Acorah Software Products - Accounts Production 15.0.600 false true true 31 December 2022 1 January 2022 false 1 January 2023 31 December 2023 31 December 2023 11278378 Mr Thomas Watkins Mr Nicholas Watkins Mr Anthony Stam Oakwood Corporate Services Limited iso4217:GBP iso4217:EUR iso4217:USD xbrli:shares xbrli:pure xbrli:pure 11278378 2022-12-31 11278378 2023-12-31 11278378 2023-01-01 2023-12-31 11278378 frs-core:CurrentFinancialInstruments 2023-12-31 11278378 frs-core:Non-currentFinancialInstruments 2023-12-31 11278378 frs-core:BetweenOneFiveYears 2023-12-31 11278378 frs-core:CopyrightsPatentsTrademarksServiceOperatingRights 2023-12-31 11278378 frs-core:CopyrightsPatentsTrademarksServiceOperatingRights 2023-01-01 2023-12-31 11278378 frs-core:CopyrightsPatentsTrademarksServiceOperatingRights 2022-12-31 11278378 frs-core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-01-01 2023-12-31 11278378 frs-core:FurnitureFittings 2023-12-31 11278378 frs-core:FurnitureFittings 2023-01-01 2023-12-31 11278378 frs-core:FurnitureFittings 2022-12-31 11278378 frs-core:LandBuildings frs-core:LeasedAssetsHeldAsLessee 2023-12-31 11278378 frs-core:LandBuildings frs-core:LeasedAssetsHeldAsLessee 2023-01-01 2023-12-31 11278378 frs-core:LandBuildings frs-core:LeasedAssetsHeldAsLessee 2022-12-31 11278378 frs-core:MotorVehicles 2023-01-01 2023-12-31 11278378 frs-core:OtherResidualIntangibleAssets 2023-12-31 11278378 frs-core:OtherResidualIntangibleAssets 2023-01-01 2023-12-31 11278378 frs-core:OtherResidualIntangibleAssets 2022-12-31 11278378 frs-core:PlantMachinery 2023-12-31 11278378 frs-core:PlantMachinery 2023-01-01 2023-12-31 11278378 frs-core:PlantMachinery 2022-12-31 11278378 frs-core:WithinOneYear 2023-12-31 11278378 frs-core:SharePremium 2023-12-31 11278378 frs-core:ShareCapital 2023-12-31 11278378 frs-core:RetainedEarningsAccumulatedLosses 2023-12-31 11278378 frs-bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 11278378 frs-bus:FilletedAccounts 2023-01-01 2023-12-31 11278378 frs-bus:SmallEntities 2023-01-01 2023-12-31 11278378 frs-bus:AuditExempt-NoAccountantsReport 2023-01-01 2023-12-31 11278378 frs-bus:SmallCompaniesRegimeForAccounts 2023-01-01 2023-12-31 11278378 frs-core:FurtherSpecificReserve1ComponentTotalEquity 2023-12-31 11278378 frs-core:CostValuation 2022-12-31 11278378 frs-core:AdditionsToInvestments 2023-12-31 11278378 frs-core:CostValuation 2023-12-31 11278378 frs-core:ProvisionsForImpairmentInvestments 2022-12-31 11278378 frs-core:ProvisionsForImpairmentInvestments 2023-12-31 11278378 frs-bus:Director1 2023-01-01 2023-12-31 11278378 frs-bus:Director2 2023-01-01 2023-12-31 11278378 frs-bus:Director3 2023-01-01 2023-12-31 11278378 frs-bus:CompanySecretary1 2023-01-01 2023-12-31 11278378 frs-countries:EnglandWales 2023-01-01 2023-12-31 11278378 2021-12-31 11278378 2022-12-31 11278378 2022-01-01 2022-12-31 11278378 frs-core:CurrentFinancialInstruments 2022-12-31 11278378 frs-core:Non-currentFinancialInstruments 2022-12-31 11278378 frs-core:BetweenOneFiveYears 2022-12-31 11278378 frs-core:WithinOneYear 2022-12-31 11278378 frs-core:SharePremium 2022-12-31 11278378 frs-core:ShareCapital 2022-12-31 11278378 frs-core:RetainedEarningsAccumulatedLosses 2022-12-31 11278378 frs-core:FurtherSpecificReserve1ComponentTotalEquity 2022-12-31
Registered number: 11278378
Watkins Drinks Limited
Unaudited Financial Statements
For The Year Ended 31 December 2023
Contents
Page
Balance Sheet 1—2
Notes to the Financial Statements 3—7
Page 1
Balance Sheet
Registered number: 11278378
2023 2022
Notes £ £ £ £
FIXED ASSETS
Intangible Assets 4 303,901 468,431
Tangible Assets 5 55,836 62,353
