Company registration number SC204765 (Scotland)
DUNNS FOOD & DRINKS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
DUNNS FOOD & DRINKS LIMITED
COMPANY INFORMATION
Directors
Ms J F Dunn
Mr J C Rowan
Secretary
Mr J C Rowan
Company number
SC204765
Registered office
32 Glasgow Road
Blantyre
Glasgow
United Kingdom
G72 0JY
Auditor
Azets Audit Services
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
Solicitors
BTO Solicitors LLP
48 St Vincent Street
Glasgow
United Kingdom
G2 5HS
DUNNS FOOD & DRINKS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10 - 11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 35
DUNNS FOOD & DRINKS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

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

Fair review of the business

The principal activity and core business of the company continued to be that of food and drink distribution to the licensed and non licensed trade. The year continued to be a demanding one, however turnover and gross profit performed within our expectations and our overheads remained tight.

Principal risks and uncertainties

The principal risk remains the economy, the cost-of-living crisis, energy prices and the continued conflicts in Europe and the Middle East. We review cashflow and overheads monthly and will look for technology to ensure we are efficient and competitive.

Our newly installed solar panels and more energy efficient cold room help us to become more sustainable and goes towards our target to become carbon neutral. The hospitality sector is continuing to experience many challenges, so we continue to mitigate this exposure by seeking new routes.

Trade has been strong throughout the year and our continued focus on value, range and service has allowed us to retain our core customer base as well as acquire new business. We expect figures for 2024/25 will continue to be strong.

Pension

The total payments made in respect of pension schemes for the year amounted to £753,087(2023 - £552,998). Note 7 shows pension contributions of £408,088 (2023 - £218,048). The difference relates to contributions to the defined benefit pension scheme. The pension scheme adjustments affect all businesses, and this is merely a snap shot of the pension position as at 30 September 2024. Given the snap shot approach the pension scheme can just as easily result in a deficit in future years.

 

Included within total pension contributions for the year was an amount of £8,392 (2023 - £24,014) to refund the defined benefit scheme for the levy the scheme paid to the Pension Protection Fund for the year ended 5 April 2024, £13,794 (2023 - £7,762) to UNUM and £198,560 (2023 - £186,272) in administration costs and auto enrolment contributions. The company is liable for the Pension Protection Fund levy, insurance premiums for death in service benefits and management and administration expenses not covered by the policy within the scheme with Phoenix Life Limited.

 

The directors are confident that the core business will continue to be profitable and successful.

Financial instruments

The company mitigates any risk by:

Key performance indicators

Our key performance indicators are sales, earnings and cash flows.

Future Developments

We continue to develop our core business but invest in our new sales media which will give a better balance to the turnover.

DUNNS FOOD & DRINKS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -

By order of the board

Mr J C Rowan
Secretary
20 June 2025
DUNNS FOOD & DRINKS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -

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

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

Ms J F Dunn
Mrs M Dunn
(Resigned 11 December 2023)
Mr J C Rowan
Auditor

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

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of business review, principal risks and uncertainties, pensions, financial instruments, key performance indicators and future developments.

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 auditor of the company 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 auditor of the company is aware of that information.

By order of the board
Mr J C Rowan
Secretary
20 June 2025
DUNNS FOOD & DRINKS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DUNNS FOOD & DRINKS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DUNNS FOOD & DRINKS LIMITED
- 5 -
Opinion

We have audited the financial statements of Dunns Food & Drinks Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 group and parent 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 group's and parent 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:

DUNNS FOOD & DRINKS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DUNNS FOOD & DRINKS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent 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 parent 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.

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.

DUNNS FOOD & DRINKS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DUNNS FOOD & DRINKS LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

