Company registration number 02830022 (England and Wales)
WYE VALLEY BREWERY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
WYE VALLEY BREWERY LIMITED
COMPANY INFORMATION
Directors
Mr P W Amor
Mr V P Amor
Company number
02830022
Registered office
The Brewery
Stoke Lacy
Herefordshire
HR7 4HG
Auditor
Ormerod Rutter Limited
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
WYE VALLEY BREWERY LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 23
WYE VALLEY BREWERY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The directors present the strategic report for the year ended 30 April 2024.

Review of Business

Wye Valley Brewery enjoyed its busiest ever year of trading in the period May 2023 - April 2024. Turnover reached a new high of £18.2 million, up from £16.5 million in the previous year. Profits before tax were £2.2 million, up from £2.1 million in the previous accounting period. Following our first ever carbon audit, we recorded 0.32kg CO2 per litre of beer sold. Our water consumption expressed as a ratio was 4.1 litres per litre of beer sold. 

Principal Risks and Uncertainties

The directors consider that the principle risks and uncertainties of the business in the near future are from the

inflationary pressures on the UK economy, in particular due to energy costs affecting consumers’ discretionary

spend. Other longer terms risks are those related to the Wye Valley Brewery brand and reputation. These risks are

monitored regularly by the senior management team and the board of directors.

Key Performance Indicators

These are beer sales, environmental impact of the business, and profitability.

On behalf of the board

Mr V P Amor
Director
31 January 2025
WYE VALLEY BREWERY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principal activity of the company continued to be that of a brewery.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr P W Amor
Mr V P Amor
Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £332,403. The directors do not recommend payment of a final dividend.

Financial instruments

Treasury activities are managed centrally by the company under a framework of policies and procedures approved and monitored by the Board. The objectives are to protect the assets of the company and to identify and then manage financial risk.

 

The company uses various financial instruments. These include cash and various items such as trade debtors and trade creditors that arise from its operations. Their existence exposes the company to a number of financial risks which are described in more detail below.

Liquidity Risk

The company manages its cash and borrowing requirements to maximise interest income and minimise interest expense, whilst ensuring that the company has sufficient liquid resources to meet its operating requirements.

Interest Rate Risk

The company is exposed to cash flow interest rate risk on floating rate deposits. Interest generated from cash deposits is considered to be immaterial to the company.

Credit Risk

Investments of cash surpluses are made through banks and companies which must fulfil credit rating criteria approved by the board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures and credit risk exposures are dealt with by insurance arrangements. Receivable balances are monitored on an ongoing basis and provision is made for doubtful debts when necessary.

Future developments

The directors continue to monitor inflationary pressures to ensure appropriate measures are taken to enable the company to continue its strong performance.

Auditor

The auditor, Ormerod Rutter Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

WYE VALLEY BREWERY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
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:

 

 

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.

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
Mr V P Amor
Director
31 January 2025
WYE VALLEY BREWERY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WYE VALLEY BREWERY LIMITED
- 4 -
Opinion

We have audited the financial statements of Wye Valley Brewery Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:

Basis for opinion

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.

Other information

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:

WYE VALLEY BREWERY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WYE VALLEY BREWERY LIMITED (CONTINUED)
- 5 -
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:

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 intend 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations including those that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, and the extent to which non-compliance might have a material effect on the financial statements. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates and judgemental areas of the financial statements such as valuation of tangible fixed assets. Audit procedures performed included:

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.

WYE VALLEY BREWERY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WYE VALLEY BREWERY LIMITED (CONTINUED)
- 6 -

Use of our 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.

Colm McGrory FCA
Senior Statutory Auditor
For and on behalf of Ormerod Rutter Limited
31 January 2025
Chartered Accountants
Statutory Auditor
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
WYE VALLEY BREWERY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
18,205,890
16,517,687
Cost of sales
(12,623,251)
(11,333,026)
Gross profit
5,582,639
5,184,661
Administrative expenses
(3,504,218)
(3,137,466)
Other operating income
67,303
94,888
Operating profit
4
2,145,724
2,142,083
Interest receivable and similar income
8
37,988
5,818
Interest payable and similar expenses
9
(701)
(701)
Profit before taxation
2,183,011
2,147,200
Tax on profit
10
(234,866)
(676,173)
Profit for the financial year
1,948,145
1,471,027

The profit and loss account has been prepared on the basis that all operations are continuing operations.

