Company Registration No. 12802464 (England and Wales)
BRAVE NEW SPIRITS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
BRAVE NEW SPIRITS LTD
COMPANY INFORMATION
Directors
Mr A Hochul
Mr D MacLennan
(Appointed 1 June 2025)
Company number
12802464
Registered office
Unit 254, Corinium House
Barnwood Point Business Park
Corinium Avenue
Gloucester
England
GL4 3HX
Accountants
Johnston Carmichael LLP
227 West George Street
Glasgow
G2 2ND
Auditors
Gillespie and Anderson Chartered Accountants
147 Bath Street
G2 4SN
Glasgow
United Kingdom
BRAVE NEW SPIRITS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 29
BRAVE NEW SPIRITS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

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

Overall Strategy

The shareholders, who work daily in the business, have considerable experience in the Scotch Industry, enabling us to develop a portfolio of premium single malts and blends that reflect our entrepreneurial flair. This part of the busiess augments the established, spirit trading operation, where extensive stock of fine scotch whiskies allows the Company to continue to grow our strong reputation in core markets. As a full service spirit company, we support all our clients from spirit production to final product and warehousing. This is complemented by a developing programme of capital investment across the business.

 

Review of Business

2024 saw the business deliver results that were consistent in many ways with the state of the scotch whisky market, where dips in turnover and profitability are the norm. However, the Shareholders and Board  were delighted with the result this year, as some of these negative impacts were minimised through the dedication and hard work of our team and network of partners in our supply chain.

 

Our brands continue to sell well in our key markets of the UK, Europe and the Far East in addition to expansion into new regions and developing new routes to market. Brand recognition has increased positively within the UK, with numerous rewards received in the 2024 Scotch Whisky Awards, as well as the prestigious honour of Spirits Bottler of the Year received in the Spirits Business Awards 2024. The business was delighted to received these accolades and recognition, particularly given the line of competitors which included many more established businesses.

Principal risks and uncertainties

The supply to over 40 markets worldwide means we need to stay abreast of a broad range of political, social and economic factors. Regular engagement with our local partners and network of professional advisors, allows to navigate and mitigate these risks.

 

Financial Risk Management

The Company is financed using various financial instruments, with the primary one being an asset based lending facility provided by HSBC. This instrument, as well as trade debtors and creditors, carry various financial risks noted below.

 

Currency Risk

We trade predominantly in Sterling, with a small percentage of business in Euro and US Dollars. Some of the exposure in this area is naturally reduced by purchases in the same currency. We consider the balance of risk to be immaterial.

 

Liquidity Risk

Challenges within the whisky environment over the last few years have meant liquidity is more of an issue across our supply chain and customer network. We operate banking facilities that allow us to have adequate resources to meet our obligations and mitigate these risks

 

Interest Rate Risk

With sizeable levels of borrowing in place to support our capital development and maturing stock programme, movements in rates are of particular interest to us. Our management considers the Company to have adequate levels of operating profit to cover charges within the long term and reducing interest rate environment.

 

Credit Risk

The Company uses a policy of payment in advance and other advantageous methods to manage credit risk from trade debtors. Trading history, reputation and reference are also considered when we establish a new relationship, which further reduces our exposure in this area.

- 1 -
BRAVE NEW SPIRITS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

On behalf of the board

Mr A Hochul
Director
29 August 2025
- 2 -
BRAVE NEW SPIRITS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

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

Principal activities

The principal activity of the company continued to be that of distilling, rectifying and blending of spirits.

Results and dividends

The results for the year are set out on page 10.

The directors paid dividend totalling £421,395 in the current financial year (2023: £388,000).

Directors

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

Mr A Hochul
Mr D MacLennan
(Appointed 1 June 2025)
Auditor

The auditor, Gillespie and Anderson, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Matters addressed in the Strategic Report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments, engagement with suppliers, customers and others and financial risk management objectives and policies where applicable.

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.