David MacCallum (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
23 June 2025
Chartered Accountants
Statutory Auditor
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
DUNNS FOOD & DRINKS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
4
42,635,250
40,098,488
Cost of sales
(34,199,233)
(31,662,574)
Gross profit
8,436,017
8,435,914
Distribution costs
(4,828,400)
(4,341,836)
Administrative expenses
(3,119,530)
(2,641,282)
Other operating income
307,748
310,315
Exceptional item
3
-
0
(440,000)
Operating profit
5
795,835
1,323,111
Interest receivable and similar income
9
189,695
92,776
Interest payable and similar expenses
10
-
0
(19,791)
Profit before taxation
985,530
1,396,096
Tax on profit
11
(251,416)
(221,316)
Profit for the financial year
24
734,114
1,174,780
Other comprehensive income
Actuarial (loss)/gain on defined benefit pension schemes
(210,863)
36,386
Tax relating to other comprehensive income
52,716
(9,097)
Total comprehensive income for the year
575,967
1,202,069
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
DUNNS FOOD & DRINKS LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
75,734
84,941
Other intangible assets
12
-
0
382
Total intangible assets
75,734
85,323
Tangible assets
13
1,995,846
1,768,569
2,071,580
1,853,892
Current assets
Stocks
16
3,210,262
3,050,160
Debtors
17
3,850,348
3,180,736
Cash at bank and in hand
5,460,591
6,432,706
12,521,201
12,663,602
Creditors: amounts falling due within one year
18
(7,020,996)
(7,574,403)
Net current assets
5,500,205
5,089,199
Total assets less current liabilities
7,571,785
6,943,091
Provisions for liabilities
Deferred tax liability
19
370,537
350,980
(370,537)
(350,980)
Net assets excluding pension (liability)/surplus
7,201,248
6,592,111
Defined benefit pension (liability)/surplus
20
-
0
33,170
Net assets
7,201,248
6,625,281
Capital and reserves
Called up share capital
21
8,627
8,627
Share premium account
22
595,463
595,463
Capital redemption reserve
23
2,746
2,746
Profit and loss reserves
24
6,594,412
6,018,445
Total equity
7,201,248
6,625,281
The financial statements were approved by the board of directors and authorised for issue on 20 June 2025 and are signed on its behalf by:
20 June 2025
Mr J C Rowan
Director
Company registration number SC204765 (Scotland)
DUNNS FOOD & DRINKS LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
37,375
37,375
Other intangible assets
12
-
0
382
Total intangible assets
37,375
37,757
Tangible assets
13
1,988,298
1,756,499
Investments
14
134,455
134,455
2,160,128
1,928,711
Current assets
Stocks
16
2,814,798
2,656,470
Debtors
17
3,823,351
3,068,129
Cash at bank and in hand
5,266,390
6,296,692
11,904,539
12,021,291
Creditors: amounts falling due within one year
18
(6,700,983)
(7,182,980)
Net current assets
5,203,556
4,838,311
Total assets less current liabilities
7,363,684
6,767,022
Provisions for liabilities
Deferred tax liability
19
370,717
352,569
(370,717)
(352,569)
Net assets excluding pension (liability)/surplus
6,992,967
6,414,453
Defined benefit pension (liability)/surplus
20
-
0
33,170
Net assets
6,992,967
6,447,623
Capital and reserves
Called up share capital
21
8,627
8,627
Share premium account
22
595,463
595,463
Capital redemption reserve
23
2,746
2,746
Profit and loss reserves
24
6,386,131
5,840,787
Total equity
6,992,967
6,447,623

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £703,491 (2023 - £1,086,897 profit).

DUNNS FOOD & DRINKS LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2024
30 September 2024
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 20 June 2025 and are signed on its behalf by:
20 June 2025
Mr J C Rowan
Director
Company registration number SC204765 (Scotland)
DUNNS FOOD & DRINKS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 October 2022
6,715
157,463
2,658
4,835,707
5,002,543
Year ended 30 September 2023:
Profit for the year
-
-
-
1,174,780
1,174,780
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
36,386
36,386
Tax relating to other comprehensive income
-
-
-
(9,097)
(9,097)
Total comprehensive income
-
-
-
1,202,069
1,202,069
Bonus issue of shares
21
2,000
438,000
-
-
0
440,000
Own shares acquired
-
-
-
(19,331)
(19,331)
Redemption of shares
21
(88)
-
88
-
-
0
Balance at 30 September 2023
8,627
595,463
2,746
6,018,445
6,625,281
Year ended 30 September 2024:
Profit for the year
-
-
-
734,114
734,114
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
(210,863)
(210,863)
Tax relating to other comprehensive income
-
-
-
52,716
52,716
Total comprehensive income
-
-
-
575,967
575,967
Balance at 30 September 2024
8,627
595,463
2,746
6,594,412
7,201,248
DUNNS FOOD & DRINKS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 October 2022
6,715
157,463
2,658
4,745,932
4,912,768
Year ended 30 September 2023:
Profit for the year
-
-
-
1,086,897
1,086,897
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
36,386
36,386
Tax relating to other comprehensive income
-
-
-
(9,097)
(9,097)
Total comprehensive income
-
-
-
1,114,186
1,114,186
Bonus issue of shares
21
2,000
438,000
-
-
0
440,000
Own shares acquired
-
-
-
(19,331)
(19,331)
Redemption of shares
21
(88)
-
88
-
-
0
Balance at 30 September 2023
8,627
595,463
2,746
5,840,787
6,447,623
Year ended 30 September 2024:
Profit for the year
-
-
-
703,491
703,491
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
-
(210,863)
(210,863)
Tax relating to other comprehensive income
-
-
-
52,716
52,716
Total comprehensive income
-
-
-
545,344
545,344
Balance at 30 September 2024
8,627
595,463
2,746
6,386,131
6,992,967
DUNNS FOOD & DRINKS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
31
(575,700)
2,045,717
Interest paid
-
0
(19,791)
Income taxes paid
(62,000)
(368,609)
Net cash (outflow)/inflow from operating activities
(637,700)
1,657,317
Investing activities
Purchase of tangible fixed assets
(541,373)
(1,265,455)
Proceeds from disposal of tangible fixed assets
17,263
12,146
Interest received
189,695
92,776
Net cash used in investing activities
(334,415)
(1,160,533)
Financing activities
Proceeds from issue of shares
-
0
2,000
Net cash (used in)/generated from financing activities
-
2,000
Net (decrease)/increase in cash and cash equivalents
(972,115)
498,784
Cash and cash equivalents at beginning of year
6,432,706
5,933,922
Cash and cash equivalents at end of year
5,460,591
6,432,706
DUNNS FOOD & DRINKS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
1
Accounting policies
Company information

