REGISTERED NUMBER: NI072354 (Northern Ireland)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 March 2025

for

Bross Morrison's Ltd

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

Mr Sean Morrison

Mrs Dympna Morrison

SECRETARY:

Mrs Lana Morrison

REGISTERED OFFICE:

69/77 Belfast Road

Ballynahinch

Co. Down

BT24 8EB

REGISTERED NUMBER:

NI072354 (Northern Ireland)

AUDITORS:

M.B.Mc Grady & Co

Chartered Accountants

Statutory Auditors

Rathmore House

52 St Patricks Avenue

Downpatrick

Co. Down

BT30 6DS

The directors present their strategic report for the year ended 31 March 2025.

The principal activity of the Company during the year was that of a petrol station and supermarket.

REVIEW OF BUSINESS

The retail sector continues to remain under significant pressure throughout the financial year.

Effects of Ukraine-Russia War

The Russia- Ukraine war, started by Russia in late February 2022 has caused economic sanctions, supply chain disruptions, inflation, and reduced growth for many countries and regions.

Within Northern Ireland it has resulted in food and fuels imports in tight supply, a spike in costs and a subsequent cost of living crisis. Despite this fuel prices, have continued to decrease from highs throughout the summer of 2022, although uncertainty remiains.

The company has proved to be resilient despite these challenges. Turnover has grown slightly 0.6% to £16,193,775 although this was impacted by a drop in the price of fuel which caused a 15% decrease in fuel turnover. The cost of sales decreased by 0.9% to £12,761,038. Overall the profit after tax for the financial year was £312,778. This was mainly impacted by an increase in the cost of wages (up 10.3%) due to the minimum wage increase and an increase in repair and maintenance bills in the year (up 16.4%).

With the above results the director's are of the opinion that the company continues to be well placed to manage its business successfully through these tough economic times.

The director's have a reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future. Accordingly,they adopt the going concern basis in preparing the Annual Report and Financial Statements.

PRINCIPAL RISKS AND UNCERTAINTIES

The ongoing Ukraine-Russia war presents several key risks and uncertainties for retail companies, particularly in Europe. These include supply chain disruptions, rising energy costs, and inflation, all of which can increase operational expenses and reduce consumer spending. Currency volatility and evolving sanctions further complicate financial planning and compliance. Overall, the conflict creates a highly unpredictable environment that requires agile risk management and strategic planning.

The imposition of tariffs by U.S. President Donald Trump introduced several key risks and uncertainties for retail companies, particularly with any global supply chains. These tariffs, especially on goods from China and other major trading partners, led to increased import costs, squeezing profit margins and forcing many retailers to either absorb the costs or pass them on to consumers. This contributes to price volatility and potential shifts in consumer demand.

The principal risks arising from the retail business relate primarily to the effectiveness of the pricing policy and stock management of perishable goods.

The Company's operations also expose it to a variety of financial risks that include liquidity risk, credit risk, interest rate risk and foreign exchange risk. Although theses are not deemed to be significant the Company has risk management policies in place to manage the financial exposures.

Liquidity risk

The Company maintains adequate bank facilities to ensure sufficient short term finance for continuing operations.

Credit risk

The Company has implemented credit control policies that require appropriate checks on potential customers. Overall exposure to any customer is managed through credit limits.

Interest rate risk

The Company manages its exposure to interest rate risk by maintaining an appropriate balance of fixed and variable rate debt.

Foreign exchange risk

The company undertakes some transactions in foreign currencies, principally euros. The company does not enter into any formally designated hedging arrangements.

The process of risk identification and management is addressed by the Directors who are actively involved in the day to day management of the company.

DEVELOPMENT AND PERFORMANCE

The Directors' are committed to the development of Bross Morrison's Ltd and are actively seeking opportunities to increase the market share of the Company. Irrespective of income consumers have greater expectation of the goods and services they buy and are looking for quality, values and value from companies they can trust.

The company therefore aims to continue business growth through the development of existing customer relationships by increasing the product range, providing offers and discounts thus helping the household budget go further as well as investments in shop extensions and redevelopment.

