Company registration number SC088127 (Scotland)
BROXBURN BOTTLERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
BROXBURN BOTTLERS LIMITED
COMPANY INFORMATION
Directors
John L S Grant
Leonard S Russell
Douglas M B Belford
Bryan McCluskey
Keith W Murdoch
Secretary
Michael J Younger
Company number
SC088127
Registered office
5 Drovers Road
East Mains Industrial Estate
Broxburn
West Lothian
EH52 5ND
Auditor
MHA
Chartered Accountants
6 St Colme Street
Edinburgh
EH3 6AD
BROXBURN BOTTLERS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
6 - 8
Profit and loss account
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 22
BROXBURN BOTTLERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present their strategic report and financial statements for the year ended 31 December 2024.

 

Principal activities

The principal activity of the company continued to be that of spirit bottlers and bonded warehousekeepers.

The strategy is to provide competitively priced and diverse spirit bottling and ancillary services to the shareholders and external customers; all of whom have primary activities in Scotch whisky. Competitive pricing is achieved by ensuring high levels of throughput and is enhanced by ongoing investment. Customer demand for a diverse range of products is met through continuously adapting methodologies and updating the plant.

Fair review of the business

The company had a challenging year, with the business experiencing a significant and protracted reduction in demand. Turnover reduced by £6,224,286 to £38,542,658 (2023: £44,766,944). The market contraction adversely affected labour utilisation which, when coupled with increases in input costs, most notably government increase to national living wage, resulted in an operating loss of £2,303,983 (2023: £591,635).

Administration expenses increased by £202,552 / 5% due to employment costs, coupled with increases in business rates, insurance, and IT costs. Accelerated capital allowances result in current year tax credit of £68,588 (2023: £209,690 charge). There is no corporation tax due for the current year.

Capital expenditure amounted to £1,022,702 (2023: £865,483) with investment in warehouse roofing and operational enhancements to the single cask line.

EBITDA reduced to a negative position of £1,036,207 (2023: £720,347) driven by reduced market demand. Cash balances decreased by £248,738 to £33,530 and the loan from the joint controlling entity remained constant. The business continues to apply tight cost control, with significant improvements realised in the later part of the year, which helped partially bridge the revenue reduction to the bottom line. Continued protection of operational capability is the board’s priority, the Company is using the quieter period as an opportunity to improve its processes and controls and employees are receiving additional training and development.

Principal risks and uncertainties

The company is exposed to the effects of major and profound economic, epidemiological, political, technological, or societal changes which are beyond its control. The directors monitor these trends and adapt the business model accordingly. The reduced customer demand caused by full sales supply chains and a downturn in the industry were the significant factors affecting the company’s performance. The directors continue to adapt operations to address these effects, which is achieved by flexible planning and labour deployment.

The principal business risks the company actively manages are those relating to customer demand and controlling the operating model. Therefore, the directors strive to achieve a gross profit which is sufficient to cover costs which contain a substantial fixed element. Despite the challenging year, the joint controlling entities remain committed to the business and will continue to support it.

Future Developments

The market dynamics noted above have continued in the early part of the 2025 financial year. The 2025 financial year is further affected by the significant cost increase arising from the rise in the National Living Wage and employers National Insurance Contributions. The company is making further appropriate adjustments to its operating model to trade successfully under current conditions.

The directors will continue to develop the business by managing its growth through investment in people. This will be supported by tactical capital expenditure aimed at operational improvement. There is the expectation that customer demand will begin to improve towards the later end of 2025, although the precise timing is not certain. The directors are confident that once markets recover, demand for its services will resume to historic levels and with close shareholder support, the company will continue to trade successfully. Furthermore, operational improvements that have been achieved in previous three years will come to fruition.

Key performance indicators

The key performance indicators for the company are revenue, gross margin, and net profitability. The company closely tracks the attributable costs and revenue by works order.

BROXBURN BOTTLERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Financial instruments

The company’s use of financial instruments is restricted to standard operation of a bank account, the use of a loan, and the advancing and drawing on trade accounts. The Directors believe the company's exposure to price risk, credit risk, liquidity risk, and cash flow risk is not material for the assessment of the value of its assets, liabilities, the financial position, and profit and loss of the company.

Financial performance

The Directors consider that the result for the year is fair reflection of the difficult operational and trading environment.

Obligations under Companies Act 2006 S172

Each director must act in a way that is likely to promote the success of the Company for the benefits of its’ members as a whole. The matters that are expected to be considered are the consequences of any decision for the long term, the interest of the company’s employees, fostering of good relations with customers and suppliers, the impact of operations on the community and the environment, maintenance of high standards of conduct, and acting fairly between members of the company.