On behalf of the board
Mr A Hochul
Director
29 August 2025
- 3 -
BRAVE NEW SPIRITS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024

The directors are responsible for preparing the strategic report, directors' 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 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.

- 4 -
BRAVE NEW SPIRITS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BRAVE NEW SPIRITS LTD
Opinion

In our opinion the financial statements of Brave New Spirits Ltd (the 'Company'):

 

We have audited the financial statements which comprise:

 

 

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).

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 Financial Reporting Council's (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.

- 5 -
BRAVE NEW SPIRITS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BRAVE NEW SPIRITS LTD

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 the audit:

 

 

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 any material misstatements in the Director's Report.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:

 

 

We have nothing to report in respect of these matters.

Responsibilities of directors
- 6 -

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.

BRAVE NEW SPIRITS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BRAVE NEW SPIRITS LTD
Auditor responsibilities for the audit of the financial statements
- 7 -

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

 A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

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

To address the risk of fraud through management override of controls and management bias, we: assess the rationale behind significant or unusual transactions identified through audit testing and assess where management judgement used in determining accounting estimates were indicative of potential bias.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non- compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Director and other management and the inspection of regulatory and legal correspondence.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

 

Our approach and assessment were as follows:

 

The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

 

Enquire of management and review supporting documentation concerning the company's policies and procedures relating to:

 

BRAVE NEW SPIRITS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BRAVE NEW SPIRITS LTD

Extent to which the audit is considered capable of detecting irregularities, including fraud (continued)

 

Obtain an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included the Companies Act 2006 and Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, together with health and safety regulations, money laundering regulations, employment legislation and data protection legislation.

 

Discuss among the engagement team how and where irregularities might occur in the financial statements and potential indicators of fraud. Identify potential audit risks in relation to income recognition, authorisation of expenses and possible management override of controls.

 

Communicate relevant identified laws and regulations and potential irregularity risks to all engagement team members and remain alert to any indications of unusual items, fraud or non-compliance with laws and regulations throughout the audit.

 

Review all Minutes of Meetings of those charged with governance, Reports and correspondence with HMRC and legal advisers.

 

Perform audit testing which covers the audit assumptions of: existence, completeness, rights and obligations, accuracy and valuation in respect of income recognition and expenditure incurred.

 

Evaluate the overall presentation, structure and content of the financial statements, including disclosures, by performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to an irregularity or fraud. Agree financial statement disclosures to underlying documents.

 

Assess whether the financial statements represent the underlying transactions and events in a manner that achieves compliance with relevant laws and regulations.

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor's report.

- 8 -
BRAVE NEW SPIRITS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BRAVE NEW SPIRITS LTD

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.

Alastair Stewart BA (Hons) CA
For and on behalf of Gillespie and Anderson Chartered Accountants
29 August 2025
Chartered Accountants
Statutory Auditor
147 Bath Street
Glasgow
G2 4SN
- 9 -
BRAVE NEW SPIRITS LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
2024
2023
as restated
Notes
£
£
Turnover
2
8,148,028
17,587,008
Cost of sales
(3,847,858)
(12,215,585)
Gross profit
4,300,170
5,371,423
Administrative expenses
(2,715,012)
(1,602,146)
Other operating income
5,732
1,000
Operating profit
3
1,590,890
3,770,277
Interest receivable and similar income
696
836
Interest payable and similar expenses
7
(1,037,200)
(437,771)
Profit before taxation
554,386
3,333,342
Tax on profit
8
(33,740)
(960,299)
Profit for the financial year
520,646
2,373,043

