Company registration number 02710556 (England and Wales)
CASELLA FAMILY BRANDS (EUROPE) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
CASELLA FAMILY BRANDS (EUROPE) LIMITED
COMPANY INFORMATION
Directors
G M Casella
S D Lawson
Company number
02710556
Registered office
The Stores
Officers' Mess
Royston Road
Duxford
Cambridgeshire
CB22 4QH
Auditor
CLA Evelyn Partners Limited
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
Bankers
Santander UK plc
Bridle Road
Bootle
Merseyside
L30 4GB
CASELLA FAMILY BRANDS (EUROPE) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of cash flows
10
Notes to the financial statements
11 - 20
CASELLA FAMILY BRANDS (EUROPE) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Review of the business
In the year ended 30th June 2024, total sales volumes declined by -6.0% and revenue grew by +1.7%.
[yellow tail] continued to gain share in a challenging market, which was adversely impacted by UK excise duty increases, exacerbating existing price inflation.
Investment in [yellow tail] continued, with our commitment to above-the-line TV advertising supported by strong activity in digital channels and in-customer activation all focussed on communicating great taste. This helped the brand to stay salient with consumers and saw awareness jump from 7th position to 3rd. [yellow tail] also entered the top 10 Alcoholic brands in the UK for the first time.
Brand health remains strong with [yellow tail] being recognised the world’s most powerful wine brand by Wine Intelligence for the 7th year in a row.
The year saw supply challenges caused by ongoing global container shortages and disruption in the Red Sea. Despite cost inflation pushing up the cost of goods, the implementation of a cost price increase at the end of the previous financial year resulted in gross margin % growth and a consequent increase in pre-tax profits.
Elsewhere in our brand portfolio, Peter Lehmann remains a compelling premium offering and the PepperBox brand has established itself as the go-to popular premium wine brand for food pairing. Together, these brands seek to capitalise on the global trend for premiumisation in alcoholic beverages.
Principal risks and uncertainties
The main risks the company is exposed to are as follows:
Duty rate changes: Wine duty rates changed on 1st August 2023, which increased the consumer price of the majority of our products in the UK. Further increases will be implemented in February 2025, and it is unclear what impact these changes will have on future consumer demand. We are continuing to invest in our brand to drive sales and minimise the impact of this price increase on volume.
Exchange rate: whilst the company has agreed medium term pricing in GBP for virtually all supplies of wine and services, in the longer term the fluctuation of currencies – and in particular the movement of US and Australian dollars against GBP – remains a financial risk to the company in that suppliers might potentially increase the underlying cost of key supplies to reflect those exchange rate movements.
Credit risk: the company constantly monitors the credit worthiness of each of its customers in the UK and Europe, and overdue debt is a key performance measure monitored by the Executive and Sales teams, with any overdue debts actively managed by the Sales and Finance teams. In the year ended 30th June 2024 the company recorded no bad debts.
Costs: Energy prices remain high and potentially volatile. Sea freight costs are fluctuating due to the red sea crisis resulting in blank sailings and poor vessel reliability. In addition to the above, the business anticipates increased costs related to waste management and Extended Producer Responsibility (EPR) legislation which are due to be implemented April 25. We consider EPR costs to be a tax which will be passed on to customers and, ultimately, consumers in full. The likely impact on consumer demand is unknown.
Future plans
We make our wines easy to find, easy to drink and easy to enjoy. With this in mind, we will continue to focus on driving brand equity and consumer engagement, supported by our strong marketing plans and social media presence to sustainably grow share.
The purpose of the business is to create great tasting wines for all to enjoy. To be recognised as the Most Loved Brand globally highlights how we are continuing to grow with this guiding principle at the forefront of our plans. We have the ambition to turn [yellow tail] into a true cornerstone of the wine category, and we’ are confident that our plans – underpinned by continued marketing investment - will help us to deliver that goal.
In FY25, we expect moderate sales growth as new duty rates and other government initiatives are likely to adversely impact the wine market. Against this backdrop, we will continue to focus on taste and remain uncompromising on the quality of our wines.
