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REGISTERED NUMBER: 08669158 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

THE DRINKS CLUB LTD

THE DRINKS CLUB LTD (REGISTERED NUMBER: 08669158)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


THE DRINKS CLUB LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2024







DIRECTORS: S G Randall
L J Hydleman





SECRETARY: D R Brady





REGISTERED OFFICE: Biddlesden Abbey
Biddlesden
Brackley
Northamptonshire
NN13 5TR





REGISTERED NUMBER: 08669158 (England and Wales)





AUDITORS: William Evans & Partners
20 Harcourt Street
London
W1H 4HG

THE DRINKS CLUB LTD (REGISTERED NUMBER: 08669158)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

PRINCIPAL ACTIVITY
The principal activity of the company is the wholesaling of alcoholic drinks

FAIR REVIEW OF THE BUSINESS
This has been a difficult year for the company, with a challenging economic climate and increased competition. Nevertheless there has continued to be growth in sales, but there has been pressure on margins so that the company's gross margin has slipped slightly. The company benefits from supplier confidence, dynamic systems, in-house logistics and exceptional staff and continues to build a strong reputation within London for service, reliability and product availability. Attention to detail has resulted in excellent client experience and this has driven the company's continued growth and increasing market share.

The Drinks Club's significant stock holding continues to allow amongst the highest levels of order fulfilment within the London Wholesale market. The well-resourced in house logistical team, in conjunction with low staff turnover, provides the clients with the highest levels of service. This strategy and commitment to service has helped customer retention, growth and loyalty.

The Directors believe that The Drinks Club is becoming the preferred supplier to the high-end London on-trade, and the management team at The Drinks Club have absolute confidence in the company's ability to continue growing and excelling in this sector.

KEY FINANCIAL PERFORMANCE INDICATORS
The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Turnover 2024: £38,535,428 (2023: £35,512,659)

Gross Profit 2024: 13.89% (2023: 15.26%)

Profit/(loss) before tax 2024 : £184,911(2023: £1,134,282)

Principal risks and uncertainties

At the present time, the economic climate seems increasingly uncertain with financial uncertainties, the imposition of international tariffs by the USA, the continuing war in Ukraine and the increase in tension in the Middle East. In addition the company faces greater competition in its market. Despite this the directors remain confident that the company has sufficient skill sets to overcome these problems ahead and to take opportunities that might arise from a disrupted market.


THE DRINKS CLUB LTD (REGISTERED NUMBER: 08669158)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

PRINCIPAL RISKS AND UNCERTAINTIES
The company continues to be focussed on growth. We are mindful of the risks attached to rapid growth and the ability to be able to continue with the upwards trend. The management team constantly monitor stock levels and working capital to ensure it is positioned to accept new business as it arrives and maintain the service levels enjoyed by the existing client base.

Impact of Brexit related risks

It has proved more difficult to import product from overseas with the whole process becoming time demanding and somewhat complicated when compared to pre-Brexit. Ordering product in a timely manner is a challenge as we try to anticipate the requirements of the clients to ensure continuity of supply. There is still an uncertainty as to when the product will be available to distribute once ordered so our clients are informed of the progress, to manage their expectations.

Credit risk

The company gives credit to its customers. The company manages the risk of default in payment by a strict application of credit limits and insistence on adherence to agreed credit limits..

ON BEHALF OF THE BOARD:





S G Randall - Director


14 July 2025

THE DRINKS CLUB LTD (REGISTERED NUMBER: 08669158)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the wholesaling of wines and spirits.and other beverages.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

S G Randall
L J Hydleman

DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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:

-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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are 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 each director 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
William Evans & Partners were appointed as auditors on 20th February 2025 following the resignation of CSH Consulting. A proposal for the reappointment of William Evans & Partners will be made at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





S G Randall - Director


14 July 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
THE DRINKS CLUB LTD

Opinion
We have audited the financial statements of The Drinks Club Ltd (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, 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 the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2024 and of 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 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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.

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 Directors 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 Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
THE DRINKS CLUB LTD


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 Directors.

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 directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page four, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
THE DRINKS CLUB 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:

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.

Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include employment law, Landlord and Tenant Act, fire safety and health and safety legislation.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

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.




Stephen William Evans (Senior Statutory Auditor)
for and on behalf of William Evans & Partners
20 Harcourt Street
London
W1H 4HG

14 July 2025

THE DRINKS CLUB LTD (REGISTERED NUMBER: 08669158)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

2024 2023
Notes £    £   

TURNOVER 38,535,428 35,512,659

Cost of sales (33,160,572 ) (30,093,345 )
GROSS PROFIT 5,374,856 5,419,314

Administrative expenses (5,115,897 ) (4,216,036 )
OPERATING PROFIT 5 258,959 1,203,278


Interest payable and similar expenses 6 (74,048 ) (68,996 )
PROFIT BEFORE TAXATION 184,911 1,134,282

Tax on profit 7 (176,012 ) (329,973 )
PROFIT FOR THE FINANCIAL YEAR 8,899 804,309

THE DRINKS CLUB LTD (REGISTERED NUMBER: 08669158)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 8,899 804,309


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

8,899

804,309

THE DRINKS CLUB LTD (REGISTERED NUMBER: 08669158)

BALANCE SHEET
31 DECEMBER 2024

2024 2023
Notes £    £   
FIXED ASSETS
Tangible assets 8 1,892,890 1,961,973

CURRENT ASSETS
Stocks 9 4,587,063 4,630,936
Debtors 10 4,731,160 4,200,960
Cash at bank 439,773 420,749
9,757,996 9,252,645
CREDITORS
Amounts falling due within one year 11 (8,937,357 ) (7,416,201 )
NET CURRENT ASSETS 820,639 1,836,444
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,713,529

3,798,417

CREDITORS
Amounts falling due after more than one
year

12

(581,659

)

(1,245,023

)

PROVISIONS FOR LIABILITIES 16 (449,000 ) (329,973 )
NET ASSETS 1,682,870 2,223,421

CAPITAL AND RESERVES
Called up share capital 17 1,327 550,777
Retained earnings 18 1,681,543 1,672,644
SHAREHOLDERS' FUNDS 1,682,870 2,223,421

The financial statements were approved by the Board of Directors and authorised for issue on 14 July 2025 and were signed on its behalf by:





S G Randall - Director


THE DRINKS CLUB LTD (REGISTERED NUMBER: 08669158)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2023 550,777 868,335 1,419,112

Changes in equity
Total comprehensive income - 804,309 804,309
Balance at 31 December 2023 550,777 1,672,644 2,223,421

Changes in equity
Issue of share capital (549,450 ) - (549,450 )
Total comprehensive income - 8,899 8,899
Balance at 31 December 2024 1,327 1,681,543 1,682,870

THE DRINKS CLUB LTD (REGISTERED NUMBER: 08669158)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,161,958 1,070,998
Interest paid (34,829 ) (42,889 )
Interest element of hire purchase payments
paid

(39,219

)

(26,107

)
Net cash from operating activities 1,087,910 1,002,002

Cash flows from investing activities
Purchase of tangible fixed assets (593,763 ) (1,143,781 )
Sale of tangible fixed assets 44,554 -
Net cash from investing activities (549,209 ) (1,143,781 )

Cash flows from financing activities
Loan by connected party 427,056 -
Loan repayments in year (248,355 ) -
Capital repayments in year (148,928 ) 174,848
Redemption of preference shares (549,450 ) -
Net cash from financing activities (519,677 ) 174,848

Increase in cash and cash equivalents 19,024 33,069
Cash and cash equivalents at beginning of
year

2

420,749

387,680

Cash and cash equivalents at end of year 2 439,773 420,749

THE DRINKS CLUB LTD (REGISTERED NUMBER: 08669158)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2024 2023
£    £   
Profit before taxation 184,911 1,134,282
Depreciation charges 628,978 468,355
Profit on disposal of fixed assets (10,686 ) -
Finance costs 74,048 68,996
877,251 1,671,633
Decrease/(increase) in stocks 43,873 (459,808 )
Increase in trade and other debtors (530,200 ) (1,053,485 )
Increase in trade and other creditors 771,034 912,658
Cash generated from operations 1,161,958 1,070,998

