ACCOUNTS - Final Accounts

Auditor's remuneration

Fees payable to the comapny's auditor and its associates in respect of :

Registered number: 00066594

THE HOOK NORTON BREWERY COMPANY LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

THE HOOK NORTON BREWERY COMPANY LIMITED

COMPANY INFORMATION

Directors	Dr J D Paveley
	Mr J W Clarke
	Mr D N V Churton
	Mr C H Williams
	Mrs F E Williams


Company secretary	Mr D N V Churton


Registered number	00066594


Registered office	The Brewery
	Hook Norton
	Banbury
	Oxfordshire
	OX15 5NY


Independent auditor	James Cowper Kreston Audit
	Chartered Accountants and Statutory Auditor
	2 Chawley Park
	Cumnor Hill
	Oxford
	Oxfordshire
	OX2 9GG

THE HOOK NORTON BREWERY COMPANY LIMITED

CONTENTS

	Page
Strategic Report	1 - 2
Directors' Report	3 - 4
Independent Auditor's Report	5 - 8
Statement of Comprehensive Income	9
Balance Sheet	10
Statement of Changes in Equity	11
Statement of Cash Flows	12
Notes to the Financial Statements	13 - 28

THE HOOK NORTON BREWERY COMPANY LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2024

Business review

The key performance indicators used by the Directors to monitor performance are turnover, gross profit margin, operating profit, profit for the year, net current assets and shareholders’ funds.

The year ended September 2024 was a year of hugely mixed fortune and challenge. We were already dealing with higher energy prices, and the war in Ukraine continued to affect some of our cost base. The year started well, with a good Christmas, and we entered 2024 in a positive state and looking forward to a celebratory year of 175 years of trading. On May 20th we suffered a catastrophic fire in the stables building. Fortunately, emergency plans worked well, and damage was limited to part of the stable building, and more importantly, no injuries, human or equine, were suffered. Dealing with the disruption and aftermath of this has clearly taken a lot of time and effort, but against this, the year saw reasonable trading. Whilst the summer weather was not great, in some ways it can help cask ale sales, and we had good presence at a number of key events and festivals.
Operating costs across the hospitality sector saw further increases, but we continued our policy of trying to protect our customers and manage our cost base and efficiencies as hard as we could. Whilst the fire had a big impact on time, it did not adversely affect operations or the commercial business. Our pub estate performed reasonably well. The pub estate is in good shape, and we exited the year with all pubs let, bar two which we are for sale. Having managed two disposals at the end of the previous year, we have not managed to dispose of either of the other two sites in the year; this was not unexpected as the prospect of the General Election slowed activity. We are now seeing some signs of interest, and hope for the disposals to take place in the current financial year. The traditional pub tenancy model continues to be attractive, and the direct relationships with the Brewery work well.
The brewery site facilities saw growth, and it was unfortunate that further plans for retail development have been put on hold until we complete the rebuilding of the stables. The investment in improving our energy efficiency continues, and we will be installing more solar panels in the field to the rear of the site; we are also in the midst of installing a new and much more efficient steam boiler.

Rising costs, employer taxes, and potentially inflation present major challenge not just to our sector, but to the whole UK economy. Governments of whatever colour or complexion seem addicted to inflicting even higher taxation, operating costs and regulation on industry, and are then surprised while productivity, investment and the wider economy are sluggish. They also seem increasingly deaf, if not oblivious, to the concerns of the wealth creating private sector. And recent changes to the inheritance tax regime for family companies such as Hook Norton pose yet another massive threat. We note that the present government expressly denied during the election campaign that it had any intention to change the inheritance tax regime for family companies.

Recent increases in National Insurance contributions by Employers will add significant cost to all businesses; the increase in the National Minimum Wage will also be significant, and again affect our entire sector. It remains a key focus that the hospitality experience has to be of the best quality possible, and we are continually striving to help this, by supporting our customers across the board. Staff training and product quality are areas where we can really add value to our customers. We are also developing and expanding our portfolio of drinks.
As we move into the new financial year, we remain resolute and positive, despite the world being seemingly a dangerous place at present. The pub, and cask ale, remain unique British institutions, and we will continue to do what we do best, and look forward to celebrating our 175 years next year, when we have risen from the fire. Once again, support of all stakeholders – shareholders, licensees, staff and customers has been stalwart, and particularly so during some darker periods of earlier in 2024.