Investments 6 542,375 200,780
902,112 731,564
CURRENT ASSETS
Stocks 7 1,166,648 862,467
Debtors 8 627,608 974,344
Cash at bank and in hand 1,207,846 1,092,524
3,002,102 2,929,335
Creditors: Amounts Falling Due Within One Year 9 (644,033 ) (8,003,550 )
NET CURRENT ASSETS (LIABILITIES) 2,358,069 (5,074,215 )
TOTAL ASSETS LESS CURRENT LIABILITIES 3,260,181 (4,342,651 )
Creditors: Amounts Falling Due After More Than One Year 10 (17,500 ) (27,500 )
NET ASSETS/(LIABILITIES) 3,242,681 (4,370,151 )
CAPITAL AND RESERVES
Called up share capital 11 2,143 386
Share premium account 15,309,224 3,973,738
Fair Value Reserve - 285,322
Profit and Loss Account (12,068,686 ) (8,629,597 )
SHAREHOLDERS' FUNDS 3,242,681 (4,370,151)
Page 1
Page 2
For the year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
The company has taken advantage of section 444(1) of the Companies Act 2006 and opted not to deliver to the registrar a copy of the company's Profit and Loss Account.
On behalf of the board
Mr Nicholas Watkins
Director
10/09/2024
The notes on pages 3 to 7 form part of these financial statements.
Page 2
Page 3
Notes to the Financial Statements
1. General Information
Watkins Drinks Limited is a private company, limited by shares, incorporated in England & Wales, registered number 11278378 . The registered office is Timsons Business Centre, Bath Road, Kettering, NN16 8NQ.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
2.2. Going Concern Disclosure
The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern.
2.3. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
2.4. Intangible Fixed Assets and Amortisation - Other Intangible
Other intangible assets are branding and website. It is amortised to profit and loss account over its estimated economic life of 3 years.
2.5. Intangible Fixed Assets and Amortisation - Intellectual Property
Intellectual property assets are assigned rights in respect of recipes. They are amortised to the profit and loss account over their estimated economic life of 5 years.
2.6. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Leasehold 20% straight line
Plant & Machinery 20% straight line
Motor Vehicles 20% straight line
Fixtures & Fittings 20% straight line
2.7. Leasing and Hire Purchase Contracts
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.
2.8. Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
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2.9. Financial Instruments
Financial assets carried at amortised cost
Financial assets are recognised on the statement of financial position when, and only when, the Company becomes a party to the contractual provisions of the instrument.
Finanical assets are initially recognised at fair value plus directly attributable transaction costs.
Financial assets carried at amortised cost are classified as loans and receivables and comprise trade and other receivables and cash and cash equivalents. Loans and receivables are non-derivative finanical assets with fixed or determinable payments that are not quoted in an active market.
After initial recognition, loans and receivables are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
If there is objective evidence that there is an impairment loss on loans and receivables, the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the financial asset's original effective interest rate (i.e. the effective interest rate computed at initial recognition). The carrying amount of the asset is reduced either directly or through use of an allowance account.
A finanical asset is derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and rewards are transferred.
