| REGISTERED NUMBER: |
| STRATEGIC REPORT, |
| REPORT OF THE DIRECTOR AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| FOR |
| DRINKS WHOLESALE GROUP LTD |
| REGISTERED NUMBER: |
| STRATEGIC REPORT, |
| REPORT OF THE DIRECTOR AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| FOR |
| DRINKS WHOLESALE GROUP LTD |
| DRINKS WHOLESALE GROUP LTD (REGISTERED NUMBER: 01839722) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Director | 4 |
| Report of the Independent Auditors | 6 |
| Profit & Loss Account | 10 |
| Other Comprehensive Income | 11 |
| Balance Sheet | 12 |
| Statement of Changes in Equity | 13 |
| Cash Flow Statement | 14 |
| Notes to the Cash Flow Statement | 15 |
| Notes to the Financial Statements | 16 |
| DRINKS WHOLESALE GROUP LTD |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| DIRECTOR: |
| SECRETARIES: |
| H S Kataria |
| A S Madan |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants |
| Statutory Auditors |
| 9 Berners Place |
| London |
| W1T 3AD |
| BANKERS: |
| One Churchill Place |
| London |
| E14 5HP |
| HOLDING COMPANY: |
| DRINKS WHOLESALE GROUP LTD (REGISTERED NUMBER: 01839722) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| The director presents his strategic report for the year ended 30 June 2024. |
| BUSINESS DEVELOPMENT |
| The company was incorporated on 9 August 1984. |
| REVIEW OF BUSINESS |
| The results for the year and financial position of the company are shown in the annexed financial statements. |
| Turnover of the business for the year ended 30 June 2024 was £45.82 million (2023: £38.80 million). |
| Profit for the financial year after taxation amounted to £287,499 (2023:£83,392). |
| On 14th April 2025 the company change its name from Elbrook (Cash & Carry) Limited to Drinks Wholesale Group Ltd. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The principal risks and uncertainties are: |
| Management risks |
| The management of the company is tightly controlled by the director. Strategic matters and future development decisions are carried out by the director. |
| Credit risks |
| The company is exposed to considerable credit given to its customers, many of whom are not well established. |
| Regulatory risks |
| The Company 's activities are subject to certain regulations around health and safety. The Company has detailed policies and training plans in place for employees to ensure compliance with regulations. |
| Liquidity risks |
| The Company's view is that any exposure to liquidity risk is small. The Company has committed facilities which management believes are adequate for operational requirements and any planned expansion & business development. The cash flow and working capital requirement of the business is strictly monitored by the Director on a regular basis. |
| Supply risk |
| The Company has a broad supplier base to ensure orderly continuity of supply of products. |
| Commercial risk |
| The marketplace is competitive, hence there is a risk of business loss. To mitigate against this risk we have established a wide portfolio of customers, and continually focus on value, service & quality to ensure we retain those customers. |
| Financial risks |
| See Financial Instruments. |
| COMPANY'S POLICY ON PAYMENT OF CREDITORS |
| The company's current policy concerning the payment of trade creditors is dictated by the large breweries who have their own terms. On average the company obtains 2 weeks to 3 weeks of credit. |
| DRINKS WHOLESALE GROUP LTD (REGISTERED NUMBER: 01839722) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| KEY PERFORMANCE INDICATORS |
| The board of directors uses both financial and non-financial performance indicators to review the company's position. |
| The main financial performance indicators are: |
| 2024 | 2023 |
| Gross profit to turnover | 4.59% | 5.03% |
| Net profit/(loss) before tax to turnover | 0.63% | 0.21% |
| Current ratio | 129.13% | 134.87% |
| Receivable turnover ratio | 14 days | 9 days |
| Trading ratio | 15.20% | 16.58% |
| Gearing ratio | - | - |
| Net cash balances | £508K | £474K |
| The non financial indicators are: |
| Supplier confidence |
| The company maintains an excellent relationship with all its suppliers. |
| Customer satisfaction |
| The company's customers are mainly based in the UK. The company aims to maintain good relationships with all its customers |
| Employee relationship |
| The company operates non discriminatory policies on the employment and welfare of staff. Health and safety policies are strictly adhered to by ensuring staff are properly trained in handling goods & heavy packaging and operating machinery. The employee/manager relationship and complaint procedures are regularly reviewed by management. The company also maintains a healthy and productive relationship with its employees. |
| ON BEHALF OF THE BOARD: |
| 21 July 2025 |
| DRINKS WHOLESALE GROUP LTD (REGISTERED NUMBER: 01839722) |
| REPORT OF THE DIRECTOR |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| The director presents his report with the financial statements of the company for the year ended 30 June 2024. |
| PRINCIPAL ACTIVITY |
| The principal activity of the company in the year under review was that of the wholesale cash and carry of alcohol and general groceries, and the wholesale supply of alcohol. |
| DIVIDENDS |
