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Registered number: 01072469










TANNERS WINES LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2024

 
TANNERS WINES LIMITED
 
 
COMPANY INFORMATION


Directors
J J Tanner 
S M Barratt 
R C Boutflower 
S D Crosland 
R J Morgan 




Company secretary
R J Morgan



Registered number
01072469



Registered office
26 Wyle Cop

Shrewsbury

Shropshire

SY1 1XD




Independent auditors
WR Partners
Chartered Accountants & Statutory Auditors

Belmont House

Shrewsbury Business Park

Shrewsbury

Shropshire

SY2 6LG




Bankers
Lloyds TSB
Pride Hill

Shrewsbury

SY1 1DG





 
TANNERS WINES LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 3
Directors' report
 
4 - 5
Independent auditors' report
 
6 - 9
Statement of comprehensive income
 
10
Balance sheet
 
11 - 12
Statement of changes in equity
 
13
Notes to the financial statements
 
14 - 32


 
TANNERS WINES LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024

Introduction
 
The directors present their strategic report for the year ended 31st May 2024 for Tanners Wines Limited ("the Company").
The principal activity of the Company during the year was the wholesaling and retailing of wines, spirits, beers and mineral waters. 

Business review
 
We aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. Our review is consistent with the size and complexity of the business and is written in the context of the risks and uncertainties we face.
Tanners has continued to demonstrate resilience through the recent turbulent years.  We have navigated through Covid and Brexit as well as other supply chain disruption (for example from the closure of the Suez Canal), as well as several short harvests in key wine growing areas, either from frost and hailstone or wildfires.  We had to contend with a level of inflation not seen for a generation and shortages of glass and other raw materials used in the bottling processes due to the Russia / Ukraine conflict.  
For the financial year under review, we saw a welcome reduction in the inflationary pressures from electricity and raw material shortages.  However, the most significant changes to duty rates regime in over a decade led to a standard bottle of wine sold to customers increasing by a minimum of 53p to the end consumer.  We also had to contend with the well documented inflationary pressures generated by a 10% increase in the National Living Wage – as well as increasing our cost base this has had a significant impact on leisure and retail businesses that we sell into.
Despite these external challenges the team at Tanners has demonstrated resilience, flexibility and adaptability and the Board would like to thank all of them for their on-going commitment and contribution to the Company.  The financial position of the business remains strong, and we saw a solid improvement in our key financial performance measures.
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the Company as a whole; turnover, gross profit margin and profit before tax.  
During the year the Company’s turnover increased by 3.4% to £24.9m (2023: £24.1m).  Gross profit increased to £7.5m (2023: £7.1m) and we saw a small improvement in gross profit margin to 30.2% (2023: 29.6%).  Operating profit of £0.8m (2023: £0.5m) showed an increase of £367k; this was in principally due to a reduction in repair spend following a major project undertaken in the previous financial year.  Profit after tax for the year was £573k, an increase of £222k on the prior year.
The financial position of the business remains solid with a net cash balance of £159k (2023: £318k) at year end.