Dunns Food & Drinks Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is 32 Glasgow Road, Blantyre, Glasgow, United Kingdom, G72 0JY.

 

The group consists of Dunns Food & Drinks Limited and all of its subsidiaries.

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 £.

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

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Dunns Food & Drinks Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

DUNNS FOOD & DRINKS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.4
Going concern

The financial statements have been prepared on a going concern basis. The group has a net asset position and a healthy bank position and the directors are satisfied that there are sufficient resources in place to continue operating for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing these financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services 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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on 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.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business 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.

1.7
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.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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:

Brands
10% straight line
1.8
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.

DUNNS FOOD & DRINKS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -

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
over 50 years for buildings, and over 10 years for property refurbishment
Plant and equipment
10%-20% straight line
Equipment, fixtures and fittings
10% or 20% straight line
Motor vehicles
20% 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 recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

DUNNS FOOD & DRINKS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs 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 cost and replacement 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.

1.12
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.

1.13
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, 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 the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. 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.

DUNNS FOOD & DRINKS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 19 -
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 group 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 group 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 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

DUNNS FOOD & DRINKS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 20 -
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 if, and only if, there is 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.

1.16
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.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

DUNNS FOOD & DRINKS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 21 -
1.18
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 leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

 

The key sources of estimation that have been applied are detailed below:    

 

Pension scheme

A key estimate in the financial statements is the assumptions used in calculating the liabilities in relation to the defined benefit pension scheme. The actuarial assumptions adopted in the estimation of the company's pension scheme are the responsibility of the Directors. In accordance with FRS 102, these shall be unbiased (neither imprudent nor excessively conservative), mutually compatible and selected to lead the best estimate of future cash flows that will arise under the pension scheme. See note 20 for details of the assumptions used and the impact of changes in those assumptions.

 

 

3
Exceptional item
2024
2023
£
£
Expenditure
Exceptional cost
-
440,000

During the prior year, certain directors were issued shares with a fair value of £440,000 in exchange for services provided to the company.

 

The company is unable to directly measure the fair value of employee services received. Instead the fair value of the shares issued was determined by reference to a multiple of historic EBITDA and recent share transactions.

DUNNS FOOD & DRINKS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
3
Exceptional item
(Continued)
- 22 -
4
Turnover and other revenue
2024
2023
£
£
Other revenue
Interest income
189,695
92,776
Marketing income
309,644
308,515

The whole of the turnover is attributable to the one principal activity of the group.

 

All turnover arose within the United Kingdom.

5
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
296,833
169,149
Amortisation of intangible assets
9,589
9,357
Operating lease charges
691,452
660,270
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
21,250
20,000
Audit of the financial statements of the company's subsidiaries
10,750
10,000
32,000
30,000
For other services
Taxation compliance services
4,100
5,750
DUNNS FOOD & DRINKS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
7
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Sales and administration
36
36
30
30
Warehouse and distribution
100
89
100
89
Total
136
125
130
119

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
4,161,477
3,750,058
3,898,828
3,563,266
Social security costs
393,631
346,232
371,280
329,484
Pension costs
408,088
218,048
402,089
213,713
4,963,196
4,314,338
4,672,197
4,106,463
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
533,023
973,861
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
281,716
488,727

The number of directors accruing benefits through the company defined benefit pension scheme was none (2023 - none).

