Company Registration No. 06054450 (England and Wales)
WYE VALLEY BREWERY HOLDINGS LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
WYE VALLEY BREWERY HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr P W Amor
Mr V P Amor
Secretary
Ms M Pizii
Company number
06054450
Registered office
The Brewery
Stoke Lacy
Herefordshire
United Kingdom
HR7 4HG
Auditor
Ormerod Rutter Limited
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
WYE VALLEY BREWERY HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 33
WYE VALLEY BREWERY HOLDINGS 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 the business

Wye Valley Brewery Holdings group enjoyed its busiest ever year of trading in the period May 2023 - April 2024. Turnover reached a new high of £19.3 million, up from £17.5 million in the previous year. Profits before taxation were £2.36 million, up from £2.28 million in the previous accounting period.

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 HOLDINGS 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 and group under the year of review was that of a brewery, public house and management of freehold licenced premises.

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 £243,000. The directors do not recommend payment of a further dividend.

Financial instruments

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

 

The Group 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 Group to a number of financial risks which are described in more detail below.

Liquidity risk

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

Interest rate risk

Interest rates experienced a period of volatility between 2022 and 2024. Management continue to monitor the fluctuations in interest rates to ensure any risk exposure to the Group is mitigated.

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. 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 group's strong performance to continue.

Auditor

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

WYE VALLEY BREWERY HOLDINGS 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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and 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 auditor of the company 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 auditor of the company is aware of that information.

Going concern

The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future, therefore they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Creditor payment policy

Terms and conditions are agreed with suppliers in advance. Payment is then made in accordance with the agreement, providing the supplier has met the terms and conditions.

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

We have audited the financial statements of Wye Valley Brewery Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 group and parent 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 group's and parent 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 HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WYE VALLEY BREWERY HOLDINGS LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of Wye Valley Brewery Holdings Limited, we identified the principle risks of non-compliance with laws and regulations related to the UK tax legislation, health and safety regulation, landlord and tenant regulations, anti-bribery, corruption and fraud, anti-money laundering, and we considered the extent to which non-compliance might have had a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of financial statements, such as the Companies Act 2006.

We evaluated the directors' and management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principle risks were related to posted manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to loss reserves, and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

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

Our audit procedures in relation to fraud included but were not limited to:

 

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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.

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
For and on behalf of
31 January 2025
Ormerod Rutter Limited
Chartered Accountants
Statutory Auditor
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
WYE VALLEY BREWERY HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
19,302,457
17,544,926
Cost of sales
(12,811,048)
(11,552,338)
Gross profit
6,491,409
5,992,588
Administrative expenses
(4,386,496)
(3,886,655)
Other operating income
195,820
163,881
Operating profit
4
2,300,733
2,269,814
Interest receivable and similar income
8
60,332
12,349
Interest payable and similar expenses
9
(701)
(939)
Profit before taxation
2,360,364
2,281,224
Tax on profit
10
(307,512)
(696,723)
Profit for the financial year
26
2,052,852
1,584,501
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

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

WYE VALLEY BREWERY HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
-
0
1
Tangible assets
13
8,560,685
8,752,016
Investments
14
1,250
1,250
8,561,935
8,753,267
Current assets
Stocks
17
216,286
154,057
Debtors
18
2,110,074
2,293,657
Cash at bank and in hand
6,476,223
4,373,229
8,802,583
6,820,943
Creditors: amounts falling due within one year
19
(2,467,405)
(2,335,901)
Net current assets
6,335,178
4,485,042
Total assets less current liabilities
14,897,113
13,238,309
Creditors: amounts falling due after more than one year
20
(63,064)
(90,779)
Provisions for liabilities
Deferred tax liability
22
842,643
965,976
(842,643)
(965,976)
Net assets
13,991,406
12,181,554
Capital and reserves
Called up share capital
25
96,202
96,202
Profit and loss reserves
26
13,895,204
12,085,352
Total equity
13,991,406
12,181,554