Page 1

THE HOOK NORTON BREWERY COMPANY LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2024

Principal risks and uncertainties

In the course of its ordinary business the Company faces various risks and uncertainties that could prevent it from achieving its objectives. The Directors regularly review the Company’s exposure to these risks and uncertainties so as to manage and mitigate the impact of them on the Company’s activities wherever possible.
We now have a tough period ahead of us as the economy toughens and we enter a recession. Many of our competitors who have high borrowings will find it very difficult, and not all will survive, and this may provide opportunity for us.
As part of the leisure industry there is always the risk from the state of the economy and the impact this has on consumer spending.
The Company continues to invest in brands and facilities to ensure it remains strongly placed to take advantage of new opportunities as they arise. However, inflation, unemployment, taxation and interest rates could lower consumer spending and have a negative impact on the Company’s trading and results.
The Company’s activities are financed by a structured loan facility with its Bankers and financiers. The company’s cash deposits remain strong as a result of better working capital management. As such, the Directors do not consider the Company to have significant exposure to interest rate or liquidity risk. During the year £1,042,804 debt was paid down (2023: £201,018).

Financial key performance indicators

Turnover for the year remained consistent at £9,423,515 (2023: £8,997,559) with a gross profit margin of 40.9% (2023: 39.2%). Combined with tight control of overheads, the Company recorded a profit before tax for the year of £589,786 (2023: £581,009).

The Company remains securely capitalised with net current assets of £1,669,814 (2023: £1,093,037) and shareholder funds of £9,677,377 (2023: £9,170,075) and it continues to invest for the future of the business.

On an underlying basis, the operating performance of the company was much stronger than in the previous year because there were gains of £381,750 on asset sales in 2024 (2023: £464,050).

This report was approved by the board and signed on its behalf.

Mr J W Clarke

Director

Date: 11 December 2024

Page 2

THE HOOK NORTON BREWERY COMPANY LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2024

The Directors present their report and the financial statements for the year ended 30 September 2024.

Directors

The Directors who served during the year were:

Dr J D Paveley

Mr J W Clarke

Mr D N V Churton

Mr C H Williams

Mrs F E Williams

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

∙make judgements and accounting estimates that are reasonable and prudent;

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

∙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 to 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.

Results and dividends

The profit for the year, after taxation, amounted to £545,230 (2023 - £555,236).

The Directors have declared for a dividend of £51,174 (2023 - £37,928).

Land and buildings

The Directors are of the opinion that the aggregate market value of the company's freehold properties exceeds their current book value at the balance sheet date.

Page 3

THE HOOK NORTON BREWERY COMPANY LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2024

Disclosure of information to auditor

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the Director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

∙the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Auditor

The auditor, James Cowper Kreston Audit, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

Mr J W Clarke

Director

Date: 11 December 2024

Page 4

THE HOOK NORTON BREWERY COMPANY LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE HOOK NORTON BREWERY COMPANY LIMITED

Opinion

We have audited the financial statements of The Hook Norton Brewery Company Limited for the year ended 30 September 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, 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 September 2024 and of its profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

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 United Kingdom, including the Financial Reporting Council'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.

Page 5

THE HOOK NORTON BREWERY COMPANY LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE HOOK NORTON BREWERY COMPANY LIMITED (CONTINUED)

Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

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:

∙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 Directors' Responsibilities Statement set out on page 3, 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.

Page 6

THE HOOK NORTON BREWERY COMPANY LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE HOOK NORTON BREWERY COMPANY LIMITED (CONTINUED)

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.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:

∙Enquiry of management and those charged with governance around actual and potential litigation and claims;

∙Enquiry of management and those charged with governance to identify any material instances of non-compliance with laws and regulations;

∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

∙Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.

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 Auditor's Report.

Page 7

THE HOOK NORTON BREWERY COMPANY LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE HOOK NORTON BREWERY COMPANY LIMITED (CONTINUED)

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.

