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Registered number: 07447825
Drinks21 Ltd
Directors' Report and
Unaudited Financial Statements
For The Year Ended 31 March 2024
Contents
Page
Company Information 1
Directors' Report 2
Income Statement 3
Statement of Financial Position 4—5
Statement of Changes in Equity 6
Notes to the Financial Statements 7—10
Page 1
Company Information
Directors David Moran
Stephen Brogan
Michael Howard
Secretary David Moran
Company Number 07447825
Registered Office 9 Queen's Square
Ascot Business Park
Ascot
Berkshire
SL5 9FE
Bankers HSBC Bank PLC
8 Canada Square
Canary Wharf
London
E14 5HQ
Solicitors Burges Salmon LLP
One Glass Wharf
Bristol
BS2 0ZX
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Directors' Report
The directors present their report and the financial statements for the year ended 31 March 2024.
Principal Activity
The company's principal activity continues to be that of wholesale sales of wine, beer, spirits and other alcoholic beverages.
Dividends
The directors decided to pay a dividend for this year of £0 (2023: £200,000).
Directors
The directors who held office during the year were as follows:
David Moran Appointed 31/05/2023
Stephen Brogan
Gail Brogan Resigned 19/05/2023
Michael Howard Appointed 12/04/2024
Statement of Directors' Responsibilities
The directors are responsible for preparing the Directors' 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 the financial statements the directors are required to: 
  • select suitable accounting policies and then apply them consistently;
  • make judgments 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Small Company Rules
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
On behalf of the board
David Moran
Director
31st December 2024
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Income Statement
2024 2023
Notes £ £
TURNOVER 19,134,874 20,141,462
Cost of sales (17,623,167 ) (17,921,237 )
GROSS PROFIT 1,511,707 2,220,225
Distribution costs (643,178 ) (824,241 )
Administrative expenses (850,609 ) (1,005,141 )
Other operating income - 34,556
OPERATING PROFIT 3 17,920 425,399
Exceptional items (15,000) -
Other interest receivable and similar income 87 84
Interest payable and similar charges (86,792 ) (88,102 )
(LOSS)/PROFIT FOR THE FINANCIAL YEAR (83,785 ) 337,381
The notes on pages 7 to 10 form part of these financial statements.
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Statement of Financial Position
2024 2023
Notes £ £ £ £
FIXED ASSETS
Intangible Assets 6 9,000 10,500
Tangible Assets 7 45,721 10,429
54,721 20,929
CURRENT ASSETS
Stocks 8 750,228 479,272
Debtors 9 2,071,079 1,743,377
Cash at bank and in hand 245,606 116,241
3,066,913 2,338,890
Creditors 10 (2,368,396 ) (1,401,775 )
NET CURRENT ASSETS (LIABILITIES) 698,517 937,115
TOTAL ASSETS LESS CURRENT LIABILITIES 753,238 958,044
Long-Term Creditors 11 (93,632 ) (214,653 )
NET ASSETS 659,606 743,391
CAPITAL AND RESERVES
Called up share capital 13 392 392
Other reserves 431 431
Income Statement 658,783 742,568
SHAREHOLDERS' FUNDS 659,606 743,391
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For the year ending 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
On behalf of the board
David Moran
Director
31st December 2024
The notes on pages 7 to 10 form part of these financial statements.
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Statement of Changes in Equity
Share Capital Other reserves Income Statement Total
£ £ £ £
As at 1 April 2022 392 431 605,187 606,010
Profit for the year and total comprehensive income - - 337,381 337,381
Dividends paid - - (200,000) (200,000)
As at 31 March 2023 and 1 April 2023 392 431 742,568 743,391
Loss for the year and total comprehensive income - - (83,785 ) (83,785)
As at 31 March 2024 392 431 658,783 659,606
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Notes to the Financial Statements
1. General Information
Drinks21 Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 07447825 . The registered office is 9 Queen's Square, Ascot Business Park, Ascot, Berkshire, SL5 9FE.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
2.2. Going Concern Disclosure
The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern.
2.3. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
2.4. Intangible Fixed Assets and Amortisation - Intellectual Property
Intellectual property assets are goodwill. It is amortised to the income statement over its estimated economic life of 10 years.