| The total distribution of dividends for the period ended 30 June 2024 was £Nil (2023: £Nil). |
| FUTURE DEVELOPMENTS |
| The company expects to maintain its relationship with its suppliers and the loyalty of its customers and hopes to continue exploring new markets. |
| DIRECTOR |
| FINANCIAL INSTRUMENTS |
| The company's principal financial instruments comprises bank balances, trade creditors and bank loans. The main purposes of these instruments is to raise funds for the company's investments and operations. |
| Due to the nature of the financial instruments there is little exposure to price risks. |
| The trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet the amounts due. |
| Bank loans are secured on the properties held by the company and is therefore exposed to property valuation risks. |
| EVENTS SINCE THE BALANCE SHEET DATE |
| No events of note has taken place since balance sheet date. |
| RELATED PARTY TRANSACTIONS |
| Other than stated in note 20 & 21 to the financial statements, none of the directors had any other material interests at any time during the year in any contracts of significance in relation to the business of the company. |
| TAXATION STATUS |
| The company is a close company within the provisions of the Income and Corporation Taxes Act 2010. |
| FIXED ASSETS |
| Changes in fixed assets are shown in notes 9 and 10 to the financial statement. |
| DRINKS WHOLESALE GROUP LTD (REGISTERED NUMBER: 01839722) |
| REPORT OF THE DIRECTOR |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
| The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
| Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| AUDITORS |
| The auditors, Mehta & Tengra, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| DRINKS WHOLESALE GROUP LTD |
| Qualified Opinion |
| We have audited the financial statements of Drinks Wholesale Group Ltd (the 'company') for the year ended 30 June 2024 which comprise the Profit & Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion, except for the possible effects of the matters described in the Basis for Qualified Opinion paragraph, the financial statements: |
| -give a true and fair view of the state of the company's affairs as at 30 June 2024 and its profit for the year then ended; |
| -have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| -have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for qualified opinion |
| As a result of staff shortage at the warehouse, a physical stock take was not conducted at 30 June 2024 and we had to rely on the list of stock items produced from the company's stock control software. |
| However, we were able to satisfy ourselves on the values by other audit procedures and we also conducted further tests on the stock quantities at a later date. |
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
| 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. |
| In connection with our audit of the financial statements, 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 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| DRINKS WHOLESALE GROUP LTD |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of director's remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of director |
| As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| DRINKS WHOLESALE GROUP LTD |
| Auditors' 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 a Report of the Auditors 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. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| In identifying and assessing risks of material misstatements in respect of irregularities, including fraud and |
| non-compliance and regulations, we considered the following: |
| - the nature of the industry and sector, control environment and business performance including the design of company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets. |
| - results of our enquiries of management about their own identification and assessment of the risks and |
| irregularities; |
| - any matters we identified having obtained and reviewed the company's documentation of their policies and |
| procedures relating to: |
| - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances |
| of non-compliance; |
| - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or |
| alleged fraud; |
| - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
| As a result of these procedures, we considered the opportunities and incentives that may exist within the |
| organisation for fraud and identified that greatest potential for fraud is revenue recognition. In common with all |
| audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of |
| management override. |
| We also obtained an understanding of the legal and regulatory framework that the company operates in, |
| focusing on provisions of those laws and regulations that had a direct effect on the determination of material |
| amounts and disclosures in the financial statements. The key laws and regulations we considered in this context |
| include the UK Companies Act, pension legislation and tax legislation. |
| 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 for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| DRINKS WHOLESALE GROUP LTD |
| 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 a Report of the Auditors 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. |
