Company Registration No. SC445789 (Scotland)
NC'NEAN DISTILLERY LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
NC'NEAN DISTILLERY LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
3 - 12
NC'NEAN DISTILLERY LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
4
47,382
263
Tangible assets
5
3,063,515
3,344,254
3,110,897
3,344,517
Current assets
Stocks
6
7,631,440
6,238,685
Debtors
7
388,643
234,144
Cash at bank and in hand
109,952
108,683
8,130,035
6,581,512
Creditors: amounts falling due within one year
8
(1,326,446)
(529,468)
Net current assets
6,803,589
6,052,044
Total assets less current liabilities
9,914,486
9,396,561
Creditors: amounts falling due after more than one year
9
(4,357,070)
(3,993,235)
Deferred income
10
(2,359,478)
(1,919,840)
Net assets
3,197,938
3,483,486
Capital and reserves
Called up share capital
11
119
119
Share premium account
6,566,636
6,566,636
Profit and loss reserves
(3,368,817)
(3,083,269)
Total equity
3,197,938
3,483,486

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

The financial statements were approved by the board of directors and authorised for issue on 8 October 2024 and are signed on its behalf by:
Mr Benet Slay
Director
Company Registration No. SC445789
NC'NEAN DISTILLERY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2022 (as restated)
119
6,566,636
(2,722,180)
3,844,575
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
(361,089)
(361,089)
Balance at 1 April 2023 (as restated)
119
6,566,636
(3,083,269)
3,483,486
Year ended 31 March 2024:
Loss and total comprehensive income for the year
-
-
(285,548)
(285,548)
Balance at 31 March 2024
119
6,566,636
(3,368,817)
3,197,938
NC'NEAN DISTILLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
1
Accounting policies
Company information

Nc'nean Distillery Limited is a private company limited by shares incorporated in Scotland. The registered office is Nc’nean Distillery, Drimnin, By Lochaline, Oban, PA80 5XZ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The financial statements have been prepared on a going concern basis.true

 

The company has achieved strong early stage revenues and, whilst still loss making, these losses are in line with expectations. The Directors have prepared detailed cashflow projections based on trading performance to the end of March 2026, including performing sensitivity analysis using key assumptions based on revenue growth, production and supply chain costs and interest. A significant proportion of the company's costs are either within direct control or fixed for the period of Management's assessment, which, combined with other levers available to the Directors to generate cash, gives the Directors sufficient confidence in the company's available headroom over the forecast period. The Directors have assessed the appropriateness of and continued access to the Company’s existing funding facilities to meet the Company’s working capital requirements in the period.

  

Based on this assessment, and taking into account the Company's current position, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the period of their assessment.

 

These financial statements do not include any adjustments to the balance sheet value of assets and their recoverable amounts or to provide further liabilities which may arise if the going concern basis of preparation is inappropriate.

1.3
Turnover

Turnover represents amounts receivable from sales of bottled whisky and Botanical Spirit to distributors abroad, to retailers and wholesalers in the UK and directly online through the Nc’nean website. Turnover also includes income from the sale of spirit to third parties and income from visitors to the distillery, which is recognised when the tours and purchases have taken place. For Botanical Spirit, bottled and bulk whisky sales, turnover is recognised when the stock is dispatched. Amounts received in respect of the sales of private casks in bond are deferred, and recognised as income when the significant risks and rewards of ownership have passed to the buyer.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

NC'NEAN DISTILLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -

Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Trademarks
10 years straight line
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

 

Land and buildings freehold     50 years straight line

Land and buildings leasehold    20 years straight line or 25% reducing balance

Plant & machinery         20 years straight line or 25% reducing balance

Fixtures, fittings & equipment     25% reducing balance

Computer equipment        25% straight line

Motor vehicles            20 years straight line or 25% reducing balance

Assets in the course of construction are not depreciated.

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 the profit and loss account.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs, interest and those overheads that have been incurred in bringing the stocks to their present location and condition.

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 the profit and loss account. Reversals of impairment losses are also recognised in the profit and loss account.

1.8
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

NC'NEAN DISTILLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include certain debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit and loss account.

Classification of financial liabilities

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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including certain creditors and bank borrowings, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable 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.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

NC'NEAN DISTILLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 6 -
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets' fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Grants accounted for under the performance model are recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

 

Grants accounted for under the accrual model are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

NC'NEAN DISTILLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 7 -
1.16

Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black Scholes model.  The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest.  A corresponding adjustment is made to equity.

