Company registration number SC449930 (Scotland)
BEER52 LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
BEER52 LIMITED
COMPANY INFORMATION
Directors
F Doherty
T Martin
J Taylor
D Gammie
Company number
SC449930
Registered office
8 Melville Crescent
Edinburgh
EH3 7JA
Auditor
MHA
Chartered Accountants
6 St Colme Street
Edinburgh
EH3 6AD
BEER52 LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
BEER52 LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Principal activities and business review
The Company operates from its UK headquarters, selling online direct to consumers. Beer52 operates two clubs:
the UK’s largest craft beer subscription club, Beer52 showcasing the world’s best craft beer in a carefully curated themed monthly box; and
Wine52 the UK’s fastest growing wine subscription club, showcasing the world's best independent wine producers.
In addition, via its subsidiary Craft Beer Holdings Limited, the Company bought certain trade and assets of EeBria during the year, marking its move into the B2B space. EeBria is a technology enabled marketplace platform bringing together independent producers and the on and off-trade.
The directors are satisfied with the performance of the Company during the period, delivering revenue of £33,790,736 (4.5% down on the prior financial year) and a profit before tax of £3,023,251, materially up on prior year (loss: £976,292). The business continues to focus on underlying profitability through:
placing the customer at the heart of everything we do
maintaining margins
making data central to our decision making, especially around marketing spend
being disciplined on costs to ensure the business remains lean
Principal risks and uncertainties
Managing the company’s global supply chain and mitigating inflationary pressures across the cost base are the principal risks facing the business. Our flexible supply base alongside our product sourcing skills and a data-driven approach help us counteract these pressures.
Key performance indicators
The Company has continued to invest in ensuring it has a scalable platform. In particular we have further extended our significant data capabilities to ensure we can track, monitor and optimise our clubs at every stage.
Gross profit margin improved by 8.59% to 32.16% in the year, reflecting the benefit of several initiatives focused on tight cost control and disciplined sourcing of products and services.
Both clubs maintain market leading customer ratings, with both Beer52 and Wine52 enjoying an average user rating of 4.6 out of 5, including more than 67,800 5-star customer reviews.
Future developments
Using a data led approach, Beer52 remains focused on sustainably growing both the beer and wine clubs in the year to come, alongside growing EeBria.
F Doherty
Director
22 November 2024
BEER52 LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
F Doherty
T Martin
J Taylor
D Gammie
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
BEER52 LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
On behalf of the board
F Doherty
Director
22 November 2024
BEER52 LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BEER52 LIMITED
- 4 -
Opinion
We have audited the financial statements of Beer52 Limited (the 'company') for the year ended 30 June 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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.
BEER52 LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BEER52 LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:
Enquiry of management and those charged with governance around actual and potential litigation and claims;
Enquiry of entity staff in compliance functions to identify any instances of non-compliance with laws and regulations;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
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 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.
BEER52 LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BEER52 LIMITED (CONTINUED)
- 6 -
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.
Paul Marshall
Senior Statutory Auditor
For and on behalf of MHA
22 November 2024
Chartered Accountants
Statutory Auditor
6 St Colme Street
Edinburgh
EH3 6AD
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
BEER52 LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
Notes
£
£
Turnover
33,790,736
35,368,396
Cost of sales
(22,924,554)
(27,031,957)
Gross profit
10,866,182
8,336,439
Administrative expenses
(7,963,503)
(9,282,893)
Other operating income
32,762
4,308
Operating profit/(loss)
3
2,935,441
(942,146)
Interest receivable and similar income
6
106,574
4,761
Interest payable and similar expenses
7
(18,764)
(38,907)
Profit/(loss) before taxation
3,023,251
(976,292)
Tax on profit/(loss)
8
(553,716)
67,111
Profit/(loss) for the financial year
2,469,535
(909,181)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BEER52 LIMITED
BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
9
326,459
279,924
Tangible assets
10
331,704
428,724
Investments
11
48,026
706,189
708,648
Current assets
Stocks
13
2,553,042
3,676,472
Debtors
14
1,482,069
1,508,262
Cash at bank and in hand
6,994,205
2,120,388
11,029,316
7,305,122
Creditors: amounts falling due within one year
15
(4,882,344)
(3,593,728)
Net current assets
6,146,972
3,711,394
Total assets less current liabilities
6,853,161
4,420,042
Provisions for liabilities
Deferred tax liability
16
95,195
131,611
(95,195)
(131,611)
Net assets
6,757,966
4,288,431
Capital and reserves
Called up share capital
18
176
176
Share premium account
2,484,122
2,484,122
Profit and loss reserves
4,273,668
1,804,133
Total equity
6,757,966
4,288,431
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 22 November 2024 and are signed on its behalf by:
F Doherty
Director
Company registration number SC449930 (Scotland)