WYE VALLEY BREWERY LIMITED
BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
4,190,401
4,328,424
Investments
13
1,250
1,250
4,191,651
4,329,674
Current assets
Stocks
15
190,977
131,034
Debtors
16
2,074,864
2,311,114
Cash at bank and in hand
3,660,058
2,992,696
5,925,899
5,434,844
Creditors: amounts falling due within one year
17
(3,072,396)
(4,184,058)
Net current assets
2,853,503
1,250,786
Total assets less current liabilities
7,045,154
5,580,460
Creditors: amounts falling due after more than one year
18
(63,064)
(90,779)
Provisions for liabilities
Deferred tax liability
20
842,643
965,976
(842,643)
(965,976)
Net assets
6,139,447
4,523,705
Capital and reserves
Called up share capital
24
96,102
96,102
Profit and loss reserves
25
6,043,345
4,427,603
Total equity
6,139,447
4,523,705

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 31 January 2025 and are signed on its behalf by:
Mr V P Amor
Director
Company registration number 02830022 (England and Wales)
WYE VALLEY BREWERY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
96,102
4,356,576
4,452,678
Year ended 30 April 2023:
Profit and total comprehensive income
-
1,471,027
1,471,027
Dividends
11
-
(1,400,000)
(1,400,000)
Balance at 30 April 2023
96,102
4,427,603
4,523,705
Year ended 30 April 2024:
Profit and total comprehensive income
-
1,948,145
1,948,145
Dividends
11
-
(332,403)
(332,403)
Balance at 30 April 2024
96,102
6,043,345
6,139,447
WYE VALLEY BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
1
Accounting policies
Company information

Wye Valley Brewery Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Brewery, Stoke Lacy, Herefordshire, United Kingdom, HR7 4HG.

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 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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Wye Valley Brewery Holdings Limited. These consolidated financial statements are available from its registered office, The Brewery, Stoke Lacy, Herefordshire, HR7 4HG.

1.2
Going concern

These financial statements have been drawn up on the going concern basis. If the going concern basis were not appropriate, adjustments would have been made to reduce assets to recoverable amounts, to provide for any further liabilities that might arise, and to re-classify fixed assets as current assets and long term liabilities as current liabilities.true

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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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.

WYE VALLEY BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 11 -
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:

Property improvements
Over the shorter of the lease term and the useful economic life
Plant and machinery
10-15 years straight line
Fixtures & equipment
4-20 years straight line
Motor Vehicles
4-8 years straight line
Casks
10 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
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.

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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

Equity instruments

Equity instruments are recognised initially at fair value which is normally the transaction price. Subsequently they are measured at cost less impairment until a reliable measure of fair value becomes available.

1.6
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). 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.

WYE VALLEY BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 12 -

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.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and is measured using the weighted average cost formula.

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.

1.8
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.

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 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

WYE VALLEY BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, 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 profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

WYE VALLEY BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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.

1.11
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.14
Retirement benefits

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

WYE VALLEY BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
1.15
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 profit or loss 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.

1.16
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.

 

Government grants relating to turnover 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.

1.17
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.

 

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful lives and residual values are reassessed annually. They are amended when necessary, to reflect current estimates.

 

Deferred tax assets are only recognised to the extent to which it can be regarded as more likely than not that the company will generate sufficient future taxable profits from which the reversal of the underlying timing differences can be deducted.

WYE VALLEY BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Sale of goods
18,205,890
16,517,687
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
18,200,752
16,512,003
Rest of the World
5,138
5,684
18,205,890
16,517,687
2024
2023
£
£
Other revenue
Interest income
37,988
5,818
Grants received
19,680
19,680
Feed-in-tariff income
24,412
24,818

Government grant income recognised in the year compromises:

 

£19,680 (2023: £19,680) in respect of plant and machinery acquired in previous years, which is being recognised over the useful life of the related assets.

 

 

4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(19,680)
(19,680)
Fees payable to the company's auditor for the audit of the company's financial statements
10,165
7,633
Depreciation of owned tangible fixed assets
677,879
497,335
Loss/(profit) on disposal of tangible fixed assets
7,440
(77,367)
Operating lease charges
134,829
129,381
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
10,165
7,633
WYE VALLEY BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Directors
2
2
Production, Bottling and Distribution
52
49
Sales, Marketing, Admin and General
20
19
Total
74
70

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,520,379
2,235,209
Social security costs
244,513
217,066
Pension costs
203,922
178,114
2,968,814
2,630,389

Other pension costs relate to amounts payable under defined contribution pension schemes. Amounts owed at the year end amounted to £16,527 (2023: £14,801).

7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
11,527
11,296
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
37,988
5,818
9
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
701
701
WYE VALLEY BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
358,199
-
0
Deferred tax
Origination and reversal of timing differences
(123,333)
676,173
Total tax charge
234,866
676,173

Effective from 1st April 2023, UK Government introduced an increase in the UK corporation tax rate from 19% to 25%. Once the different tax rates applicable to the year are prorated the effective rate becomes 20%.