| for and on behalf of |
| Chartered Accountants |
| Statutory Auditors |
| 9 Berners Place |
| London |
| W1T 3AD |
| DRINKS WHOLESALE GROUP LTD (REGISTERED NUMBER: 01839722) |
| PROFIT & LOSS ACCOUNT |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| TURNOVER | 4 |
| Cost of sales | ( |
) | ( |
) |
| GROSS PROFIT |
| Administrative expenses | ( |
) | ( |
) |
| OPERATING (LOSS)/PROFIT | 7 | ( |
) |
| Exceptional Item | 8 |
| PROFIT BEFORE TAXATION |
| Tax on profit | 9 |
| PROFIT FOR THE FINANCIAL YEAR |
| DRINKS WHOLESALE GROUP LTD (REGISTERED NUMBER: 01839722) |
| OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR |
| OTHER COMPREHENSIVE INCOME |
| Revaluation reserve realised |
| Revaluation reserve |
| Fair value reserve |
| Income tax relating to other comprehensive income |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
| DRINKS WHOLESALE GROUP LTD (REGISTERED NUMBER: 01839722) |
| BALANCE SHEET |
| 30 JUNE 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| FIXED ASSETS |
| Tangible assets | 10 |
| Investments | 11 |
| CURRENT ASSETS |
| Stocks | 12 |
| Debtors | 13 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 14 | ( |
) | ( |
) |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CAPITAL AND RESERVES |
| Called up share capital | 16 |
| Retained earnings | 17 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the director and authorised for issue on |
| DRINKS WHOLESALE GROUP LTD (REGISTERED NUMBER: 01839722) |
| STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| Called up | Revaluation |
| share | Retained | Revaluation | reserve - | Total |
| capital | earnings | reserve | realised | equity |
| £ | £ | £ | £ | £ |
| Balance at 1 July 2022 | ( |
) |
| Changes in equity |
| Profit for the year | - | 83,392 | - | - | 83,392 |
| Other comprehensive income | - | - | ( |
) | - |
| Total comprehensive income | - | ( |
) |
| Balance at 30 June 2023 |
| Changes in equity |
| Profit for the year | - | 287,499 | - | - | 287,499 |
| Total comprehensive income | - |
| Balance at 30 June 2024 |
| DRINKS WHOLESALE GROUP LTD (REGISTERED NUMBER: 01839722) |
| CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | ( |
) |
| Tax paid |
| Net cash from operating activities | ( |
) |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Net cash from investing activities | ( |
) | ( |
) |
| Increase/(decrease) in cash and cash equivalents | ( |
) |
| Cash and cash equivalents at beginning of year |
2 |
732,513 |
| Cash and cash equivalents at end of year |
2 |
508,985 |
474,897 |
| DRINKS WHOLESALE GROUP LTD (REGISTERED NUMBER: 01839722) |
| NOTES TO THE CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2024 | 2023 |
| £ | £ |
| Profit before taxation |
| Depreciation charges |
| 324,627 | 100,417 |
| Increase in stocks | ( |
) | ( |
) |
| Increase in trade and other debtors | ( |
) | ( |
) |
| Increase in trade and other creditors |
| Cash generated from operations | ( |
) |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 30 June 2024 |
| 30.6.24 | 1.7.23 |
| £ | £ |
| Cash and cash equivalents | 508,985 | 474,897 |
| Year ended 30 June 2023 |
| 30.6.23 | 1.7.22 |
| £ | £ |
| Cash and cash equivalents | 474,897 | 732,513 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1.7.23 | Cash flow | At 30.6.24 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 474,897 | 34,088 | 508,985 |
| 474,897 | 508,985 |
| Total | 474,897 | 34,088 | 508,985 |
| DRINKS WHOLESALE GROUP LTD (REGISTERED NUMBER: 01839722) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| 1. | CONTINUING AND DISCONTINUED EXPENDITURE |
| The majority of the expenditure is incurred by the continuing operation of the cash and carry trade. |
| It is difficult to identify expenses relating to discontinuing operations. |
| Therefore, the expenditure of the discontinued trade is included within the continuing expenditure. |
| 2. | STATUTORY INFORMATION |
| Drinks Wholesale Group Ltd is a |
| 3. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| The financial statements have been prepared in accordance with applicable Accounting Standards in the United Kingdom. A summary of more important policies which have been applied consistently is set out below: |
| Turnover |
| Turnover represents amounts receivable for goods and services net of VAT and trade discounts. |
| Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. |
| Tangible fixed assets |
| Plant & machinery | - 10% per annum on cost straight line |
| Fixtures & fittings | - 10% per annum on cost straight line |
| Motor vehicles | - 25% per annum on written down value |
| Office equipment | - 10% per annum on cost straight line |
| Impairment of assets |
| At each reporting date fixed assets are reviewed to determine whether there is any indication that those asset have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss. |
| If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss. |
| DRINKS WHOLESALE GROUP LTD (REGISTERED NUMBER: 01839722) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Stocks |
| Stocks are stated at the lower of cost and net realisable value,after making due allowance for obsolete and slow moving stock. |
| 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. Net realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. |
| Deferred tax |
