Company No:
Contents
Note | 2023 | 2022 | ||
£ | £ | |||
Fixed assets | ||||
Tangible assets | 3 |
|
|
|
1,434 | 2,748 | |||
Current assets | ||||
Stocks | 4 |
|
|
|
Debtors | 5 |
|
|
|
Cash at bank and in hand | 6 |
|
|
|
696,682 | 255,329 | |||
Creditors: amounts falling due within one year | 7 | (
|
(
|
|
Net current liabilities | (396,171) | (491,839) | ||
Total assets less current liabilities | (394,737) | (489,091) | ||
Creditors: amounts falling due after more than one year | 8 | (
|
(
|
|
Net liabilities | (
|
(
|
||
Capital and reserves | ||||
Called-up share capital | 9 |
|
|
|
Share premium account |
|
|
||
Other reserves |
|
|
||
Profit and loss account | (
|
(
|
||
Total shareholders' deficit | (
|
(
|
Directors' responsibilities:
The financial statements of When in Rome Wine Ltd (registered number:
R M Malin
Director |
The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
When in Rome Wine Ltd (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the company's registered office is C/O Spaces, Level One, The Mailbox, 3 Wharfside Street, Birmingham, B1 1RD, England, United Kingdom.
The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.
The company's financial statements show a loss of £691,728 for the year, net current liabilities of £396,171 and an overall net liability of £414,393, which was in line with the Directors’ expectations as we continue to grow the company. Revenue doubled in size this year and is expected to continue on a steep growth trajectory. Not only does this require cash for working capital, but building out capacity in the team and growing sales require upfront investment in people and marketing. This loss position is notably less than 2022, when the loss of £815k represented 121% of sales, whereas the loss in 2023 represented 55% of sales.
During the year, to support the company's cashflow requirements, and invest further in future plans, the company undertook a fundraising process which raised £50,000 before the year-end, and a further £434,010 post-year-end. In addition to this, shareholders agreed to convert £275,197 of loans into shares. The directors have also focussed heavily on optimising the business’ unit economics which has improved significantly since Q2 2024. The business will remain loss-making, albeit significantly reduced, with the loss halving in both cash and % terms for 2024.
The directors are confident that this sets them in good stead to meet their future plans and projections, and to meet their liabilities as they fall due for the foreseeable future, but in particular for at least 12 months from the date of signing of these financial statements. Accordingly, the directors are confident in their ability to continue to adopt the going concern basis in preparing these financial statements.
Exchange differences are recognised in the Statement of Income and Retained Earnings in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.
Plant and machinery |
|
Computer equipment |
|
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.
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.
The Company only enters into basic financial instruments and transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to and from related parties and investments in non-puttable ordinary shares.
Financial assets
Basic financial assets, including trade and other debtors, and amounts due from related companies, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Statement of Income and Retained Earnings/Statement of Comprehensive Income.
Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Convertible loan notes
The proceeds received on issue of the Company's convertible debt are allocated into their liability and equity components and presented separately in the Statement of Financial Position.
The amount initially attributed to the debt component equals the discounted cash flows using a market rate of interest that would be payable on a similar debt instrument that did not include an option to convert.
The difference between the net proceeds of the convertible debt and the amount allocated to the debt component is credited direct to equity and is not subsequently remeasured. On conversion, the debt and equity elements are credited to share capital and share premium as appropriate.
Transaction costs that relate to the issue of the instrument are allocated to the liability and equity components of the instrument in proportion to the allocation of proceeds.
2023 | 2022 | ||
Number | Number | ||
Monthly average number of persons employed by the company during the year, including directors |
|
|
Plant and machinery | Computer equipment | Total | |||
£ | £ | £ | |||
Cost | |||||
At 01 January 2023 |
|
|
|
||
Additions |
|
|
|
||
At 31 December 2023 |
|
|
|
||
Accumulated depreciation | |||||
At 01 January 2023 |
|
|
|
||
Charge for the financial year |
|
|
|
||
At 31 December 2023 |
|
|
|
||
Net book value | |||||
At 31 December 2023 |
|
|
|
||
At 31 December 2022 |
|
|
|
2023 | 2022 | ||
£ | £ | ||
Stocks |
|
|
2023 | 2022 | ||
£ | £ | ||
Trade debtors |
|
|
|
Other debtors |
|
|
|
|
|
2023 | 2022 | ||
£ | £ | ||
Cash at bank and in hand |
|
|
|
Less: Bank overdrafts | (
|
(
|
|
93,204 | (27,657) |
2023 | 2022 | ||
£ | £ | ||
Bank loans and overdrafts |
|
|
|
Trade creditors |
|
|
|
Other taxation and social security |
|
|
|
Other creditors |
|
|
|
|
|
2023 | 2022 | ||
£ | £ | ||
Bank loans (secured) |
|
|
2023 | 2022 | ||
£ | £ | ||
Allotted, called-up and fully-paid | |||
|
|
|
|
|
|
|
|
200.07 | 181.41 |
In the financial year 2023 class Ordinary A shares were allotted with an aggregate nominal value of £34.64 and consideration of £99,876 was received.
In the financial year 2023 class Ordinary shares were allotted with an aggregate nominal value of £165.43 and consideration of £579,210 was received.