Page 1

 
TANNERS WINES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024

Principal risks and uncertainties
 
The business environment in which we operate continues to be challenging and unpredictable.  Over recent years we have Covid-19 and the uncertainties following the “Brexit” referendum to contend with, as well as the more recent surging energy and fuel costs and a significant weakening in consumer confidence, all of which have contributed to the uncertainty affecting most UK consumer-facing businesses.  
The considerable risks posed by Covid-19 do appear to have allayed, with the successful roll out of the vaccine across the United Kingdom (and across the world).  There does remain a risk of further variants, or indeed the threat of a different pandemic, impacting our wholesaling business in particular, although we have seen that some of this shortfall on the “Trade” side of the business is compensated for by higher sales online and through the retail branches as consumers have continued to consume our products, but at home.
Brexit has been the second on-going significant source of risk and uncertainty.  We increased our stock holding to try to mitigate some of the cost pressures that a weaker sterling, increased paperwork and longer lead times have had on our industry and we also imported in larger quantities to mitigate in part the considerable increased shipping costs that have impacted the UK and global economies following Covid-19, Brexit and the Suez shipping blockage.  The sterling / euro exchange rate is a considerable influence on the profitability of our business and this is subject to macro-economic and political fluctuations that our hedging strategy can only partially mitigate.  Over the past 12 months these risks have somewhat reduced and sterling has traded more strongly in recent weeks.  We hedge out our foreign currency exposure on a rolling basis but the macro-economic backdrop remains a significant uncertainty.
The third considerable risk that we have faced over the past year has been the significant increase in energy and fuel costs across the world and in particular in the United Kingdom.  The impact on Tanners is both on our direct costs (we have seen an increase of more than 100% in our energy costs) but also on indirect costs from energy increases – the basic cost of living has meant we have given a higher than normal pay rise to our staff and we are seeing on-going inflationary pressures across all our costs.  We have had to pass on some of these costs to our customers to mitigate the cost pressures, but as noted last year this did have a significant impact in level of profits.  The rate of inflation is remaining stubbornly high and this remains a key risk to the business as margins will inevitably come under pressure as not all these inflationary pressures can be passed on to consumers.
The fourth significant risk that is impacting our business is increased regulation, bureaucracy and taxation.  Several of the challenges posed by Brexit have been worked through but there are on-going changes to the systems required to import goods.  Since the financial year end there have been changes to the rate of duty charged on alcohol and this has generally led to higher prices; a 75cl bottle of wine at 12.5% ABV has seen an increase of 44p in duty (excluding VAT).  This is an additional cost that has to be passed onto the consumer and will contribute to significantly higher prices across the drinks industry at a time of exceptional inflation. Further changes are being made to the duty regime in February 2025 which will lead to more complication and, inevitably, cost.  The changes announced in the Chancellor’s Budget in October 2024 to National Insurance Contributions and the above inflation increase in the National Living Wage have placed a significant financial burden on the retail, leisure and hospitality sectors and will lead to above inflationary price rises in our industry.
We reported last year of risks from plans such as the Scottish Deposit Return Scheme, and a similar (but different) scheme to be introduced in Wales.  The immediate risks of these schemes has abated in Scotland but continues in Wales. We continue to engage with the UK and devolved governments on the impact of constant changes to the regulatory environment around duty, deposit schemes and packaging that we face. The proposed introduction of the Extended Producer Regulation (“EPR”) charges in 2025 will lead to much greater bureaucracy as well as higher prices.
 
Page 2

 
TANNERS WINES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024

The recent few months have highlighted further the on-going risks and uncertainties from the weather; wine and beer are ultimately agricultural products and the impact of the weather on the quality and quantity of each harvest remains high, although the significant improvements in viticultural techniques around the world has led to some partial mitigation of variances in quality.  The risks of drought, wildfires and flooding, as well as the war in Ukraine impacting wheat and barley harvests, means that the whole industry exists against a constant backdrop of uncertainty.  Tanners are well diversified with suppliers all around the world but we cannot be immune to price pressures from reduced yields in particular.
With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen events outside our control. However, the business has shown a tremendous ability to be flexible, to adapt and respond to changes in market conditions and to look for opportunities as they arise.  
The Company finances its operations through a mixture of retained profit, bank overdraft, fixed asset under hire purchase agreement and various items such as trade debtors and trade creditors that arise directly from its operations. The Company's exposure to interest rate fluctuations is managed by regular review in conjunction with the Company's bankers. The exposure to exchange rate fluctuations is managed by the conservative use of forward exchange rate contracts. The control of risk and efficient working capital management are integral to the Company's business and the directors regularly review and agree policies for managing such risks.  Further information regarding the Company’s approach to financial risk management is included in note 29 to the financial statements.


This report was approved by the board and signed on its behalf.



................................................
J J Tanner
Director

Date: 29 January 2025

Page 3

 
TANNERS WINES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024

The directors present their report and the financial statements for the year ended 31 May 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £572,637 (2023 - £350,755).

During the year the Company paid dividends totalling £nil (2023: £61,918).