FINANCIAL KEY PERFORMANCE INDICATORS

Financial Key Performance Indicators (kph) are disclosed as follows:

Gross Margin

21.20%

(2024 - 19.96%

)

Net Profit Margin

2.69%

(2024 - 3.37%

)

Debtors Days

1.19

(2024 - 0.98

)

Trading Ratio

3.00%

(2024 - 2.62%

)

Gearing

8.89%

(2024 - 15.46%

)

ON BEHALF OF THE BOARD:

Mrs Lana Morrison - Secretary

22 August 2025

The directors present their report with the financial statements of the company for the year ended 31 March 2025.

DIVIDENDS

The directors recommended a dividend of £1.43 per ordinary share.

The total distribution of dividends for the year ended 31 March 2025 will be £715.

DIRECTORS

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

Mr Sean Morrison

Mrs Dympna Morrison

POLITICAL DONATIONS AND EXPENDITURE

During the year the company did not make any political donations however the did make various donations totalling £13,146 to local charities..

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, M.B.Mc Grady & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs Lana Morrison - Secretary

22 August 2025

Opinion

We have audited the financial statements of Bross Morrison's Ltd (the 'company') for the year ended 31 March 2025 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 March 2025 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.

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 Statement of Directors' Responsibilities set out on page five, 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.

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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud

and non-compliance with laws and regulations, was 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;

- we identified the laws and regulations applicable to the company through discussions with directors and other

management, and from our commercial knowledge of the sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial

statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection,

anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of

management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to

instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an

understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of

actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for

fraud and identified the greatest potential for fraud is in relation to stock valuations and cut off procedures. In common

with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of

management override.

Audit response to risks identified.

The current audit is conducted with professional skepticism using procedures that are in accordance with International

Standards on Auditing.

In responding to the identified key audit matter above we obtained an understanding of the key controls relating to stock

management and the review and approval of the inventory process including cut off, performed enquires of management and inspected relevant documents and calculations, attending the year end stocktake, completing a recalculation of a sample of stock and perform independent cut off tests, assessing the completeness and accuracy of disclosures within the financial statements and concurred the figure was materially accurate.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in the notes were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which

included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the

company's legal advisors.

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 directors and

other management and the inspection of regulatory and legal correspondence, if any.

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.

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.

Malachy B McGrady (Senior Statutory Auditor)

for and on behalf of M.B.Mc Grady & Co

Chartered Accountants

Statutory Auditors

Rathmore House

52 St Patricks Avenue

Downpatrick

Co. Down

BT30 6DS

22 August 2025

TURNOVER

16,193,775

16,093,559

Cost of sales

(12,761,038

)

(12,881,145

)

GROSS PROFIT

3,432,737

3,212,414

Administrative expenses

(3,027,434

)

(2,695,225

)

405,303

517,189

Other operating income

2,252

2,897

OPERATING PROFIT

5

407,555

520,086

Interest receivable and similar income

28,607

22,734

PROFIT BEFORE TAXATION

436,162

542,820

Tax on profit

6

(123,384

)

(148,876

)

PROFIT FOR THE FINANCIAL YEAR

312,778

393,944

PROFIT FOR THE YEAR

312,778

393,944

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

312,778

393,944

FIXED ASSETS

Intangible assets

8

88,965

118,759

Tangible assets

9

3,355,333

2,977,257

3,444,298

3,096,016

CURRENT ASSETS

Stocks

10

383,156

337,633

Debtors

11

57,156

43,177

Cash at bank and in hand

1,266,397

1,761,209

1,706,709

2,142,019

CREDITORS

Amounts falling due within one year

12

804,504

910,364

NET CURRENT ASSETS

902,205

1,231,655

TOTAL ASSETS LESS CURRENT LIABILITIES

4,346,503

4,327,671

CREDITORS

Amounts falling due after more than one year

13

(458,000

)

(810,000

)

PROVISIONS FOR LIABILITIES

16

(163,247

)

(104,478

)

NET ASSETS

3,725,256

3,413,193

CAPITAL AND RESERVES

Called up share capital

17

500

500

Retained earnings

18

3,724,756

3,412,693

SHAREHOLDERS' FUNDS

3,725,256

3,413,193

The financial statements were approved by the Board of Directors and authorised for issue on 22 August 2025 and were signed on its behalf by:

Mr Sean Morrison - Director

Mrs Dympna Morrison - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

500

3,030,749

3,031,249

Changes in equity

Dividends

-

(12,000

)

(12,000

)

Total comprehensive income

-

393,944

393,944

Balance at 31 March 2024

500

3,412,693

3,413,193

Changes in equity

Dividends

-

(715

)