 

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification.  Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment.  The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

 

No amounts have been recognised or disclosed in the financial statements for the share-based payment expense on the basis of the charge for the year not being material.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Valuation of stock (Stock carrying value - £7,631k (2023: £6,239k)

The valuation of stock requires the directors to exercise judgement in capitalising various categories of expenditure. Costs capitalised include: raw materials, cost of casks, interest, wages of production employees, insurance and an apportionment of rent and rates. Estimations around stock are reviewed frequently to ensure that they remain appropriate and that the cost of stock is not in excess of its net realisable value.

Tangible fixed assets (Fixed assets carrying value - £3,064k (2023 : £3,344k)

Tangible fixed assets are depreciated over their useful lives, taking into account residual values where appropriate. Useful lives have been assessed based on the periods over which management believe they will derive future economic benefits.

NC'NEAN DISTILLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
3
Employees

The average monthly number of persons employed by the company during the year was:

2024
2023
Number
Number
Total
19
18
4
Intangible fixed assets
Trademarks
£
Cost
At 1 April 2023
2,090
Additions
51,585
At 31 March 2024
53,675
Amortisation and impairment
At 1 April 2023
1,827
Amortisation charged for the year
4,466
At 31 March 2024
6,293
Carrying amount
At 31 March 2024
47,382
At 31 March 2023
263
NC'NEAN DISTILLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
5
Tangible fixed assets
Land and buildings
Plant & machinery etc
Total
£
£
£
Cost
At 1 April 2023
3,460,518
2,291,405
5,751,923
Additions
25,149
9,935
35,084
Transfers
23,394
(23,394)
-
0
At 31 March 2024
3,509,061
2,277,946
5,787,007
Depreciation and impairment
At 1 April 2023
700,203
1,707,466
2,407,669
Depreciation charged in the year
155,849
159,974
315,823
Transfers
(3,303)
3,303
-
0
At 31 March 2024
852,749
1,870,743
2,723,492
Carrying amount
At 31 March 2024
2,656,312
407,203
3,063,515
At 31 March 2023
2,760,315
583,939
3,344,254

£145k (2023: £144k) of the depreciation charge on the tangible fixed assets has been capitalised as a cost of stock. The remaining balance has been expensed to the profit and loss account.

 

6
Stocks
2024
2023
restated
£
£
Raw materials
704,748
812,845
Whisky
6,857,070
5,295,530
Other stock
69,622
130,310
7,631,440
6,238,685
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
312,276
176,590
Other debtors
76,367
57,554
388,643
234,144
NC'NEAN DISTILLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
8
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
704,481
13,464
Trade creditors
346,289
220,005
Taxation and social security
25,264
17,891
Other creditors
250,412
278,108
1,326,446
529,468

Bank loans stated above include both a general export facility loan taken out in 2023 and a mortgage taken out in 2020. The general export facility loan is secured by a floating charge as well as a third party guarantee. The mortgage is secured by a floating charge granted in favour of the bank as well as security over the property. The securities are subject to a ranking agreement.

 

The general export facility of £500,000 is repayable on demand, however, is due to expire on 19 June 2025. The mortgage of £204,481 is due to expire 28 February 2025.

 

Included in other creditors is £18,120 (2023 - £24,636) of net obligations under finance leases which are secured.

.

9
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans
4,320,000
3,938,047
Other creditors
37,070
55,188
4,357,070
3,993,235

Bank loans stated above include a revolving loan facility The revolving loan facility is secured by a floating charge over the company's assets granted in favour of the bank as well as a floating charge over the company's assets granted in favour of third parties who have provided security over property to support the borrowings. The security is subject to a ranking agreement.

 

The revolving loan facility of £4,320,000 expires on 30 January 2026.

 

Included in other creditors is £37,070 (2023 - £55,188) of net obligations under finance leases which are secured.

10
Deferred income
2024
2023
£
£
Arising from government grants
637,178
681,240
Other deferred income
1,722,300
1,238,600
2,359,478
1,919,840
NC'NEAN DISTILLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
11
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of 0.01p each
325,100
325,100
33
33
B Ordinary shares of 0.01p each
863,910
863,910
86
86
1,189,010
1,189,010
119
119
12
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The senior statutory auditor was Grant Roger.
The auditor was Johnston Carmichael LLP.
13
Financial commitments, guarantees and contingent liabilities

The company has entered into a movement guarantee with HMRC. The maximum liability under the indemnity agreements is £20,000.