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

- 10 -
BRAVE NEW SPIRITS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
2024
2023
as restated
£
£
Profit for the year
520,646
2,373,043
Other comprehensive income
-
-
Total comprehensive income for the year
520,646
2,373,043
- 11 -
BRAVE NEW SPIRITS LTD
BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
10
11,765
15,364
Tangible assets
11
2,559,090
2,475,937
2,570,855
2,491,301
Current assets
Stocks
12
21,467,401
15,243,388
Debtors
13
2,503,220
2,061,614
Cash at bank and in hand
196,844
49,016
24,167,465
17,354,018
Creditors: amounts falling due within one year
14
(16,984,065)
(6,823,305)
Net current assets
7,183,400
10,530,713
Total assets less current liabilities
9,754,255
13,022,014
Creditors: amounts falling due after more than one year
15
(2,519,836)
(5,886,846)
Provisions for liabilities
Deferred tax liability
17
120,256
120,256
(120,256)
(120,256)
Net assets
7,114,163
7,014,912
Capital and reserves
Called up share capital
19
900
900
Share premium account
27,592
27,592
Capital redemption reserve
200
200
Profit and loss reserves
7,085,471
6,986,220
Total equity
7,114,163
7,014,912
The financial statements were approved by the board of directors and authorised for issue on 29 August 2025 and are signed on its behalf by:
Mr A Hochul
Director
Company Registration No. 12802464
- 12 -
BRAVE NEW SPIRITS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
As restated for the period ended 31 August 2023:
Balance at 1 September 2022
900
27,592
200
5,001,177
5,029,869
Year ended 31 August 2023:
Profit and total comprehensive income for the year
-
-
-
2,373,043
2,373,043
Dividends
9
-
-
-
(388,000)
(388,000)
Balance at 31 August 2023
900
27,592
200
6,986,220
7,014,912
Year ended 31 August 2024:
Profit and total comprehensive income for the year
-
-
-
520,646
520,646
Dividends
9
-
-
-
(421,395)
(421,395)
Balance at 31 August 2024
900
27,592
200
7,085,471
7,114,163
- 13 -
BRAVE NEW SPIRITS LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
25
(3,953,228)
692,508
Interest paid
(1,037,200)
(419,425)
Income taxes paid
(924,362)
(454,346)
Net cash outflow from operating activities
(5,914,790)
(181,263)
Investing activities
Purchase of intangible assets
-
0
(16,925)
Purchase of tangible fixed assets
(419,090)
(2,595,179)
Director's loan advanced
(304,796)
(322,395)
Director's loan repaid
327,470
278,036
Interest received
696
836
Net cash used in investing activities
(395,720)
(2,655,627)
Financing activities
Repayment of borrowings
(11,341)
(333,450)
Proceeds of new bank loans
-
0
3,114,500
Repayment of bank loans
(7,060,419)
-
Dividends paid
(421,395)
(388,000)
Net cash (used in)/generated from financing activities
(7,493,155)
2,393,050
Net decrease in cash and cash equivalents
(13,803,665)
(443,840)
Cash and cash equivalents at beginning of year
(316,783)
127,057
Cash and cash equivalents at end of year
(14,120,448)
(316,783)
Relating to:
Cash at bank and in hand
196,844
49,016
Bank overdrafts included in creditors payable within one year
(14,317,292)
(365,799)
- 14 -
BRAVE NEW SPIRITS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
Company information

Brave New Spirits Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 254, Corinium House, Barnwood Point Business Park, Corinium Avenue, Gloucester, England, GL4 3HX.

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 directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

1.3
Turnover

Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. Turnover from the sale of goods is recognised when the goods are physically delivered to the customer. Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Where a contract has only been partially completed at the Balance Sheet date turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the Balance Sheet date. Where payments are received from the customers in advance of services provided, the amounts are recorded as deferred income and included as part of the creditors due within one year.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
Intangible fixed assets other than goodwill

Intangible assets are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Other intangible assets
5-10 years straight line
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

- 15 -
BRAVE NEW SPIRITS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
10-30 years straight line
Plant and equipment
25% reducing balance
Fixtures and fittings
3 years straight line
Computer equipment
3 years straight line
Motor vehicles
25% reducing balance

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.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

 

Included in stock are amounts held under a lending platform that allows the Company to draw down funds against Cask stock. See Note 12 for further details.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks.