Directors

The directors who served during the year were:

J J Tanner 
S M Barratt 
R C Boutflower 
S D Crosland 
R J Morgan 

Page 4

 
TANNERS WINES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024


Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

In accordance with section 414(C) of the Companies Act 2006 Strategic Report and Director's Report Regulations 2014, the information required by schedule 7 of the Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations has been set out in the strategic report. 

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsWR Partnerswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
J J Tanner
Director

Date: 29 January 2025

Page 5

 
TANNERS WINES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TANNERS WINES LIMITED
 

Opinion


We have audited the financial statements of Tanners Wines Limited (the 'Company') for the year ended 31 May 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 31 May 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.


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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.


Page 6

 
TANNERS WINES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TANNERS WINES LIMITED (CONTINUED)


Other information


The other information comprises the information included in the annual report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the annual reportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the 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.


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 directors' 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 set out on page 4, 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.


Page 7

 
TANNERS WINES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TANNERS WINES LIMITED (CONTINUED)


Auditors' 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 Auditors' 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:

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR). 
We understood how the Company is complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements. 
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Page 8

 
TANNERS WINES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TANNERS WINES LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





John Fletcher BA(Hons) FCA (Senior statutory auditor)
  
for and on behalf of
WR Partners
 
Chartered Accountants
Statutory Auditors
  
Belmont House
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

 
Date: 
29 January 2025
Page 9

 
TANNERS WINES LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
Note
£
£

  

Turnover
 4 
24,937,733
24,123,374

Cost of sales
  
(17,407,341)
(16,974,232)

Gross profit
  
7,530,392
7,149,142

Distribution costs
  
(507,357)
(549,338)

Administrative expenses
  
(6,225,885)
(6,164,565)

Other operating income
 5 
35,052
29,870

Operating profit
 6 
832,202
465,109

Investment income
  
-
13,690

Interest receivable and similar income
 10 
2,936
624

Interest payable and similar expenses
 11 
(54,322)
(6,936)

Other finance income
  
25,907
(45,579)

Profit before tax
  
806,723
426,908

Tax on profit
 12 
(234,086)
(76,153)

Profit for the financial year
  
572,637
350,755

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 14 to 32 form part of these financial statements.

Page 10

 
TANNERS WINES LIMITED
REGISTERED NUMBER: 01072469

BALANCE SHEET
AS AT 31 MAY 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 14 
274,666
11,582

Tangible assets
 15 
383,285
421,041

Investments
 16 
20,000
20,000

  
677,951
452,623

Current assets
  

Stocks
 17 
4,434,027
4,472,438

Debtors: amounts falling due within one year
 18 
5,509,289
4,526,843

Cash at bank and in hand
 19 
159,119
317,891

  
10,102,435
9,317,172

Creditors: amounts falling due within one year
 20 
(5,190,862)
(4,846,270)

Net current assets
  
 
 
4,911,573
 
 
4,470,902

Total assets less current liabilities
  
5,589,524
4,923,525

Creditors: amounts falling due after more than one year
 21 
(114,150)
(114,150)

Provisions for liabilities
  

Deferred tax
 22 
(139,072)
(45,710)

  
 
 
(139,072)
 
 
(45,710)

Net assets
  
5,336,302
4,763,665

Page 11

 
TANNERS WINES LIMITED
REGISTERED NUMBER: 01072469
    
BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2024

2024
2023
Note
£
£

Capital and reserves
  

Called up share capital 
 23 
100
100

Profit and loss account
  
5,336,202
4,763,565

  
5,336,302
4,763,665


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
J J Tanner
Director

Date: 29 January 2025

The notes on pages 14 to 32 form part of these financial statements.

Page 12

 
TANNERS WINES LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 June 2022
100
4,474,728
4,474,828


Comprehensive income for the year

Profit for the year
-
350,755
350,755
Total comprehensive income for the year
-
350,755
350,755

Dividends: Equity capital
-
(61,918)
(61,918)



At 1 June 2023
100
4,763,565
4,763,665


Comprehensive income for the year

Profit for the year
-
572,637
572,637
Total comprehensive income for the year
-
572,637
572,637


At 31 May 2024
100
5,336,202
5,336,302


The notes on pages 14 to 32 form part of these financial statements.

