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REGISTERED NUMBER: 09681748 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 June 2024

for

Elixir Distillers Ltd

Elixir Distillers Ltd (Registered number: 09681748)






Contents of the Financial Statements
for the Year Ended 30 June 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Notes to the Financial Statements 14


Elixir Distillers Ltd

Company Information
for the Year Ended 30 June 2024







DIRECTORS: Sukhinder Singh Sawhney
Rajbir Singh Sawhney





REGISTERED OFFICE: Alchemy House
45 Park Royal Road
Park Royal
London
NW10 7LQ





REGISTERED NUMBER: 09681748 (England and Wales)





AUDITORS: Shah Dodhia & Co
173 Cleveland Street
London
W1T 6QR

Elixir Distillers Ltd (Registered number: 09681748)

Strategic Report
for the Year Ended 30 June 2024

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

REVIEW OF BUSINESS
The principal activities of the company during the year continued to be holding casks of spirits for ageing, the distribution of whiskies bottled under own brands, and the distilling and sale of alcoholic spirits.

Work at the distillery under construction in Islay, Scotland continues and is expected to be completed around October 2025 in the second quarter of financial year 2025.

Results and performance
The company's turnover decreased significantly to £12.9 million (2023: £21.8 million). in addition, administrative expenses increased by £2.0 million. As a result the company made an operating loss of £3.1 million (2023: operating profit £5.8 million).

The reduction in turnover was mainly attributable to:
- A special one-off bottling project in 2023 which had contributed £5.8 million to the turnover.
- Restructure of sales and marketing staff in the latter half of 2024, which affected revenues.

The company's intercompany borrowings also increased substantially as a result of which borrowing costs increased to £6.5 million (2023: £3.8 million).

On 30 June 2024, £50.0 million of the intercompany loan from the parent company was extinguished as a result of capitalisation of this amount.

The intercompany loan due to a subsidiary was also extinguished during the year as the subsidiary carried out a capital reduction and paid a dividend which was set off against the loan.

The company made a loss before tax of £7.0 million (2023: profit before tax of £2.0 million).

BUSINESS ENVIRONMENT AND FUTURE DEVELOPMENTS
Strategy
The directors and certain key employees have been involved in the ageing, blending and bottling of whiskies and certain other fine spirits and marketing these under own brand labels. In view of the expertise that has been built in this area, the company strategy is now to produce spirits through its own distilleries to market under its own label brands.

Key performance indicators
In respect of the blending and bottling of whiskies and fine spirits, the directors consider they have been able to perform well in the sector, the constraint being supply of good spirit product for ageing. It has therefore been difficult to compare its own business against competitors, many of whom have own production facilities. Having acquired its own production facility at Tormore last year, the directors are confident that the new distillery will enhance group performance substantially. This will be further enhanced when the distillery under construction is ready and functional operational.


Elixir Distillers Ltd (Registered number: 09681748)

Strategic Report
for the Year Ended 30 June 2024

PRINCIPAL RISKS AND UNCERTAINTIES
The Companies Act 2006 requires that the strategic report contains a description of the principal risks and uncertainties facing the company. The Board is responsible for the company's system of internal control and risk management, and for reviewing its effectiveness. This section describes some of the risks that the directors consider could materially affect the company's business. Some risks are not yet known to the company and some that it does not currently believe to be material could later turn out to be material. All such risks could materially affect the company's business, revenue, operating profit, earnings, net assets and liquidity and/or capital resources.

Products
The company focus is on production, ageing and bottling of its own products, which are sold through distributors. Losses could be incurred if the products which have been produced, blended or procured are not received well in the market. However, the directors have significant experience in the industry and are able to masterfully blend and gauge demand for their products, as well as offer a range of products to minimise such risks.

Borrowings
The company did not have any external borrowings at the Balance Sheet date. However, following the year end, it has entered into an Inventory finance agreement under which finance totalling £45 million has been sanctioned to facilitate capital expenditure for the new distillery project.