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

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:
31 January 2025
Mr V P Amor
Director
Company registration number 06054450 (England and Wales)
WYE VALLEY BREWERY HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
2,949,056
2,968,123
Investments
14
97,103
97,103
3,046,159
3,065,226
Current assets
Debtors
18
1,355,740
2,765,979
Cash at bank and in hand
2,424,635
924,287
3,780,375
3,690,266
Creditors: amounts falling due within one year
19
(220,475)
(216,002)
Net current assets
3,559,900
3,474,264
Net assets
6,606,059
6,539,490
Capital and reserves
Called up share capital
25
96,202
96,202
Profit and loss reserves
26
6,509,857
6,443,288
Total equity
6,606,059
6,539,490

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £309,569 (2023 - £1,389,366 profit).

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:
31 January 2025
Mr V P Amor
Director
Company registration number 06054450 (England and Wales)
WYE VALLEY BREWERY HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
96,202
10,588,851
10,685,053
Year ended 30 April 2023:
Profit and total comprehensive income
-
1,584,501
1,584,501
Dividends
11
-
(88,000)
(88,000)
Balance at 30 April 2023
96,202
12,085,352
12,181,554
Year ended 30 April 2024:
Profit and total comprehensive income
-
2,052,852
2,052,852
Dividends
11
-
(243,000)
(243,000)
Balance at 30 April 2024
96,202
13,895,204
13,991,406
WYE VALLEY BREWERY HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
96,202
5,141,922
5,238,124
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
1,389,366
1,389,366
Dividends
11
-
(88,000)
(88,000)
Balance at 30 April 2023
96,202
6,443,288
6,539,490
Year ended 30 April 2024:
Profit and total comprehensive income
-
309,569
309,569
Dividends
11
-
(243,000)
(243,000)
Balance at 30 April 2024
96,202
6,509,857
6,606,059
WYE VALLEY BREWERY HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
3,195,079
2,949,473
Interest paid
(701)
(939)
Income taxes paid
(351,739)
(421,761)
Net cash inflow from operating activities
2,842,639
2,526,773
Investing activities
Purchase of tangible fixed assets
(567,015)
(3,818,268)
Proceeds from disposal of tangible fixed assets
7,250
117,901
Purchase of subsidiaries, cash acquired
-
120,116
Repayment of loans
10,823
(18,523)
Interest received
60,332
12,349
Net cash used in investing activities
(488,610)
(3,586,425)
Financing activities
Payment of finance leases obligations
(8,035)
(8,035)
Dividends paid to equity shareholders
(243,000)
(88,000)
Net cash used in financing activities
(251,035)
(96,035)
Net increase/(decrease) in cash and cash equivalents
2,102,994
(1,155,687)
Cash and cash equivalents at beginning of year
4,373,229
5,528,916
Cash and cash equivalents at end of year
6,476,223
4,373,229
WYE VALLEY BREWERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
1
Accounting policies
Company information

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

 

The group consists of Wye Valley Brewery Holdings Limited and all of its subsidiaries.

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.

The 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 for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

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

The consolidated financial statements incorporate those of Wye Valley Brewery Holdings Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 30 April 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rental income received is recognised in the profit or loss account straight line over the term of the lease.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated impairment losses.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

WYE VALLEY BREWERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
1.6
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:

Freehold land and buildings - production and administration
100 years straight line
Freehold land and buildings - public houses
Not depreciated
Property improvements
The shorter of the useful economic life and the remaining lease term or 5% straight line
Plant and machinery
5 to 15 years straight line
Fixtures and fittings
4 to 20 years straight line or 20% reducing balance
Leasehold property
Not depreciated
Motor vehicles
4 to 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 recognised in the profit and loss account.

 

The directors consider that freehold public houses are maintained in such a state of repair that their residual value is at least equal to their net book value. As a result, the corresponding depreciation would not be material and therefore is not charged to the profit and loss account.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. 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 group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

WYE VALLEY BREWERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -

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

1.8
Impairment of fixed assets

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

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
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.

