REGISTERED NUMBER: 01689532 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

AMATHUS DRINKS PLC

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditor

7

Income Statement

10

Other Comprehensive Income

11

Statement of Financial Position

12

Statement of Changes in Equity

13

Statement of Cash Flows

14

Notes to the Statement of Cash Flows

15

Notes to the Financial Statements

16

DIRECTORS:

Mr C P Georgiou

Miss I A Georgiou

Mrs L Machlouzarides

SECRETARY:

Mrs L Machlouzarides

REGISTERED OFFICE:

309 Elveden Road

Ealing

London

NW10 7ST

REGISTERED NUMBER:

01689532 (England and Wales)

AUDITOR:

M Georghiades

( Senior Statutory Auditor )

M Georghiades and Associates

130A Drakes Lane Potters Bar

Hertfordshire

EN6 1AF

Amathus Drinks PLC is a specialist drinks importer, distributor and retailer. Operating mainly in the UK the company specialises in a diverse variety of alcoholic and non-alcoholic beverages to a wide variety of customers. The company offers a wholesale service throughout the mainland and also has retail coverage with stores in London, and branded presence in Brighton and Bath.

REVIEW OF BUSINESS

The directors report a stable financial performance for the year ended 31 December 2024. Turnover decreased slightly to £32,269,311 (2023: £32,761,668), a reduction of 1.5%. The gross margin also declined to 25.34% (2023: 27.33%), primarily due to increased procurement costs on certain inventory lines.

The profit before tax for the year is £2,137,093 (2023: £2,159,430).

We remain optimistic that Amathus will continue to maintain strong cash positions, enabling the company to seize any business opportunities that arise in the coming year. Furthermore, the Company continues to enjoy strength in all key ratios. In particular, the Company's considerable buying power once again (similar to last year) has enabled the company post year-end to buy in stock ahead of exceptional duty increases at the beginning of 2025, which showed an immediate return in the year. The Company also added to its highly specialised and award-winning retail portfolio in the year, opening a new store in East Sheen.The board has identified further opportunities to expand its B2C offer alongside and improving online performance, and sees these expanding areas as significant contributors to its underlying strength in the premium wholesale market in the periods ahead.

The Board has reviewed its deep-sea supply chain for vulnerability to disruption from the intensification of conflicts in theMiddle East and Russia-Ukraine. The Board does not believe those crises are likely to affect the Company more than any other similar business or sector

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework.

The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities.

(i) Credit risk

Credit risk arises when a failure by counter parties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the reporting date.

(ii) Liquidity risk

Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially enhances profitability but can also increase the risk of losses. The Company has procedures with the object of minimising such losses as maintaining sufficient cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities.

(iii) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company's income or the value of its holdings of financial instruments.

(iv) Interest rate risk

Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates. Borrowings issues at variable rates expose the Company to cash flow interest rate risk. The Company's management monitors the interest rate fluctuations on a continuous basis and acts accordingly. From time-to-time, the Company carries out sensitivity analysis to establish whether any increase/decrease in interest rates will have a small effect on results and equity of the Company, because all financial instruments are fixed rate or pegged to LIBOR/EURIBOR with fixed margin. Strengthening or weakening against the relevant currency, there would be an equal and opposite impact on the profit/loss and other equity. This analysis assumes that all other variables, in particular interest rates, remain constant.

(v) Currency risk

Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates and liabilities are denominated in a currency that is not the Company's functional currency. The Company is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the American Dollar, the Euro and Singapore dollar. The Company's management monitors the exchange rate fluctuations on a continuous basis and acts accordingly.

The Company has a resilient business model in place, and is committed to the preservation of cash flows and cost optimisation. The directors are re-assured that the Company will continue to be well-supported by its shareholders.

The directors recognise emerging risks from rising employment costs, including National Insurance increases, and the potential impact of tariffs and trade tensions on supply chain costs and consumer prices.

As the Company diversifies its business model from primarily B2B to include B2C operations, including the opening of new retail outlets, it remains mindful of these cost pressures and their possible effects on profitability and market competitiveness. Appropriate measures are being taken to manage these risks and support sustainable growth.

Employees

It is the policy of the Company to encourage and develop all members of staff to realise their maximum potential. Wherever possible, vacancies are filled from within the Company and adequate opportunities for internal promotion are created. The Board is committed to a systematic training policy and has a comprehensive training and development support to promote a maximum level of attainment. The Company vigorously supports all equalities and is proud of the diversity of its workforce at all levels of the organisation.

Environmental Policy

The Board acknowledges that environmental protection is one of the Company's business responsibilities. It aims for a continuous improvement in the Company's environmental performance and to comply with all relevant regulations in particular in relation to waste packaging. The Company seeks to maintain a high proportion of its records electronically and of the paper it does use, over 80% of its paper consumption is recycled through the use of recycling bags.