 

The company has a number of employees which it considers to be key management personnel in addition to the directors. The total emoluments of these individuals (including directors) is £851,794 (2023 - £940,451).

DUNNS FOOD & DRINKS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
186,714
92,776
Interest on the net defined benefit asset
2,981
-
0
Total income
189,695
92,776
10
Interest payable and similar expenses
2024
2023
£
£
Net interest on the net defined benefit liability
-
0
19,791
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
194,329
30,215
Adjustments in respect of prior periods
(4,129)
(28,120)
Total current tax
190,200
2,095
Deferred tax
Origination and reversal of timing differences
61,216
219,221
Total tax charge
251,416
221,316
DUNNS FOOD & DRINKS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
11
Taxation
(Continued)
- 25 -

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

2024
2023
£
£
Profit before taxation
985,530
1,396,096
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
246,383
307,281
Tax effect of expenses that are not deductible in determining taxable profit
5,609
2,742
Adjustments in respect of prior years
(4,129)
(28,120)
Other permanent differences
-
0
79
Deferred tax adjustments in respect of prior years
-
0
(119,780)
Fixed asset differences
3,171
(16,040)
Losses carried back
-
0
32,213
Remeasurement of deferred tax for changes in tax rates
381
42,004
Adjustment to brought forward values
(52,715)
8,008
Deferred tax (charged)/credited directly to STRGL
52,716
(9,097)
Short term timing differences
-
2,026
Taxation charge
251,416
221,316

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
(52,716)
9,097
DUNNS FOOD & DRINKS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 26 -
12
Intangible fixed assets
Group
Goodwill
Brands
Total
£
£
£
Cost
At 1 October 2023 and 30 September 2024
408,916
146,592
555,508
Amortisation and impairment
At 1 October 2023
323,975
146,210
470,185
Amortisation charged for the year
9,207
382
9,589
At 30 September 2024
333,182
146,592
479,774
Carrying amount
At 30 September 2024
75,734
-
0
75,734
At 30 September 2023
84,941
382
85,323
Company
Goodwill
Brands
Total
£
£
£
Cost
At 1 October 2023 and 30 September 2024
316,850
146,592
463,442
Amortisation and impairment
At 1 October 2023
279,475
146,210
425,685
Amortisation charged for the year
-
0
382
382
At 30 September 2024
279,475
146,592
426,067
Carrying amount
At 30 September 2024
37,375
-
0
37,375
At 30 September 2023
37,375
382
37,757
DUNNS FOOD & DRINKS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 27 -
13
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Equipment, fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2023
579,676
2,309,147
308,401
30,060
3,227,284
Additions
251,410
257,093
32,870
-
0
541,373
Disposals
-
0
(44,072)
-
0
(9,724)
(53,796)
At 30 September 2024
831,086
2,522,168
341,271
20,336
3,714,861
Depreciation and impairment
At 1 October 2023
176,837
1,032,737
228,600
20,541
1,458,715
Depreciation charged in the year
68,566
205,229
16,927
6,111
296,833
Eliminated in respect of disposals
-
0
(28,592)
-
0
(7,941)
(36,533)
At 30 September 2024
245,403
1,209,374
245,527
18,711
1,719,015
Carrying amount
At 30 September 2024
585,683
1,312,794
95,744
1,625
1,995,846
At 30 September 2023
402,839
1,276,410
79,801
9,519
1,768,569
Company
Freehold land and buildings
Plant and equipment
Equipment, fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2023
579,676
2,296,842
308,401
30,060
3,214,979
Additions
251,410
257,093
32,870
-
0
541,373
Disposals
-
0
(44,072)
-
0
(9,724)
(53,796)
At 30 September 2024
831,086
2,509,863
341,271
20,336
3,702,556
Depreciation and impairment
At 1 October 2023
176,837
1,032,502
228,600
20,541
1,458,480
Depreciation charged in the year
68,566
200,707
16,927
6,111
292,311
Eliminated in respect of disposals
-
0
(28,592)
-
0
(7,941)
(36,533)
At 30 September 2024
245,403
1,204,617
245,527
18,711
1,714,258
Carrying amount
At 30 September 2024
585,683
1,305,246
95,744
1,625
1,988,298
At 30 September 2023
402,839
1,264,340
79,801
9,519
1,756,499

The net book value of land and buildings compromises £nil (2023 - £nil) of freehold property and £585,683 (2023 - £402,829) of leasehold improvements.

