Company registration number 07311421 (England and Wales)
HATTINGLEY VALLEY WINES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
PAGES FOR FILING WITH REGISTRAR
HATTINGLEY VALLEY WINES LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 12
HATTINGLEY VALLEY WINES LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
5
3,998,112
4,117,133
Current assets
Stocks
7
7,914,553
7,034,741
Debtors
6
268,948
277,474
Cash at bank and in hand
351,411
86,328
8,534,912
7,398,543
Creditors: amounts falling due within one year
8
(872,284)
(823,344)
Net current assets
7,662,628
6,575,199
Total assets less current liabilities
11,660,740
10,692,332
Creditors: amounts falling due after more than one year
9
(7,003,506)
(5,649,582)
Net assets
4,657,234
5,042,750
Capital and reserves
Called up share capital
10
12,864,388
12,864,388
Other reserves
150,317
150,317
Profit and loss reserves
(8,357,471)
(7,971,955)
Total equity
4,657,234
5,042,750
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 18 June 2025 and are signed on its behalf by:
B S Green
W S M Robinson
Director
Director
Company Registration No. 07311421
HATTINGLEY VALLEY WINES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Share capital
Other reserves
Profit and loss reserves
Total
£
£
£
£
Balance at 1 October 2022
12,864,388
150,317
(7,336,323)
5,678,382
Year ended 30 September 2023:
Loss and total comprehensive income for the year
-
-
(635,632)
(635,632)
Balance at 30 September 2023
12,864,388
150,317
(7,971,955)
5,042,750
Year ended 30 September 2024:
Loss and total comprehensive income for the year
-
-
(385,516)
(385,516)
Balance at 30 September 2024
12,864,388
150,317
(8,357,471)
4,657,234
HATTINGLEY VALLEY WINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
1
Accounting policies
Company information
Hattingley Valley Wines Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Office, Wield Yard, Lower Wield, Alresford, Hampshire, United Kingdom, SO24 9RX.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements have been prepared on a going concern basis. The company recorded a loss after taxation of £385,51true6 for the year (2023 - £635,632) and had negative P&L reserves of £8,357,471 (2023 – £7,971,955).
Management has assessed the company’s ability to continue as a going concern by considering its financial position, performance, and future strategic plans. The company’s strategy is focused on achieving sustainable profitability through growth in sales volume, disciplined investment, and prudent financial management. The company continues to see a growth in the global demand for its core products.
Budgeting and investment decisions are guided by a focus on improving profitability, with all capital expenditure and marketing spend subject to review against demonstrable return on investment. The company has been EBITDA-positive and experiencing consistent growth for a sustained period.
A key component of the company’s business model is stockholding, particularly in sparkling wine production, which requires a minimum three-year process before sales can be realised. The company has successfully transitioned in the year to a new funding provider whose facility is structured to align financing directly with core working capital growth. The funding is secured against stock at various stages of production, with a comfortable headroom maintained in relation to its valuation. The total stock value significantly exceeds the level of borrowing, providing a strong security position.
As the business reaches a steady state, the company anticipates covering interest costs and repaying debt in line with the structure of the financing facility. Management regularly monitors stock valuations and funding requirements to ensure financial stability.
Based on the company’s financial position, growth trajectory, and the availability of appropriate financing, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis.
1.3
Turnover
Turnover for trade sales is recognised at the point of dispatch to the customer and retail sales is recognised at the point of purchase by the customer. Turnover from contract wine making is recognised in line with contract milestones using discrete stages of production agreed in each contract.
HATTINGLEY VALLEY WINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 4 -
For grape swap arrangements where the cost of grapes is exchanged for the provision of winery services, the barter element of the transaction is not recognised. The costs associated with the production of these grapes are allocated to the proportion of wine retained and revenue is recognised in line with the turnover policy.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2-10% straight line
Leasehold improvements
10% straight line
Plant and equipment
10-20% straight line
Fixtures and fittings
25% straight line
Motor vehicles
25% reducing balance
Vineyard vines and trellis
4% straight line
Vineyard Vines
4% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
The company owns biological assets in the form of grape vines. These are cultivated on land owned and/or leased by the company.
These biological assets are recognised only when three recognition criteria have been fulfilled:
the entity has control over the asset as a result of past events;
it is probable that future economic benefits associated with the asset will flow to the entity; and
the fair value or cost of the asset can be measured reliably.
The company measures biological assets at cost less accumulated depreciation and accumulated impairment losses.
In respect of agricultural produce harvested from a biological asset, this is measured at the point of harvest at either;
lower of cost and estimated selling price less costs to complete and sell; or
fair value less costs to sell with any gain or loss arising on initial recognition of agricultural produce at fair value less costs to sell being included in profit or loss.
HATTINGLEY VALLEY WINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 5 -
1.6
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.
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, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
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, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stock and work in progress are valued at the lower of cost and net realisable value. Cost is based on direct costs of the winery plus attributable overheads to value stock. Work in progress and finished goods include labour and attributable overheads. Net realisable value is based on selling price less anticipated costs to completion and selling costs.
1.8
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.
1.9
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 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.