The owners of the business are independent family businesses of long standing who value integrity and appreciate the long-term nature of the industry. Their interests are covered by being customers as well as holding directorships. There is a strong desire to develop a culture where the interests of others are factored into all decision making. The welfare interests of employees are prioritised and fair dealing with suppliers and customers encouraged. The company is mindful of its environmental responsibilities and will improve standards to reduce environmental harms.

By order of the board

Michael J Younger
Secretary
5 May 2025
BROXBURN BOTTLERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Results and dividends

The results for the year are set out on page 9.

The directors do not recommended payment of a dividend.
Directors

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

John L S Grant
Leonard S Russell
Douglas M B Belford
Bryan McCluskey
Keith W Murdoch
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The company's policy is to consult and discuss with employees, through employee forums, committees and at meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins, townhall meetings and reports which seek to achieve a common awareness on the part of all employees of the market, financial and economic factors affecting the company's performance.

Energy and carbon report

Energy consumption data in Kwh is obtained directly from billing data or by converting carbon fuels to Kwh using published conversion factors.

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
1,362,988
1,283,027
- Electricity purchased
1,786,399
1,903,011
3,149,387
3,186,038
BROXBURN BOTTLERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
354.73
346.90
- Fuel consumed for owned transport
-
-
354.73
346.90
Scope 2 - indirect emissions
- Electricity purchased
369.87
394.07
Total gross emissions
724.60
740.97
Intensity ratio
Tonnes CO₂ per number of cases (dozens) produced
0.00036
0.000277
Quantification and reporting methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2024 UK Government’s Conversion Factors for Company Reporting.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO₂ per dozen bottles of spirits packaged.

Measures taken to improve energy efficiency

Where opportunities arise, the company will invest to improve its energy efficiency through the implementation of new initiatives.

Statement of directors' responsibilities

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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

BROXBURN BOTTLERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
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 company’s auditor 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 company’s auditor is aware of that information.

By order of the board
Michael J Younger
Secretary
5 May 2025
BROXBURN BOTTLERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BROXBURN BOTTLERS LIMITED
- 6 -
Opinion

We have audited the financial statements of Broxburn Bottlers Limited (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the 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 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 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:

BROXBURN BOTTLERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BROXBURN BOTTLERS LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

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

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.

BROXBURN BOTTLERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BROXBURN BOTTLERS LIMITED
- 8 -

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.

Iain Binnie
Senior Statutory Auditor
For and on behalf of MHA
5 May 2025
Chartered Accountants
Statutory Auditor
6 St Colme Street
Edinburgh
EH3 6AD
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
BROXBURN BOTTLERS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
38,542,658
44,766,944
Cost of sales
(36,579,808)
(41,294,298)
Gross profit
1,962,850
3,472,646
Administrative expenses
(4,266,833)
(4,064,281)
Operating loss
4
(2,303,983)
(591,635)
Interest receivable and similar income
8
1,127
740
Loss before taxation
(2,302,856)
(590,895)
Tax on loss
9
68,588
(209,690)
Loss for the financial year
(2,234,268)
(800,585)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

BROXBURN BOTTLERS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
12,111,801
12,367,371
Current assets
Stocks
11
17,738
24,575
Debtors
12
11,098,670
13,464,055
Cash at bank and in hand
33,530
282,268
11,149,938
13,770,898
Creditors: amounts falling due within one year
13
(13,223,734)
(13,797,408)
Net current liabilities
(2,073,796)
(26,510)
Total assets less current liabilities
10,038,005
12,340,861
Provisions for liabilities
Deferred tax liability
15
(867,093)
(935,681)
(867,093)
(935,681)
Net assets
9,170,912
11,405,180
Capital and reserves
Called up share capital
17
500,000
500,000
Profit and loss reserves
8,670,912
10,905,180
Total equity
9,170,912
11,405,180
The financial statements were approved by the board of directors and authorised for issue on 5 May 2025 and are signed on its behalf by:
John L S Grant
Director
Company Registration No. SC088127
BROXBURN BOTTLERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
500,000
11,705,765
12,205,765
Year ended 31 December 2023:
Loss and total comprehensive income
-
(800,585)
(800,585)
Balance at 31 December 2023
500,000
10,905,180
11,405,180
Year ended 31 December 2024:
Loss and total comprehensive income
-
(2,234,268)
(2,234,268)
Balance at 31 December 2024
500,000
8,670,912
9,170,912
BROXBURN BOTTLERS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
768,936
230,273
Investing activities
Purchase of tangible fixed assets
(1,018,801)
(848,443)
Interest received
1,127
740
Net cash used in investing activities
(1,017,674)
(847,703)
Net decrease in cash and cash equivalents
(248,738)
(617,430)
Cash and cash equivalents at beginning of year
282,268
899,698
Cash and cash equivalents at end of year
33,530
282,268
BROXBURN BOTTLERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information