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 31 December 2024
31.12.24 1.1.24
£    £   
Cash and cash equivalents 439,773 420,749
Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 420,749 387,680


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24 Cash flow At 31.12.24
£    £    £   
Net cash
Cash at bank 420,749 19,024 439,773
420,749 19,024 439,773
Debt
Finance leases (925,721 ) 148,928 (776,793 )
Debts falling due within 1 year - (242,500 ) (242,500 )
Debts falling due after 1 year (566,480 ) 490,855 (75,625 )
(1,492,201 ) 397,283 (1,094,918 )
Total (1,071,452 ) 416,307 (655,145 )

THE DRINKS CLUB LTD (REGISTERED NUMBER: 08669158)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1. STATUTORY INFORMATION

The Drinks Club Ltd is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2016 and is registered in England and Wales. The company's registered number and registered office address can be found in the Company Information on page 1. The nature of the company's operations and its principle activities are set out in the Strategic Report on page 2.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared under the historical cost convention. The functional currency of the company is considered to be pounds sterling because that is the currency of the primary economic environment in which the company operates.

In the application of the company's accounting policies as described below, the Directors are required to make judgements (other than those involving estimations) that have a significant impact on the amounts recognised and to make estimates and assumptions about the carrying amounts 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.

Going concern

The company is dependent upon debt finance for the provision of working capital from Lloyds Bank Commercial Finance Limited. This company provides an invoice discounting facility and the Directors see no reason why this facility should not be renewed. The Directors consider that this debt facility will enable the company to continue trading after its normal fashion. Consequently the financial statements have been prepared on the going concern basis and that the company will continue in operational existence for the foreseeable future. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Significant judgements and estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years, presented, unless otherwise stated.

Revenue recognition
Revenue is measured at the fare value of the consideration received or receivable, for sales arising in the normal course of business during the year, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of intangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction, over their estimated useful lives, as follows:

Motor vehicles : 20% straight line method

Fixtures and fittings: Between 10% and 33% straight line method

THE DRINKS CLUB LTD (REGISTERED NUMBER: 08669158)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

3. ACCOUNTING POLICIES - continued

Stocks
Stocks are valued at the lower of cost or net realisable value. Cost is defined as the actual cost of purchase of stocks on a first - in, first - out basis, excluding overheads and transport. Provision is made for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in the foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non monetary items measured in terms of historical cost in a foreign currency are not retranslated.

THE DRINKS CLUB LTD (REGISTERED NUMBER: 08669158)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

3. ACCOUNTING POLICIES - continued

Operating leases and hire purchase commitments
The company expenses costs incurred under operating leases, that is leases under which substantially all the economic benefits of ownership remain with the lessor, evenly over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight - line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability of the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to receive a constant periodic rate of interest on the remaining balance of the liability.

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Defined pension obligation
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Funds are held by insurance companies independent of the company.

THE DRINKS CLUB LTD (REGISTERED NUMBER: 08669158)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

3. ACCOUNTING POLICIES - continued

Financial instruments
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

(i) Financial assets and liabilities

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Debt instruments which meet the conditions of being 'basic' financial instruments as defined in paragraph 11.9 of FRS 102 are subsequently measured at amortised cost using the effective interest method.

Debt instruments that have no stated interest rate (and do not constitute financing transaction) and are classified as payable or receivable within one year are initially measured at an undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

With the exception of some hedging instruments, other debt instruments not meeting conditions of being 'basic' financial instruments are measured at fair value through profit or loss.

Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
The company's main financial instruments are accounts receivable and accounts payable.

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 2,370,820 2,002,367
Social security costs 273,153 227,470
Other pension costs 37,789 34,644
2,681,762 2,264,481

The average number of employees during the year was as follows:
2024 2023

Total number of staff 42 36

THE DRINKS CLUB LTD (REGISTERED NUMBER: 08669158)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

4. EMPLOYEES AND DIRECTORS - continued

2024 2023
£    £   
Directors' remuneration 150,000 150,000
Directors' pension contributions to money purchase schemes 1,321 1,321

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Other operating leases 612,899 484,155
Depreciation - owned assets 628,978 468,355
Profit on disposal of fixed assets (10,686 ) -
Auditors' remuneration 30,000 9,000
Auditors' remuneration for non audit work - 1,450
Foreign exchange differences (22,975 ) (3,363 )

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank interest 34,829 42,889
Hire purchase 39,219 26,107
74,048 68,996

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 56,985 -

Deferred tax 119,027 329,973
Tax on profit 176,012 329,973

UK corporation tax has been charged at 25% .