Page 13

 
TANNERS WINES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

1.


General information

Tanners Wines Ltd, company registration number 01072469, is a private company limited by shares, incorporated and domiciled in England, with its registered office and principal place of business at 26 Wyle Cop, Shrewsbury, Shropshire, SY1 1XD.
The principal activity of the Company for this period remains the wholesaling and retailing of wines, spirits, beers and mineral waters in the United Kingdom.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Tanners Wines (Holdings) Limited as at 31 May 2024 and these financial statements may be obtained from Companies House or its registered office, which is located at 26 Wyle Cop, Shrewsbury, SY1 1XD.

 
2.3

Going concern

After reviewing budgets and forecasts the directors are confident that the Company can continue trading for at least the next 12 months and that therefore the going concern basis is appropriate.

Page 14

 
TANNERS WINES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue in respect of En Primeur sales is recognised when invoiced and the amount is payable by the customer. The cost of the goods to be delivered is included in cost of sales and creditors. Payment has usually been made to the supplier before the delivery of the goods. The commercial risk of the goods passes from the company to the customer once ordered and therefore the directors believe it appropriate to recognise En Primeur revenue when invoiced, rather than on shipping of the goods to the customer. 

 
2.6

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Page 15

 
TANNERS WINES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 16

 
TANNERS WINES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.12

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Software
-
3 to 5 years straight line

Subsequent capitalised additions to the website are amortised to the same end date as the original investment. 

Page 17

 
TANNERS WINES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

Motor vehicles
-
3 to 7 years
Fixtures and fittings
-
5 to 20 years
Assets under construction
-
not depreciated

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.15

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.16

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 18

 
TANNERS WINES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.18

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.19

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.20

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Page 19

 
TANNERS WINES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)


2.20
Financial instruments (continued)

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Page 20

 
TANNERS WINES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)


2.20
Financial instruments (continued)

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

 
2.21

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Significant accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that the potential of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. 
a) Stock provision
At each reporting date, the Company assesses whether stocks are impaired or if an impairment loss recognised in prior periods has reversed. A review is undertaken with the Buying Director and members of the sales team to establish slow moving lines or where there is a an indication of impairment. 
b) Bad debt provision
The company undertakes monthly reviews of all outstanding debtor balances and employs a full-time credit controller to monitor all debtor balances. A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of contract. 
Significant areas of judgement
a) Recognition of En Primeur revenue
Revenue in respect of En Primeur sales is recognised when invoiced and the amount is payable by the customer. The cost of the goods to be delivered is included in cost of sales and creditors. Payment has usually been made to the supplier before the delivery of the goods. The commercial risk of the goods passes from the company to the customer once ordered and therefore the directors believe it appropriate to recognise En Primeur revenue when invoiced, rather than on shipping of the goods to the customer. 

Page 21

 
TANNERS WINES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

4.


Turnover

The turnover and profit before tax are attributable to the one principal activity of the Company.

All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Other operating income
5,625
13,277

Rent receivable
14,756
13,602

Advertising space income
14,671
2,991

35,052
29,870



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Fair value losses / (gains) on foreign exchange contracts
(25,907)
45,579

Operating lease payments: Land and buildings
124,560
115,704

Operating lease payments: Vehicle leasing costs
58,042
52,769

(Profit) on disposal of fixed assets
(21,453)
(14,793)


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
23,150
22,250

Page 22

 
TANNERS WINES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
2,921,731
2,677,006

Social security costs
272,169
251,591

Other pension costs
74,403
74,718

3,268,303
3,003,315


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Distribution
30
29



Administration
83
81

113
110


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
75,095
66,450

Company contributions to defined contribution pension schemes
4,513
4,508

79,608
70,958


During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.

The remaining directors' remuneration, totalling £659,348 (2023: £648,648) is paid by Tanners (Shrewsbury) Limited, the immediate parent company, where the directors are also accruing benefits in relation to defined contribution pension schemes.