1.10
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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

- 16 -
BRAVE NEW SPIRITS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

- 17 -
BRAVE NEW SPIRITS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
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.

1.12
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.

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.

1.13
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.

1.14
Retirement benefits

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

- 18 -
BRAVE NEW SPIRITS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.16
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.

2
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Whisky sales
8,093,758
17,584,233
Warehouse
54,270
2,775
8,148,028
17,587,008
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
6,388,155
4,503,351
European Union
671,922
3,583,085
United States of America
80,265
23,911
Asia
1,007,686
9,476,661
8,148,028
17,587,008
2024
2023
£
£
Other significant revenue
Interest income
696
836
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(84,156)
(2,947)
Research and development costs
45,656
16,577
Depreciation of owned tangible fixed assets
335,937
146,792
Amortisation of intangible assets
3,599
2,703
Operating lease charges
25,225
19,347
- 19 -
BRAVE NEW SPIRITS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
4
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
15,000
15,000
5
Employees

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

2024
2023
Number
Number
Administrative
24
12
Warehouse and operations
3
3
Total
27
15

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,075,526
508,481
Social security costs
109,706
47,592
Pension costs
20,590
8,353
1,205,822
564,426
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
8,844
16,874
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,025,728
419,424
Other finance costs:
Other interest
11,472
18,347
1,037,200
437,771
- 20 -
BRAVE NEW SPIRITS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
33,740
846,524
Deferred tax
Origination and reversal of timing differences
-
0
113,775
Total tax charge
33,740
960,299

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

2024
2023
£
£
Profit before taxation
554,386
3,333,342
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.52%)
138,597
717,335
Tax effect of expenses that are not deductible in determining taxable profit
-
0
242,964
Tax effect of income not taxable in determining taxable profit
(104,857)
-
0
Taxation charge for the year
33,740
960,299
9
Dividends
2024
2023
£
£
Final paid
421,395
388,000
- 21 -
BRAVE NEW SPIRITS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
10
Intangible fixed assets
Other intangible assets
£
Cost
At 1 September 2023 and 31 August 2024
18,067
Amortisation and impairment
At 1 September 2023
2,703
Amortisation charged for the year
3,599
At 31 August 2024
6,302
Carrying amount
At 31 August 2024
11,765
At 31 August 2023
15,364
11
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 September 2023
1,892,333
299,529
242,954
33,013
166,114
2,633,943
Additions
58,355
299,911
5,978
4,846
50,000
419,090
At 31 August 2024
1,950,688
599,440
248,932
37,859
216,114
3,053,033
Depreciation and impairment
At 1 September 2023
58,246
27,966
33,878
13,691
24,225
158,006
Depreciation charged in the year
71,101
124,657
81,615
11,173
47,391
335,937
At 31 August 2024
129,347
152,623
115,493
24,864
71,616
493,943
Carrying amount
At 31 August 2024
1,821,341
446,817
133,439
12,995
144,498
2,559,090
At 31 August 2023
1,834,087
271,563
209,076
19,322
141,889
2,475,937
12
Stocks
2024
2023
as restated
£
£
Finished goods and goods for resale
21,467,401
15,243,388
- 22 -
BRAVE NEW SPIRITS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
7,223
1,420,398
Other debtors
1,618,799
581,218
Prepayments and accrued income
57,601
59,998
1,683,623
2,061,614
2024
2023
Amounts falling due after more than one year:
£
£
Trade debtors
819,597
-
0
Total debtors
2,503,220
2,061,614

Included in other debtors are amounts due from the directors of £54,626 (2023: £77,299). See note 22 for movements in year.

 

Included in other debtors are amounts of £1,515,864 (2023: £465,383), due from Witchburn Distillery Ltd, a connected company through common shareholders.

 

Loan to directors and connected companies are unsecured, interest free and have no fixed repayment terms.

 

Trade debtors are stated net of bad debt provisions of £4,784 (2023: £Nil).