James Pitt BA BFP FCA (Senior Statutory Auditor)

for and on behalf of

James Cowper Kreston Audit

Chartered Accountants and Statutory Auditor

2 Chawley Park

Cumnor Hill

Oxford

Oxfordshire

OX2 9GG

18 December 2024

Page 8

THE HOOK NORTON BREWERY COMPANY LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 SEPTEMBER 2024

	2024	2023
Note	£	£


Turnover	4	9,423,515	8,997,559
Cost of sales		(5,561,426)	(5,467,766)
Gross profit		3,862,089	3,529,793
Administrative expenses		(4,432,502)	(4,165,344)
Exceptional items - profit on disposal of freehold property	12	381,750	464,050
Other operating income	5	756,822	784,672
Operating profit		568,159	613,171
Interest receivable and similar income		54,472	40,106
Interest payable and similar expenses	9	(32,845)	(72,268)
Profit before tax		589,786	581,009
Tax on profit	10	(44,556)	(25,773)
Profit for the financial year		545,230	555,236

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 13 to 28 form part of these financial statements.

Page 9

THE HOOK NORTON BREWERY COMPANY LIMITED

REGISTERED NUMBER: 00066594

BALANCE SHEET

AS AT 30 SEPTEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Tangible assets	13		11,902,066		12,051,140
			11,902,066		12,051,140
Current assets
Stocks	14	553,208		555,321
Debtors: amounts falling due within one year	15	1,398,444		1,483,527
Cash at bank and in hand	16	1,433,981		1,731,325
		3,385,633		3,770,173
Creditors: amounts falling due within one year	17	(1,715,819)		(2,677,136)
Net current assets			1,669,814		1,093,037
Total assets less current liabilities			13,571,880		13,144,177
Creditors: amounts falling due after more than one year	18		(355,402)		(419,647)
Provisions for liabilities
Deferred tax	21	(355,895)		(369,989)
			(355,895)		(369,989)
Net assets			12,860,583		12,354,541

Capital and reserves
Called up share capital	22	50,820	50,570
Share premium account	23	3,108,776	3,110,286
Capital redemption reserve	23	23,610	23,610
Profit and loss account	23	9,677,377	9,170,075
		12,860,583	12,354,541

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Dr J D Paveley	Mr D N V Churton
Director	Director

Date: 11 December 2024	Date:11 December 2024

The notes on pages 13 to 28 form part of these financial statements.

Page 10

THE HOOK NORTON BREWERY COMPANY LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER 2024

	Called up share capital	Share premium account	Capital redemption reserve	Profit and loss account	Total equity
	£	£	£	£	£
At 1 October 2023	50,570	3,110,286	23,610	9,170,075	12,354,541
Comprehensive income for the year
Profit for the year	-	-	-	545,230	545,230
Total comprehensive income for the year	-	-	-	545,230	545,230
Contributions by and distributions to owners
Dividends: Equity capital	-	-	-	(37,928)	(37,928)
Shares issued during the year	250	-	-	-	250
Shares redeemed during the year	-	(1,510)	-	-	(1,510)
Total transactions with owners	250	(1,510)	-	(37,928)	(39,188)
At 30 September 2024	50,820	3,108,776	23,610	9,677,377	12,860,583

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER 2023

	Called up share capital	Share premium account	Capital redemption reserve	Profit and loss account	Total equity
	£	£	£	£	£
At 1 October 2022	50,570	3,106,966	23,610	8,666,013	11,847,159
Comprehensive income for the year
Profit for the year	-	-	-	555,236	555,236
Total comprehensive income for the year	-	-	-	555,236	555,236
Contributions by and distributions to owners
Dividends: Equity capital	-	-	-	(51,174)	(51,174)
Shares issued during the year	-	8,835	-	-	8,835
Shares redeemed during the year	-	(5,515)	-	-	(5,515)
Total transactions with owners	-	3,320	-	(51,174)	(47,854)
At 30 September 2023	50,570	3,110,286	23,610	9,170,075	12,354,541

The notes on pages 13 to 28 form part of these financial statements.