Page 23

 
TANNERS WINES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

10.


Interest receivable

2024
2023
£
£


Other interest receivable
2,936
624

2,936
624


11.


Interest payable and similar expenses

2024
2023
£
£


Finance leases and hire purchase contracts
519
1,391

Other interest payable
53,803
5,545

54,322
6,936


12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
140,724
64,832


140,724
64,832


Total current tax
140,724
64,832

Deferred tax


Origination and reversal of timing differences
93,362
16,931

Effect of change in tax rate
-
(5,610)

Total deferred tax
93,362
11,321


Taxation on profit on ordinary activities
234,086
76,153
Page 24

 
TANNERS WINES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 20%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
806,723
426,908


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 20%)
201,681
85,382

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,591
1,956

Capital allowances for year in excess of depreciation
35,177
(10,964)

Book profit on chargeable assets
(5,363)
(221)

Total tax charge for the year
234,086
76,153


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Dividends

2024
2023
£
£


On ordinary share capital
-
61,918

-
61,918

Page 25

 
TANNERS WINES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

14.


Intangible assets




Computer software

£



Cost


At 1 June 2023
465,364


Additions
216,082


Transfers between classes
55,628


Disposals
(97,652)



At 31 May 2024

639,422



Amortisation


At 1 June 2023
453,782


Charge for the year on owned assets
8,626


On disposals
(97,652)



At 31 May 2024

364,756



Net book value



At 31 May 2024
274,666



At 31 May 2023
11,582



Page 26

 
TANNERS WINES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

15.


Tangible fixed assets





Motor vehicles
Fixtures and fittings
Assets under construction
Total

£
£
£
£



Cost or valuation


At 1 June 2023
797,056
1,146,030
55,628
1,998,714


Additions
106,422
62,548
-
168,970


Disposals
(40,605)
-
-
(40,605)


Transfers between classes
-
-
(55,628)
(55,628)



At 31 May 2024

862,873
1,208,578
-
2,071,451



Depreciation


At 1 June 2023
566,168
1,011,505
-
1,577,673


Charge for the year on owned assets
51,409
69,085
-
120,494


Charge for the year on financed assets
30,604
-
-
30,604


Disposals
(40,605)
-
-
(40,605)



At 31 May 2024

607,576
1,080,590
-
1,688,166



Net book value



At 31 May 2024
255,297
127,988
-
383,285



At 31 May 2023
230,888
134,525
55,628
421,041

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Motor vehicles
-
65,817

-
65,817

Page 27

 
TANNERS WINES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

16.


Fixed asset investments





Unlisted investments

£



Cost or valuation


At 1 June 2023
20,000



At 31 May 2024
20,000





17.


Stocks

2024
2023
£
£

Finished goods and goods for resale
4,434,027
4,472,438

4,434,027
4,472,438


An impairment reversal of £6,204 (2023 - charge of £4,513) was recognised in cost of sales against stock during the year. 


18.


Debtors

2024
2023
£
£


Trade debtors
2,296,844
2,020,298

Amounts owed from group undertakings
1,970,902
1,462,882

Other debtors
1,020,395
942,092

Prepayments and accrued income
221,148
101,571

5,509,289
4,526,843


Advance payments to suppliers are disclosed within other debtors. 

Page 28

 
TANNERS WINES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

19.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
159,119
317,891

159,119
317,891



20.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
3,538,758
3,385,829

Amounts owed to group undertakings
10,618
62,051

Corporation tax
140,724
64,832

Other taxation and social security
649,277
541,940

Obligations under finance lease and hire purchase contracts
-
14,769

Other creditors
159,439
165,580

Accruals and deferred income
692,046
611,269

5,190,862
4,846,270


Obligations under finance lease and hire purchase contracts are secured against the assets to which they relate.


21.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Amounts owed to group undertakings
114,150
114,150

114,150
114,150


Page 29

 
TANNERS WINES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

22.