THE DRINKS CLUB LTD (REGISTERED NUMBER: 08669158)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 184,911 1,134,282
Profit multiplied by the standard rate of corporation tax in the UK of
24.880% (2023 - 25%)

46,006

283,571

Effects of:
Expenses not deductible for tax purposes 7,729 5,603
Capital allowances in excess of depreciation - (158,030 )
Depreciation in excess of capital allowances 3,530 -
Losses brought forward from an earlier year (280 ) (131,144 )
Increase in provision for deferred tax 119,027 329,973
Total tax charge 176,012 329,973

8. TANGIBLE FIXED ASSETS
Fixtures
and Motor
fittings vehicles Totals
£    £    £   
COST
At 1 January 2024 1,523,193 1,514,174 3,037,367
Additions 447,048 146,715 593,763
Disposals (84,972 ) (127,280 ) (212,252 )
At 31 December 2024 1,885,269 1,533,609 3,418,878
DEPRECIATION
At 1 January 2024 637,369 438,025 1,075,394
Charge for year 332,989 295,989 628,978
Eliminated on disposal (84,104 ) (94,280 ) (178,384 )
At 31 December 2024 886,254 639,734 1,525,988
NET BOOK VALUE
At 31 December 2024 999,015 893,875 1,892,890
At 31 December 2023 885,824 1,076,149 1,961,973

9. STOCKS
2024 2023
£    £   
Stocks 4,587,063 4,630,936

THE DRINKS CLUB LTD (REGISTERED NUMBER: 08669158)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 4,419,635 3,980,859
Other debtors 1,000 -
Prepayments and accrued income 310,525 220,101
4,731,160 4,200,960

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 13) 242,500 -
Hire purchase contracts (see note 14) 270,759 247,178
Trade creditors 4,993,537 4,345,917
Loans and borrowings 2,379,313 2,395,058
Tax 56,985 -
Social security and other taxes 392,721 354,442
Other creditors 442,080 13,019
Accruals and deferred income 159,462 60,587
8,937,357 7,416,201

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank loans (see note 13) 75,625 566,480
Hire purchase contracts (see note 14) 506,034 678,543
581,659 1,245,023

13. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans 242,500 -

Amounts falling due between one and two years:
Bank loans - 1-2 years 75,625 566,480

THE DRINKS CLUB LTD (REGISTERED NUMBER: 08669158)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

14. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2024 2023
£    £   
Net obligations repayable:
Within one year 270,759 247,178
Between one and five years 506,034 678,543
776,793 925,721

15. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank loans 318,125 566,480
Invoice discounting loan 2,379,313 2,395,058
2,697,438 2,961,538

The company discounts its invoices and in addition has received bank loans. These loans are secured by a fixed and floating charges on all of the assets of the company.

16. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 449,000 329,973

Deferred
tax
£   
Balance at 1 January 2024 329,973
Provided during year 119,027
Balance at 31 December 2024 449,000

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
1,327 Ordinary shares £1 1,327 1,327
549,450 Cumulative Redeemable
Preference Shares £1 - 549,450
1,327 550,777

The 549,450 Cumulative Redeemable Preference Shares of £1 each were redeemed in full at par on 31st August 2024 for £549,450,

THE DRINKS CLUB LTD (REGISTERED NUMBER: 08669158)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2024

18. RESERVES
Retained
earnings
£   

At 1 January 2024 1,672,644
Profit for the year 8,899
At 31 December 2024 1,681,543

19. OTHER FINANCIAL COMMITMENTS

At 31st December 2024 the company had commitments under operating leases amounting to £273,288 ( 2023: £303,288).

20. ULTIMATE CONTROLLING PARTY

The controlling party is S G Randall.