISTILLERS LIMITED (REGISTERED NUMBER: SC426476) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
5. | TANGIBLE FIXED ASSETS - continued |
Website | Computer |
development | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Trade debtors |
Other debtors |
S455 debtor | 2,296 | 2,296 |
Directors' current accounts | 3,206 | 3,206 |
VAT |
Prepayments |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans and overdrafts |
Trade creditors |
Social security and other taxes |
Other creditors |
Deferred income |
Accrued expenses |
Deferred grants |
8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans - 1-2 years |
Bank loans - 2-5 years |
MORRISON GLASGOW DISTILLERS LIMITED (REGISTERED NUMBER: SC426476) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
9. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.12.23 | 31.12.22 |
£ | £ |
Bank loans |
The Clydesdale Bank credit facility is secured by a floating charge over the assets of the company. |
10. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary A | £0.50 | 4,209,697 | 4,209,697 |
Ordinary B | £0.50 | 5,038,328 | 5,038,328 |
9,248,025 | 9,248,025 |
Chartered Accountants' Report to the Board of Directors |
on the Unaudited Financial Statements of |
Morrison Glasgow Distillers Limited |
The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies. |
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Morrison Glasgow Distillers Limited for the year ended 31 December 2021 which comprise the Statement of Income and Retained Earnings, Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given us. |
As a practising member firm of ICAS, we are subject to its ethical and other professional requirements which are detailed at http://www.icas.com/accountspreparationguidance. Except that we are not independent by virtue of the fact that one of our partners is also a director of this company. |
This report is made solely to the Board of Directors of Morrison Glasgow Distillers Limited, as a body, in accordance with the terms of our engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Morrison Glasgow Distillers Limited and state those matters that we have agreed to state to the Board of Directors of Morrison Glasgow Distiller Limited, as a body, in this report in accordance with the requirements of ICAS as detailed at http://www.icas.com/accountspreparationguidance. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors as a body for our work or for this report. |
It is your duty to ensure that Morrison Glasgow Distillers Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Morrison Glasgow Distillers Limited. You consider that Morrison Glasgow Distillers Limited is exempt from the statutory audit requirement for the year. |
We have not been instructed to carry out an audit or a review of the financial statements of Morrison Glasgow Distillers Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements. |
Paxton House |
11 Woodside Crescent |
Charing Cross |
Glasgow |
G3 7UL |