(715

)

Total comprehensive income

-

312,778

312,778

Balance at 31 March 2025

500

3,724,756

3,725,256

Cash flows from operating activities

Cash generated from operations

1

590,045

801,233

Tax paid

(162,159

)

(150,747

)

Net cash from operating activities

427,886

650,486

Cash flows from investing activities

Purchase of tangible fixed assets

(585,972

)

(32,942

)

Interest received

28,607

22,734

Net cash from investing activities

(557,365

)

(10,208

)

Cash flows from financing activities

Amount introduced by directors

352,715

-

Amount withdrawn by directors

(365,333

)

(488,796

)

Share buyback

(352,000

)

(190,000

)

Equity dividends paid

(715

)

(12,000

)

Net cash from financing activities

(365,333

)

(690,796

)

Decrease in cash and cash equivalents

(494,812

)

(50,518

)

Cash and cash equivalents at beginning of year

2

1,761,209

1,811,727

Cash and cash equivalents at end of year

2

1,266,397

1,761,209

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

31/3/25

31/3/24

£

£

Profit before taxation

436,162

542,820

Depreciation charges

214,733

177,895

Loss on disposal of fixed assets

22,957

2,230

Finance income

(28,607

)

(22,734

)

645,245

700,211

(Increase)/decrease in stocks

(45,523

)

84,132

Increase in trade and other debtors

(13,979

)

(5,033

)

Increase in trade and other creditors

4,302

21,923

Cash generated from operations

590,045

801,233

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 March 2025

31/3/25

1/4/24

£

£

Cash and cash equivalents

1,266,397

1,761,209

Year ended 31 March 2024

31/3/24

1/4/23

£

£

Cash and cash equivalents

1,761,209

1,811,727

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/4/24

Cash flow

At 31/3/25

£

£

£

Net cash

Cash at bank and in hand

1,761,209

(494,812

)

1,266,397

1,761,209

(494,812

)

1,266,397

Debt

Debts falling due after 1 year

40,000

(498,000

)

(458,000

)

40,000

(498,000

)

(458,000

)

Total

1,801,209

(992,812

)

808,397

1.	STATUTORY INFORMATION

Bross Morrison's Ltd is a private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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

The nature of the company's operations and principal activities are that of a petrol station and supermarket.

The financial statements are presented in sterling which is the functional currency of the company and generally rounded to the nearest pound.

The financial statements have been prepared on the going concern basis under the historical cost convention.

The significant accounting policies applied in the preparation of theses financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

As set out in the strategic report, the company has continued to trade strongly through out the year and the directors believe that it is experiencing good levels of profitability. Therefore, the directors believe the company is well placed to manage business risks successfully. Accordingly, they have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

At the balance sheet date the company's current liabilities exceeded its current assets. The company has received assurance form the directors that they will continue to give financial support to the company for twelve months from the signing of these financial statements.

On this basis, the directors consider it appropriate to prepare the accounts on a going concern basis. However, should the financial support mentioned above not be forthcoming, the going concern basis used in preparing the company's accounts may be invalid and adjustments would have to be made to reduce the value of the assets to their realisable amount and to provide for any further liabilities which might arise. The accounts do not include any adjustment to the company's assets or liabilities that might be necessary should this basis not continue to be appropriate.

Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are required when applying accounting policies. These are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The company makes estimates and assumptions concerning the future, which can involve a high degree of judgement or complexity. The resulting accounting estimates will, by definition, seldom equal the related actual results.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

Going Concern

The directors have prepared budgets and cash flows for a period of at least twelve months from the date of the approval of the financial statements which demonstrate that there is no material uncertainty regarding the company’s ability to meet its liabilities as they fall due, and to continue as a going concern. On this basis the directors consider it appropriate to prepare the financial statements on a going concern basis. Accordingly, these financial statements do not include any adjustments to the carrying amounts and classification of assets and liabilities that may arise if the company was unable to continue as a going concern.

Recoverability of debtors

Estimates are made in respect of the recoverable value of trade and other debtors. When assessing the level of provisions required, factors including current trading experience, historical experience and the aging profile of debtors are considered. The company only trades with a small number of fuel customers on credit terms.

