Highlights from the Directors’ Report
Financial results
The inflationary turmoil of 2023 was followed by a relative period of price stability in most quarters. Consumer price inflation fell to low single digits, but UK GDP growth was less than 1%. Against this backdrop, the Company’s performance was satisfactory with sales levels and operating margins being broadly in line with the prior year.
82% of the business’ export trade was transacted through the Company’s sister company in the Netherlands and is therefore not recorded in the accounts of Metro Drinks Limited as it is not part of a group for consolidation purposes.
Outlook for 2025
The impact of the fiscal policies put in place by the Government in its October 2024 budget make the Directors cautious about trading levels in 2025. Most business leaders have commented that the changes to Employers’ National Insurance from April 2025 will result in a slow-down in hiring and an increase in redundancies, which together could reduce the size of the country’s workforce. The changes to Employers’ National Insurance will be acutely felt by the hospitality sector which relies on a large proportion of part-time workers which will be caught under the new rates. Additionally, the increases in the National Minimum Wage and Business Rates will put further pressure on the viability of some hospitality venues, unless the increased costs can be adequately passed on to consumers.
In 2025, the Government has enacted its new legislation to pass some of the cost of Local Authorities’ collection of household packaging waste back to the producers that put packaging onto the market. The new scheme is called Extended Producer Responsibility (EPR). Liability for EPR fees will fall in October 2025 for the period April 2025 to March 2026, and such liability is based on packaging placed on the market by producers in the 12 months to March 2025. The fees payable by producers will not be published until June or July 2025, some 3 to 4 months after producers are accountable for them. These fees are expected to add up to 5% to the company’s operating costs.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows
P J Bendit
F K Bendit
Voluntary streamlined energy and carbon report
Reporting period
For the third year, the Company is reporting the energy consumption of the Company and its operations. This report applies to the year ended 31st December 2024.
Independent assessment
The report has been independently prepared and records the Company’s Greenhouse Gas (GHG) emissions in accordance with the UK Government’s ‘Environmental Reporting Guidelines: Including Streamlined Energy and Reporting Guidance’.
Voluntary streamlined energy and carbon report (continued)
The GHG emissions have been assessed using the internationally recognised WRI GHG Protocol – Corporate Accounting and Reporting Standard, using the 2024 emission conversion factors published by the UK Government departments DEFRA and BEIS.
Organisational boundaries
The Operational Control approach has been selected as being the most appropriate for the established organisational boundaries.
Operational scopes
Only Scope 1 and 2 emissions are required to be disclosed in this report, but the Company has voluntarily included the Scope 3 emissions that are generated by the Company’s third-party operators and therefore indirectly and de facto produced by the Company. We believe it is correct and appropriate to include them as they make up the bulk of the Company’s activities over which it has influence. These Scope 3 emissions are principally as follows:
Upstream emissions: Third party road, sea and rail freight emissions
Business travel
Emissions associated with energy supply (WTT & T&D)
Downstream emissions: Third party warehousing
Third party delivery of finished goods to customers
Carbon Neutral certification
Total emissions assessed amount to 296.65 Tonnes for the 12 months ended 31st December 2024, which compares with 330.14 Tonnes during the prior year. The company has offset 100% of these emissions through the carbon offset scheme as shown below:
Breakdown of total emissions for the year ended 31st December
Scope | Activity | 2024 Tonnes CO2e | 2023 Tonnes CO2e | 2024 Investment in Carbon offset |
Scope 1 | Company vehicle travel | 7.84 | 6.50 | 297 Tonnes of Carbon Offset by investing in a South American rainforest protection project. |
Scope 2 | Purchase of electricity and heat (Location based) | 1.91 | 1.95 | |
Scope 3 | Downstream – delivery of goods to customers | 86.662 | 88.730 | |
Third party warehousing | 200.234 | 232.957 | ||
Upstream – Third party transportation and storage | ||||
Upstream – Business travel and miscellaneous | ||||
| Total emissions | 296.65 | 330.12 |
|
Intensity ratios |
| 2024 Tonnes CO2e | 2023 Tonnes CO2e | Notes |
1 | GHG per 10,000 litres of drinks sold | 1.595 | 1.653 | All goods sold are liquid |
2 | GHG per 10,000 consumer units sold | 0.396 | 0.413 | All goods are for consumption |
3 | GHG per £10,000 spent on goods and operations | 0.533 | 0.649 | Product, distribution, warehousing, marketing, and administration |
4 | GHG per employee | 37.081 | 41.267 | All staff are full time |
Total Energy Consumption | 39,684 kWh | 34,453.6 kWh |
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Metro Drinks Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Workshop, Endlewick House, Arlington, Polegate, East Sussex, United Kingdom, BN26 6RU.
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 £.
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.
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.
The average monthly number of persons (including directors) employed by the company during the year was:
Included with bank loans and overdrafts above are advances under an invoice discounting facility of £11,790 (2023: £204,728) which are secured on the trade debtors of the company. See other debtors note above for details of current year invoice discounting facility.
Included with bank loans and overdrafts is £110,199 (2023: £162,535) of Coronavirus Business Interruption Loans.
Other borrowings comprised an unsecured loan to the company from the ultimate controlling party P J Bendit which was repaid during the year. During the year, interest paid on this loan was £8,100.
Included with bank loans and overdrafts is £20,833 (2023: £131,270) of Coronavirus Business Interruption Loans.
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:
A director's loan issued to P Bendit and F Bendit increased by £30,000 during the year. The balance as at the year end remains £410,000.
The company was owed £510 by P Bendit (2023: owed £558) as at the year end.
During the year the company invoiced Folkington's Drinks B.V., a company in which P Bendit and F Bendit are also shareholders, a total of £82,489 (2023: £65,624). During the year the company incurred costs of £336,641 (2023: £66,820) in relation to stock purchases. At the balance sheet date, the company was owed £176,140 (2023: £84,039) from Folkington's Drinks B.V.