Andreas Wine Trading Limited |
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Notes to the Accounts |
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for the year ended 30 June 2024 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland, including Section 1A Small Entities and under the historical cost convention. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. |
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Intangible fixed assets |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost (or deemed cost) less accumulative depreciation and accumulated impairment losses. Costs includes costs which are directly attributable in bringing the asset to its location and condition so that it is capable of operating in the manner intended by management. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, less estimated residual value (which is the expected amount that would currently be obtained from disposal of an asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life), of each asset on a systematic basis over its expected useful life as follows: |
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Freehold Buildings |
over 100 years |
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Plant and machinery |
over 5 years |
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Fixtures, fittings, tools and equipment |
over 6 years |
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Computer equipment |
over 3 years |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Costs, which comprise direct production costs, are based on the method most appropriate to the type of inventory class, but usually on a weighted average basis. Production overheads are allocated to the cost of stock on the basis of the normal level of activity. Cost includes all costs of purchase, freight, irrecoverable taxes and other directly attributable costs which are incurred by the entity in bringing the stock to its present location and condition. Estimated selling price less costs to complete and sell is based on the estimated selling price of the goods less any estimated completion or selling costs likely to be incurred on the sale. When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to estimated selling price less costs to complete and sell and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stock is recognised as a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs. |
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Financial instruments |
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A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at transaction price and measured at amortised cost using the effective interest method, and subsequently measured at cost less impairment. Debtors and creditors that fall due within one year are recorded in the financial statements at transaction price and then subsequently measured at amortised cost. If the effects of the time value of money are immaterial, they are measured at cost (less impairment for trade debtors). Debtors are reviewed for impairment at each reporting date and any impairments are recorded within profit or loss and shown within administrative expenses when there is objective evidence that a debtor is impaired. Objective evidence that a debtor is impaired arises when the customer is unable to settle amounts owing to the company or the customer becomes bankrupt. Debtors do not carry interest and are stated at their nominal value. Trade creditors are not interest-bearing and are stated at their nominal value. Financial assets which are measured at cost or amortised cost are reviewed for objective evidence of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. All equity instruments, regardless of significance, and other financial assets that are individually significant, are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset which exceeds what the carrying amount would have been had the impairment loss not previously been recognised. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. Where these criteria are not met, a provision is not recognised in the accounts but a contingent liability is disclosed if material. Amounts recoverable from third parties are only recognised as assets when the receipt is virtually certain. Provisions are measured at the best estimate of the amount required to settle the obligation at the balance sheet date. The best estimate is the amount which the company would rationally pay to settle the obligation at the balance sheet date. Provisions for liabilities are measured at the present value of the expenditures expected to be required in order to settle the obligation where the effects of the time value of money are material using a pre-tax rate which reflects current market assessments. Increases in the provision at each balance sheet date arising due to the passage of time are recognised in profit or loss as an interest expense. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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2 |
Employees |
2024 |
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2023 |
Number |
Number |
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Average number of persons employed by the company |
7 |
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6 |
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3 |
Intangible fixed assets |
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Registered trademark and Website Development |
£ |
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Cost |
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At 1 July 2023 |
1,867 |
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At 30 June 2024 |
1,867 |
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Amortisation |
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At 1 July 2023 |
1,515 |
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Provided during the year |
20 |
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At 30 June 2024 |
1,535 |
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Net book value |
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At 30 June 2024 |
332 |
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At 30 June 2023 |
352 |
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The registered trademark is being written off in equal annual instalments over its estimated useful economic life of 25 years. The website development costs are being written off over their estimated useful economic life of 6 years |
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4 |
Tangible fixed assets |
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Land and buildings |
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Plant and machinery |
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Total |
£ |
£ |
£ |
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Cost |
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At 1 July 2023 |
963,142 |
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219,039 |
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1,182,181 |
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Additions |
- |
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1,187 |
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1,187 |
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At 30 June 2024 |
963,142 |
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220,226 |
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1,183,368 |
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Depreciation |
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At 1 July 2023 |
71,296 |
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153,612 |
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224,908 |
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Charge for the year |
9,631 |
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11,887 |
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21,518 |
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At 30 June 2024 |
80,927 |
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165,499 |
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246,426 |
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Net book value |
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At 30 June 2024 |
882,215 |
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54,727 |
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936,942 |
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At 30 June 2023 |
891,846 |
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65,427 |
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957,273 |
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5 |
Debtors |
2024 |
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2023 |
£ |
£ |
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Trade debtors |
10,975 |
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24,644 |
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Deferred tax asset |
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90,399 |
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- |
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Other debtors |
3,197 |
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3,700 |
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104,571 |
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28,344 |
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Amounts due after more than one year included above |
1,921 |
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1,845 |
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6 |
Creditors: amounts falling due within one year |
2024 |
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2023 |
£ |
£ |
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Bank loans and overdrafts |
6,655 |
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- |
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Trade creditors |
15,941 |
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11,960 |
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Taxation and social security costs |
12,133 |
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10,685 |
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Other creditors |
268,301 |
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249,339 |
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303,030 |
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271,984 |
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7 |
Creditors: amounts falling due after one year |
2024 |
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2023 |
£ |
£ |
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Bank loans |
43,910 |
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52,036 |
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A bank loan of £2,935 (2023 - £2,819) is unsecured, interest-free and due for repayment by 31 December 2025. A further bank loan of £47,630 (2023 - £49,217) is unsecured and interest is being charged at 2.5%. £6,655 is due for payment within one year. |
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8 |
Related party transactions |
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Amounts are owed to directors of the company as follows: |
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2024 |
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2023 |
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£ |
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£ |
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David Croft |
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104,234 |
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80,793 |
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Andrew Bartholomew |
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26,717 |
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26,717 |
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Giles Brooksbank |
34,217 |
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34,217 |
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David Lebond |
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48,829 |
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41,217 |
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213,997 |
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182,944 |
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Interest is payable on these loans at 7% per annum and they are repayable on demand. They have been classifed in other creditors due within one year in these accounts. |
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Loans amounting to £4,000 (2023 - £30,000) are due to shareholders at the balance sheet date. Interest is payable on these loans at 7%. They have been classified in other creditors due within one year in these accounts. |
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9 |
Controlling party |
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There is no ultimate controlling party. |
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10 |
Other information |
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Andreas Wine Trading Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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c/o Kate Stephens ACA |
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17 Lyons Fold |
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Sale |
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Cheshire |
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M33 6JF |