Page 11

THE HOOK NORTON BREWERY COMPANY LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

			2024	2023
			£	£

Cash flows from operating activities
Profit for the financial year	545,230	555,236
Adjustments for:
Depreciation of tangible assets	590,472	641,345
Profit on disposal of tangible assets	(381,750)	(467,550)
Interest paid	32,845	72,268
Interest received	(54,472)	(40,106)
Taxation charge	99,528	25,773
Decrease/(increase) in stocks	2,113	(46,373)
(Increase) in debtors	(118,432)	(210,127)
(Decrease)/increase in creditors	(41,500)	81,804
(Decrease)/increase in provisions	(14,094)	-
Corporation tax (paid)	(40,756)	(127,677)
Net cash generated from operating activities	619,184	484,593

Cash flows from investing activities
Purchase of tangible fixed assets	(500,658)	(708,068)
Sale of tangible fixed assets	644,495	750,000
Interest received	54,472	40,106
Net cash from investing activities	198,309	82,038
Cash flows from financing activities
Issue of ordinary shares	250	8,835
Shares redeemed	(1,510)	(5,515)
Repayment of loans	(1,042,804)	(201,018)
Dividends paid	(37,928)	(51,174)
Interest paid	(32,845)	(72,268)
Net cash used in financing activities	(1,114,837)	(321,140)
Net (decrease)/increase in cash and cash equivalents	(297,344)	245,491
Cash and cash equivalents at beginning of year	1,731,325	1,485,834
Cash and cash equivalents at the end of year	1,433,981	1,731,325

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	1,433,981	1,731,325

The notes on pages 13 to 28 form part of these financial statements.

Page 12

THE HOOK NORTON BREWERY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

1.	General information

The Company is a limited liability company incorporated and domiciled in England and Wales with registered number 00066594. The Company's registered office can be found on the company information page of these financial statements.
The Company's principal activity is the brewing and distribution of beer.
The financial statements cover the period from 3 October 2023 to 28 September 2024.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The functional and presentational currency is Great British Pounds, the amounts included are rounded to the nearest pound.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Going concern

The Company has prepared forecasts and projections using what the Directors believe to be reasonable assumptions relating to the Company’s financial performance, current financial position and existing financial resources for a period of at least 12 months from signing of the financial statements which show the Company to be a going concern. These forecasts and projections show the Company to be a going concern based on current cash and borrowings available.
Based on the above, the Directors are of the opinion that the going concern principle is applicable and that the Company has the necessary resources to continue as a going concern for the foreseeable future.

Page 13

THE HOOK NORTON BREWERY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.4

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated 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 charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property	-	2% to 20% straight line
Plant & machinery	-	10% to 33% straight line
Motor vehicles	-	25% straight line
Fixtures & fittings	-	25% straight line
Computer equipment	-	25% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 14

THE HOOK NORTON BREWERY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

2.5

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are 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 immediately in profit or loss.

2.6

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.

2.7

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.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

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

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 income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

2.9

Creditors

Short-term 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.

Page 15

THE HOOK NORTON BREWERY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

2.10

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

2.11

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2.12

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase 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 creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

2.13

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 16

THE HOOK NORTON BREWERY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

2.14

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.15

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

2.16

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are seperately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

Page 17

THE HOOK NORTON BREWERY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

The directors have had to make the following estimations in preparing the financial statements:
Impairment of tangible fixed assets
Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a multiple of earnings basis. The cash flows are derived from actual earnings.
Bad debt provision
Each year the Company assesses each of its trade debtors for recoverability and any deemed to not be recoverable are provided for in full.
Stock valuation
Included within the valuation of own brewed stock is a cost per barrel of brewery overheads. The Company bases this on the total overheads incurred divided by the number of barrels produced.

Turnover

Analysis of turnover by country of destination:

					2024	2023
					£	£

United Kingdom	9,268,365	8,825,064
Rest of Europe	60,000	-
Rest of the world	95,150	172,495
	9,423,515	8,997,559

5.	Other operating income
		2024	2023
		£	£

Net rents receivable	703,679	727,010
Royalty receivable	-	333
Sundry income	53,143	57,329
	756,822	784,672

Page 18

THE HOOK NORTON BREWERY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

The audit of the company's financial statements

22,750

21,650

Wages and salaries	2,364,031	2,235,965
Social security costs	185,424	169,314
Cost of defined contribution scheme	97,660	91,661
	2,647,115	2,496,940

The average monthly number of employees, including the Directors, during the year was as follows:

	2024	2023
	No.	No.

