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REGISTERED NUMBER: SC426476 (Scotland)















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: Mr S W Morrison
Mr S A Morrison
Mr K A McAllister
Mr S Grier
Mr D Ross
Mr M Acks
Ms K C Morrison





REGISTERED OFFICE: 100 Stobcross Road
Glasgow
G3 8QQ





REGISTERED NUMBER: SC426476 (Scotland)





ACCOUNTANTS: McAllisters
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 32,164 33,857
Tangible assets 5 9,095,171 8,981,895
9,127,335 9,015,752

CURRENT ASSETS
Stocks 5,487,022 2,965,833
Debtors 6 337,688 313,486
Cash at bank and in hand 47,936 144,308
5,872,646 3,423,627
CREDITORS
Amounts falling due within one year 7 789,834 625,958
NET CURRENT ASSETS 5,082,812 2,797,669
TOTAL ASSETS LESS CURRENT
LIABILITIES

14,210,147

11,813,421

CREDITORS
Amounts falling due after more than one
year

8

5,166,667

2,577,708
NET ASSETS 9,043,480 9,235,713

CAPITAL AND RESERVES
Called up share capital 10 9,248,025 9,248,025
Share premium 3,677,856 3,677,856
Retained earnings (3,882,401 ) (3,690,168 )
SHAREHOLDERS' FUNDS 9,043,480 9,235,713

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2023 in accordance with Section 476 of the Companies Act 2006.

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


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

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 29 August 2024 and were signed on its behalf by:





Mr S A Morrison - Director


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 private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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 33 (2022 - 27 ) .

4. INTANGIBLE FIXED ASSETS
Patents
and
licences
£   
COST
At 1 January 2023
and 31 December 2023 51,374
AMORTISATION
At 1 January 2023 17,517
Amortisation for year 1,693
At 31 December 2023 19,210
NET BOOK VALUE
At 31 December 2023 32,164
At 31 December 2022 33,857

5. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and
property machinery fittings
£    £    £   
COST
At 1 January 2023 7,035,320 3,040,942 852,797
Additions - 382,366 3,161
At 31 December 2023 7,035,320 3,423,308 855,958
DEPRECIATION
At 1 January 2023 905,595 800,112 249,872
Charge for year 102,087 137,753 30,306
At 31 December 2023 1,007,682 937,865 280,178
NET BOOK VALUE
At 31 December 2023 6,027,638 2,485,443 575,780
At 31 December 2022 6,129,725 2,240,830 602,925

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 32,152 19,842 10,981,053
Additions - - 385,527
At 31 December 2023 32,152 19,842 11,366,580
DEPRECIATION
At 1 January 2023 26,969 16,610 1,999,158
Charge for year 1,297 808 272,251
At 31 December 2023 28,266 17,418 2,271,409
NET BOOK VALUE
At 31 December 2023 3,886 2,424 9,095,171
At 31 December 2022 5,183 3,232 8,981,895

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade debtors 149,176 145,484
Other debtors 8,549 5,685
S455 debtor 2,296 2,296
Directors' current accounts 3,206 3,206
VAT 33,613 23,603
Prepayments 140,848 133,212
337,688 313,486

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Bank loans and overdrafts 111,111 111,111
Trade creditors 430,554 338,104
Social security and other taxes 18,099 14,347
Other creditors 49,038 37,750
Deferred income 44,551 36,245
Accrued expenses 136,481 87,127
Deferred grants - 1,274
789,834 625,958

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.23 31.12.22
£    £   
Bank loans - 1-2 years 166,667 222,222
Bank loans - 2-5 years 5,000,000 2,355,486
5,166,667 2,577,708

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 5,277,778 2,688,819

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: £    £   
8,419,394 Ordinary A £0.50 4,209,697 4,209,697
10,076,656 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.






McAllisters
Paxton House
11 Woodside Crescent
Charing Cross
Glasgow
G3 7UL


29 August 2024