HATTINGLEY VALLEY WINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 6 -
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, bank loans, loans from fellow group companies and preference shares that are classified as debt, are recognised at transaction price.
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.
1.10
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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
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 are included in the profit and loss account for the period.
HATTINGLEY VALLEY WINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 7 -
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.
Stock Valuation
The valuation of the company’s wine stock involves significant judgement due to the nature of the production process. Stock is valued at the cost to the company to produce the wine, which includes estimated costs associated with work performed on previous vintages, as well as costs directly attributable to the most recent harvest and bottling.
Specifically, this involves assessing and allocating costs related to vineyard maintenance, harvesting, fermentation, maturation, and bottling. The judgement arises in estimating the proportion of overheads and production costs attributable to each vintage, particularly where work spans multiple periods.
Management applies judgement in estimating these costs to ensure that stock is fairly valued at the lower of cost and net realisable value, reflecting the unique production cycle of wine.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
39
34
The employee headcount for 2024 includes only employees under contracts of service. For comparability, the employee headcount for 2023 has been updated to reflect only employees under contracts of service, in line with the current year's classification. This adjustment has been made to ensure consistency between the two periods, and no restatement of prior period financial results is required.
HATTINGLEY VALLEY WINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
4
Intangible fixed assets
Goodwill
£
Cost
At 1 October 2023 and 30 September 2024
5,050,234
Amortisation and impairment
At 1 October 2023 and 30 September 2024
5,050,234
Carrying amount
At 30 September 2024
At 30 September 2023
HATTINGLEY VALLEY WINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
5
Tangible fixed assets
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Vineyard vines and trellis
Vineyard Vines
Total
£
£
£
£
£
£
£
£
Cost
At 1 October 2023
3,400,169
73,274
2,354,994
99,853
42,222
109,484
17,198
6,097,194
Additions
110,350
2,340
112,690
Disposals
(8,139)
(8,139)
At 30 September 2024
3,400,169
73,274
2,457,205
102,193
42,222
109,484
17,198
6,201,745
Depreciation and impairment
At 1 October 2023
325,882
69,949
1,441,311
86,995
21,067
30,787
4,070
1,980,061
Depreciation charged in the year
60,077
895
153,951
5,848
5,289
5,067
231,127
Eliminated in respect of disposals
(7,555)
(7,555)
At 30 September 2024
385,959
70,844
1,587,707
92,843
26,356
35,854
4,070
2,203,633
Carrying amount
At 30 September 2024
3,014,210
2,430
869,498
9,350
15,866
73,630
13,128
3,998,112
At 30 September 2023
3,074,287
3,325
913,683
12,858
21,155
78,697
13,128
4,117,133
HATTINGLEY VALLEY WINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
242,329
223,402
Unpaid share capital
2
Other debtors
63
1,867
Prepayments and accrued income
26,556
52,203
268,948
277,474
7
Stocks
2024
2023
£
£
Raw materials and consumables
254,046
353,771
Work in progress
3,799,954
3,555,974
Finished goods and goods for resale
3,860,553
3,124,996
7,914,553
7,034,741
8
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
11,968
Other borrowings
160,212
5,629
Trade creditors
145,196
277,688
Amounts owed to group undertakings
375,000
375,000
Taxation and social security
45,788
15,210
Deferred income
2,083
Other creditors
23,893
35,453
Accruals and deferred income
120,112
102,396
872,284
823,344
Included in Other creditors is the pension creditor balance of £8,745 (2022: £4,113).
9
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
5,264,412
Other creditors
7,003,506
385,170
7,003,506
5,649,582
HATTINGLEY VALLEY WINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
9
Creditors: amounts falling due after more than one year
(Continued)
- 11 -
In May 2024 the company fully repaid its indebtedness to PNC, concurrently refinancing with Ferovinum Limited. Ferovinum is a specialised stock financing facility designed for the drinks industry. This has provided the company with access to additional working capital financing in a longer term revolving facility aligned to the growth of its core working capital asset of wine stocks.
An amount of £6,830,837 is included in Other creditors which carries variable interest at the Bank of England base rate + 3% and is secured via a floating charge.
10
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
12,864,388
12,864,388
12,864,388
12,864,388
11
Operating lease commitments
Lessee
At 30th September 2024, the company had total future obligations in respect of operating leases of £984,902 (2023: £1,062,105).
12
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
46,402
46,574
HATTINGLEY VALLEY WINES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
13
Related party transactions
Summary of transactions with other related parties
During the year the company purchased services with a value of £126,000 (2023: £36,000) from Robinson Farm Partnership, an entity in which W S M Robinson, a director of the company, is a partner. At the year end £11,400 (2023: 19,800) was outstanding and included within Trade Creditors.
The company also paid interest and loan principal totalling £60,431 to Kings Farm Partnership, an entity in which W S M Robinson is a partner. At the year end the amount due to Kings Farm was £332,046; all held in 'Other Borrowings' (2023: £410,599).
The company has taken advantage of the FRS 102 exemption to not disclose related party transactions with wholly owned group entities.
14
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Zara Hogg FCA, BA (Hons)
Statutory Auditor:
Azets Audit Services
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