48 29 August 2024 false false false false false false false false false false true false false false false false false No description of principal activity 2023-01-01 Sage Accounts Production Advanced 2023 - FRS102_2023 187,322 46,831 46,831 93,662 93,660 140,491 xbrli:pure xbrli:shares iso4217:GBP SC334836 2023-01-01 2023-12-31 SC334836 2023-12-31 SC334836 2022-12-31 SC334836 2022-01-01 2022-12-31 SC334836 2022-12-31 SC334836 2021-12-31 SC334836 core:FurnitureFittings 2023-01-01 2023-12-31 SC334836 bus:OrdinaryShareClass1 2023-01-01 2023-12-31 SC334836 bus:OrdinaryShareClass2 2023-01-01 2023-12-31 SC334836 bus:OrdinaryShareClass3 2023-01-01 2023-12-31 SC334836 bus:OrdinaryShareClass4 2023-01-01 2023-12-31 SC334836 bus:OrdinaryShareClass5 2023-01-01 2023-12-31 SC334836 bus:Director2 2023-01-01 2023-12-31 SC334836 core:LandBuildings 2022-12-31 SC334836 core:PlantMachinery 2022-12-31 SC334836 core:FurnitureFittings 2022-12-31 SC334836 core:LandBuildings 2023-12-31 SC334836 core:PlantMachinery 2023-12-31 SC334836 core:FurnitureFittings 2023-12-31 SC334836 core:LandBuildings 2023-01-01 2023-12-31 SC334836 core:PlantMachinery 2023-01-01 2023-12-31 SC334836 core:WithinOneYear 2023-12-31 SC334836 core:WithinOneYear 2022-12-31 SC334836 core:AfterOneYear 2023-12-31 SC334836 core:AfterOneYear 2022-12-31 SC334836 core:ShareCapital 2023-12-31 SC334836 core:ShareCapital 2022-12-31 SC334836 core:RetainedEarningsAccumulatedLosses 2023-12-31 SC334836 core:RetainedEarningsAccumulatedLosses 2022-12-31 SC334836 core:BetweenOneFiveYears 2023-12-31 SC334836 core:BetweenOneFiveYears 2022-12-31 SC334836 core:MoreThanFiveYears 2023-12-31 SC334836 core:MoreThanFiveYears 2022-12-31 SC334836 core:LandBuildings 2022-12-31 SC334836 core:PlantMachinery 2022-12-31 SC334836 core:FurnitureFittings 2022-12-31 SC334836 bus:SmallEntities 2023-01-01 2023-12-31 SC334836 bus:Audited 2023-01-01 2023-12-31 SC334836 bus:SmallCompaniesRegimeForAccounts 2023-01-01 2023-12-31 SC334836 bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 SC334836 bus:FullAccounts 2023-01-01 2023-12-31 SC334836 bus:AllOrdinaryShares 2023-12-31 SC334836 bus:AllOrdinaryShares 2022-12-31 SC334836 bus:OrdinaryShareClass1 2023-12-31 SC334836 bus:OrdinaryShareClass1 2022-12-31 SC334836 bus:OrdinaryShareClass2 2023-12-31 SC334836 bus:OrdinaryShareClass2 2022-12-31 SC334836 bus:OrdinaryShareClass4 2023-12-31 SC334836 bus:OrdinaryShareClass4 2022-12-31 SC334836 bus:OrdinaryShareClass5 2023-12-31 SC334836 bus:OrdinaryShareClass5 2022-12-31 SC334836 core:LandBuildings core:LongLeaseholdAssets 2023-01-01 2023-12-31 SC334836 core:ComputerSoftware 2023-01-01 2023-12-31 SC334836 core:ComputerSoftware 2023-12-31 SC334836 core:ComputerSoftware 2022-12-31 SC334836 core:AssetsNotYetAvailableForUsePPE 2022-12-31 SC334836 core:AssetsNotYetAvailableForUsePPE 2023-01-01 2023-12-31 SC334836 core:AssetsNotYetAvailableForUsePPE 2023-12-31
COMPANY REGISTRATION NUMBER: SC334836
Isle of Harris Distillers Limited
Filleted Financial Statements
For the year ended
31 December 2023
Isle of Harris Distillers Limited
Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
Fixed assets
Intangible assets
5
93,660
140,491
Tangible assets
6
10,393,603
10,824,871
-------------
-------------
10,487,263
10,965,362
Current assets
Stocks
7
5,218,482
4,283,457
Debtors
8
1,219,322
991,102
Cash at bank and in hand
56,176
63,208
------------
------------
6,493,980
5,337,767
Creditors: amounts falling due within one year
9
3,351,423
2,701,768
------------
------------
Net current assets
3,142,557
2,635,999
-------------
-------------
Total assets less current liabilities
13,629,820
13,601,361
Creditors: amounts falling due after more than one year
10
6,846,348
7,271,491
Provisions
Taxation including deferred tax
10,254
14,365
-------------
-------------
Net assets
6,773,218
6,315,505
-------------
-------------
Capital and reserves
Called up share capital
13
8,151,125
8,151,125
Profit and loss account
( 1,377,907)
( 1,835,620)
------------
------------
Shareholders funds
6,773,218
6,315,505
------------
------------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
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.