Production	10	8
Distribution	5	4
Administration	18	16
Managed house staff	40	44

	73	72

8.	Directors' remuneration
		2024	2023
		£	£

Directors' emoluments	193,500	177,630
Company contributions to defined contribution pension schemes	18,645	17,398
	212,145	195,028

During the year retirement benefits were accruing to no Directors (2023 - NIL) in respect of defined contribution pension schemes.

Page 19

THE HOOK NORTON BREWERY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

9.	Interest payable and similar expenses
		2024	2023
		£	£

	Bank interest payable	32,845	72,268
		32,845	72,268

Corporation tax
Current tax on profits for the year	99,528	40,952
Adjustments in respect of previous periods	(40,878)	(6,322)
	58,650	34,630

Total current tax	58,650	34,630

Deferred tax
Origination and reversal of timing differences	(14,094)	(8,857)
Total deferred tax	(14,094)	(8,857)


	Taxation on profit on ordinary activities	44,556	25,773

Page 20

THE HOOK NORTON BREWERY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

10.Taxation (continued)

Profit on ordinary activities before tax

589,786

581,009

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)	147,447	127,870
Effects of:
Fixed asset differences	49,770	(143,678)
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	8,253	8,730
Adjustments to tax charge in respect of prior periods	(43,878)	(4,310)
Adjustment to tax charge in respect of prior periods - Deferred tax	-	44,014
Remeasurement of deferred tax for changes in tax rates	-	(6,327)
Capital gains	(92,438)	-
Capitalised revenue expenditure	(10,331)	-
Other differences leading to an increase (decrease) in the tax charge	(173)	-
Deferred tax	(14,094)	-
Marginal relief	-	(526)
Total tax charge for the year	44,556	25,773

Page 21

THE HOOK NORTON BREWERY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

11.	Dividends
		2024	2023
		£	£

	Dividend	37,928	51,174
		37,928	51,174

12.	Exceptional items
		2024	2023
		£	£

	Profit on the sale of freehold property	381,750	464,050
		381,750	464,050

13.	Tangible fixed assets

	Freehold property	Plant & machinery	Motor vehicles	Fixtures & fittings	Computer equipment	Other fixed assets
	£	£	£	£	£	£
Cost or valuation
At 1 October 2023	16,185,435	2,901,846	258,711	-	473,094	15,900
Additions	361,131	120,887	4,200	203,515	9,440	5,000
Disposals	(439,344)	-	-	-	-	(2,150)
At 30 September 2024	16,107,222	3,022,733	262,911	203,515	482,534	18,750
Depreciation
At 1 October 2023	4,553,135	2,612,113	192,544	-	423,904	2,150
Charge for the year on owned assets	448,706	81,847	34,137	-	25,782	-
Disposals	(176,569)	-	-	-	-	(2,150)
At 30 September 2024	4,825,272	2,693,960	226,681	-	449,686	-
Net book value
At 30 September 2024	11,281,950	328,773	36,230	203,515	32,848	18,750
At 30 September 2023	11,632,300	289,733	66,167	-	49,190	13,750

Page 22

THE HOOK NORTON BREWERY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

13.Tangible fixed assets (continued)

		Total
		£
	Cost or valuation
	At 1 October 2023	19,834,986
	Additions	704,173
	Disposals	(441,494)
	At 30 September 2024	20,097,665
	Depreciation
	At 1 October 2023	7,783,846
	Charge for the year on owned assets	590,472
	Disposals	(178,719)
	At 30 September 2024	8,195,599
	Net book value
	At 30 September 2024	11,902,066
	At 30 September 2023	12,051,140

The net book value of land and buildings may be further analysed as follows:
	2024	2023
	£	£

Freehold	11,281,950	11,632,300
	11,281,950	11,632,300

Page 23

THE HOOK NORTON BREWERY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

14.	Stocks
		2024	2023
		£	£

Raw materials and consumables	93,408	106,959
Finished goods and goods for resale	459,800	448,362
	553,208	555,321

15.