These borrowings are available at a variable rate of interest and require servicing of interest and capital repayments. If the company was not compliant with the facility, the lender could demand the repayment of funds advanced. The directors continue to monitor the requirements of the company for finance and to engage with the lenders so that the company has adequate facilities and liquidity.

The directors also monitor the risks associated with increase in interest rates ans continue to consider whether any hedging would be appropriate.

Foreign currency rates
The company purchases goods in sterling as well as foreign currencies. The effect of currency rates is carefully monitored and reflected in the pricing of the goods.

Technical capability and Information Security
The company is exposed to risks of cyber threats, which may impact on the company's operations and result in reputational damage, as well as non-compliance. The company mitigates these risks by constantly updating disaster recovery plans, implementing multi-factor authentication for access to central information systems, regularly enhancing its network monitoring solutions, core IT infrastructure eco-system and end-to-end protection solutions. The company also reviews and enhances IT policies, including internal data protection policy, social media policy and mobile devices policy as required.

ON BEHALF OF THE BOARD:





Sukhinder Singh Sawhney - Director


20 March 2025

Elixir Distillers Ltd (Registered number: 09681748)

Report of the Directors
for the Year Ended 30 June 2024

The directors present their report with the financial statements of the company for the year ended 30 June 2024.

PRINCIPAL ACTIVITY
The principal activities of the company in the year under review were that of the distribution of whiskies bottled under own brands, the construction of a distillery in Scotland and the distilling and sale of alcoholic spirits.

DIVIDENDS
No dividends were declared or paid in the year (2023: £Nil).

DIRECTORS
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report.

Sukhinder Singh Sawhney
Rajbir Singh Sawhney

POLITICAL DONATIONS AND EXPENDITURE
The company made no political donations or incurred any political expenditure during the year (2023: £Nil).

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Elixir Distillers Ltd (Registered number: 09681748)

Report of the Directors
for the Year Ended 30 June 2024


AUDITORS
The auditors, Shah Dodhia & Co, are deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

ON BEHALF OF THE BOARD:




Sukhinder Singh Sawhney - Director


20 March 2025

Report of the Independent Auditors to the Members of
Elixir Distillers Ltd

Opinion
We have audited the financial statements of Elixir Distillers Ltd (the 'company') for the year ended 30 June 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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 loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Elixir Distillers Ltd


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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.

Report of the Independent Auditors to the Members of
Elixir Distillers Ltd


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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:

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

- we made enquires of the directors' policies and procedures to prevent and detect fraud, as well as, whether they have knowledge of any actual, suspected or alleged fraud.
- we gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates through discussion with directors and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud.
- we designed audit procedures including analytical procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion;
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, UK tax legislation,data protection, anti-money laundering, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards, For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

The company is subject to many laws and regulations where non compliance could have a material effect in the financial statements, e.g. health and safety, employment law, anti-bribery, certain aspects of company legislation recognising the nature of the company's activities and its legal form. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

In addition, as with any audit, there remained a higher risk of non-detecting of fraud, as these may involve collusion, forgery, intentional omission, misrepresentations or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non compliance or fraud and cannot be expected to detect non compliance with all laws and regulations.

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

Report of the Independent Auditors to the Members of
Elixir Distillers Ltd


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 a Report of the Auditors 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.




Satishchandra Baburaj Shah (Senior Statutory Auditor)
for and on behalf of Shah Dodhia & Co
173 Cleveland Street
London
W1T 6QR

24 March 2025

Elixir Distillers Ltd (Registered number: 09681748)

Income Statement
for the Year Ended 30 June 2024

2024 2023
Notes £ £ £ £

TURNOVER 12,881,379 21,787,438

Cost of sales 7,572,022 9,248,293
GROSS PROFIT 5,309,357 12,539,145

Administrative expenses 9,578,143 7,563,498
(4,268,786 ) 4,975,647

Other operating income 1,155,719 831,701
OPERATING (LOSS)/PROFIT 4 (3,113,067 ) 5,807,348

Income from shares in group
undertakings

2,496,903

-
Interest receivable and similar income 69,487 74,793
2,566,390 74,793
(546,677 ) 5,882,141

Interest payable and similar expenses 5 6,548,324 3,813,748
(LOSS)/PROFIT BEFORE TAXATION (7,095,001 ) 2,068,393

Tax on (loss)/profit 6 (1,728,801 ) (651,452 )
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(5,366,200

)

2,719,845

Elixir Distillers Ltd (Registered number: 09681748)

Other Comprehensive Income
for the Year Ended 30 June 2024

2024 2023
Notes £ £

(LOSS)/PROFIT FOR THE YEAR (5,366,200 ) 2,719,845


OTHER COMPREHENSIVE INCOME
Revaluation of investment in subsidiary (6,352 ) 674,649
Income tax relating to other
comprehensive income

-

-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

(6,352

)

674,649
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(5,372,552

)

3,394,494

Elixir Distillers Ltd (Registered number: 09681748)

Balance Sheet
30 June 2024

2024 2023
Notes £ £ £ £
FIXED ASSETS
Intangible assets 7 20,675,338 23,103,033
Tangible assets 8 82,411,280 60,466,316
Investments 9 14,745 51,585,193
103,101,363 135,154,542

CURRENT ASSETS
Stocks 10 75,810,712 65,022,773
Debtors 11 24,883,504 15,121,515
Cash at bank 994,277 874,162
101,688,493 81,018,450
CREDITORS
Amounts falling due within one year 12 7,347,179 7,635,234
NET CURRENT ASSETS 94,341,314 73,383,216
TOTAL ASSETS LESS CURRENT
LIABILITIES

197,442,677

208,537,758

CREDITORS
Amounts falling due after more than one
year

13

(46,586,095

)

(103,433,729

)

PROVISIONS FOR LIABILITIES 14 (3,174,949 ) (2,049,844 )
NET ASSETS 147,681,633 103,054,185

CAPITAL AND RESERVES
Called up share capital 15 15,100 10,100
Share premium 16 149,985,000 99,990,000
Revaluation reserve 16 - 674,649
Retained earnings 16 (2,318,467 ) 2,379,436
SHAREHOLDERS' FUNDS 147,681,633 103,054,185

The financial statements were approved by the Board of Directors and authorised for issue on 20 March 2025 and were signed on its behalf by:





Sukhinder Singh Sawhney - Director


Elixir Distillers Ltd (Registered number: 09681748)

Statement of Changes in Equity
for the Year Ended 30 June 2024

Called up
share Retained Share Revaluation Total
capital earnings premium reserve equity
£ £ £ £ £
Balance at 1 July 2022 100 (340,409 ) - - (340,309 )

Changes in equity
Profit for the year - 2,719,845 - - 2,719,845
Other comprehensive income - - - 674,649 674,649
Total comprehensive income - 2,719,845 - 674,649 3,394,494
Issue of share capital 10,000 - 99,990,000 - 100,000,000
Balance at 30 June 2023 10,100 2,379,436 99,990,000 674,649 103,054,185

Changes in equity
Deficit for the year - (5,366,200 ) - - (5,366,200 )
Other comprehensive income - 668,297 - (674,649 ) (6,352 )
Total comprehensive income - (4,697,903 ) - (674,649 ) (5,372,552 )
Issue of share capital 5,000 - 49,995,000 - 50,000,000
Balance at 30 June 2024 15,100 (2,318,467 ) 149,985,000 - 147,681,633

Elixir Distillers Ltd (Registered number: 09681748)

Notes to the Financial Statements
for the Year Ended 30 June 2024

1. STATUTORY INFORMATION

Elixir Distillers Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, except that the investments in subsidiaries are stated at their fair value.

The financial statements are prepared in sterling, which is the functional currency of the entity.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 33.7.

The company's parent undertaking during the year, Elixir Group Holdings Limited, included the company in its consolidated financial statements. The consolidated financial statements of Elixir Group Holdings Limited are prepared under FRS 102 and are available to the public and may be obtained from Alchemy House, 45 Park Royal Road, Park Royal, London, NW10 7LQ. In these financial statements, the company is considered to be a qualifying entity (for the purpose of this FRS) and has applied the exemptions available under FRS 102 in respect of the above disclosures.

Critical accounting judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumption that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

No significant judgements have had to be made by the directors in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustments in the next year.

Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

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

Goodwill
Positive purchased goodwill arising on acquisition is capitalised, classified as an asset on the Balance Sheet and amortised over its useful economic life. Goodwill is amortised over its estimated useful economic life of 10 years. Useful economic lives are reviewed at the end of each reporting period and revised if necessary. The carrying amount at the date of revision is depreciated over the revised estimate of remaining useful economic life.

Elixir Distillers Ltd (Registered number: 09681748)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

2. ACCOUNTING POLICIES - continued

Intangible assets
Intangible assets comprise of domain names and intellectual property. These are initially recorded at cost and amortised on a straight line basis over their estimated useful life, which is considered to be 5 to 10 years.

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Elixir Distillers Ltd (Registered number: 09681748)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Tangible assets include assets under construction. It includes assets acquired for development for future operating activities during their development phase, until they are virtually completed. These assets are not depreciated until they are complete and allocated to operating assets.

In line with industry practice, casks are capitalised and written off over their expected useful lives.

Depreciation
Depreciation is calculated so as to write off the cost of an asset, less its residual value, on a straight-line basis, over the useful economic life of that asset as follows:

Land included in freehold property is not depreciated.

Freehold propertiesbetween 10 and 50 years
Plant and machinerybetween 5 and 15 years
Casks 20 years
Motor vehicles 5 years

Capitalisation of borrowing costs
Borrowing costs which are directly attributable to the construction of tangible fixed assets are capitalised as part of the cost of those assets. The commencement of capitalisation begins when both finance costs and expenditure for the asset are being incurred and activities that are necessary to get the asset ready for use are in progress. Capitalisation ceases when substantially all the activities that are necessary to get the asset ready for use are complete

Impairment excluding stocks
Financial assets (including trade and other debtors)
A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective interest rate. For financial instruments measured at cost less impairment an impairment is calculated as the difference between its carrying amount and the best estimate of the amount that the company would receive for the asset if it were to be sold at the reporting date. Interest on the impaired asset continues to be recognised through the unwinding of the discount. Impairment losses are recognised in profit or loss. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.

Non-financial assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Elixir Distillers Ltd (Registered number: 09681748)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

2. ACCOUNTING POLICIES - continued

Investments in subsidiaries
Investment in subsidiary undertaking is initially recognised at cost. Subsequently, the investment is stated at the net asset value of the subsidiary company, which is considered to be its fair value, unless the net asset value is negative, in which case the investment's carrying value is considered to be nil. Difference between net asset value and cost is recognised in other comprehensive income (OCI) in accordance with FRS 102 17.15 E-F, with net revaluation gains recognised in OCI and net revaluation losses in profit and loss to the extent that these are not reversal of previous revaluation gain.

Stocks
Stock comprises of cask whisky stocks and bottled stocks of whisky, wines and spirits, including rare and fine spirits. Certain stock is held in bonded warehouses.

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell.

Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. Cost is calculated using the first In first out basis.

At each Balance Sheet date, stock is assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised in profit and loss.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in period different from those in which they are recognised in the financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Going concern
The company meets its day-to-day working capital requirements from cash generated from operating activities. , Since the Balance Sheet date, the company has entered into an Inventory Finance Agreement to facilitate capital expenditure for the new distillery project.

The Directors have prepared cash flow forecasts for the company which indicate that it will have sufficient funds to meet its liabilities as they fall during the going concern assessment period. Those forecasts cover a period of at least 12 months from the date of approval of these financial statements and are based on monthly budgets which take into account the bottling and marketing strategies adopted and take into account anticipated inflationary increases in costs.

Consequently, the directors are confident the company will have sufficient funds to meet its liabilities as they fall for that period and will comply with all financial covenants for at least 12 months from the date of approval of these financial statements. Accordingly, the financial statements have been prepared on a going concern basis.

Elixir Distillers Ltd (Registered number: 09681748)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

2. ACCOUNTING POLICIES - continued

Basic financial instruments
Trade and other debtors/creditors
Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition, debtors and creditors payable or receivable within one year are measured at the undiscounted amount of the cash expected to be paid or received, net of impairment losses in the case of debtors.

Interest-bearing borrowings classified as basic financial instruments
Borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, borrowings are stated at amortised cost using the effective interest method, less any impairment losses.

Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the company's cash management are included as a component of cash and cash equivalents for the purpose only of the cash flow statement.

3. EMPLOYEES AND DIRECTORS
2024 2023
£ £
Wages and salaries 2,243,961 1,792,506
Social security costs 235,395 260,363
Other pension costs 193,808 106,571
2,673,164 2,159,440

The average number of employees during the year was as follows:
2024 2023

Selling, distribution and administration 54 35

2024 2023
£ £
Directors' remuneration 160,000 -

4. OPERATING (LOSS)/PROFIT

The operating loss (2023 - operating profit) is stated after charging/(crediting):

2024 2023
£ £
Hire of plant and machinery 2,255 20,399
Depreciation - owned assets 2,360,782 1,181,151
Profit on disposal of fixed assets (3,896 ) -
Goodwill amortisation 1,167,694 569,451
Trademark and Domain amortisation 1,260,001 617,658
Auditors remuneration 72,909 75,513
Foreign exchange differences (10,956 ) 15,147

Elixir Distillers Ltd (Registered number: 09681748)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£ £
Bank overdraft interest - 75
Interest payable to
group companies 6,548,324 3,813,673
6,548,324 3,813,748

6. TAXATION

Analysis of the tax credit
The tax credit on the loss for the year was as follows:
2024 2023
£ £
Current tax:
UK corporation tax (2,852,981 ) (1,238,136 )
Over under provision of tax (925 ) (21,816 )
Total current tax (2,853,906 ) (1,259,952 )

Deferred tax 1,125,105 608,500
Tax on (loss)/profit (1,728,801 ) (651,452 )

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£ £
(Loss)/profit before tax (7,095,001 ) 2,068,393
(Loss)/profit multiplied by the standard rate of corporation tax in the
UK of 25% (2023 - 20.500%)

(1,773,750

)

424,021

Effects of:
Expenses not deductible for tax purposes 137,587 61,004
Tax exempt revenues (624,226 ) -
Difference in tax rate - current and deferred tax - 87,371
Utilisation of previously unrecognised tax losses (960,118 ) (1,325,123 )
Deferred tax adjustment re prior year 33,903 123,091
Unrecognised deferred tax asset for losses carried forward 1,458,728 -
Under provision of tax in prior years (925 ) (21,816 )
Total tax credit (1,728,801 ) (651,452 )

Tax effects relating to effects of other comprehensive income

2024
Gross Tax Net
£ £ £
Revaluation of investment in subsidiary (6,352 ) - (6,352 )


Elixir Distillers Ltd (Registered number: 09681748)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

6. TAXATION - continued
2023
Gross Tax Net
£ £ £
Revaluation reserves 674,649 - 674,649

7. INTANGIBLE FIXED ASSETS
Trademark
Goodwill and Domain Totals
£ £ £
COST
At 1 July 2023
and 30 June 2024 11,676,938 12,615,962 24,292,900
AMORTISATION
At 1 July 2023 569,451 620,416 1,189,867
Amortisation for year 1,167,694 1,260,001 2,427,695
At 30 June 2024 1,737,145 1,880,417 3,617,562
NET BOOK VALUE
At 30 June 2024 9,939,793 10,735,545 20,675,338
At 30 June 2023 11,107,487 11,995,546 23,103,033

8. TANGIBLE FIXED ASSETS
Assets
Freehold under Plant and
properties construction machinery
£ £ £
COST
At 1 July 2023 38,569,541 13,275,983 8,696,317
Additions 1,022,836 32,405,640 1,093,151
Disposals - - (18,500 )
Transfer to fellow subsidiary (14,513,815 ) - (545,582 )
At 30 June 2024 25,078,562 45,681,623 9,225,386
DEPRECIATION
At 1 July 2023 1,031,744 - 993,555
Charge for year 909,539 - 1,079,842
Eliminated on disposal - - (5,396 )
Transfer to fellow subsidiary (130,519 ) - (164,532 )
At 30 June 2024 1,810,764 - 1,903,469
NET BOOK VALUE
At 30 June 2024 23,267,798 45,681,623 7,321,917
At 30 June 2023 37,537,797 13,275,983 7,702,762

Elixir Distillers Ltd (Registered number: 09681748)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

8. TANGIBLE FIXED ASSETS - continued

Motor
vehicles Casks Totals
£ £ £
COST
At 1 July 2023 37,580 2,046,931 62,626,352
Additions 132,085 4,509,797 39,163,509
Disposals - - (18,500 )
Transfer to fellow subsidiary (119,665 ) - (15,179,062 )
At 30 June 2024 50,000 6,556,728 86,592,299
DEPRECIATION
At 1 July 2023 9,455 125,282 2,160,036
Charge for year 43,560 327,841 2,360,782
Eliminated on disposal - - (5,396 )
Transfer to fellow subsidiary (39,352 ) - (334,403 )
At 30 June 2024 13,663 453,123 4,181,019
NET BOOK VALUE
At 30 June 2024 36,337 6,103,605 82,411,280
At 30 June 2023 28,125 1,921,649 60,466,316

Freehold Properties are carried forward at cost. The directors have considered the current market conditions and assessed there is no significant variance in the fair value and the carrying amount at Balance Sheet date.

Assets under Construction comprises of the costs incurred to the Balance Sheet date for construction of a distillery. Borrowing costs amounting to £2,162,991 (2023: £692,312) have been capitalised and included in the net book value carried forward.

9. FIXED ASSET INVESTMENTS

Cost or valuation at 30 June 2024 is represented by:



Shares in
group
undertakings
£   
At 1 July .2023 51,585,193
Revaluation of investment in subsidiary (6,352 )
Adjustment from dividend received (51,564,096 )
-------------------
At 30 June 2024 14,745
==========

The company owns 100% of the share capital of Tormore Distillery Limited , a company registered in Scotland. The company's subsidiary carried out a capital reduction from share capital and share premium account following which it paid a dividend.

10. STOCKS
2024 2023
£ £
Stocks 75,810,712 65,022,773

Elixir Distillers Ltd (Registered number: 09681748)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

11. DEBTORS
2024 2023
£ £
Amounts falling due within one year:
Trade debtors 2,052,695 8,907,932
Amounts owed by group undertakings - 1,721,064
Amounts owed by related undertakings 33,706 145,418
Retention monies 37,150 187,149
Other debtors 14,423 29,387
Group relief receivable 2,430,216 1,238,136
VAT 1,592,492 1,392,314
Prepayments 3,804,307 1,500,115
9,964,989 15,121,515

Amounts falling due after more than one year:
Amounts owed by group undertakings 14,918,515 -

Aggregate amounts 24,883,504 15,121,515

The loan of £14,918,515 (2023: £Nil) is due from a fellow subsidiary. It is an unsecured loan and bears interest at the Bank of England base rate plus a margin of 2%. The loan is for a term of five year to 30 June 2029. Any unpaid interest is compounded annually at each Balance Sheet date.

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Trade creditors 2,422,730 2,914,726
Amounts owed to group undertakings 14,745 -
Social security and other taxes 90,638 65,871
Other creditors 993,368 388,930
Accruals and deferred income 3,825,698 4,265,707
7,347,179 7,635,234

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£ £
Amounts owed to group undertakings 46,586,095 103,433,729

The amounts owed to group undertakings bear a variable rate of interest based on the Bank of England base rate plus a margin of 2.5% per annum. The loan is repayable in full by June 2032.

14. PROVISIONS FOR LIABILITIES
2024 2023
£ £
Deferred tax 3,174,949 2,049,844

Elixir Distillers Ltd (Registered number: 09681748)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

14. PROVISIONS FOR LIABILITIES - continued

Deferred tax
£
Balance at 1 July 2023 2,049,844
Accelerated capital allowances 1,125,105
Balance at 30 June 2024 3,174,949

There are unused tax losses carried forward at the Balance Sheet date for which no deferred tax asset has been recognised.

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £ £
15,100 Ordinary £1 15,100 10,100

5,000 Ordinary shares of £1 each were allotted as fully paid at a premium of 9999 per share during the year.

There is a single class of ordinary shares and each share carries one vote. All the issued shares have equal rights to dividends, voting and capital participation in a winding up.

16. RESERVES
Retained Share Revaluation
earnings premium reserve Totals
£ £ £ £

At 1 July 2023 2,379,436 99,990,000 674,649 103,044,085
Deficit for the year (5,366,200 ) (5,366,200 )
Cash share issue - 49,995,000 - 49,995,000
Revaluation of investment in
subsidiary - - (6,352 ) (6,352 )
Transfer between reserves 668,297 - (668,297 ) -
At 30 June 2024 (2,318,467 ) 149,985,000 - 147,666,533

17. CAPITAL COMMITMENTS

At 30 June 2024, the company had the following capital commitments:

Amounts contracted for future capital expenditure not provided in the financial statements of £29,166,312 (2023: £31,556,000)

Expenditure committed, not contracted of £27,825,000 (2023: £9,455,000).

Elixir Distillers Ltd (Registered number: 09681748)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

18. RELATED PARTY DISCLOSURES

The company sells its products to a company under common control. As at 30 June 2024, the company had a net balance of £33,706 receivable from that company (2023: £145,418). The company sold goods net of Vat amounting to £893,000 (2023: £729,000) during the year to this company. The company also bought goods net of retro discount and marketing support from that company totalling £310,000 (2023: £192,000).

During the year the directors, together with their spouses, purchased goods totalling £393,501 (2023: £539,865) at cost from lots acquired from third party auctions by the company.

As the company is a wholly owned subsidiary of Elixir Group Holdings Limited, the company has taken advantage of the exemption contained in FRS 102.33 and has therefore not disclosed transactions on balances with entities which form part of the group headed by Elixir Group Holdings Limited.

19. GUARANTEE AND CONTINGENT LIABILITIES

The company's bankers have issued a bank guarantee to HMRC in respect of excise duties of £250,000 (2023: £100,000).

The company is included within a normal group value added tax registration. All companies within the registration are jointly and severally liable for the total value added tax due by the group. There was a group VAT refund due of £1,508,178 at 30 June 2024 (2023: refund of £1,028,337).

20. ULTIMATE CONTROLLING PARTY

The company's parent company and the ultimate controlling party is Elixir Group Holdings Limited, a company registered in England and Wales.

These financial statements have been consolidated in the financial statements of Elixir Group Holdings Limited. The consolidated financial statements can be obtained from Alchemy House, 45 Park Royal Road, Park Royal, London, NW10 7LQ.

21. POST BALANCE SHEET EVENTS

Following the year end the company has entered into an Inventory Finance Agreement with its bankers under which finance totalling £45 million has been sanctioned to facilitate capital expenditure for the new distillery project.