| Deferred tax assets are only 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. |
| If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed. |
| Deferred tax is recognised when income or expenses from an associate have been recognised, and will be assessed for tax in a future period, except where: |
| - it is probable that the timing difference will not reverse in the foreseeable future. |
| A deferred tax liability or asset is recognised for the additional tax that will be paid or avoided in respect of assets and liabilities that are recognised in a business combination. The amount attributed to goodwill is adjusted by the amount of deferred tax recognised. |
| Deferred tax is calculated using the tax rates and laws that that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. |
| With the exception of changes arising on the initial recognition of a business combination , the tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income). |
| Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. Deferred tax asset and deferred tax liabilities are offset only if: |
| - the company has a legally enforceable right to set off current tax assets against current tax liabilities, and |
| - the deferred tax asset and deferred tax liabilities relate to income taxes levied by the same taxation |
| authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously |
| Taxation |
| Tax expense represents the sum of the tax currently payable and deferred tax. |
| The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period. |
| DRINKS WHOLESALE GROUP LTD (REGISTERED NUMBER: 01839722) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Foreign currencies |
| Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the income statement. Non- monetary assets and liabilities that are measured in terms of the historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. |
| Long term monetary items are translated at the year end rate. |
| The assets and liabilities of foreign operations arising on consolidation are translated at foreign exchange rates ruling at the balance sheet date. The revenues and expenses of foreign operations are translated at an average rate for the period where this rate approximates to the foreign exchange rates ruling at the dates of the transactions. |
| Hire purchase and leasing commitments |
| Rental paid under operating lease are charged to profit & loss on a straight line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The company operates a small self administered pension scheme for its directors. The pension scheme is a defined contribution scheme, the assets of which are held separately from the company in an independently administered fund. |
| The company also operates a defined contribution scheme for its staff under "auto enrolment" |
| Going concern |
| The directors have acknowledged the latest guidance on going concern. Whilst the current volatility in financial markets has created general uncertainty, the company has financial resources in excess of its liabilities. As a consequence, the directors believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook. |
| After making due enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. |
| Trade and other debtors |
| Trade and other debtors are initially recognised at fair value,less impairment losses for bad and doubtful debts. |
| Cash and cash equivalents |
| Cash and cash equivalents comprise cash at bank and on hand. |
| Provisions |
| Provisions are recognised when the company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligations and a reliable estimate can be made. |
| DRINKS WHOLESALE GROUP LTD (REGISTERED NUMBER: 01839722) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| 4. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the company. |
| An analysis of turnover by geographical market for the year ended 30 June 2023 is given below: |
| £ |
| Sales- U.K. | 38,808,342 |
| This analysis is not considered to be applicable to the year ended 30 June 2024. |
| 5. | EMPLOYEES AND DIRECTORS |
| 2024 | 2023 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 2024 | 2023 |
| Administration | 6 | 6 |
| Sales & warehouse | 18 | 19 |
| 6. | DIRECTORS' EMOLUMENTS |
| 2024 | 2023 |
| £ | £ |
| Directors' remuneration |
| Directors' emoluments include benefits in kind. |
| 7. | OPERATING (LOSS)/PROFIT |
| The operating loss (2023 - operating profit) is stated after charging: |
| 2024 | 2023 |
| £ | £ |
| Hire of plant and machinery |
| Depreciation - owned assets |
| Auditors' remuneration |
| Auditors' remuneration for non audit work |
| Penalty Charges |
| DRINKS WHOLESALE GROUP LTD (REGISTERED NUMBER: 01839722) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| 8. | EXCEPTIONAL ITEM |
| 2024 | 2023 |
| £ | £ |
| Exceptional Item |
| This represents the reimbursement by the previous shareholders of the VAT penalty payable. |
| The penalty payable of £778,050 is included in the administrative expenses of the Profit and Loss account. |
| (see note 14 for further details). |
| 9. | TAXATION |
| Analysis of the tax charge |
| No liability to UK corporation tax arose for the year ended 30 June 2024 nor for the year ended 30 June 2023. |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2024 | 2023 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of |
| Effects of: |
| Expenses not deductible for tax purposes |