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
2,183,011
2,147,200
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
545,753
429,440
Tax effect of expenses that are not deductible in determining taxable profit
2,729
100,515
Tax effect of income not taxable in determining taxable profit
(9,253)
(20,573)
Tax effect of utilisation of tax losses not previously recognised
-
0
1,164
Unutilised tax losses carried forward
(201,681)
136,094
Group relief
-
0
40,542
Permanent capital allowances in excess of depreciation
(102,682)
-
0
Accelerated capital allowances
-
0
(687,182)
Taxable timing differences
-
0
676,173
Taxation charge for the year
234,866
676,173
11
Dividends
2024
2023
£
£
Interim paid
332,403
1,400,000
WYE VALLEY BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
12
Tangible fixed assets
Property improvements
Plant and machinery
Fixtures & equipment
Motor Vehicles
Casks
Total
£
£
£
£
£
£
Cost
At 1 May 2023
749,436
6,121,739
81,458
630,776
1,033,307
8,616,716
Additions
-
0
332,707
2,512
141,553
77,774
554,546
Disposals
-
0
(8,500)
-
0
(42,219)
-
0
(50,719)
At 30 April 2024
749,436
6,445,946
83,970
730,110
1,111,081
9,120,543
Depreciation and impairment
At 1 May 2023
469,113
2,621,349
57,599
415,017
725,214
4,288,292
Depreciation charged in the year
55,767
473,913
8,160
83,514
56,525
677,879
Eliminated in respect of disposals
-
0
(6,583)
-
0
(29,446)
-
0
(36,029)
At 30 April 2024
524,880
3,088,679
65,759
469,085
781,739
4,930,142
Carrying amount
At 30 April 2024
224,556
3,357,267
18,211
261,025
329,342
4,190,401
At 30 April 2023
280,323
3,500,390
23,859
215,759
308,093
4,328,424

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Motor Vehicles
16,740
22,884
13
Fixed asset investments
2024
2023
£
£
Unlisted investments
1,250
1,250
14
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,867,937
2,083,890
Equity instruments measured at cost less impairment
1,250
1,250
Carrying amount of financial liabilities
Measured at amortised cost
2,509,728
3,695,772
WYE VALLEY BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
15
Stocks
2024
2023
£
£
Finished goods and goods for resale
190,977
131,034
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,795,930
1,963,146
Corporation tax recoverable
115,357
155,000
Amounts due from group undertakings
71,082
113,518
Other debtors
925
7,226
Prepayments and accrued income
91,570
72,224
2,074,864
2,311,114
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
19
8,035
8,035
Trade creditors
510,605
587,058
Amounts owed to group undertakings
1,000,000
2,174,039
Taxation and social security
551,693
485,346
Government grants
21
19,680
19,680
Other creditors
643,457
621,599
Accruals and deferred income
338,926
288,301
3,072,396
4,184,058
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
19
8,705
16,740
Government grants
21
54,359
74,039
63,064
90,779
WYE VALLEY BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
8,035
8,035
In two to five years
8,705
16,740
16,740
24,775

Finance lease payments represent rentals payable by the company for certain motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
842,643
965,976
2024
Movements in the year:
£
Liability at 1 May 2023
965,976
Credit to profit or loss
(123,333)
Liability at 30 April 2024
842,643
21
Government grants
2024
2023
£
£
Arising from government grants
74,039
93,719
Included in the financial statements as follows:
Current liabilities
19,680
19,680
Non-current liabilities
54,359
74,039
74,039
93,719
WYE VALLEY BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
22
Secured debts
The following secured debts are included within creditors:
2024
2023
£
£
Hire purchase contracts
16,740
24,775
Hire purchase contracts are secured against the assets to which they relate.
NatWest Bank PLC holds a charge against the company in relation to all monies due or to become due from the company to the chargeee on any account. This includes the company credit cards, direct debiting sponsourship and a customs bond - movement guarentee.
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
203,922
178,114

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.

The company's commitments for defined contribution pension liabilities at the year end totalled £16,527 (2023: £14,801).

24
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary 'A' of £1 each
96,002
96,002
96,002
96,002
Ordinary 'B' of £1 each
100
100
100
100
96,102
96,102
96,102
96,102

Ordinary A shares are entitled to one vote per share in any normal circumstance.

Ordinary B shares carry no voting rights.

25
Profit and loss reserves

Retained earnings represent accumulated realised profits less accumulated realised losses, net of dividends paid.

WYE VALLEY BREWERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
26
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
104,457
124,440
Between two and five years
228,790
254,769
In over five years
55,000
85,000
388,247
464,209
27
Related party transactions

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

28
Ultimate controlling party

The ultimate parent company is Wye Valley Brewery Holdings Limited.

 

There is no ultimate controlling party.

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