- 23 -
BRAVE NEW SPIRITS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Stock Financing and Bank loans and overdrafts
16
14,404,792
2,419,658
Other borrowings
16
-
0
11,341
Trade creditors
1,398,905
2,300,995
Corporation tax
880,014
1,770,636
Other taxation and social security
34,719
24,477
Other creditors
200,924
200,028
Accruals and deferred income
64,711
96,170
16,984,065
6,823,305

 

Stock financing and bank loans/overdrafts include borrowings from HSBC of £14,317,292 (2023:£nil), relating to a stock financing facility.

 

Stock financing and bank loans/overdrafts, due within 1 year and after 1 year, include amounts owed to HSBC that are repayable monthly, with interest charged at a rate of 2.25% above Bank of England base rate.

 

Included in other creditors are amounts of £156,134 (2023: 109,389) owed to a related party that is repayable on demand and does not bear interest.

 

Bank loans and overdrafts included amounts owed to Clydesdale Bank that were repayable monthly, with interest charged at a rate of 2.35% per annum above Bank of England base rate.

 

Bank loans and overdrafts included amounts owed to Clydesdale Bank in relation to a General Export Facility Loan that was repayable January 2025 with interest being charged and payable monthly in arears at a rate of 2.25% per annum over Bank of England base rate.

 

Bank loans and overdrafts included amounts owed to Clydesdale Bank in relation to a Revolving Credit Facility that was repayable by September 2026, with interest being charged and payable monthly in arears at a rate of 2.25% per annum over Bank of England base rate, with a non utilisation fee of 0.65% per annum above Bank of England base rate.

 

Amounts owed to Glen Strath PTE Ltd were repayable on demand, with fixed interest of £250,000 over the period of the loan.

15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
792,786
5,886,846
Trade creditors
1,727,050
-
0
2,519,836
5,886,846
- 24 -
BRAVE NEW SPIRITS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
16
Loans and overdrafts
2024
2023
£
£
Bank loans
880,286
7,940,705
Stock Financing and Bank overdrafts
14,317,292
365,799
Other loans
-
0
11,341
15,197,578
8,317,845
Payable within one year
14,404,792
2,430,999
Payable after one year
792,786
5,886,846

See note 24 for details of securities given.

17
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
120,256
120,256
There were no deferred tax movements in the year.

 

18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
20,590
8,353

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.

 

Contributions totalling £4,859 (2023: £3,104) were payable to the plan at the reporting date and are included in creditors.

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
900
900
900
900
- 25 -
BRAVE NEW SPIRITS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
19
Share capital
(Continued)

The Company's other reserves are as follows:

 

The share premium reserve contains the premium arising on issue of equity shares, net of issue expenses.

 

The profit and loss reserve represents cumulative profits or losses, net of dividends paid and other adjustments.

 

The capital redemption reserve represents amounts arising from the purchase of own share capital.

20
Operating lease commitments
Lessee

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
40,428
19,395
Between two and five years
161,712
-
0
In over five years
848,988
-
0
1,051,128
19,395
21
Related party transactions
2024
2023
Amounts due to related parties
£
£
Shareholders Loan
156,135
109,389
2024
2023
Amounts due from related parties
£
£
Witchburn Distillery Ltd
1,515,864
465,383

Amounts due from Witchburn Distillery Ltd, a connected company through common shareholdering, as at 31 August 2024, was £1,515,864 (2023: £465,383). Within the financial year there were amounts advanced of £1,050,481 with no repayments.

 

Loans from connected companies are unsecured, interest free and have no fixed repayment terms.

- 26 -
BRAVE NEW SPIRITS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
22
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Directors' Loan Account
-
77,299
304,797
(327,470)
54,626
77,299
304,797
(327,470)
54,626
23
Ultimate controlling party

The company is controlled by its shareholders, Adam Hochul and Alexander Springensguth.