BEER52 LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2022
165
2,484,122
2,713,314
5,197,601
Year ended 30 June 2023:
Loss and total comprehensive income
-
-
(909,181)
(909,181)
Issue of share capital
18
11
-
11
Balance at 30 June 2023
176
2,484,122
1,804,133
4,288,431
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
2,469,535
2,469,535
Balance at 30 June 2024
176
2,484,122
4,273,668
6,757,966
BEER52 LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
5,125,564
2,577,442
Interest paid
(18,764)
(38,907)
Income taxes refunded/(paid)
61,875
(243,263)
Net cash inflow from operating activities
5,168,675
2,295,272
Investing activities
Purchase of intangible assets
(153,039)
(151,195)
Purchase of tangible fixed assets
(6,158)
(11,497)
Purchase of subsidiary
(48,026)
Proceeds from disposal of joint ventures
50
Increase of loans to participators
(194,209)
(1,562)
Interest received
106,574
4,761
Net cash used in investing activities
(294,858)
(159,443)
Financing activities
Issue of shares
11
Repayment of borrowings
(1,540,003)
Net cash used in financing activities
-
(1,539,992)
Net increase in cash and cash equivalents
4,873,817
595,837
Cash and cash equivalents at beginning of year
2,120,388
1,524,551
Cash and cash equivalents at end of year
6,994,205
2,120,388
BEER52 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
1
Accounting policies
Company information
Beer52 Limited is a private company limited by shares incorporated in Scotland. The registered office is 8 Melville Crescent, Edinburgh, EH3 7JA.
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.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for goods net of VAT.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets comprise website development. Such assets are defined as having finite useful lives and the costs are amortised on a straight line basis over their estimated useful lives of 5 years. Intangible assets are stated at cost less amortisation and are reviewed for impairment whenever there is an indication that the carrying value may be impaired.
Amortisation 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:
Website development
20% straight line
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment
15% straight line
Computer equipment
20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
BEER52 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Impairment of fixed assets
The carrying value of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.
1.8
Stocks
Stocks are stated at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items. Cost is determined on a first-in, first-out basis. Net realisable value is based on estimated selling price, less any further costs of realisation.
1.9
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Debtors
Debtors with no stated interest rate or receivable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account.
Creditors
Creditors with no stated interest rate and payable within one year are recorded at transaction price.
All interest bearing loans and borrowing which are basic financial instruments are initially recorded at the present value of cash payable. After initial recognition they are measured at amortised cost.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
BEER52 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The 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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
BEER52 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
7,246
(6,966)
Fees payable to the company's auditor for the audit of the company's financial statements
10,900
10,584
Depreciation of owned tangible fixed assets
103,178
112,253
Amortisation of intangible assets
106,504
88,201
Operating lease charges
125,000
115,000
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration
80
98
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,579,251
2,855,156
Social security costs
189,880
206,749
Pension costs
74,054
68,317
2,843,185
3,130,222
BEER52 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
408,500
388,798
Company pension contributions to defined contribution schemes
18,092
15,842
Compensation for loss of office
30,000
426,592
434,640
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
150,000
135,714
Company pension contributions to defined contribution schemes
15,450
1,321
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
95,699
4,761
Other interest income
10,875
Total income
106,574
4,761
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
38,907
Other finance costs:
Other interest
18,764
18,764
38,907
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
590,132
Adjustments in respect of prior periods
(44,381)
Total current tax
590,132
(44,381)
BEER52 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
8
Taxation
2024
2023
£
£
(Continued)
- 16 -
Deferred tax
Origination and reversal of timing differences
(36,416)
(22,730)
Total tax charge/(credit)
553,716
(67,111)
The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit/(loss) before taxation
3,023,251
(976,292)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
755,813
(200,140)
Tax effect of expenses that are not deductible in determining taxable profit
625
Change in unrecognised deferred tax assets
(206,555)
219,714
Adjustments in respect of prior years
(44,381)
Effect of change in corporation tax rate
(43,680)
Other permanent differences
3,833
1,376
Taxation charge/(credit) for the year
553,716
(67,111)
BEER52 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
9
Intangible fixed assets
Website development
£
Cost
At 1 July 2023
547,527
Additions
153,039
Disposals
(172,755)
At 30 June 2024
527,811
Amortisation and impairment
At 1 July 2023
267,603
Amortisation charged for the year
106,504
Disposals
(172,755)