 

DUNNS FOOD & DRINKS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 28 -
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
134,455
134,455
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023 and 30 September 2024
134,455
Carrying amount
At 30 September 2024
134,455
At 30 September 2023
134,455
15
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Robertson of Springwells (1900) Limited
32 Glasgow Road, Blantyre, G72 0JY
Ordinary
100.00
Duncans Food Services Limited
32 Glasgow Road, Blantyre, G72 0JY
Ordinary
100.00
Alexander Wines Limited
32 Glasgow Road, Blantyre, G72 0JY
Ordinary
100.00
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
3,210,262
3,050,160
2,814,798
2,656,470
DUNNS FOOD & DRINKS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 29 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,127,191
2,548,017
2,966,509
2,392,592
Corporation tax recoverable
30,452
147,595
32,619
177,810
Amounts owed by group undertakings
-
-
134,959
16,891
Other debtors
23,932
45,114
22,432
43,614
Prepayments and accrued income
668,773
440,010
666,832
437,222
3,850,348
3,180,736
3,823,351
3,068,129
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
5,814,522
6,197,856
5,584,543
5,867,335
Other taxation and social security
199,844
253,211
178,069
221,260
Other creditors
15,237
95,164
15,237
95,164
Accruals and deferred income
991,393
1,028,172
923,134
999,221
7,020,996
7,574,403
6,700,983
7,182,980
19
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
379,353
370,502
Short term timing differences
(8,816)
(19,522)
370,537
350,980
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
377,919
367,484
Short term timing differences
(7,202)
(14,915)
370,717
352,569
DUNNS FOOD & DRINKS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
19
Deferred taxation
(Continued)
- 30 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
350,980
352,569
Charge to profit or loss
61,216
59,807
Credit to other comprehensive income
(52,715)
(52,715)
Other
11,056
11,056
Liability at 30 September 2024
370,537
370,717
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
186,272
142,143

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Defined benefit scheme - group and company

The company operates a defined benefit scheme for qualifying employees.

 

The total payments made in respect of the defined benefit pension scheme for the year amounted to £344,999 (2023 - £334,950).

 

The assets of the defined benefit scheme are held separately from those of the company independently administered funds. A full actuarial valuation was carried out at 5 April 2023 and the results have been updated to 30 September 2024 by a qualified actuary, independent of the scheme's sponsoring employer.

 

The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method.

2024
2023
Key assumptions
%
%
Discount rate
6.34
6.74
Expected rate of increase of pensions in payment
2.22
2.28
Expected rate of salary increases
N/A
N/A
Inflation assumption
2.22
2.28
DUNNS FOOD & DRINKS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
20
Retirement benefit schemes
(Continued)
- 31 -
Mortality assumptions
2024
2023

Assumed life expectations on retirement at age 65:

Years
Years
Retiring today
- Males
19.4
19.8
- Females
22.2
22.7
Retiring in 20 years
- Males
20.9
21.6
- Females
24
24.6

The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:

Group and company
2024
2023
£
£
Present value of defined benefit obligations
4,655,153
4,650,801
Fair value of plan assets
(5,205,761)
(4,695,027)
Surplus in scheme
(550,608)
(44,226)
Restriction on scheme assets
550,608
-
Deferred tax balance
-
11,056
Total liability/(asset) recognised
-
(33,170)
Group and company
2024
2023

Amounts recognised in the profit and loss account

£
£
Net interest on net defined benefit liability/(asset)
(2,981)
19,791
Other costs and income
181,343
-
Total costs
178,362
19,791
Group and company
2024
2023

Amounts taken to other comprehensive income

£
£
Actual return on scheme assets
(326,714)
(89,723)
Less: calculated interest element
316,445
286,270
Return on scheme assets excluding interest income
(10,269)
196,547
Actuarial changes related to obligations
(329,476)
(232,933)
Effect of changes in the amount of surplus that is not recoverable
550,608
-
Total costs/(income)
210,863
(36,386)
DUNNS FOOD & DRINKS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
20
Retirement benefit schemes
(Continued)
- 32 -
Group and company
2024

Movements in the present value of defined benefit obligations

£
Liabilities at 1 October 2023
4,650,801
Benefits paid
(160,979)
Actuarial gains and losses
(329,476)
Interest cost
313,464
Other
181,343
At 30 September 2024
4,655,153

The defined benefit obligations arise from plans which are wholly or partly funded.