24
Security

Standard Security granted on 20 October 2022 in favour of Clydesdale Bank Plc over 331 Charles Street, Glasgow in respect of all present and future obligations of the company. Contains a negative pledge. This charge was satisfied in full on the 10 June 2024.

 

Charge granted on 13 October 2021 in favour of HSBC Bank Plc over cash deposit lodged with HSBC Bank Plc in respect of any amounts owed by the company. Contains a negative pledge.

 

Debenture granted on 4 March 2022 in favour of Clydesdale Bank Plc over the whole of the property, assets and rights (including uncalled capital) which are or may from time to time while this Debenture is in force be compromised in the property and undertakings of the company. Contains a negative pledge. This charge was satisfied in full on 10 June 2024.

 

The following additional charges were issued in this financial year:

 

Debenture granted on 5 June 2024 in favour of HSBC Invoice Finance (UK) Limited. Contains a fixed and floating charge. The floating charge is over all property or undertakings of the company. Contains a negative charge.

 

Assignment of contract monies granted on 5 June 2024 in favour of HSBC Bank Plc. By Brave New Spirits Ltd and Witchburn Distillery Ltd in respect of a debt purchase agreement. Contains a fixed charge and a negative pledge.

 

Debenture granted on 5 June 2024 in favour of HSBC Bank Plc. Contains a fixed and floating charge. The floating charge is over all property or undertakings of the company. Contains a negative charge.

 

Standard Security granted on 12 June 2024 in favour of HSBC UK Bank Plc over all and whole subjects lying to the north of 331 Charles Street, Glasgow, G21 2RD.

 

Cross Guarantee in favour of HSBC UK Bank Plc by Brave New Spirits Ltd and Witchburn Distillery Ltd.