1.10
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.

WYE VALLEY BREWERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
1.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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 group 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 group after deducting all of its liabilities.

WYE VALLEY BREWERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -
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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

1.13
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.

WYE VALLEY BREWERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
1.14
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 group’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 if, and only if, there is 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.

1.15
Employee benefits

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

 

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

 

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

1.16
Retirement benefits

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

WYE VALLEY BREWERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
1.17
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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.18
Government grants

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

 

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

2
Judgements and key sources of estimation uncertainty

In the application of the group’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 they reversal of the underlying timing differences can be deducted.

WYE VALLEY BREWERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
Sale of goods
19,302,457
17,544,926
2024
2023
£
£
Other significant revenue
Interest income
60,332
12,349
Grants received
19,680
19,680
Feed-in-tariff income
24,412
24,818
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
19,297,319
17,539,242
Rest of the World
5,138
5,684
19,302,457
17,544,926

Government grant income recognised in the year comprises:

 

4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(19,680)
(19,680)
Depreciation of owned tangible fixed assets
743,656
560,703
Loss/(profit) on disposal of tangible fixed assets
7,440
(77,367)
Amortisation of intangible assets
19,801
(52,339)
Release of negative goodwill
19,800
(52,339)
Operating lease charges
163,760
102,439
WYE VALLEY BREWERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
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 group and company
4,293
3,460
Audit of the financial statements of the company's subsidiaries
15,415
12,633
19,708
16,093
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
2
2
2
2
Production, Bottling and Distribution
52
49
-
-
Sales, Marketing, Admin and General
20
21
-
-
Pub Retail Sales
28
25
-
-
Total
102
97
2
2

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,926,739
2,608,065
-
0
-
0
Social security costs
269,152
239,568
-
-
Pension costs
252,728
214,738
40,000
28,000
3,448,619
3,062,371
40,000
28,000

Pension costs relate to amounts payable under defined contribution pension schemes, Amounts owed at the year end amounted to £16,527 (2023 - £14,570).

WYE VALLEY BREWERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
11,527
11,611
Company pension contributions to defined contribution schemes
40,000
28,000
51,527
39,611

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
22,344
6,531
Other interest income
37,988
5,818
Total income
60,332
12,349
9
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
701
772
Other interest
-
167
Total finance costs
701
939
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
427,324
21,036
Adjustments in respect of prior periods
3,580
-
0
Total current tax
430,904
21,036
Deferred tax
Origination and reversal of timing differences
(123,392)
675,687
Total tax charge
307,512
696,723

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%.

WYE VALLEY BREWERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
10
Taxation
(Continued)
- 24 -