At 30 June 2024
201,352
Carrying amount
At 30 June 2024
326,459
At 30 June 2023
279,924
10
Tangible fixed assets
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
Cost
At 1 July 2023
476,346
207,001
683,347
Additions
2,491
3,667
6,158
Disposals
837
(67,562)
(66,725)
At 30 June 2024
479,674
143,106
622,780
Depreciation and impairment
At 1 July 2023
122,475
132,148
254,623
Depreciation charged in the year
71,827
31,351
103,178
Eliminated in respect of disposals
837
(67,562)
(66,725)
At 30 June 2024
195,139
95,937
291,076
Carrying amount
At 30 June 2024
284,535
47,169
331,704
At 30 June 2023
353,871
74,853
428,724
BEER52 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
11
Fixed asset investments
2024
2023
£
£
Investments in subsidiaries
12
48,026
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 July 2023
-
Valuation changes
48,026
At 30 June 2024
48,026
Carrying amount
At 30 June 2024
48,026
At 30 June 2023
-
12
Subsidiaries
Details of the company's subsidiaries at 30 June 2024 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Craft Beer Holdings Limited
1
Ordinary
75.02
Registered office addresses (all UK unless otherwise indicated):
1
8 Melville Crescent, Edinburgh, Scotland, EH3 7JA
13
Stocks
2024
2023
£
£
Finished goods and goods for resale
2,553,042
3,676,472
BEER52 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
488,536
385,591
Amounts owed by group undertakings
62,449
Other debtors
721,307
448,714
Prepayments and accrued income
209,777
673,957
1,482,069
1,508,262
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
2,503,019
2,965,875
Corporation tax
652,007
Other taxation and social security
436,645
108,290
Other creditors
304,926
101,562
Accruals and deferred income
985,747
418,001
4,882,344
3,593,728
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
95,195
131,611
2024
Movements in the year:
£
Liability at 1 July 2023
131,611
Credit to profit or loss
(36,416)
Liability at 30 June 2024
95,195
BEER52 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
74,054
68,317
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
11,905
11,905
119
119
A Ordinary shares of 1p each
4,555
4,555
46
46
B Ordinary shares of 0.1p each
11,145
11,145
11
11
27,605
27,605
176
176
Ordinary shares and A Ordinary shares rank pari passu in respect of management involvement, dividends and participating in winding up.
B Ordinary shares are growth shares allowing certain employees to participate in the value of the company once a valuation hurdle is exceeded upon an exit event. B Ordinary shares have no right to management involvement, dividends and participating in winding up.
The company has granted options to certain employees to subscribe for ordinary shares. Options in place are as follows:
Options to allow certain employees to purchase 80 ordinary shares at an exercise price of £290. These options have a 10 year exercise period and expire on 8 October 2028. The options can be exercised upon exit. The options must be exercised within a prescribed period of meeting these conditions.
Options to allow certain employees to purchase 40 ordinary share options at an exercise price of £290. These options have a 10 year exercise period and expire on 19 November 2029. The options can be exercised upon exit. The options must be exercised within a prescribed period of meeting these conditions.
Options to allow certain employees to purchase 180 ordinary share options at an exercise price of £102.56. These options have a 10 year exercise period and expire on 26 January 2033. The options can be exercised upon exit. The options must be exercised within a prescribed period of meeting these conditions.
19
Financial commitments, guarantees and contingent liabilities
During the prior period period, HMRC issued a VAT assessment covering a period of 5 years. This arose from the company's VAT treatment of their main product as a multiple supply. HMRC have contested that it constitutes a singular supply and has resulted in under declaration of output tax. The directors have elected not to disclose the value of the assessment as they believe there is material uncertainty around what potential liability may crystallise given the range of potential outcomes of the tribunal.
The company's legal advisers and VAT specialists have advised that they do not consider that the claim has merit, and they have recommended that it be contested. No provision has been made in these financial statements as management do not consider it likely that HMRC's assessment will result in a probable loss.
BEER52 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
125,000
125,000
Between two and five years
125,000
250,000
250,000
375,000
21
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Directors
118,764
100,000
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Participators
421,834
229,875
22
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Interest charged
Closing balance
£
£
£
Loans to director
2.25
102,625
2,250
104,875
102,625
2,250
104,875
BEER52 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
23
Cash generated from operations
2024
2023
£
£
Profit/(loss) for the year after tax
2,469,535
(909,181)
Adjustments for:
Taxation charged/(credited)
553,716
(67,111)
Finance costs
18,764
38,907
Investment income
(106,574)
(4,761)
Amortisation and impairment of intangible assets
106,504
88,201
Depreciation and impairment of tangible fixed assets
103,178
112,253
Movements in working capital:
Decrease in stocks
1,123,430
3,351,785
Decrease in debtors
220,402
1,097,396
Increase/(decrease) in creditors
636,609
(1,130,047)
Cash generated from operations
5,125,564
2,577,442
24
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
2,120,388
4,873,817
6,994,205
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