Deferred taxation




2024


£






At beginning of year
(45,710)


Charged to profit or loss
(93,362)



At end of year
(139,072)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
139,072
45,710

139,072
45,710


23.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100 (2023 - 100) Ordinary shares of £1.00 each
100
100



24.


Contingent liabilities

At the year end the Company had entered into a number of forward contracts to purchase Euros at protected rates of exchange.  Gains and losses on these forward contracts have been recognised in the profit and loss account and for the Company result in a creditor of £1,729 (2023: £27,636) disclosed as a current liability.
The gain on these foreign exchange contracts of £25,907 (2023: loss of £45,579) has been disclosed through the profit and loss account for this period.

Page 30

 
TANNERS WINES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024


25.


Pension commitments

The Company operates a defined contribution pension scheme and has in place a pension auto-enrolment scheme for all eligible staff, in line with regulations.  The pension cost charge for the period represents contributions payable by the company to the schemes and amounted to £74,403 (2023: £74,718).
There were no outstanding or prepaid contributions at either the beginning or end of the financial year.


26.


Commitments under operating leases

At 31 May 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£

Land & Buildings


Not later than 1 year
117,050
105,414

Later than 1 year and not later than 5 years
318,182
101,645

Later than 5 years
219,281
-

654,513
207,059

2024
2023

£
£

Other


Not later than 1 year
64,873
4,450

Later than 1 year and not later than 5 years
68,602
139,908

133,475
144,358


27.


Related party transactions

J J Tanner (Chairman of the Company and parent company) is also a Director of Merchant Vintners Company Limited.  Merchant Vintners Company Limited is a wine buying group consisting of independent wine merchants.  Tanners (Shrewsbury) Limited holds a 1/20th stake in Merchant Vintners Company Limited (all members have an equal share).  Tanners Wines Limited is a wholly owned subsidiary of Tanners (Shrewsbury) Limited, and made purchases on standard commercial terms from Merchant Vintners Company Limited during the year amounting to £691,042 (2023: £677,676) and at 31 May 2024 the balance owed to Merchant Vintners Company Limited was £10,685 (2023: £47,025). 

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TANNERS WINES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

28.


Controlling party

The Company is wholly owned by Tanners (Shrewsbury) Limited, a company registered in England and Wales. The ultimate parent company is Tanners Wines (Holdings) Limited. The Company is included within the consolidated financial statements of the group headed by Tanners Wines (Holdings) Limited are available from companies house or its registered office, which is located at 26 Wyle Cop, Shrewsbury. SY1 1XD. 
The Company's ultimate controlling party is J J Tanner by virtue of his controlling interest in the company's ultimate parent undertaking.   


29.


Financial risk management

The Company has exposure to three main areas of risk - foreign exchange currency exposure, liquidity risk and customer credit exposure. To a lesser extent the Company is exposed to interest rate risk.
Foreign exchange transactional currency exposure
The Company is exposed to currency exchange rate risk due to a significant proportion of its trade payables being denominated in non-sterling currencies. The net exposure to each currency is monitored and managed by the use of forward foreign exchange contracts with bank cash and overdraft accounts available in non-sterling currencies as part of the company's bank facilities. The forward foreign exchange contracts all mature within twelve months and are taken out to cover known or highly likely exposures to foreign currency payments.
Liquidity risk
The objective of the Company in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The Company expects to meet its financial obligations through operating cash flows and the use of the bank overdraft facility. Cash flow forecasts, including currency forecasts are reviewed on a regular basis to monitor the level of headroom to the total facility.
Customer credit exposure
The Company may offer credit terms to its customers which allow payment of the debt after delivery of the goods or services. The Company is at risk to the extent that a customer may be unable to pay the debt on the specified due date. The risk is mitigated by strong on-going customer relationships, regular monitoring of any delayed payments and use of external, credit reference checking agencies.
Interest rate risk
The Company borrows from its bankers using overdrafts and monitors the expected future direction of interest rates. Given the low level of interest rates over the past few years, the Company has not entered into interest rate swaps but would consider this if management believe it is appropriate.

 
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