2.5. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Motor Vehicles 25% on cost
Fixtures & Fittings 25% on cost
Computer Equipment 33% on cost
2.6. Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the income statement so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to income statement as incurred.
2.7. Stocks and Work in Progress
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.  
2.8. Financial Instruments
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
2.9. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
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2.10. Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the income statement as they become payable in accordance with the rules of the scheme.
2.11. Government Grant
Government grants are recognised in the income statement in an appropriate manner that matches them with the expenditure towards which they are intended to contribute.
Grants for immediate financial support or to cover costs already incurred are recognised immediately in the income statement. Grants towards general activities of the entity over a specific period are recognised in the income statement over that period.
Grants towards fixed assets are recognised over the expected useful lives of the related assets and are treated as deferred income and released to the income statement over the useful life of the asset concerned.
All grants in the income statement are recognised when all conditions for receipt have been complied with.
2.12. Debtors
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
2.13. Creditors
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
2.14. Cash and Cash Equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
3. Operating Profit
The operating profit is stated after charging:
2024 2023
£ £
Bad debts 368 27,806
Depreciation of tangible fixed assets 5,543 6,426
Amortisation of intangible fixed assets 1,500 1,500
4. Staff Costs
Staff costs were as follows:
2024 2023
£ £
Wages and salaries 340,886 522,228
Social security costs 31,952 70,995
Other pension costs 6,858 8,363
379,696 601,586
5. Average Number of Employees
The average number of employees, including directors, during the year was 10 (2023: 11)
10 11
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6. Intangible Assets
Intellectual Property
£
Cost
As at 1 April 2023 25,000
As at 31 March 2024 25,000
Amortisation
As at 1 April 2023 14,500
Provided during the period 1,500
As at 31 March 2024 16,000
Net Book Value
As at 31 March 2024 9,000
As at 1 April 2023 10,500
7. Tangible Assets
Motor Vehicles Fixtures & Fittings Computer Equipment Total
£ £ £ £
Cost
As at 1 April 2023 - 14,876 145,496 160,372
Additions 41,520 - 5,248 46,768
As at 31 March 2024 41,520 14,876 150,744 207,140
Depreciation
As at 1 April 2023 - 13,844 136,099 149,943
Provided during the period 5,498 449 5,529 11,476
As at 31 March 2024 5,498 14,293 141,628 161,419
Net Book Value
As at 31 March 2024 36,022 583 9,116 45,721
As at 1 April 2023 - 1,032 9,397 10,429
8. Stocks
2024 2023
£ £
Stock - Finished Goods 750,228 479,272
9. Debtors
2024 2023
£ £
Due within one year
Trade debtors 781,441 642,059
Amounts owed by group undertakings 1,186,422 915,720
Other debtors 103,216 185,598
2,071,079 1,743,377
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10. Creditors
2024 2023
£ £
Net obligations under finance lease and hire purchase contracts 10,996 -
Trade creditors 1,262,527 695,617
Bank loans and overdrafts 1,071,689 641,129
Other creditors 13,888 38,666
Taxation and social security 9,296 26,363
2,368,396 1,401,775
11. Long-Term Creditors
2024 2023
£ £
Net obligations under finance lease and hire purchase contracts 25,026 -
Bank loans 68,606 214,653
93,632 214,653
12. Secured Creditors
Of the creditors falling due within and after more than one year the following amounts are secured by way of a fixed and floating charge in favour of HSBC UK Bank plc and HSBC Invoice Finance (UK) Ltd.
2024 2023
£ £
Bank loans and overdrafts 1,071,689 571,829
13. Share Capital
2024 2023
£ £
Allotted, Called up and fully paid 392 392
14. Pension Commitments
The company operates a defined contribution pension scheme for its employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund.
15. Dividends
2024 2023
£ £
On equity shares:
Final dividend paid - 200,000
16. Parent Undertaking and Controlling Party
The company's immediate and parent undertaking is Drinks21 Group Ltd ., who own 100% of the share capital of the company. Drinks21 Group Ltd was incorporated in the United Kingdom, under company registered number 09683336. The ultimate controlling parties are Stephen & Gail Brogan who control more than 75% of the shares of Drinks21 Group Ltd .
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