| Depreciation in excess/ (deficit) of capital allowances | (25,435 | ) | (25,854 | ) |
| purposes |
| investments |
| years |
| Trading losses | (177,019 | ) | 10,010 |
| Total tax charge | - | - |
| Tax effects relating to effects of other comprehensive income |
| There were no tax effects for the year ended 30 June 2024. |
| DRINKS WHOLESALE GROUP LTD (REGISTERED NUMBER: 01839722) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| 9. | TAXATION - continued |
| 2023 |
| Gross | Tax | Net |
| £ | £ | £ |
| Revaluation reserve realised |
| Revaluation reserve |
| Fair value reserve |
| - | - | - |
| 10. | TANGIBLE FIXED ASSETS |
| Fixtures |
| Plant and | and | Motor | Office |
| machinery | fittings | vehicles | equipment | Totals |
| £ | £ | £ | £ | £ |
| COST |
| At 1 July 2023 |
| Additions |
| Reclassification | ( |
) |
| At 30 June 2024 |
| DEPRECIATION |
| At 1 July 2023 |
| Charge for year |
| Reclassification | ( |
) |
| At 30 June 2024 |
| NET BOOK VALUE |
| At 30 June 2024 |
| At 30 June 2023 |
| 11. | FIXED ASSET INVESTMENTS |
| Unlisted |
| investments |
| £ |
| COST |
| At 1 July 2023 |
| and 30 June 2024 |
| NET BOOK VALUE |
| At 30 June 2024 |
| At 30 June 2023 |
| Unlisted Investment: |
| This represents 100 shares in Unitas Wholesale Limited, a buying consortium for independent retailers. |
| DRINKS WHOLESALE GROUP LTD (REGISTERED NUMBER: 01839722) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| 12. | STOCKS |
| 2024 | 2023 |
| £ | £ |
| Finished goods |
| 13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade debtors |
| Sundry debtors | 27,916 | 55,839 |
| Amounts due from holding |
| company | 330,075 | 330,075 |
| Vat recoverable | 205,510 | 205,510 |
| Deposits and HP interest | 22,739 | 18,052 |
| Amounts due from Vendor | 778,050 | - |
| Other debtors | 95,961 | 95,961 |
| Corporation tax recoverable | 44,450 | 44,450 |
| Corporation tax | 129,860 | 130,308 |
| VAT |
| Prepayments and accrued income |
| 14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade creditors |
| Amounts due to ultimate |
| holding company | 848,235 | 708,235 |
| Social security and other taxes |
| VAT | - | 13,987 |
| Other creditors |
| Deposits | 2,019 | 2,019 |
| Due to credit card companies | 335,345 | 460,383 |
| Accruals & deferred income |
| Provision for liability |
| The provision for liability which represented the outcome of the Vat tribunal case, ruled in favour of HMRC. |
| The company lost the appeal and VAT of £1,270,287 plus penalty of £778,050 will now be payable. |
| Interest will be payable and we are unable to ascertain the quantum. |
| The liability of £2,048,337 plus interest is the responsibility of the previous shareholders of the company and the purchase price will be reduced accordingly. |
| This amount will be reimbursed as stated in the Share Purchase Agreement attested on 22 July 2022. |
| In the financial statements for the year to 30.06.2024 we have incorporated the reimbursement for the penalty (reflected as amounts due from vendor) but not the VAT element which was provided for in the 2022 financial statements. |
| DRINKS WHOLESALE GROUP LTD (REGISTERED NUMBER: 01839722) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| 15. | SECURED DEBTS |
| Company Barclaycard Facility of GBP 300,000. |
| 16. | CALLED UP SHARE CAPITAL |
| Allotted and issued: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary shares | £1 | 1,000 | 1,000 |
| 17. | RESERVES |
| Retained |
| earnings |
| £ |
| At 1 July 2023 |
| Profit for the year |
| At 30 June 2024 |
| 18. | PENSION COMMITMENTS |
| The company operates a small self administered pension scheme for its directors. The pension scheme is a defined contribution scheme, the assets of which are held separately from the company in an independently administered fund. |
| The contribution for the year charged to profit and loss account amounted to £Nil (2023: £Nil). |
| The company also operates a defined contribution scheme for its staff under "auto enrolment" |
| The contribution for the year charged to the profit and loss account amounted to £8,296 (2023: £10,762). |
| The amounts outstanding at the balance sheet date was £1,729 (2023:£1,877). |
| 19. | ULTIMATE PARENT COMPANY |
| The company is 100% owned by Elbrook (Cash and Carry) Holdings Limited, a company registered in England & Wales. |
| Chawla and Gulati Property Investments Limited (incorporated in the UK) is the company's ultimate parent company. |
| DRINKS WHOLESALE GROUP LTD (REGISTERED NUMBER: 01839722) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2024 |
| 20. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to directors subsisted during the years ended 30 June 2024 and 30 June 2023: |
| 2024 | 2023 |
| £ | £ |
| F Khalid and A Khalid |
| Balance outstanding at start of year | - | 12,555 |
| Amounts repaid | - | (12,555 | ) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | - | - |
| 21. | RELATED PARTY DISCLOSURES |
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| 2024 | 2023 |
| £ | £ |
| Sales |
| Purchases |
| Amount due from related party - Trade Debtors |
| Amount due to related party - Trade Creditors |
| The above transactions are with the following companies: |
| Prince Cash and Carry Limited |
| All Drinks Cash and Carry Limited |
| Drinks Wholesale Limited |