CASELLA FAMILY BRANDS (EUROPE) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Promoting the success of the company
The board of directors of Casella Family Brand (Europe) Limited consider, both individually and together, that they have acted in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172 (1) (a-f) of the Act) in the decisions taken during the year ended 30 June 2024.
The Directors of CFBE and the Executive team agree the company’s long-term strategy and annual plans and ensure execution is measured quantitatively and qualitatively with decisions and course correction made in the long-term interests and prosperity of the business and its wider community and partners. We continue to rank highly in the Advantage Group customer survey and have received recognition for the quality of our supply chain across our customer base.
In addition to brand and market investment, employee happiness and engagement is at the heart of the company’s success and helps drive the increasing breadth and depth of relationship with key customers and suppliers. In recognition of our achievements, we have been recently awarded the Sunday Times Best Place to Work Award.
Our mission is to create sustainable growth. Our two key supply partners, Casella Wines Pty Limited (Australian winery) and Encirc Limited (European bottling) both have clear net zero emission pathways in line with the UN Global Climate agreement. Two key focus areas of Casella Wines Pty Limited this year have been greening our energy sources by harnessing the power of the sun through switching on the largest solar farm in the Australian beverage industry and working towards our Sustainable Wine Growing Australia (SWA) certification with our winemakers and grape growers. Casella Family Brand (Europe) Limited also operate with a sustainability mindset and the company works closely with its key production and logistics suppliers to minimise environmental impact. We play an important role in the wider industry community by supporting key institutions such as the Wine & Spirit Education Trust and the Drinks Trust.
G M Casella
Director
14 January 2025
CASELLA FAMILY BRANDS (EUROPE) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company continued to be that of wine distribution in the United Kingdom and Europe.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £6,500,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
G M Casella
S D Lawson
Auditor
The auditor, CLA Evelyn Partners Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
The company itself has consumed less than 40,000kWh in the UK and the bulk of its operations are outsourced, which makes it impractical to obtain this information. Therefore the company has not disclosed its emissions and energy consumption.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
CASELLA FAMILY BRANDS (EUROPE) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
G M Casella
Director
14 January 2025
CASELLA FAMILY BRANDS (EUROPE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CASELLA FAMILY BRANDS (EUROPE) LIMITED
- 5 -
Opinion
We have audited the financial statements of Casella Family Brands (Europe) Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
CASELLA FAMILY BRANDS (EUROPE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CASELLA FAMILY BRANDS (EUROPE) LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either are to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and intellectual property legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
understanding the design of the company’s remuneration policies.
CASELLA FAMILY BRANDS (EUROPE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CASELLA FAMILY BRANDS (EUROPE) LIMITED (CONTINUED)
- 7 -
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
reviewed management and post-year end information;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Margaret El Khalidi
Senior Statutory Auditor
For and on behalf of CLA Evelyn Partners Limited
16 January 2025
Chartered Accountants
Statutory Auditor
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
CASELLA FAMILY BRANDS (EUROPE) LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
94,358,366
92,792,985
Cost of sales
(79,746,362)
(79,636,836)
Gross profit
14,612,004
13,156,149
Administrative expenses
(8,044,827)
(7,246,345)
Other operating income
51,394
25,817
Operating profit
4
6,618,571
5,935,621
Interest receivable and similar income
8
101,503
61,036
Interest payable and similar expenses
9
(985,752)
(453,900)
Profit before taxation
5,734,322
5,542,757
Tax on profit
10
(1,444,644)
(1,142,823)
Profit for the financial year
4,289,678
4,399,934
Retained earnings brought forward
20,786,262
16,386,328
Dividends
11
(6,500,000)
Retained earnings carried forward
18,575,940
20,786,262
The profit and loss account has been prepared on the basis that all operations are continuing operations.