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
2,360,364
2,281,224
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
590,091
456,245
Tax effect of expenses that are not deductible in determining taxable profit
15,594
107,610
Tax effect of income not taxable in determining taxable profit
(9,440)
(20,573)
Tax effect of utilisation of tax losses not previously recognised
-
0
1,164
Unutilised tax losses carried forward
(201,681)
136,094
Adjustments in respect of prior years
3,580
-
0
Group relief
-
0
31,761
Permanent capital allowances in excess of depreciation
(98,402)
-
0
Depreciation on assets not qualifying for tax allowances
7,770
-
0
Depreciation in excess of capital allowances
-
0
(691,265)
Taxable timing differences
-
0
675,687
Taxation charge
307,512
696,723
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
243,000
88,000
WYE VALLEY BREWERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 25 -
12
Intangible fixed assets
Group
Goodwill
Negative goodwill
Total
£
£
£
Cost
At 1 May 2023
1
(52,339)
(52,338)
Disposals
-
0
19,800
19,800
At 30 April 2024
1
(32,539)
(32,538)
Amortisation and impairment
At 1 May 2023
-
0
(52,339)
(52,339)
Amortisation charged for the year
1
(19,800)
(19,801)
At 30 April 2024
1
32,539
32,538
Carrying amount
At 30 April 2024
-
0
-
0
-
0
At 30 April 2023
1
-
0
1
WYE VALLEY BREWERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 26 -
13
Tangible fixed assets
Group
Freehold land and buildings - production and administration
Property improvements
Plant and machinery
Fixtures and fittings
Motor vehicles
Casks
Total
£
£
£
£
£
£
£
Cost
At 1 May 2023
4,322,077
1,295,645
6,122,315
143,639
630,776
1,033,307
13,547,759
Additions
12,469
-
0
332,707
2,512
141,553
77,774
567,015
Disposals
-
0
-
0
(8,500)
-
0
(42,219)
-
0
(50,719)
At 30 April 2024
4,334,546
1,295,645
6,446,522
146,151
730,110
1,111,081
14,064,055
Depreciation and impairment
At 1 May 2023
174,632
754,230
2,621,845
104,805
415,017
725,214
4,795,743
Depreciation charged in the year
31,536
84,865
473,953
13,263
83,514
56,525
743,656
Eliminated in respect of disposals
-
0
-
0
(6,583)
-
0
(29,446)
-
0
(36,029)
At 30 April 2024
206,168
839,095
3,089,215
118,068
469,085
781,739
5,503,370
Carrying amount
At 30 April 2024
4,128,378
456,550
3,357,307
28,083
261,025
329,342
8,560,685
At 30 April 2023
4,147,445
541,415
3,500,470
38,834
215,759
308,093
8,752,016
WYE VALLEY BREWERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 27 -
Company
Freehold land and buildings - production and administration
£
Cost
At 1 May 2023
3,142,755
Additions
12,469
At 30 April 2024
3,155,224
Depreciation and impairment
At 1 May 2023
174,632
Depreciation charged in the year
31,536
At 30 April 2024
206,168
Carrying amount
At 30 April 2024
2,949,056
At 30 April 2023
2,968,123

Freehold land and buildings with a carrying amount of £1,160,837 (2023 - £1,148,837) have been pledged to secure borrowings of the group. The group is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
97,103
97,103
Unlisted investments
1,250
1,250
-
0
-
0
1,250
1,250
97,103
97,103
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 May 2023 and 30 April 2024
1,250
Carrying amount
At 30 April 2024
1,250
At 30 April 2023
1,250
WYE VALLEY BREWERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
14
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2023 and 30 April 2024
97,103
Carrying amount
At 30 April 2024
97,103
At 30 April 2023
97,103
15
Subsidiaries

Details of the company's subsidiaries at 30 April 2024 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Erasmus Inns Limited
1
Ordinary A & Ordinary B shares
100.00
-
Wye Valley Brewery Limited
1
Ordinary A & Ordinary B shares
100.00
-
The Barrels Hereford Limited
2
Ordinary A & Ordinary B shares
-
100.00

Registered office addresses (all UK unless otherwise indicated):

1
The Brewery, Stoke Lacy, Herefordshire, HR7 4HG
2
The Barrels, 69 St. Owens St, Hereford, Herefordshire, HR1 2JQ
16
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,875,575
2,040,063
n/a
n/a
Equity instruments measured at cost less impairment
1,250
1,250
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
1,798,975
1,793,294
n/a
n/a

As permitted by the reduced disclosure framework within FRS 102, the company has taken advantage of the exemption from disclosing the carrying amount of certain classes of financial instruments, denoted by 'n/a' above.