These financial statements were approved by the board of directors and authorised for issue on 28 August 2024 , and are signed on behalf of the board by:
Simon Erlanger
Director
Company registration number: SC334836
Isle of Harris Distillers Limited
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in Scotland. The address of the registered office is Isle of Harris Distillery, Tarbert, Isle of Harris, HS3 3DJ.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity rounded to the nearest £.
Going concern
The financial statements have been prepared on a going concern basis. The current economic conditions present increased risks for all businesses. In response to such conditions, the directors have carefully considered these risks, including an assessment of the uncertainty on future trading projection for a period of at least 12 months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis. Based on this assessment, the directors consider that the Company maintains an appropriate level of liquidity, sufficient to meet the demands of the business. Thus they continue to adopt the going concern basis of accounting in preparing these financial statements.
Judgements and key sources of estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. i) Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 7 for carrying amounts of tangible assets. ii) Impairment of debtors The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 9 for carrying amount of debtors. iii) Stocks Stock is valued at the lower of cost and net realisable value. This includes any provisions for slow moving or obsolete stock. Calculation of such provisions requires judgements to be made on various aspects of stock based on forecasts and historical trading.
Revenue recognition
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. Foreign currency Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.
Taxation
Taxation expense for the period comprises current and deferred tax recognised in the reporting period, and is charged in the Statement of Comprehensive Income. Deferred tax is provided on the liability method to take account of timing differences between the treatment for certain items for accounts purposes and the treatment for tax purposes. Tax deferred is accounted for in respect of all material timing differences. Deferred tax assets are only recognised to the extent that they are regarded as recoverable.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Software Implementation costs
-
25% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
All fixed assets are recorded at cost.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Leasehold property
-
2.5% and 4% straight line
Plant and machinery
-
6.67% to 10% straight line
Fixtures and fittings
-
25% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. Loans and borrowings Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.
Government grants
Revenue grants are credited to income in the appropriate period to match related expenditure. Capital grants are amortised in line with the depreciation of the distillery once the construction has been completed.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. 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 entity after deducting all of its financial liabilities. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
Share-based payments
The company issues equity-settled and cash-settled share-based payments to certain employees (including directors). Equity-settled share-based payments are measured at fair value at the date of grant. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, together with a corresponding increase in equity, based upon the company's estimate of the shares that will eventually vest. Fair value is measured using the Black Scholes computation method. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural considerations. Where the terms of an equity-settled transaction are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a result of the modification, as measured at the date of modification. Where an equity-settled transaction is cancelled, it is treated as if it had vested on the date of the cancellation, and any expense not yet recognised for the transaction is recognised immediately. However, if a new transaction is substituted for the cancelled transaction, and designated as a replacement transaction on the date that it is granted, the cancelled and new transactions are treated as if they were a modification of the original transaction, as described in the previous paragraph. For cash-settled share-based payments, a liability equal to the portion of the goods and services received is recognised at the current fair value determined at each balance sheet date.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 48 (2022: 43 ).
5. Intangible assets
Software
£
Cost
At 1 January 2023 and 31 December 2023
187,322
---------
Amortisation
At 1 January 2023
46,831
Charge for the year
46,831
---------
At 31 December 2023
93,662
---------
Carrying amount
At 31 December 2023
93,660
---------
At 31 December 2022
140,491
---------
6. Tangible assets
Land and buildings
Plant and machinery
Fixtures and fittings
Assets under construction
Total
£
£
£
£
£
Cost
At 1 January 2023
6,539,748
3,755,486
416,935
3,060,118
13,772,287
Additions
156,978
3,564
15,477
176,019
Disposals
( 13,612)
( 13,612)
Transfers
2,700,804
237,668
(2,938,472)
------------
------------
---------
------------
-------------
At 31 December 2023
9,240,552
4,136,520
420,499
137,123
13,934,694
------------
------------
---------
------------
-------------
Depreciation
At 1 January 2023
1,117,813
1,425,403
404,200
2,947,416
Charge for the year
275,486
310,034
8,155
593,675
------------
------------
---------
------------
-------------
At 31 December 2023
1,393,299
1,735,437
412,355
3,541,091
------------
------------
---------
------------
-------------
Carrying amount
At 31 December 2023
7,847,253
2,401,083
8,144
137,123
10,393,603
------------
------------
---------
------------
-------------
At 31 December 2022
5,421,935
2,330,083
12,735
3,060,118
10,824,871
------------
------------
---------
------------
-------------
The directors have considered the value of the fixed assets at the year end and are satisfied that there is no indication of impairment.