Useful Lives of Tangible and Intangible Fixed Assets

Long-lived assets comprising primarily of property, plant and machinery and intangible assets represent a significant portion of total assets. The annual depreciation and amortisation charges depend primarily on the estimated lives of each type of asset and, in certain circumstances, estimates of residual values. The directors regularly review these useful lives and change them if necessary to reflect current conditions In

determining these useful lives, management consider technological change, patterns of consumption,physical condition and expected economic utilisation of the assets. Changes in the useful lives can have a significant impact on the depreciation and amortisation charges for the financial year. The net book value of Tangible Fixed Assets subject to depreciation at the financial year end date was £3,355,333 (2024: £2,977,257). The net book value of Intangible Assets at the financial year end date was £88,965 (2024: £118,760).

Impairment of Stocks

The company holds stocks amounting to £383,156 (2024: £337,633) at the financial year end date. The directors are of the view that an adequate allowance has been made to reflect the possibility of stocks being sold at less than cost, based on conditions existing at the balance sheet date. However, this estimate is subject to inherent uncertainty.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Goodwill is recognised and measured as the excess of the cost of acquisition of businesses over the company's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the acquired businesses.

Within the financial statements the goodwill is the amount the company paid in connection with the acquisition of business in Ballynahinch in 2009 and Saintfield in 2012 and is being amortised through the profit and loss in equal instalments over its estimated useful life on a straight line basis. FRS 102 recommends that when no reliable estimate can be made of its useful life, the useful life shall not exceed ten years.

Goodwill is tested for impairment a least annually. Any impairment loss is recognised immediately in the profit and loss.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of nil years.

Other intangible assets

The identifiable net assets acquired as a result of a business combination may include intangible assets other than goodwill. Any such intangible assets are amortised straight line over their expected future lives.

The company purchased liquor licences during the year ended 31 March 2015 and 31 March 2020. Although the estimated useful life of patents, licences and trademarks are up to 10 years, due to the current market for a liquor licence the assets' useful life is likely to be higher, however the liquor license is being written off over a ten year period as per FRS 102 recommendations.

Tangible fixed assets

All tangible fixed assets are initially recorded at historic cost. This includes legal fees, stamp duty and other non-refundable purchase taxes, and also any costs directly attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management, which can include the cost of site preparation, initial delivery and handling, installation and assembly, and testing of functionality.

Depreciation

Depreciation is provided on all tangible assets at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Freehold property

- 2% on cost

Long leasehold

- 10% on cost

Plant and machinery

- 15% on reducing balance

Fixtures and fittings

- 15% on reducing balance

Motor vehicles

- 20% on reducing balance

Computer equipment

- 15% on reducing balance

The residual value and useful lives of tangible assets are considered annually for indicators that these may have changed. When such indicators are present, a review is carried out of the residual value, depreciation methods and useful lives, and these will be amended if necessary. Changes in deprecation rates arising from this review are accounted for prospectively over the remaining useful lives of the assets.

Stocks

Stocks are stated at the lower of cost and net realisable value using the first in first out method. Net realisable value is based on normal selling price, less further costs expected to be incurred to completion and disposal.

At the end of each reporting period, stocks are assessed for impairment. If an item of stock (or group of items) is impaired, that item is measured at its selling price less costs to complete and sell, and an impairment loss is recognised.

Impairments of assets, other than financial instruments, stocks and work in progress

At the end of each reporting period, the company assesses whether there is any indication that the recoverable amount of an asset is less than its carrying amount. If any such indication exists, the carrying

amount of the asset is reduced to its recoverable amount, resulting in an impairment loss. Impairment losses are recognised immediately in the profit and loss account, with the exception of losses on previously revalued tangible fixed assets, which are recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset.

Where the circumstances causing an impairment of an asset no longer apply, then the impairment is reversed through the profit and loss account, except for impairments on previously revalued tangible assets, which are treated as revaluation increases to the extent that the revaluation was recognised in equity.

The recoverable amount of tangible fixed assets, goodwill and other intangible fixed assets is the higher of the fair value less cost to sell of the asset and its value in use. The value in use of these assets is the

present value of the cash flows expected to be derived from those assets. This is determined by reference to the present value of the future cash flows of the cash generating unit to which the assets belong.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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

The financial statements are presented in Sterling, which is also the functional currency of the company. Transactions in currencies, other than the functional currency of the company, are recorded at the rate of exchange on the date the transaction occurred.

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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.

Dividends

Dividend distributions to the company's shareholders are recognised as a liability in the financial statements in the period in which the dividends are declared and paid.