Group and company
2024

Movements in the fair value of plan assets

£
Fair value of assets at 1 October 2023
4,695,027
Interest income
316,445
Return on plan assets (excluding amounts included in net interest)
10,269
Benefits paid
(160,979)
Contributions by the employer
344,999
At 30 September 2024
5,205,761
Group and company
2024
2023

Fair value of plan assets at the reporting period end

£
£
Equity instruments
4,156,071
3,507,525
Debt instruments
432,988
444,612
Property
454,302
409,693
Cash
162,400
333,197
5,205,761
4,695,027

This discount rate used is based on AA bond yields. Changes in the discount rate compared to the prior year reflect the latest market returns. The inflation rate is based on targeted inflationary growth in the UK.

 

If the discount rate used is decreased below 6.34%, for each movement of 1%, there would be an increase in the liability of £930k.

 

If the inflation rate used was to increase by 1%, there would also be an increase in the liability of £930k.

DUNNS FOOD & DRINKS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 33 -
21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
862,708
862,708
8,627
8,627

Ordinary shareholders are entitled to one vote in any circumstances.

22
Share premium account
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
595,463
157,463
595,463
157,463
Bonus issue of shares
-
0
438,000
-
0
438,000
At the end of the year
595,463
595,463
595,463
595,463

The share premium account represents the additional amount shareholders paid for their issued shares in excess of the par value of those shares.

23
Capital redemption reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
2,746
2,658
2,746
2,658
Transfers
-
88
-
88
At the end of the year
2,746
2,746
2,746
2,746

The capital redemption reserve is a non-distributable reserve and represents paid up share capital.

24
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
6,018,445
4,835,707
5,840,787
4,745,932
Profit for the year
734,114
1,174,780
703,491
1,086,897
Actuarial differences recognised in other comprehensive income
(210,863)
36,386
(210,863)
36,386
Tax on actuarial differences
52,716
(9,097)
52,716
(9,097)
Own shares acquired
-
(19,331)
-
(19,331)
At the end of the year
6,594,412
6,018,445
6,386,131
5,840,787
DUNNS FOOD & DRINKS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 34 -
25
Financial commitments, guarantees and contingent liabilities

The facilities provided by Bank of Scotland PLC to Dunns Food & Drinks Limited are secured by way of bond and floating charge over the whole assets of this company.

 

The facilities provided by Virgin Money PLC to Alexander Wines Ltd. are secured by way of a floating charge over the whole asstes of this company.

26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
598,287
390,062
598,287
390,062
Between two and five years
2,026,558
490,878
2,026,558
490,878
In over five years
318,156
-
318,156
-
2,943,001
880,940
2,943,001
880,940
27
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
-
47,219
-
47,219
28
Related party transactions
Transactions with related parties

Dunns Food & Drinks Limited and Alexander Wines are related parties by virtue of common control. As permitted under FRS 102 Section 33, transactions with other companies in the group have not been disclosed as related party transactions as the company is a wholly owned subsidiary.

 

During the year, sales of £364,465 (2023 - £253,820) were made to Dunns Marketplace Limited, a company run by a close family member of one of the directors. Purchases of £16,885 (2023 - £14,952) were made to Dunns Marketplace Limited. At the balance sheet date, £32,131 (2023 - £38,108) was due from the company and is included within debtors.

29
Directors' transactions

There are balances due at the year end from the directors amounting to £9,998 (2023 - £18,447). The maximum amount outstanding during the year was £19,473 (2023 - £21,527). The loans are interest free with no fixed terms of repayment.

DUNNS FOOD & DRINKS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 35 -
30
Controlling party

There is no individual controlling party.

 

31
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Profit for the year after tax
734,114
1,174,780
Adjustments for:
Taxation charged
251,416
221,316
Finance costs
-
0
19,791
Investment income
(189,695)
(92,776)
Amortisation and impairment of intangible assets
9,589
9,357
Depreciation and impairment of tangible fixed assets
296,833
169,149
Pension scheme non-cash movement
(210,863)
36,386
Equity settled share based payment expense
-
438,000
Increase/(decrease) in provisions
33,170
(383,450)
Movements in working capital:
(Increase)/decrease in stocks
(160,102)
31,651
(Increase)/decrease in debtors
(786,755)
257,528
(Decrease)/increase in creditors
(553,407)
163,985
Cash (absorbed by)/generated from operations
(575,700)
2,045,717
32
Analysis of changes in net funds - group
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
6,432,706
(972,115)
5,460,591
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