14
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2024
2023
£
£
573,678
600,996
15
Related party transactions

During the year the company entered into the following transactions with related parties:

The company paid £102,625 (2023 - £208,988) to the operator of Drimnin Estate, who is also a director, in rent and for goods and services supplied.

 

All sums paid reflected normal market rates.

16
Parent company

The company has no ultimate controlling party.

NC'NEAN DISTILLERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
17
Prior period adjustment
Reconciliation of changes in equity
1 April
31 March
2022
2023
£
£
Adjustments to prior year
Stock adjustment
(95,588)
(95,588)
Equity as previously reported
3,940,163
3,579,074
Equity as adjusted
3,844,575
3,483,486
Analysis of the effect upon equity
Profit and loss reserves
(95,588)
(95,588)
Notes to reconciliation
Stock adjustment

During the year, the value of whisky remaining in casks was reviewed and an adjustment was made to opening reserves as at 1st April 2022 to more accurately reflect the opening balance.

2024-03-312023-04-01false09 October 2024CCH SoftwareCCH Accounts Production 2024.200No description of principal activityThis audit opinion is unqualifiedMr Richard ColeMr Benet SlayMr Derek LewisMs Annabel ThomasMr Charles AdriaenssenMs Helen MichelsDentons Secretaries LimitedfalsefalseSC4457892023-04-012024-03-31SC4457892024-03-31SC4457892023-03-31SC445789core:IntangibleAssetsOtherThanGoodwill2024-03-31SC445789core:IntangibleAssetsOtherThanGoodwill2023-03-31SC445789core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-03-31SC445789core:PlantMachinery2024-03-31SC445789core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-03-31SC445789core:PlantMachinery2023-03-31SC445789core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-31SC445789core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-31SC445789core:Non-currentFinancialInstrumentscore:AfterOneYear2024-03-31SC445789core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-31SC445789core:CurrentFinancialInstruments2024-03-31SC445789core:CurrentFinancialInstruments2023-03-31SC445789core:Non-currentFinancialInstruments2024-03-31SC445789core:Non-currentFinancialInstruments2023-03-31SC445789core:ShareCapital2024-03-31SC445789core:ShareCapital2023-03-31SC445789core:SharePremium2024-03-31SC445789core:SharePremium2023-03-31SC445789core:RetainedEarningsAccumulatedLosses2024-03-31SC445789core:RetainedEarningsAccumulatedLosses2023-03-31SC445789core:ShareCapital2022-03-31SC445789core:SharePremium2022-03-31SC445789core:RetainedEarningsAccumulatedLosses2022-03-31SC4457892022-03-31SC445789core:ShareCapitalOrdinaryShares2024-03-31SC445789core:ShareCapitalOrdinaryShares2023-03-31SC445789bus:Director22023-04-012024-03-31SC445789core:RetainedEarningsAccumulatedLosses2022-04-012023-03-31SC4457892022-04-012023-03-31SC445789core:RetainedEarningsAccumulatedLosses2023-04-012024-03-31SC445789core:IntangibleAssetsOtherThanGoodwill2023-04-012024-03-31SC445789core:ConstructionInProgressAssetsUnderConstruction2023-04-012024-03-31SC445789core:IntangibleAssetsOtherThanGoodwill2023-03-31SC445789core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-03-31SC445789core:PlantMachinery2023-03-31SC4457892023-03-31SC445789core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-04-012024-03-31SC445789core:PlantMachinery2023-04-012024-03-31SC445789core:WithinOneYear2024-03-31SC445789core:WithinOneYear2023-03-31SC445789bus:PrivateLimitedCompanyLtd2023-04-012024-03-31SC445789bus:SmallCompaniesRegimeForAccounts2023-04-012024-03-31SC445789bus:FRS1022023-04-012024-03-31SC445789bus:Audited2023-04-012024-03-31SC445789bus:Director12023-04-012024-03-31SC445789bus:Director32023-04-012024-03-31SC445789bus:Director42023-04-012024-03-31SC445789bus:Director52023-04-012024-03-31SC445789bus:Director62023-04-012024-03-31SC445789bus:CompanySecretary12023-04-012024-03-31SC445789bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP