Company registration number 04682459 (England and Wales)
SAZERAC UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
SAZERAC UK LIMITED
COMPANY INFORMATION
Directors
C R Skinger
M R Randles
L V Yule
Company number
04682459
Registered office
60 Marina Place
Hampton Wick
Kingston upon Thames
Surrey
KT1 4BH
Auditor
Ward Williams Limited
Belgrave House
39-43 Monument Hill
Weybridge
Surrey
KT13 8RN
SAZERAC UK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 33
SAZERAC UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

Review of the business

During the year the company performed well with growth achieved across all key trade channels in line with business objectives. The UK spirit market remains dynamic and thus the company's portfolio continues to evolve to capture new opportunities and further strengthen its market relevance.

 

Following a wider restructure in the Sazerac Group in the year, the company acquired investments in Sazerac of Ireland Unlimited and Sazerac Innovative Spirits GMBH. The company looks forward to building on the future success of these investments.

 

Aims and objectives

The company's objective is to deliver value to its owners, by providing compelling solutions to its customers, using its global capabilities and levering its portfolio of leading brands.

Principal risks and uncertainties

The company's principal risks arising from its financial instruments are liquidity, currency, credit and market risk. The policies for managing each of these risks are summarised below:

 

Liquidity risk

The company manages its liquidity risk by ensuring sufficient funds are available to meet its foreseeable needs. Loans have been obtained from the parent company to enable the purchase of investments and property.

 

Currency risk

The company is exposed to foreign exchange risk. Wherever possible, the company seeks to mitigate this risk by trading in sterling.

 

Credit risk

The company's principal financial assets are cash and trade debtors. The principal credit risk arises with trade debtors. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The company also has a trade insurance policy in place to mitigate this risk.

 

Market risk

The company operates in a competitive market. Risk is managed by providing innovative products and maintaining strong relationships with its customers.

 

The company is influenced by a number of other risks and uncertainties some of which are beyond its control. These are minimized through good management and efficient financial reporting and controls.

Key performance indicators

The directors use and review many performance measures. Three key performance indicators required for the company to meet its objectives are:

 

2024                 2023

Turnover                £117.8m                £101.9m

Gross Profit                £17.0m                    £19.1m

Gross Profit margin            14.5%                    18.7%

 

The directors consider the track of these KPIs indicate that the company is achieving its business objectives.

Other performance indicators

The company's other key performance indicators are growth in earnings (EBITDA) and free cash flow. The company has established a performance measurement system that focuses the business on key levels of sales volume and profit growth, together with cost and cash flow control. This is linked to a detailed annual planning process. This target setting is then directly linked to performance.

SAZERAC UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Promoting the success of the company

The directors of the company must act in accordance with a set of general duties. These duties are detailed in section 172 of the Companies Act 2006, which is summarised below.

 

A director of a company must act in a way they consider in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole, and in doing so, have regard amongst other matters to

 

 

The directors fulfil their duties through a governance framework that delegates day-to-day decision-making to employees of the company.

Overview of how the board performs its duties

 

Likely consequences of any decisions in the long term

Strategy is designed to have a long-term beneficial impact on the company.

 

The interest of the company's employees

The directors value the involvement of company employees and have continued to keep them informed on matters affecting them as employees and factors affecting company performance.

 

Business relationships with customers, suppliers and others

The company commits to relationships based on trust and openness with all customers, colleagues, business, partners and communities.

 

Community and the environment

The company is aware of its responsibility to protect the environment and its policies and practices strive to keep environmental sustainability high. The company is committed to improving energy efficiency.

 

Maintaining a reputation for high standards of business conduct

The company operates in a highly regulated environment, in the areas of health and safety, quality control, counted warehouse compliance, environment obligations and employee welfare. The company seeks to ensure that it works in an appropriate manner with the relevant regulatory bodies and encourages a proactive approach to change in the legal environment.

 

The need to act fairly as between members of the company

The board is committed to acting fairly between members of the group and actively engages with shareholders and encourages feedback as part of this engagement process.

On behalf of the board

.............................................
M R Randles
Director
Date: .............................................
SAZERAC UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the company continued to be that of the import, distribution and brand ownership of alcoholic beverages.

Results and dividends

The results for the year are set out on page 10.

No dividend (2023: Nil) was paid during the year.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

R L Martin
(Resigned 1 January 2025)
C R Skinger
M R Randles
L V Yule

Going concern

The directors have carried out a review of the company's expected performance in conjunction with budgets and cash flow requirements of the business to assess going concern. Whilst the directors recognise that the company remains exposed to the risk of an uncertain environment and its impact on the global economy, they have considered a number of impacts on sales, profits and cash flows. This review happens regularly throughout the year by the directors to assess business performance.

 

The directors have assumed that operations remain open and that the company will continue to service its customers. Further, the directors believe there will be sufficient cash reserves to enable the company to meet its obligations as they fall due, and has the ability to take mitigating actions should they be required, for a period not less than 12 months from approval of these financial statements.

Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Financial instruments

The discussion of financial risk management objectives and policies has been promoted to the Strategic report within the 'Principal risks and uncertainties' section and forms part of this report by cross reference.

Business relationships

The company's approach to stakeholder engagement is set out in the Strategic report in the "Business relationships with customers, suppliers and others" section.

Post reporting date events

There have been no significant post balance sheet events.

Future developments

Following restructure within the wider Sazerac group and the acquisition of investments in Sazerac of Ireland Unlimited and Sazerac Innovative Spirits GMBH, the company looks to further build on the growth and successes of previous years.

Auditor

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

SAZERAC UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
Energy and carbon report
2024
2023
kWh
kWh
Energy consumption
(restated)
Aggregate of energy consumption in the year
1,536,813
1,156,052
2024
2023
metric tonnes
metric tonnes
Emissions of CO2 equivalent
(restated)
Scope 1 - direct emissions
- Gas combustion
-
-
- Fuel consumed for owned transport
-
-
-
0
-
Scope 2 - indirect emissions
- Electricity & gas purchased
20.58
25.75
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
413.43
324.07
Total gross emissions
434.01
349.82
Intensity ratio
(restated)
Kg of CO2e per 1000 litres of beverage sold
50
44
Quantification and reporting methodology

We have considered the company's energy consumption in the year, following HM Government Environmental Reporting Guidelines. Following our review, we have determined that our most significant emissions arise from Scope 3 (Other Indirect) Activities. The company has used the 2023 UK Government Conversion Factors for Company Reporting and applied these factors to the measured quantities of energy.

 

The company does not own or directly control any vehicles that have a significant energy output. No significant activities fall under Scope 1 (Direct activities).

 

Purchased gas and electricity volumes under Scope 2 activities have been taken from third party supplier monthly Kwh reporting.

 

Distribution of finished goods is contracted out to a third party and energy consumption is therefore disclosed under Scope 3. This has been calculated in reference to mileage between warehouse and relevant distribution hubs, with an uplift for onward travel.

 

Energy consumption and CO2 emissions relating to business travel, being flights, and private hire car travel, are based on miles travelled, to which conversion factors have been applied to calculate energy consumption and CO2 emissions.

SAZERAC UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
Intensity measurement

The chosen intensity measurement ratio is total gross emissions in kilograms CO2e per 1,000 litres of beverage sold.

 

Restatement

Energy consumption in the year has been restated for 2023 due to more information being available for the distribution of finished goods in that year.

The aggregate of energy consumption was previously reported as 575,306 kWh in 2023.

Scope 3 emissions were previously reported as 189.34 tonnes CO2e in 2023.

The 2023 intensity ratio has consequently been restated. This was previously reported as 26.7Kg of CO2e per 1,000 litres of beverage sold.

Measures taken to improve energy efficiency

The company seeks to avoid unnecessary business travel and actively reviews the policies of its distribution supply network in this respect.

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.

On behalf of the board
M R Randles
Director
27 March 2025
SAZERAC UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -

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:

 

 

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.

SAZERAC UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SAZERAC UK LIMITED
- 7 -
Opinion

We have audited the financial statements of Sazerac UK Limited (the 'company') for the year ended 30 June 2024 which comprise the profit and loss account, the statement of comprehensive income, 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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:

SAZERAC UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SAZERAC UK LIMITED (CONTINUED)
- 8 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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.

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

The objectives of our audit are to identify an assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

 

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

 

SAZERAC UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SAZERAC UK LIMITED (CONTINUED)
- 9 -

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Colin Hamilton
Senior Statutory Auditor
For and on behalf of Ward Williams Limited
27 March 2025
Chartered Accountants
Statutory Auditor
Belgrave House
39-43 Monument Hill
Weybridge
Surrey
KT13 8RN
SAZERAC UK LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
117,822,952
101,880,636
Cost of sales
(100,774,589)
(82,791,958)
Gross profit
17,048,363
19,088,678
Distribution costs
(6,830,863)
(7,638,279)
Administrative expenses
(11,029,695)
(13,068,534)
Other operating income
1,678,669
1,493,690
Operating profit/(loss)
4
866,474
(124,445)
Interest receivable and similar income
8
136,689
45,546
Interest payable and similar expenses
9
(2,446,830)
(1,259,995)
Amounts written off investments
10
(26,154)
-
Loss before taxation
(1,469,821)
(1,338,894)
Tax on loss
11
(136,631)
(123,138)
Loss for the financial year
(1,606,452)
(1,462,032)

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

SAZERAC UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
2024
2023
£
£
Loss for the year
(1,606,452)
(1,462,032)
Other comprehensive income
-
-
Total comprehensive income for the year
(1,606,452)
(1,462,032)
SAZERAC UK LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
13
3,043,092
3,991,705
Tangible assets
14
8,194,147
7,321,001
Investments
15
181,106,850
26,154
192,344,089
11,338,860
Current assets
Stocks
19
31,315,242
31,072,596
Debtors
20
27,697,330
22,445,784
Cash at bank and in hand
1,501,877
3,936,537
60,514,449
57,454,917
Creditors: amounts falling due within one year
21
(38,007,806)
(28,390,293)
Net current assets
22,506,643
29,064,624
Total assets less current liabilities
214,850,732
40,403,484
Creditors: amounts falling due after more than one year
22
(17,586,536)
(22,645,036)
Net assets
197,264,196
17,758,448
Capital and reserves
Called up share capital
26
5,302
2
Share premium account
27
200,753,170
19,646,270
Profit and loss reserves
28
(3,494,276)
(1,887,824)
Total equity
197,264,196
17,758,448
The financial statements were approved by the board of directors and authorised for issue on 27 March 2025 and are signed on its behalf by:
M R Randles
Director
Company registration number 04682459 (England and Wales)
SAZERAC UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2022
2
19,646,270
(425,792)
19,220,480
Year ended 30 June 2023:
Loss and total comprehensive income
-
-
(1,462,032)
(1,462,032)
Balance at 30 June 2023
2
19,646,270
(1,887,824)
17,758,448
Year ended 30 June 2024:
Loss and total comprehensive income
-
-
(1,606,452)
(1,606,452)
Issue of share capital
26
5,300
181,106,900
-
181,112,200
Balance at 30 June 2024
5,302
200,753,170
(3,494,276)
197,264,196
SAZERAC UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
32
1,199,609
(8,552,095)
Interest paid
(2,446,830)
(1,259,995)
Income taxes paid
(228,662)
(17,286)
Net cash outflow from operating activities
(1,475,883)
(9,829,376)
Investing activities
Purchase of tangible fixed assets
(1,100,816)
(39,456)
Purchase of subsidiaries
(19,650)
-
0
Purchase of associates
(181,087,200)
-
0
Interest received
136,689
45,546
Net cash (used in)/generated from investing activities
(182,070,977)
6,090
Financing activities
Proceeds from issue of shares
181,112,200
-
0
Repayment of borrowings
-
0
11,336,536
Net cash generated from financing activities
181,112,200
11,336,536
Net (decrease)/increase in cash and cash equivalents
(2,434,660)
1,513,250
Cash and cash equivalents at beginning of year
3,936,537
2,423,287
Cash and cash equivalents at end of year
1,501,877
3,936,537
SAZERAC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
1
Accounting policies
Company information

Sazerac UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 60 Marina Place, Hampton Wick, Kingston upon Thames, Surrey, KT1 4BH.

 

During the period, the principal activity of the company continued to be that of the import, distribution and brand ownership of alcoholic beverages.

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 pound.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

Sazerac UK Limited is a wholly owned subsidiary of Sazerac Company Inc and the results of Sazerac UK Limited are included in the consolidated financial statements of Sazerac Company Inc which are available from Sazerac Company Inc., 3850 N.Causeway Blvd Suite 1695, Metairie LA 70002, USA.

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.

The directors have prepared budgets and cash flows for a period of at least twelve months from the date of the approval of the financial statements which demonstrate that there is no material uncertainty regarding the company’s ability to meet its liabilities as they fall due, and to continue as a going concern. On this basis the directors consider it appropriate to prepare the financial statements on a going concern basis. Accordingly, these financial statements do not include any adjustments to the carrying amounts and classification of assets and liabilities that may arise if the company was unable to continue as a going concern.

1.3
Turnover

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

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

SAZERAC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
1.4
Intangible fixed assets - goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of the identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of comprehensive income over its useful economic life, which is 10 years.

1.5
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.

Brands are protected by trademarks, which are renewable indefinitely, in all of the major markets where they are sold. There are not believed to be any legal, regulatory or contractual provisions that limit the useful lives of these brands.

 

Accordingly, 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:

Intellectual property
over 25 years
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Leasehold
straight line over 5 years
Plant and machinery
straight line over 7 years
Fixtures and fittings
straight line over 5 - 10 years
Office equipment
straight line over 3 - 7 years
Motor vehicles
straight line over 5 years

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.

1.7
Fixed asset investments

Interests in subsidiaries 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.

1.8
Impairment of fixed assets

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

SAZERAC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -

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

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

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

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

SAZERAC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

SAZERAC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 19 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.12
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.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The 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.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense. 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.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet.

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.

SAZERAC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Recoverability of trade debtors

The company trades with a large and varied number of customers on credit terms. The risk of debtor default is assessed by reference to overdue amounts and recent payment history. If there is a deemed material risk of non-payment a provision is made.

Stock provision

Non-moving, slow moving and short dated stocks are assessed at the balance sheet date and if it is deemed that there is a material risk that some or all of the stock cannot be sold, then a provision is made.

Maturing stock

At the end of the year the company holds maturing stock of a material nature. This stock can take significant periods of time to mature to be ready for sale. Additionally, prices for these products fluctuate. Therefore there can be no certainty over the net realisable value of these products.

Current and deferred tax provisions

Current and deferred tax provisions are based on management's judgement and the actual tax liabilities could differ from the provision. In this event, the company makes an adjustment in the subsequent period. A significant percentage of the company’s purchases are sourced from fellow group undertakings. The UK transfer pricing rules require an adjustment of taxable profits where a transaction between connected parties is not undertaken at arm’s length.  The company has adopted transfer pricing policies consistent with those rules. However as this involves applying normal statistical analysis in relation to third party comparables, by its nature the process is open to interpretation.

SAZERAC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 21 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Impairment of goodwill and intellectual property

Goodwill and intellectual property are tested for impairment annually, and at times when such indicators exist. This requires management to estimate the expected future cash flows of the cash generating unit, and apply a suitable discount rate in order to determine the present value of those cash flows. The future cash flows are most sensitive to forecast gross margins, growth rates and discount rates used. If the expectation differs from the estimations, such difference will impact the carrying value of the goodwill or intellectual property.

Marketing provision

Future promotional payments to customers are assessed at the balance sheet date. A provision will be made to deduct from the initial revenue any future promotional payments to customers unless it is highly probable that they will not be incurred.

Valuation of financial assets

The valuation of all financial assets is subject to uncertainty and requires the directors to use estimates and assumptions regarding the carrying value at the year end. The directors review the financial assets at each year end and consider if any impairment has occurred. The level of provision required may have a significant impact on the reported figures.

3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
Sales of beverages and associated products
117,822,952
101,880,636
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
113,491,371
100,204,376
Europe
2,516,233
526,473
Rest of the world
1,815,348
1,149,787
117,822,952
101,880,636
2024
2023
£
£
Other revenue
Interest income
136,689
45,546
SAZERAC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
4
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging:
£
£
Exchange losses
526,958
559,240
Depreciation of owned tangible fixed assets
227,670
227,144
Amortisation of intangible assets
948,613
948,613
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
34,625
27,500
For other services
All other non-audit services
16,630
5,000
6
Employees

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

2024
2023
Number
Number
Sales
39
32
Administration
31
36
Total
70
68

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
6,852,793
8,066,743
Social security costs
585,135
520,174
Pension costs
308,969
255,716
7,746,897
8,842,633
SAZERAC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
2,596,010
1,474,599
Company pension contributions to defined contribution schemes
57,938
55,443
2,653,948
1,530,042

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
1,035,321
674,630
Company pension contributions to defined contribution schemes
26,264
25,133
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
-
0
45,546
Interest receivable from group companies
136,689
-
0
Total income
136,689
45,546
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
136,689
45,546
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
2,446,830
1,259,995
10
Amounts written off investments
2024
2023
£
£
Other gains and losses
(26,154)
-
SAZERAC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
Amounts written off investments
(Continued)
- 24 -

Other gains and losses comprise the impairment of two of the company's subsidiaries. Please refer to the Impairment and Fixed Asset Investment notes 12 and 15.

11
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
-
0
259,217
Deferred tax
Origination and reversal of timing differences
-
0
(91,687)
Adjustment in respect of prior periods
136,631
(44,392)
Total deferred tax
136,631
(136,079)
Total tax charge
136,631
123,138

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(1,469,821)
(1,338,894)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.02%)
(367,455)
(294,887)
Tax effect of expenses that are not deductible in determining taxable profit
293,821
217,321
Unutilised tax losses carried forward
73,634
-
0
Change in unrecognised deferred tax assets
-
0
(91,687)
Adjustments in respect of prior years
136,631
259,217
Permanent capital allowances in excess of depreciation
-
0
(16,854)
Depreciation on assets not qualifying for tax allowances
-
0
50,028
Taxation charge for the year
136,631
123,138
SAZERAC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
12
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2024
2023
Notes
£
£
In respect of:
Fixed asset investments
15
26,154
-
Recognised in:
Amounts written off investments
26,154
-

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

13
Intangible fixed assets
Goodwill
Intellectual property
Total
£
£
£
Cost
At 1 July 2023 and 30 June 2024
9,486,126
46,667
9,532,793
Amortisation and impairment
At 1 July 2023
5,494,421
46,667
5,541,088
Amortisation charged for the year
948,613
-
0
948,613
At 30 June 2024
6,443,034
46,667
6,489,701
Carrying amount
At 30 June 2024
3,043,092
-
0
3,043,092
At 30 June 2023
3,991,705
-
0
3,991,705
SAZERAC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
14
Tangible fixed assets
Land and buildings Leasehold
Assets under construction
Plant and machinery
Fixtures and fittings
Office equipment
Motor vehicles
Total
(Restated)
£
£
£
£
£
£
£
Cost
At 1 July 2023
8,012,285
-
0
91,672
73,095
258,433
124,334
8,559,819
Additions
-
0
1,034,787
-
0
-
0
66,029
-
0
1,100,816
At 30 June 2024
8,012,285
1,034,787
91,672
73,095
324,462
124,334
9,660,635
Depreciation and impairment
At 1 July 2023
877,733
-
0
91,672
66,066
175,193
28,154
1,238,818
Depreciation charged in the year
160,246
-
0
-
0
6,760
35,580
25,084
227,670
At 30 June 2024
1,037,979
-
0
91,672
72,826
210,773
53,238
1,466,488
Carrying amount
At 30 June 2024
6,974,306
1,034,787
-
0
269
113,689
71,096
8,194,147
At 30 June 2023
7,134,552
-
0
-
0
7,029
83,240
96,180
7,321,001
SAZERAC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
14
Tangible fixed assets
(Continued)
- 27 -

Reclassification of Leasehold Property

 

Reclassification explained

 

During the current financial year, the company reclassified certain property from Freehold land and buildings to Leasehold land and buildings. This reclassification was necessary to correctly reflect the nature of the properties in accordance with FRS 102.

 

Current Year Reclassification

 

Description: The reclassification involved properties previously categorised under Freehold land and buildings.

Reason for Reclassification: Upon review, it was determined that these properties are held on a leasehold basis, and therefore, should be classified as Leasehold land and buildings.

Impact on Financial Statements: The reclassification has no impact on the carrying amount of the properties. The properties continue to be measured at their carrying amount as previously reported. There is no change to accounting policy as a result of this.

 

Prior Year Restatement as a result of Reclassification

 

Description: Similar reclassification was performed in the prior financial year to ensure correctness of opening balances.

Reason for Reclassification: The properties were initially misclassified due to an administrative error.

Impact on Financial Statements: The reclassification in the prior year also had no impact on the carrying amount of the properties. The properties were reclassified to Leasehold land and buildings to correct the classification error. There was no change to accounting policy as a result of this.

 

Summary of Reclassified Amounts

 

Current Year: £6,974,306 net book value of leasehold property recognised and carried at depreciated cost was reclassified from freehold land and buildings to Leasehold land and buildings.

 

Prior Year: £7,134,552 net book value of leasehold property recognised and carried at depreciated cost was reclassified from freehold land and buildings to Leasehold land and buildings.

 

The reclassification ensures compliance with FRS 102 and provides a more accurate representation of the company’s property holdings in line with their nature and recognition criteria.

15
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
16
19,650
26,154
Investments in associates
17
181,087,200
-
0
181,106,850
26,154

Investments are measured at cost less impairment on the basis that they represent shares in entities that are not publicly traded and their fair value cannot be reliably measured.

 

The directors are of the opinion that the investments are worth not less than the amount recorded in the balance sheet.

SAZERAC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
15
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Shares in subsidiaries and associates
£
Cost or valuation
At 1 July 2023
26,154
Additions
181,106,850
Disposals
(26,154)
At 30 June 2024
181,106,850
Carrying amount
At 30 June 2024
181,106,850
At 30 June 2023
26,154

During the period the company's investments in Hi-Spirits Limited and The Last Drop Distillers Limited were fully written down. These companies were formally dissolved on 8 August 2023 and 15 August 2023 respectively. A corresponding impairment loss of £26,154 has been recognised in the period.

 

On 20 March 2023 the company allotted 250,000 of its Ordinary shares in consideration for the entire issued share capital of Sazerac Innovative Spirits GMBH.

 

On 28 March 2023 the company allotted 280,000 of its Ordinary shares in consideration for 25.225% of the issued share capital of Sazerac of Ireland Unlimited.

 

These transactions form part of a wider restructuring exercise within the Sazerac Group.

 

Details of these investments are given below.

16
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Sazerac Innovative Spirits GMBH
Landenbergstrasse 11, 6005 Luzern, Switzerland
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Sazerac Innovative Spirits GMBH
25,000
-
0
17
Associates

Details of the company's associates at 30 June 2024 are as follows:

SAZERAC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
17
Associates
(Continued)
- 29 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Sazerac of Ireland Unlimited
21 Gilford Road, Sandymount, Dublin 4, Ireland
Ordinary
25.22
18
Financial instruments

Financial liabilities measured at amortised cost includes long term debt of £17,586,536 (2023: £22,645,036) due to connected companies. During the year, interest of £2,446,830 (2023: £1,259,885) was charged to profit and loss. Please refer to the Loans and overdrafts note 23.

19
Stocks
2024
2023
£
£
Raw materials and consumables
17,412,984
17,319,602
Finished goods and goods for resale
13,902,258
13,752,994
31,315,242
31,072,596
20
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
26,680,398
21,880,755
Amounts owed by group undertakings
-
0
178,599
Other debtors
506,893
117,322
Prepayments and accrued income
429,924
188,993
27,617,215
22,365,669
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 24)
80,115
80,115
Total debtors
27,697,330
22,445,784
SAZERAC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -
21
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Other borrowings
23
5,058,500
-
0
Trade creditors
9,386,655
7,218,514
Amounts owed to group undertakings
17,195,561
13,827,559
Corporation tax
3,049
95,080
Other taxation and social security
2,584,450
1,224,695
Accruals and deferred income
3,779,591
6,024,445
38,007,806
28,390,293
22
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Other borrowings
23
17,586,536
22,645,036
23
Loans and overdrafts
2024
2023
£
£
Loans from group undertakings
22,645,036
22,645,036
Payable within one year
5,058,500
-
0
Payable after one year
17,586,536
22,645,036

The loan of £5,058,500 is an unsecured fixed rate loan note from Sazerac Investment Holdings Inc, a company incorporated in the USA and a fellow subsidiary undertaking. The purpose of the loan note is to satisfy part of the consideration for the purchase of Hi-Spirits Ltd and the consideration for the purchase of property. The loan attracts interest at 9.29% and is due for repayment in full at the maturity date of 30 June 2025.

 

Outstanding interest on this principal stands at £1,612,527 at the period end and is included in Current amounts owed to group undertakings.

 

A further loan of £17,586,536 is due to the parent company, Sazerac Company Inc, a company incorporated in the USA. Interest accrues at 9.29% and is payable quarterly in arrears. Repayment of the principal on the then outstanding amount is due on 30 June 2029.

 

Outstanding interest on this principal stands at £643,673 at the period end and is included in Current amounts owed to group undertakings.

 

SAZERAC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 31 -
24
Deferred taxation

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

Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
23,884
23,884
Tax losses
47,953
47,953
Retirement benefit obligations
8,278
8,278
80,115
80,115
There were no deferred tax movements in the year.

 

25
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
308,969
255,716

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.

26
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
530,200
200
5,302
2

During the period the company allotted 530,200 of its Ordinary shares in consideration for the entire issued share capital of Sazerac Innovative Spirits GMBH and 25.225% of the issued share capital of Sazerac of Ireland Unlimited. Please refer to the Fixed Asset investment note 15.

27
Share premium account
2024
2023
£
£
At the beginning of the year
19,646,270
19,646,270
Issue of new shares
181,106,900
-
0
At the end of the year
200,753,170
19,646,270
SAZERAC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 32 -
28
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
(1,887,824)
(425,792)
Loss for the year
(1,606,452)
(1,462,032)
At the end of the year
(3,494,276)
(1,887,824)
29
Operating lease commitments

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
165,300
304,500
Between two and five years
1,922,700
2,001,000
2,088,000
2,305,500
30
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
2,653,948
1,742,798

The company has taken advantage of the exemption conferred by FRS 102 Section 33 from the requirement to disclose transactions with group companies on the grounds that it is a wholly owned subsidiary included within the consolidated financial statements prepared by the ultimate parent company.

31
Ultimate controlling party

The immediate parent company of Sazerac UK Limited is Sazerac Innovation LLC, a company incorporated in the United States of America and registered at 10101 Linn Station Road, Suite 400, Louisville, Kentucky 40223. Sazerac Innovation LLC owns 100% of the share capital of the company.

 

The ultimate controlling party is Sazerac Company Inc., a company incorporated in the United States of America, and registered at 10101 Linn Station Road, Suite 400, Louisville, Kentucky 40223.

 

Sazerac Company Inc. is the parent company of the largest and smallest group for which the group financial statements are drawn up for the year ended 30 June 2024.

SAZERAC UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 33 -
32
Cash generated from/(absorbed by) operations
2024
2023
£
£
Loss for the year after tax
(1,606,452)
(1,462,032)
Adjustments for:
Taxation charged
136,631
123,138
Finance costs
2,446,830
1,259,995
Investment income
(136,689)
(45,546)
Amortisation and impairment of intangible assets
948,613
948,613
Depreciation and impairment of tangible fixed assets
227,670
227,144
Other gains and losses
26,154
-
Movements in working capital:
Increase in stocks
(242,646)
(6,990,941)
Increase in debtors
(5,251,546)
(3,823,674)
Increase in creditors
4,651,044
1,211,208
Cash generated from/(absorbed by) operations
1,199,609
(8,552,095)
33
Analysis of changes in net debt
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
3,936,537
(2,434,660)
1,501,877
Borrowings excluding overdrafts
(22,645,036)
-
(22,645,036)
(18,708,499)
(2,434,660)
(21,143,159)
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