CASELLA FAMILY BRANDS (EUROPE) LIMITED
BALANCE SHEET
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
15,426
21,472
Current assets
Stocks
13
20,719,815
24,216,817
Debtors
14
22,892,590
20,457,577
Cash at bank and in hand
8,504,117
9,827,034
52,116,522
54,501,428
Creditors: amounts falling due within one year
15
(23,805,998)
(33,736,628)
Net current assets
28,310,524
20,764,800
Total assets less current liabilities
28,325,950
20,786,272
Creditors: amounts falling due after more than one year
16
(9,750,000)
Net assets
18,575,950
20,786,272
Capital and reserves
Called up share capital
19
10
10
Profit and loss reserves
18,575,940
20,786,262
Total equity
18,575,950
20,786,272
The financial statements were approved by the board of directors and authorised for issue on 14 January 2025 and are signed on its behalf by:
G M Casella
Director
Company registration number 02710556 (England and Wales)
CASELLA FAMILY BRANDS (EUROPE) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
843,886
4,646,738
Interest paid
(985,752)
(453,900)
Income taxes paid
(1,208,799)
(1,018,277)
Net cash (outflow)/inflow from operating activities
(1,350,665)
3,174,561
Investing activities
Purchase of tangible fixed assets
(7,705)
(11,764)
Interest received
101,503
61,036
Net cash generated from investing activities
93,798
49,272
Financing activities
Proceeds from new bank loans
15,000,000
Repayment of bank loans
(8,566,050)
(3,157,800)
Dividends paid
(6,500,000)
Net cash used in financing activities
(66,050)
(3,157,800)
Net (decrease)/increase in cash and cash equivalents
(1,322,917)
66,033
Cash and cash equivalents at beginning of year
9,827,034
9,761,001
Cash and cash equivalents at end of year
8,504,117
9,827,034
CASELLA FAMILY BRANDS (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
1
Accounting policies
Company information
Casella Family Brands (Europe) Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Stores, Officers' Mess, Royston Road, Duxford, Cambridgeshire, CB22 4QH.
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.
The financial statements are presented 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
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is measured at the fair value of the consideration received or receivable for the sale of goods in the normal course of business, and is shown net of discounts and VAT.
Sale of goods
Revenue arises from the sale of bottled wine.
Revenue is recognised when the customer accepts delivery of the goods.
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
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:
Fixtures, fittings & equipment
20% - 25% straight line
Computer equipment
3 years straight line
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.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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).
CASELLA FAMILY BRANDS (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. The cost formula used is the weighted average cost basis. This takes the total costs from all production runs and divides this by the total stock available. The production run cost comprises direct materials and 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 profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Change in accounting policies
The company has made a voluntary change to the stock valuation policy in the year. The company has moved from a historic cost basis to a weighted average cost basis. This change in the accounting policy reflects more reliable and relevant information as the stock is held at a value for which the cost will be released in the following period. This revised accounting policy reduces the need to rely on assumptions and estimates.
The retrospective application of this change has not been deemed material to the accounts in the current or prior period.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ”Basic Financial Instruments” 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.
Basic financial assets
Short term debtors are measured at transaction price less any provision for impairment. Loans receivable are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method, less any provision for impairment.
Basic financial liabilities
Short term creditors are measured at transaction price. Other financial liabilities, including bank loans and other loans, are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method.
1.9
Taxation
The tax expense represents the sum of the tax currently payable.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
CASELLA FAMILY BRANDS (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
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.
1.13
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
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.