7. Stocks
2023
2022
£
£
Raw materials and consumables
5,010,472
4,122,769
Finished goods and goods for resale
208,010
160,688
------------
------------
5,218,482
4,283,457
------------
------------
8. Debtors
2023
2022
£
£
Trade debtors
834,186
490,530
Other debtors
385,136
500,572
------------
---------
1,219,322
991,102
------------
---------
9. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
2,443,494
1,363,598
Trade creditors
334,652
618,850
Corporation tax
613
Social security and other taxes
151,698
50,727
Other creditors
421,579
667,980
------------
------------
3,351,423
2,701,768
------------
------------
10. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
4,768,334
5,075,000
Other creditors
2,078,014
2,196,491
------------
------------
6,846,348
7,271,491
------------
------------
The company's bankers hold a standard security and floating charge over the property assets of the company.
Bank loans include aggregate amounts of £3,290,006 (2022: £3,603,338) which fall due after five years and which are payable by instalments.
11. Government grants
The amounts recognised in the financial statements for government grants are as follows:
2023
2022
£
£
Received and receivable
3,059,772
3,059,772
------------
------------
Amortisation:
At 1 January 2023
863,280
744,803
Credit to Statement of Comprehensive Income
17,331
17,331
Capitalised to stock
101,146
101,146
---------
---------
As ar 31 December 2023
981,757
863,280
---------
---------
Net balance at 31 December 2023
2,078,015
2,196,492
Under the grant agreement certain clauses exist that may result in the grants being repaid if there is a breach of certain conditions. Given this, the grants are disclosed as a liability. The Directors believe that the likelihood of any such breach is remote.
12. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 87,212 (2022: £ 48,719 ).
13. Called up share capital
Authorised share capital
2023
2022
No.
£
No.
£
A1 Ordinary Shares shares of £ 1 each
5,966,939
5,966,939
5,966,939
5,966,939
A2 Ordinary Shares shares of £ 1 each
1,500,000
1,500,000
1,500,000
1,500,000
A3 Ordinary Shares shares of £ 1 each
271,426
271,426
271,426
271,426
A4 Ordinary Shares shares of £ 0.01 each
75,000
750
75,000
750
B Ordinary Shares shares of £ 0.80 each
853,826
683,061
853,826
683,061
C Ordinary Shares shares of £0.01 each
37,500
375
37,500
375
------------
------------
------------
------------
8,704,691
8,422,551
8,704,691
8,422,551
------------
------------
------------
------------
Issued, called up and fully paid
2023
2022
No.
£
No.
£
A1 Ordinary Shares shares of £ 1 each
5,966,939
5,966,939
5,966,939
5,966,939
A2 Ordinary Shares shares of £ 1 each
1,500,000
1,500,000
1,500,000
1,500,000
A4 Ordinary Shares shares of £ 0.01 each
75,000
750
75,000
750
B Ordinary Shares shares of £ 0.80 each
853,826
683,061
853,826
683,061
C Ordinary Shares shares of £0.01 each
37,500
375
37,500
375
------------
------------
------------
------------
8,433,265
8,151,125
8,433,265
8,151,125
------------
------------
------------
------------
Each Ordinary A1, A2 and A4 share is entitled to equal voting rights, equal rights to participation in dividends and distributions, equal rights to capital distributions and the shares are not liable to be redeemed. Each Ordinary B share is entitled to income and capital distributions in specified circumstances and is entitled to one vote in any circumstances and the shares are not liable to be redeemed. Each Ordinary C share has no right to any income distribution or dividend and is entitled to a capital distribution and one vote in specified circumstances and the shares are not liable to be redeemed.
14. Share-based payments
The estimated fair value of each share option granted is as follows:
Option Number Exercise Price Fair Value
EMI 216,649 £1 £3.28
Details of the number and weighted average exercise prices (WAEP) of share options during the year are as follows:
No.
WAEP
No.
WAEP
£
£
£
£
Outstanding at 31 December 2022
216,649
1
221,425
1
Granted during the year
1
Lapsed during the year
(4,776)
1
Oustanding at 31 December 2023
216,649
1
216,649
1
The total expense recognised in profit or loss for the year is as follows:
2023
2022
£
£
Equity-settled share-based payments
98,398
120,359
The estimated fair values were calculated by applying the Black-Scholes option pricing model. The model inputs were:
2021/22
£
Share price at grant date
3
Exercise price
1
Expected volatility
70
Expected life
2
Risk free interest rate
1
15. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
42,144
32,052
Later than 1 year and not later than 5 years
168,576
128,208
Later than 5 years
5,268
55,728
---------
---------
215,988
215,988
---------
---------
16. Summary audit opinion
The auditor's report dated 29 August 2024 was unqualified .
The senior statutory auditor was Steven Smillie CA , for and on behalf of Chiene + Tait LLP (trading as CT) .