Broxburn Bottlers Limited is a private company limited by shares incorporated in Scotland. The registered office is 5 Drovers Road, East Mains Industrial Estate, Broxburn, West Lothian, EH52 5ND.

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
Going concern

The company prepares financial projections which fully incorporate expected changes in trading, costs, and working capital requirements. They make allowance for known and expected capital expenditure and other investing activities. The consequences of forecasted trading and investing activities are then tested against available cash.

 

Based on these projections the company will continue to operate within its current facilities. As a result of this, shareholder support, forecast expectation, and experience the directors are confident that the adoption of the assumption of going concern is applicable.

1.3
Turnover

The turnover shown in the profit and loss accounts represents amounts receivable for providing bottling and storage services during the period, exclusive of Value Added Tax. Sales are recognised at the point at which the company has fulfilled its contractual obligations and the risks and rewards attaching to the product, such as obsolescence, have been transferred to the customer.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Freehold property
2% straight line
Leasehold property
2% straight line
Plant and machinery
10 - 20% straight line
Equipment and fittings
10% straight line
Computer equipment
25% 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.

BROXBURN BOTTLERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.5
Impairment of fixed assets

The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

1.6
Stocks

Stocks are stated at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items.

1.7
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.

Debtors

Debtors with no stated interest rate or receivable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other operating expenses.

Creditors

Creditors with no stated interest rate and payable within one year are recorded at transaction price.

 

All interest bearing loans and borrowings which are basic financial instruments are initially recognised at the present value of cash payable. After initial recognition they are measured at amortised cost.

1.8
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.

1.9
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

BROXBURN BOTTLERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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 when the company has 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.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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.

1.11
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable. The assets of the scheme are held separately from those of the company in an independently administered fund.
1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income 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 lease asset are consumed.

1.13
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 in the period are included in profit or loss.

BROXBURN BOTTLERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
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, if the revision affects only that period, or in the period of the revision and future periods if 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.

Useful life of tangible assets

The company sets depreciation rates which reasonable reflect the probably economic life of an asset. The directors review the applicability of the policies used with reference to the returns generated by an asset, experience and judgement.

3
Turnover and other revenue

The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom.                        

4
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange gains
-
0
(316)
Depreciation of owned tangible fixed assets
1,268,979
1,311,982
Loss on disposal of tangible fixed assets
5,392
-
Operating lease charges
292,328
311,747
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
13,540
13,200
For other services
Taxation compliance services
1,235
1,200
All other non-audit services
1,500
1,400
2,735
2,600
BROXBURN BOTTLERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
6
Employees

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

2024
2023
Number
Number
Production staff
261
287
Administrative staff
32
31
Total
293
318

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
9,578,039
9,346,023
Social security costs
963,249
921,274
Pension costs
671,202
635,085
11,212,490
10,902,382
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
200,334
190,794
Company pension contributions to defined contribution schemes
34,786
30,886
235,120
221,680

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

Remuneration above relates to the highest paid director.

 

Please refer forward to note 19 for the disclosure of key management remuneration.

8
Interest receivable and similar income
2024
2023
£
£
Other interest income
1,127
740
BROXBURN BOTTLERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
9
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
(68,588)
215,930
Changes in tax rates
-
0
(6,240)
Total deferred tax
(68,588)
209,690

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

2024
2023
£
£
Loss before taxation
(2,302,856)
(590,895)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
(575,714)
(138,860)
Tax effect of expenses that are not deductible in determining taxable profit
4,724
-
0
Effect of changes in tax rates on deferred tax
-
0
(6,240)
Deferred tax asset not recognised
452,738
313,066
Permanent fixed asset differences
49,664
41,724
Taxation (credit)/charge for the year
(68,588)
209,690

As at the year end, the company had unutilised corporation tax losses of £2,923,777 (2023: £1,867,633). A deferred tax asset had not been recognised due to the uncertainty over the timing of their reversal.

