Company registration number NI604784 (Northern Ireland)
BELFAST DISTILLERY COMPANY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
BELFAST DISTILLERY COMPANY LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
BELFAST DISTILLERY COMPANY LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
66,452
27,616
Tangible assets
4
12,911,137
4,263,057
Investments
5
86
86
12,977,675
4,290,759
Current assets
Stocks
6,670,057
6,264,319
Debtors
6
3,632,590
3,471,537
Cash at bank and in hand
55,290
3,352,176
10,357,937
13,088,032
Creditors: amounts falling due within one year
7
(14,098,788)
(8,349,983)
Net current (liabilities)/assets
(3,740,851)
4,738,049
Total assets less current liabilities
9,236,824
9,028,808
Creditors: amounts falling due after more than one year
8
(1,894,654)
Net assets
7,342,170
9,028,808
Capital and reserves
Called up share capital
9
15,362,556
15,211,494
Profit and loss reserves
10
(8,020,386)
(6,182,686)
Total equity
7,342,170
9,028,808
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
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.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
BELFAST DISTILLERY COMPANY LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
31 December 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 29 October 2024 and are signed on its behalf by:
Mr W Bocra Jr
Director
Company registration number NI604784 (Northern Ireland)
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information
Belfast Distillery Company Limited is a private company limited by shares incorporated in Northern Ireland. The registered office is McConnell's Distillery, Crumlin Road Gaol, 53-55 Crumlin Road, Belfast, BT14 6ST.
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.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Going concern
These financial statements have been prepared on a going concern basis, notwithstanding the fact that the company incurred losses of £1,837,700 during the year. The nature of the company is such that significant capital expenditure and costs are required in early years to establish and promote the company before it is in a position to generate income. Projections indicate that the company will generate significant profits once it is fully operational.
The company is supported by investment from its parent company and, through this investment, the company has adequate resources to meet its obligations and continue its development for at least the next twelve months from signing these financial statements.
Thus the directors continue to adopt the going concern basis of accounting in preparing these financial statements.
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 4 -
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Branding
10 Years
Licences
10 Years
Software
5 Years
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
5%-20% per annum straight line
Fixtures and fittings
10%-33% per annum straight line
Computers
33% per annum straight line
Website
20% per annum straight line
No depreciation is charged on assets under construction until the assets are ready for use.
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.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 5 -
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.7
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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
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 and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 6 -
1.10
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 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.
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 creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
1.11
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.
1.12
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.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies (Continued)
- 7 -
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.
A grant that specifies performance conditions is 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.
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
9
5
3
Intangible fixed assets
Branding
Licences
Software
Total
£
£
£
£
Cost
At 1 January 2023
76,395
76,395
Additions
25,875
14,000
6,600
46,475
At 31 December 2023
102,270
14,000
6,600
122,870
Amortisation and impairment
At 1 January 2023
48,779
48,779
Amortisation charged for the year
7,639
7,639
At 31 December 2023
56,418
56,418
Carrying amount
At 31 December 2023
45,852
14,000
6,600
66,452
At 31 December 2022
27,616
27,616
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
4
Tangible fixed assets
Assets under construction
Plant and machinery
Fixtures and fittings
Computers
Website
Total
£
£
£
£
£
£
Cost
At 1 January 2023
4,339,270
57,500
14,930
6,725
2,900
4,421,325
Additions
8,525,378
14,994
106,746
19,659
8,666,777
At 31 December 2023
12,864,648
72,494
121,676
26,384
2,900
13,088,102
Depreciation and impairment
At 1 January 2023
101,725
47,917
6,712
1,576
338
158,268
Depreciation charged in the year
9,583
4,106
4,428
580
18,697
At 31 December 2023
101,725
57,500
10,818
6,004
918
176,965
Carrying amount
At 31 December 2023
12,762,923
14,994
110,858
20,380
1,982
12,911,137
At 31 December 2022
4,237,545
9,583
8,218
5,149
2,562
4,263,057
During the year £916,853 (2022 - £206,059) of interest costs directly attributable to the financing of property developments were capitalised at the weighted average cost of the related borrowings. The total capitalised interest at 31 December 2023 was £1,122,912 (2022 - £206,059).
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
86
86
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
49,079
17,261
Other debtors
3,583,511
3,454,276
3,632,590
3,471,537
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
9,742,329
Other borrowings
11,468
6,426,270
Trade creditors
2,290,373
227,306
Taxation and social security
20,433
17,706
Other creditors
11,955
9,300
Accruals and deferred income
2,022,230
1,669,401
14,098,788
8,349,983
Bank loans are secured against the company's stock.
8
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Other borrowings
1,238,532
Government grants
656,122
1,894,654
Amounts included above which fall due after five years are as follows:
Payable by instalments
688,073
-
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
15,362,515
15,211,494
15,362,515
15,211,494
Ordinary B shares of 0.01p each
405,080
-
41
-
15,767,595
15,211,494
15,362,556
15,211,494
Ordinary A shares are entitled to one vote per share and are entitled to receive dividends in accordance with the terms set out in the company's Articles of Association.
Ordinary B shares do not carry any voting rights and are only entitled to receive dividends in specific circumstances as set out in the company's Articles of Association.
10
Profit and loss reserves
The profit and loss account represents the accumulated losses of the company.
BELFAST DISTILLERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
11
Related party transactions
During the year, the company paid fees of £24,402 (2022 - £24,815) to one director.
Exemption
The directors have taken advantage of the exemption from disclosing related party transactions with other wholly owned group companies, in accordance with FRS 102 Section 1A The Financial Reporting Standard applicable in the UK and Republic of Ireland.
No other transactions with related parties were undertaken such as are required to be disclosed under FRS 102 Section 1A.
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