WYE VALLEY BREWERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 29 -
17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
216,286
154,057
-
0
-
0
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,847,535
2,008,911
-
0
-
0
Corporation tax recoverable
115,357
155,000
-
0
-
0
Amounts owed by group undertakings
-
-
1,350,000
2,756,340
Other debtors
26,731
35,662
620
4,560
Prepayments and accrued income
119,019
92,711
5,120
5,079
2,108,642
2,292,284
1,355,740
2,765,979
Deferred tax asset (note 22)
1,432
1,373
-
0
-
0
2,110,074
2,293,657
1,355,740
2,765,979
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
21
8,035
8,035
-
0
-
0
Trade creditors
543,003
619,069
3,046
5,283
Corporation tax payable
69,125
29,603
9,196
-
0
Other taxation and social security
588,330
510,064
-
-
Government grants
23
19,680
19,680
-
0
-
0
Other creditors
873,835
836,007
205,233
208,319
Accruals and deferred income
365,397
313,443
3,000
2,400
2,467,405
2,335,901
220,475
216,002
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
21
8,705
16,740
-
0
-
0
Government grants
23
54,359
74,039
-
0
-
0
63,064
90,779
-
-
WYE VALLEY BREWERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 30 -
21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
8,035
8,035
-
0
-
0
In two to five years
8,705
16,740
-
0
-
0
16,740
24,775
-
-

Finance lease payments represent rentals payable by the company or group 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 lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Hire purchase contracts are secured against the assets to which they relate.

22
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
842,643
965,976
1,432
1,373
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 May 2023
964,603
-
Credit to profit or loss
(123,392)
-
Liability at 30 April 2024
841,211
-
WYE VALLEY BREWERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 31 -
23
Government grants
Group
Company
2024
2023
2024
2023
£
£
£
£
Arising from government grants
74,039
93,719
-
-

Deferred income is included in the financial statements as follows:

Current liabilities
19,680
19,680
-
0
-
0
Non-current liabilities
54,359
74,039
-
0
-
0
74,039
93,719
-
-

 

24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
252,728
214,738

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

The company's commitments for defined contribution pension liabilities at the year end totalled £16,740 (2023 - £14,570).

25
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
69,066
69,066
69,066
69,066
Ordinary B of £1 each
100
100
100
100
Ordinary C of £1 each
100
100
100
100
Ordinary D of £1 each
26,936
26,936
26,936
26,936
96,202
96,202
96,202
96,202

All shares rank pari passu.

26
Profit and loss reserves

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

WYE VALLEY BREWERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 32 -
27
Financial commitments, guarantees and contingent liabilities

The company's bank holds a debenture secured on the assets of the company. The company's liability in respect of the debenture as at 30 April 2024 was £Nil (2023: £Nil).

28
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
44,457
64,440
-
-
Between two and five years
71,290
67,269
-
-
115,747
131,709
-
-
Lessor

The operating leases represent leases of property to group companies and third parties.

 

The leases with group companies are negotiated over terms of 25 years and rentals are reviewed every 3 years.

 

The leases with third parties are negotiated over terms ranging from 1 to 10 years, Management view these outlets as key promotional venues and a strategic route to market for the products of group.

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

 

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
38,483
44,775
60,000
60,000
Between two and five years
-
12,583
157,000
240,000
In over five years
-
-
55,000
212,500
38,483
57,358
272,000
512,500
WYE VALLEY BREWERY HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 33 -
29
Related party transactions

Cervisia Limited

A company in which the director, Mr P Amor, has an interest

 

During the year, dividends paid to this company totalled £Nil (2022 - £Nil).

At the year end, amounts due to the related party totalled £203,378 (2023 - £203,378).

30
Controlling party

There is no ultimate controlling party.

31
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
2,052,852
1,584,501
Adjustments for:
Taxation charged
307,512
696,723
Finance costs
701
939
Investment income
(60,332)
(12,349)
Loss/(gain) on disposal of tangible fixed assets
7,440
(77,367)
Negative goodwill released to profit
19,801
(52,339)
Depreciation and impairment of tangible fixed assets
743,656
560,703
Movements in working capital:
(Increase)/decrease in stocks
(62,229)
7,642
Decrease in debtors
133,176
327,303
Increase/(decrease) in creditors
72,182
(66,603)
Decrease in deferred income
(19,680)
(19,680)
Cash generated from operations
3,195,079
2,949,473
32
Analysis of changes in net funds - group
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
4,373,229
2,102,994
6,476,223
Obligations under finance leases
(24,775)
8,035
(16,740)
4,348,454
2,111,029
6,459,483
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