BROXBURN BOTTLERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
10
Tangible fixed assets
Freehold property
Leasehold property
Plant and machinery
Equipment and fittings
Computer equipment
Total
£
£
£
£
£
£
Cost
At 1 January 2024
8,835,078
1,172,502
13,137,083
2,303,185
449,715
25,897,563
Additions
644,520
-
0
222,160
23,814
128,307
1,018,801
Disposals
-
0
-
0
-
0
(6,250)
-
0
(6,250)
At 31 December 2024
9,479,598
1,172,502
13,359,243
2,320,749
578,022
26,910,114
Depreciation and impairment
At 1 January 2024
2,510,626
103,338
9,300,856
1,366,044
249,328
13,530,192
Depreciation charged in the year
184,435
23,450
779,095
185,539
96,460
1,268,979
Eliminated in respect of disposals
-
0
-
0
-
0
(858)
-
0
(858)
At 31 December 2024
2,695,061
126,788
10,079,951
1,550,725
345,788
14,798,313
Carrying amount
At 31 December 2024
6,784,537
1,045,714
3,279,292
770,024
232,234
12,111,801
At 31 December 2023
6,324,452
1,069,164
3,836,227
937,141
200,387
12,367,371
11
Stocks
2024
2023
£
£
Raw materials and consumables
17,738
24,575
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,144,770
1,135,496
Amounts owed by group undertakings
9,601,885
11,842,401
Other debtors
1,569
169,988
Prepayments and accrued income
350,446
316,170
11,098,670
13,464,055
BROXBURN BOTTLERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Other borrowings
14
2,750,000
2,750,000
Trade creditors
986,901
1,715,971
Amounts owed to group undertakings
8,986,581
8,830,724
Taxation and social security
267,648
304,390
Other creditors
-
0
160
Accruals and deferred income
232,604
196,163
13,223,734
13,797,408
14
Loans and overdrafts
2024
2023
£
£
Loans from joint controlling entity
2,750,000
2,750,000
Payable within one year
2,750,000
2,750,000

No further advances were received in the current year. The total borrowings from the joint controlling entity is £2,750,000. Interest is currently suspended and will revert to 2% over Bank of Scotland base when conditions permit. The loan is unsecured and repayable on demand.

 

15
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
867,093
935,681
2024
Movements in the year:
£
Liability at 1 January 2024
935,681
Credit to profit or loss
(68,588)
Liability at 31 December 2024
867,093

Deferred tax has been provided for at the substantively enacted rate of 25% (2023: 25%).

BROXBURN BOTTLERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
671,202
635,085

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
500,000
500,000
500,000
500,000
18
Operating lease commitments

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

2024
2023
£
£
Within one year
248,248
270,977
Between two and five years
761,451
843,067
In over five years
958,884
1,099,537
1,968,583
2,213,581
19
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
93,234
921,758
20
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
681,486
612,415
BROXBURN BOTTLERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
20
Related party transactions
(Continued)
- 22 -
Transactions with related parties

During the year revenue from bottling services, bulk operations and warehouse rental was received from the joint controlling entities of £32,204,994 (2023: £36,066,775).

 

Management charges of £55,000 (2023: £50,000) were made by the joint controlling entities in the year.

 

Dry goods and materials to the value of £13,625,999 (2023: £16,466,066) were purchased from the joint controlling entities in the year.

 

At the year end the following balances were outstanding:

 

Amounts due to the joint controlling entities of £8,986,581 (2023: £8,830,724) and amounts due from the joint controlling entities of £9,658,752 (2023: £11,842,401).

 

A loan of £2,750,000 (2023: £2,750,000) is due to one of the joint controlling entities.

21
Cash generated from operations
2024
2023
£
£
Loss for the year after tax
(2,234,268)
(800,585)
Adjustments for:
Taxation (credited)/charged
(68,588)
209,690
Investment income
(1,127)
(740)
Loss on disposal of tangible fixed assets
5,392
-
Depreciation and impairment of tangible fixed assets
1,268,979
1,311,982
EBITDA
(1,029,612)
720,347
Movements in working capital:
Decrease in stocks
6,837
36,075
Decrease/(increase) in debtors
2,365,385
(2,610,750)
(Decrease)/increase in creditors
(573,674)
2,084,601
Cash generated from operations
768,936
230,273
22
Analysis of changes in net debt
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
282,268
(248,738)
33,530
Borrowings excluding overdrafts
(2,750,000)
-
(2,750,000)
(2,467,732)
(248,738)
(2,716,470)
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