- 27 -
BRAVE NEW SPIRITS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
25
Cash (absorbed by)/generated from operations
2024
2023
as restated
£
£
Profit for the year after tax
520,646
2,373,043
Adjustments for:
Taxation charged
33,740
960,299
Finance costs
1,037,200
437,771
Investment income
(696)
(836)
Amortisation and impairment of intangible assets
3,599
2,703
Depreciation and impairment of tangible fixed assets
335,937
146,792
Movements in working capital:
Increase in stocks
(6,224,013)
(3,762,938)
Increase in debtors
(464,280)
(958,104)
Increase in creditors
804,639
1,493,778
Cash (absorbed by)/generated from operations
(3,953,228)
692,508
26
Analysis of changes in net debt
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
49,016
147,828
196,844
Stock Financing and Bank overdrafts
(365,799)
(13,951,493)
(14,317,292)
(316,783)
(13,803,665)
(14,120,448)
Borrowings excluding overdrafts
(7,952,046)
7,071,760
(880,286)
(8,268,829)
(6,731,905)
(15,000,734)
27
Prior period adjustment
Reconciliation of changes in equity
1 September
31 August
2022
2023
£
£
Adjustments to prior year
-
(1,329,915)
Equity as previously reported
5,029,869
8,344,827
Equity as adjusted
5,029,869
7,014,912
Analysis of the effect upon equity
Profit and loss reserves
-
(1,329,915)
- 28 -
BRAVE NEW SPIRITS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
27
Prior period adjustment
(Continued)
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
(1,329,915)
Profit as previously reported
3,702,958
Profit as adjusted
2,373,043
It was found that stock was overstated as at 31 August 2023 by the value of £1,329,915.
- 29 -
2024-08-312023-09-01falsefalsefalseCCH SoftwareCCH Accounts Production 2025.100Mr A HochulMr D MacLennan128024642023-09-012024-08-3112802464bus:Director12023-09-012024-08-3112802464bus:Director22023-09-012024-08-3112802464bus:RegisteredOffice2023-09-012024-08-31128024642024-08-31128024642022-09-012023-08-3112802464core:RetainedEarningsAccumulatedLosses2022-09-012023-08-3112802464core:RetainedEarningsAccumulatedLosses2023-09-012024-08-3112802464core:OtherResidualIntangibleAssets2024-08-3112802464core:OtherResidualIntangibleAssets2023-08-3112802464core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2024-08-3112802464core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-08-31128024642023-08-3112802464core:LandBuildingscore:OwnedOrFreeholdAssets2024-08-3112802464core:PlantMachinery2024-08-3112802464core:FurnitureFittings2024-08-3112802464core:ComputerEquipment2024-08-3112802464core:MotorVehicles2024-08-3112802464core:LandBuildingscore:OwnedOrFreeholdAssets2023-08-3112802464core:PlantMachinery2023-08-3112802464core:FurnitureFittings2023-08-3112802464core:ComputerEquipment2023-08-3112802464core:MotorVehicles2023-08-3112802464core:CurrentFinancialInstrumentscore:WithinOneYear2024-08-3112802464core:CurrentFinancialInstrumentscore:WithinOneYear2023-08-3112802464core:Non-currentFinancialInstrumentscore:AfterOneYear2024-08-3112802464core:Non-currentFinancialInstrumentscore:AfterOneYear2023-08-3112802464core:CurrentFinancialInstruments2024-08-3112802464core:CurrentFinancialInstruments2023-08-3112802464core:Non-currentFinancialInstruments2024-08-3112802464core:Non-currentFinancialInstruments2023-08-3112802464core:ShareCapital2024-08-3112802464core:ShareCapital2023-08-3112802464core:SharePremium2024-08-3112802464core:SharePremium2023-08-3112802464core:CapitalRedemptionReserve2024-08-3112802464core:CapitalRedemptionReserve2023-08-3112802464core:RetainedEarningsAccumulatedLosses2024-08-3112802464core:RetainedEarningsAccumulatedLosses2023-08-3112802464core:ShareCapital2022-08-3112802464core:SharePremium2022-08-3112802464core:CapitalRedemptionReserve2022-08-3112802464core:RetainedEarningsAccumulatedLosses2022-08-31128024642022-08-3112802464core:ShareCapitalOrdinaryShareClass12024-08-3112802464core:ShareCapitalOrdinaryShareClass12023-08-311280246412023-09-012024-08-311280246412022-09-012023-08-311280246422023-09-012024-08-31128024642023-08-3112802464core:WithinOneYear2024-08-3112802464core:WithinOneYear2023-08-3112802464core:IntangibleAssetsOtherThanGoodwill2023-09-012024-08-3112802464core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-09-012024-08-3112802464core:LandBuildingscore:OwnedOrFreeholdAssets2023-09-012024-08-3112802464core:PlantMachinery2023-09-012024-08-3112802464core:FurnitureFittings2023-09-012024-08-3112802464core:ComputerEquipment2023-09-012024-08-3112802464core:MotorVehicles2023-09-012024-08-3112802464core:UKTax2023-09-012024-08-3112802464core:UKTax2022-09-012023-08-3112802464core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-08-3112802464core:LandBuildingscore:OwnedOrFreeholdAssets2023-08-3112802464core:PlantMachinery2023-08-3112802464core:FurnitureFittings2023-08-3112802464core:ComputerEquipment2023-08-3112802464core:MotorVehicles2023-08-3112802464bus:OrdinaryShareClass12023-09-012024-08-3112802464bus:OrdinaryShareClass12024-08-3112802464bus:OrdinaryShareClass12023-08-3112802464core:BetweenTwoFiveYears2024-08-3112802464core:BetweenTwoFiveYears2023-08-3112802464core:MoreThanFiveYears2024-08-3112802464core:MoreThanFiveYears2023-08-3112802464bus:PrivateLimitedCompanyLtd2023-09-012024-08-3112802464bus:FRS1022023-09-012024-08-3112802464bus:Audited2023-09-012024-08-3112802464bus:FullAccounts2023-09-012024-08-31xbrli:purexbrli:sharesiso4217:GBP