Provisions for customer discounts and rebates
Sales to customers are often made with associated trade discounts and rebates, therefore revenue is recorded net of any such discounts. The provision for discounts and rebates is calculated based on the level of sales over the duration of customer contracts/agreements and assessments of management, using historical performance as a guide. Discounts and rebates are recognised when sales levels meet pre-agreed milestones, or based on anticipated depletions and future performance of promotions.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
84,357,001
81,324,708
Rest of Europe
10,001,365
11,468,277
94,358,366
92,792,985
CASELLA FAMILY BRANDS (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
3
Turnover and other revenue
(Continued)
- 14 -
2024
2023
£
£
Other revenue
Interest income
101,503
61,036
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
65,475
70,536
Depreciation of owned tangible fixed assets
13,751
12,437
Operating lease charges
78,496
71,434
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
42,150
43,700
For other services
Taxation compliance services
8,350
8,915
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
General management
3
2
Sales
9
8
Marketing
6
6
Finance
4
5
Operations
7
7
Europe
1
1
Total
30
29
CASELLA FAMILY BRANDS (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
6
Employees
(Continued)
- 15 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,339,303
2,940,928
Social security costs
275,235
309,425
Pension costs
333,894
314,408
3,948,432
3,564,761
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
320,044
299,065
Company pension contributions to defined contribution schemes
31,273
2,391
351,317
301,456
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
296,727
299,065
Company pension contributions to defined contribution schemes
31,273
2,391
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
101,503
61,036
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
101,503
61,036
CASELLA FAMILY BRANDS (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
985,752
453,900
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,443,586
1,141,200
Adjustments in respect of prior periods
1,623
Total UK current tax
1,443,586
1,142,823
Foreign current tax on profits for the current period
530
Adjustments in foreign tax in respect of prior periods
528
Total current tax
1,444,644
1,142,823
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
5,734,322
5,542,757
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
1,433,581
1,136,038
Tax effect of expenses that are not deductible in determining taxable profit
8,494
5,552
Adjustments in respect of prior years
528
1,623
Permanent capital allowances in excess of depreciation
1,511
138
Foreign tax
530
Enhanced capital allowances
(528)
Taxation charge for the year
1,444,644
1,142,823
11
Dividends
2024
2023
£
£
Interim paid
6,500,000
CASELLA FAMILY BRANDS (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
12
Tangible fixed assets
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
Cost
At 1 July 2023
34,173
120,505
154,678
Additions
7,705
7,705
At 30 June 2024
34,173
128,210
162,383
Depreciation and impairment
At 1 July 2023
26,442
106,764
133,206
Depreciation charged in the year
3,829
9,922
13,751
At 30 June 2024
30,271
116,686
146,957
Carrying amount
At 30 June 2024
3,902
11,524
15,426
At 30 June 2023
7,731
13,741
21,472
13
Stocks
2024
2023
£
£
Contract work in progress
8,552,087
9,187,012
Finished goods and goods for resale
12,167,728
15,029,805
20,719,815
24,216,817
The company has made a voluntary change to the stock valuation policy in the year, from a historic cost basis to weighted average cost policy. Further details on this change can be found in note 1.7
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
22,427,862
20,194,809
Other debtors
4,216
4,216
Prepayments and accrued income
460,512
258,552
22,892,590
20,457,577
CASELLA FAMILY BRANDS (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
17
3,000,000
6,316,050
Trade creditors
11,049,328
18,673,319
Corporation tax
863,623
627,778
Other taxation and social security
1,091,051
708,965
Other creditors
6,613,891
6,102,231
Accruals and deferred income
1,188,105
1,308,285
23,805,998
33,736,628
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
9,750,000
17
Loans and overdrafts
2024
2023
£
£
Bank loans
12,750,000
6,316,050
Payable within one year
3,000,000
6,316,050
Payable after one year
9,750,000
Bank loans are secured by fixed charges over the company's assets.
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
333,894
314,408
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10
10
10
10
CASELLA FAMILY BRANDS (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
42,164
42,164
Between two and five years
35,137
73,787
77,301
115,951
21
Related party transactions
During the year the company entered into the following transactions with Casella Wines Pty Limited, a company which is under common control:
Purchase of goods: £46,577,348 (2023: £51,306,718).
At the balance sheet date, the company owed £11,972,502 (2023: £17,011,253) to Casella Wines Pty Limited, which is included within creditors due within one year.
22
Ultimate controlling party
The immediate parent company is Casella Family Brands (Europe) Pty Limited and the ultimate parent company is JMCTT Pty Limited. Both companies are registered in Australia.
23
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
4,289,678
4,399,934
Adjustments for:
Taxation charged
1,444,644
1,142,823
Finance costs
985,752
453,900
Investment income
(101,503)
(61,036)
Depreciation and impairment of tangible fixed assets
13,751
12,437
Movements in working capital:
Decrease/(increase) in stocks
3,497,002
(5,671,822)
Increase in debtors
(2,435,013)
(4,541,155)
(Decrease)/increase in creditors
(6,850,425)
8,911,657
Cash generated from operations
843,886
4,646,738
CASELLA FAMILY BRANDS (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
24
Analysis of changes in net funds/(debt)
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
9,827,034
(1,322,917)
8,504,117
Borrowings excluding overdrafts
(6,316,050)
(6,433,950)
(12,750,000)
3,510,984
(7,756,867)
(4,245,883)
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