Debtors

					2024	2023
					£	£


Trade debtors	1,016,831	1,193,684
Other debtors	206,144	139,723
Prepayments and accrued income	175,469	150,120
	1,398,444	1,483,527

16.	Cash and cash equivalents
		2024	2023
		£	£

Cash at bank and in hand	1,433,981	1,731,325
	1,433,981	1,731,325

17.	Creditors: Amounts falling due within one year
		2024	2023
		£	£

Bank loans	64,180	1,042,739
Trade creditors	550,192	597,867
Corporation tax	99,528	40,786
Other taxation and social security	343,052	392,593
Other creditors	359,296	384,185
Accruals and deferred income	299,571	218,966
	1,715,819	2,677,136

Page 24

THE HOOK NORTON BREWERY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

18.	Creditors: Amounts falling due after more than one year
		2024	2023
		£	£

Bank loans	355,402	419,647
	355,402	419,647

Amounts falling due within one year
Bank loans	64,180	1,042,739

Amounts falling due 2-5 years
Bank loans	355,402	419,647

	419,582	1,462,386

The above amount relates to one business loan (2023: four), with a fixed interest rate of 5.18% (2023: variable 2% above bank base rate, fixed 3.5%, and fixed 5.18%). The loan is secured through a fixed charge over specific freehold properties owned by the Company.

20.	Financial instruments
		2024	2023
		£	£

Financial assets
Cash at bank	1,433,981	1,731,325
Financial assets that are debt instruments measured at amortised cost	1,277,346	1,213,341
	2,711,327	2,944,666

	Financial liabilities
	Financial liabilities measured at amortised cost	(1,440,369)	(2,369,576)

	Financial assets that are debt instruments measured at amortised cost comprises of cash at bank, trade debtors, prepayments and other debtors
	Financial liabilites measured at amortised cost comprises of bank loans, trade creditors, other creditors less deposits, accruals and shares treated as debt.

Page 25

THE HOOK NORTON BREWERY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

21.	Deferred taxation

		2024
		£

	At beginning of year	(369,989)
	Charged to the profit or loss	14,094
	At end of year	(355,895)

The provision for deferred taxation is made up as follows:
	2024	2023
	£	£

	Accelerated capital allowances	(355,895)	(369,989)
		(355,895)	(369,989)

Page 26

THE HOOK NORTON BREWERY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

22.	Share capital
		2024	2023
		£	£

Allotted, called up and fully paid

5,082 (2023 - 5,057) Ordinary shares of £10.00 each	50,820	50,570

During the year, the Company issued 25 Ordinary shares for a consideration of £303 per share.

23.

Reserves

Share premium account

Share premium is the amount by which the amount received by a Company for a stock issue exceeds its nominal value.

Capital redemption reserve

A reserve into which amounts are transferred following the redemption or purchase of a Company's own shares.

Profit & loss account

The profit & loss account is a Company's accumulated profit/loss up to the balance sheet date.

24.	Pension commitments

The Company operates a defined contribution pension scheme for the benefit of 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 and amounted to £97,660 (2023: £91,661). Contributions totalling £14,037 (2023: £13,844) were payable to the fund at the balance sheet date and included in creditors.

Not later than 1 year	72,602	51,864
Later than 1 year and not later than 5 years	115,373	83,943
	187,975	135,807

26.	Transactions with directors

During the year, the Company declared aggregate dividends to Directors of £37,928 (2023: £51,174).

Page 27

THE HOOK NORTON BREWERY COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

27.	Related party transactions
	During the period, the Company made sales of £10,993 (2023: £10,590) to companies under common directorships. Of which, £5,734 (2023: £7,504) was owed to the Company at the year end. During the period, the Company made purchases of £35,849 (2023: £29,229) to companies under common directorships. At the year end £18 owed to these Companies was outstanding (2023: £144).

28.	Controlling party

In the opinion of the Directors, there is no ultimate controlling party.

Page 28