Registered number: 05289932
FREEDOM BREWERY LIMITED
Financial statements
Information for filing with the registrar
For the Year Ended 31 December 2023
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FREEDOM BREWERY LIMITED
Registered number: 05289932
Balance Sheet
As at 31 December 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 2 October 2024.
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Mr M W Willson
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The notes on pages 3 to 9 form part of these financial statements.
Page 1
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FREEDOM BREWERY LIMITED
Registered number: 05289932
Balance Sheet (continued)
As at 31 December 2023
Page 2
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FREEDOM BREWERY LIMITED
Notes to the Financial Statements
For the Year Ended 31 December 2023
1.Accounting policies
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Basis of preparation of financial statements
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The accounts have been prepared in accordance with the provisions of FRS102 Section 1A small entities. There were no material departures from that standard.
Freedom Brewery Limited is a private company limited by shares incorporated in England within the United Kingdom. The registered office address is included on the information page of these accounts and is the same as the place of business. The company’s registration number is 05289932.
The financial statements are presented in sterling which is the functional currency of the company
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The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
At 31 December 2023 the company had net liabilities of £7,322,771. The directors have reviewed the cash flow forecasts and the facilities provided by the bank and have confirmed that the company has sufficient funds in place to support the business for a period of at least 12 months from the date of signature of these accounts. In addition confirmation has been received to confirm that the group financing will not be removed until the company has sufficient funds to repay the balance and the parent company shareholders have also signalled their intention to continue to provide adequate financial support to the company to enable it to continue trading and to pay all of its liabilities as they fall due for a period of at least twelve months from the date of signing of the audit report. On this basis we have prepared the accounts on a going concern basis.
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably and 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. This is usually on despatch of the goods.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Page 3
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FREEDOM BREWERY LIMITED
Notes to the Financial Statements
For the Year Ended 31 December 2023
1.Accounting policies (continued)
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated 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 provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life.
Depreciation is provided on the following basis:
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over the life of the lease
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Stocks are valued at the lower of cost and net realisable value. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The company only enters into basic financial instrument 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 and loans to or from related parties.
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The average monthly number of employees, including directors, during the year was 29 (2022 - 31).
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Page 4
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FREEDOM BREWERY LIMITED
Notes to the Financial Statements
For the Year Ended 31 December 2023
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Short-term leasehold property
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Charge for the year on owned assets
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Charge for the year on financed assets
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The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
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Page 5
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FREEDOM BREWERY LIMITED
Notes to the Financial Statements
For the Year Ended 31 December 2023
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Prepayments and accrued income
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Cash and cash equivalents
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Page 6
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FREEDOM BREWERY LIMITED
Notes to the Financial Statements
For the Year Ended 31 December 2023
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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Trade finance is provided by Close Brothers and is secured by trade debtors. The security includes a fixed and floating charge.
Obligations under hire purchase contracts and other loans are secured against the assets to which they relate.
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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Secured loans
The company's assets have been used as security in a fixed and floating charge in respect of its parent company's creditors. The balance secured in the parent company totals £2,782,551 (2022: £1,454,374).
There is also a composite guarantee and debenture in place dated April 2018 which contains a fixed and floating charge over all property or undertakings of the company.
Trade finance is provided by Close Brothers and is secured by trade debtors. The security includes a fixed and floating charge.
Obligations under hire purchase contracts and other loans are secured against the assets to which they relate.
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Page 7
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FREEDOM BREWERY LIMITED
Notes to the Financial Statements
For the Year Ended 31 December 2023
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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Hire purchase and finance leases
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Minimum lease payments under hire purchase fall due as follows:
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Page 8
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FREEDOM BREWERY LIMITED
Notes to the Financial Statements
For the Year Ended 31 December 2023
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Allotted, called up and fully paid
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60,000 (2022 - 60,000) Class shares of £1.00 each
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It was found that for some 2022 sales to a single customer, the risks and rewards of ownership of goods had not actually passed until 2023. An adjustment has been made to reverse sales previously recognised in 2022 and to recognise in 2023, with the related duty moving to prepayments. Prior year sales have decreased by £198,353, VAT liability by £39,671 and trade debtors by £238,024. Stock has increased by £67,059, prepayments have increased by £52,877 and cost of sales have decreased by £119,936. These prior year amendments have therefore reduced brought forward reserves by £78,417.
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At 31 December 2023 the Company had capital commitments as follows:
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Contracted for but not provided in these financial statements
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The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £19,995 (2022: £18,168).
Contributions totalling £2,531 (2022: £3,894) were payable to the scheme at the end of the year and are included in other creditors.
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Related party transactions
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The company has taken advantage of the FRS 102 exemption not to disclose transactions within wholly owned groups.
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The auditors' report on the financial statements for the year ended 31 December 2023 was unqualified.
The audit report was signed on 3 October 2024 by James Bagley (Senior Statutory Auditor) on behalf of PKF Smith Cooper Audit Limited.
Page 9
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