These financial liabilities include trade and other payables and interest bearing loans and borrowings.
Financial liabilities are initially recognised at fair value adjusted for any attributable transaction costs.
After initial recognition, finanical liabilities are measured at amortised cost using the effective interest method, with interest-related charges recognised as an expense in finance costs. Discounting is omitted where the effect of discounting is immaterial.
A financial liability is derecognised only when the contractual obligation is extinguished, that is, when the obligation is discharged, cancelled or expires.
2.10. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
2.11. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and asset reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
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2.12. Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
2.13. Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
2.14. Fixed Asset Investments
Investments in subsidiaries are measured at cost less accumulated impairment.
3. Average Number of Employees
Average number of employees, including directors, during the year was: 19 (2022: 20)
19 20
4. Intangible Assets
Other Intellectual Property Total
£ £ £
Cost
As at 1 January 2023 229,440 500,000 729,440
As at 31 December 2023 229,440 500,000 729,440
Amortisation
As at 1 January 2023 111,009 150,000 261,009
Provided during the period 64,530 100,000 164,530
As at 31 December 2023 175,539 250,000 425,539
Net Book Value
As at 31 December 2023 53,901 250,000 303,901
As at 1 January 2023 118,431 350,000 468,431
5. Tangible Assets
Land & Property
Leasehold Plant & Machinery Fixtures & Fittings Total
£ £ £ £
Cost
As at 1 January 2023 12,340 42,292 31,826 86,458
Additions - 12,481 6,583 19,064
Disposals - (8,623 ) - (8,623 )
As at 31 December 2023 12,340 46,150 38,409 96,899
Depreciation
As at 1 January 2023 2,468 10,544 11,093 24,105
Provided during the period 2,468 8,946 7,556 18,970
Disposals - (2,012 ) - (2,012 )
As at 31 December 2023 4,936 17,478 18,649 41,063
...CONTINUED
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Page 6
Net Book Value
As at 31 December 2023 7,404 28,672 19,760 55,836
As at 1 January 2023 9,872 31,748 20,733 62,353
6. Investments
Subsidiaries
£
Cost
As at 1 January 2023 200,780
Additions 341,595
As at 31 December 2023 542,375
Provision
As at 1 January 2023 -
As at 31 December 2023 -
Net Book Value
As at 31 December 2023 542,375
As at 1 January 2023 200,780
The company has a wholly owned subsidiary, called Mighty Drinks GmbH, registered in Germany. Watkins Drinks Limited owns 100% of the issued share capital. The company commenced trading in 2022 and continues to be active.
7. Stocks
2023 2022
£ £
Finished goods 1,166,648 862,467
8. Debtors
2023 2022
£ £
Due within one year
Trade debtors 499,595 708,040
Other debtors 128,013 204,168
Corporation tax recoverable assets - 62,136
627,608 974,344
9. Creditors: Amounts Falling Due Within One Year
2023 2022
£ £
Trade creditors 406,398 629,277
Bank loans and overdrafts 10,000 10,000
Other taxes and social security 24,151 30,066
Other creditors 3,286 7,065,105
Accruals and deferred income 200,198 269,102
644,033 8,003,550
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Page 7
Included within other creditors in the prior year are convertible loans issued in the sum of £4,000,000 on 3 September 2021 and further convertible loan notes issued in 2022 in the sum of £3,066,974. The loans issued in 2021 were convertible to ordinary shares or redeemable by 3 March 2024 and have been included at fair value and a fair value adjustment made. All the convertible loan notes were converted into shares during the year.
10. Creditors: Amounts Falling Due After More Than One Year
2023 2022
£ £
Bank loans 17,500 27,500
11. Share Capital
2023 2022
£ £
Allotted, Called up and fully paid 2,143 386
12. Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are £28,767 (2022: £74,934).
2023 2022
£ £
Not later than one year 26,585 63,011
Later than one year and not later than five years 2,182 11,923
28,767 74,934
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