SECTION 172(1) STATEMENT

The directors acknowledge their duty under S.172 of the Companies Act 2006 and consider that they have both individually and collectively, acted in the way that in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole.

ENGAGEMENT WITH EMPLOYEES

The Company is of a size that supports a flat organisational structure and so allows immediate and direct access for all employees to senior management at all times. In addition, there are regular meetings with staff, communications by email as well as more formal structures, such as appraisals. The Directors report provides further information on staff matters.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

Suppliers, customers and employees are considered key stakeholders in the business. The company's structure is such that regular meetings are held with major suppliers and there is constant dialogue with customers, any disputes are escalated and resolved swiftly.

STATEMENT OF CORPORATE GOVERNANCE ARRANGEMENTS

In accordance with best practice, the Company considers Audit & Risk, Investment & Remuneration decisions through regular board meetings.

KEY PERFORMANCE-FINANCIAL & NON FINANCIAL

Description

2024 -£'000

2023 -£'000

Change

Revenue

32,269

32,762

-1.50%

Gross profit

8,176

8,954

-8.69%

Operating profit/loss

1,826

2,320

-21.29%

Profit/Loss before tax

2,137

2,159

-1.02%

Net assets

21,268

18,898

12.54%

Gross margin

25.34%

27.33%

-7.29%

Current ratio

3.73

2.35

58.79%

Quick ratio

2.44

1.10

122.26%

Average number of employees

105

95

10.53%

The company also monitors its performance by tracking other non-financial indicators that we believe are important to our long term success.

FINANCIAL POSITION

The Company is in good health and has adequate financial headroom allowing the expansion of the business from its own resources.

ON BEHALF OF THE BOARD:

Mr C P Georgiou - Director

28 July 2025

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 specialist drinks importer, distributor and retailer.

DIVIDENDS

An interim dividend of £4 per share was paid on 31 July 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £ 400,000 .

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

Mr C P Georgiou

Miss I A Georgiou

Mrs L Machlouzarides

Other changes in directors holding office are as follows:

Mr D Sarieddine ceased to be a director after 31 December 2024 but prior to the date of this report.

FUTURE DEVELOPMENTS AND FINANCIAL INSTRUMENTS

The future developments and financial risks management of the company has been provided in the strategic report.

POLITICAL DONATIONS AND EXPENDITURE

During the year under review, the company did not make any political donations.

THIRD PARTY INDEMNITY INSURANCE

The Company has maintained throughout the year Directors’ and officers’ liability insurance for the benefit of the Company, the Directors and its officers. The Company has entered into qualifying third party indemnity arrangements for the benefit of all its Directors in a form and scope which comply with the requirements of the Companies Act 2006 and which were in force throughout the year and remain in force.

STREAMLINED ENERGY AND CARBON REPORTING

As the company has not consumed more than 40,000 KWh of energy in this reporting period, it qualifies as low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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 auditor is 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 auditor is aware of that information.

AUDITOR

The auditor, M Georghiades, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr C P Georgiou - Director

28 July 2025

Opinion

I have audited the financial statements of Amathus Drinks Plc (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 my 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

I conducted my audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. My responsibilities under those standards are further described in the Auditor responsibilities for the audit of the financial statements section of my report. I am independent of the company in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK, including the FRC's Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Conclusions relating to going concern

In auditing the financial statements, I 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 I have performed, I 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.

My 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 my Report of the Auditor thereon.

My opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in my report, I do not express any form of assurance conclusion thereon.

In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In my 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 I am 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, I have not identified material misstatements in the Strategic Report or the Report of the Directors.

I have nothing to report in respect of the following matters where the Companies Act 2006 requires me to report to you if, in my opinion:

-	adequate accounting records have not been kept, or returns adequate for my audit have not been received from branches not visited by me; 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

-	I have not received all the information and explanations I require for my 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.

Auditor's responsibilities for the audit of the financial statements

My 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 Auditor that includes my 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 my 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 recognize 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 and experience of the industry;

- 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.

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 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, 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 my 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 my Report of the Auditor.

Use of my 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. My audit work has been undertaken so that I might state to the company's members those matters I am required to state to them in a Report of the Auditor and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the company and the company's members as a body, for my audit work, for this report, or for the opinions I have formed.

M Georghiades

( Senior Statutory Auditor )

M Georghiades and Associates

130A Drakes Lane Potters Bar

Hertfordshire

EN6 1AF

28 July 2025

REVENUE

3

32,269,311

32,761,668

Cost of sales

24,093,649

23,807,927

GROSS PROFIT

8,175,662

8,953,741

Distribution costs

1,604,370

1,618,242

Administrative expenses

4,944,835

5,182,482

6,549,205

6,800,724

1,626,457

2,153,017

Other operating income

199,339

166,531

OPERATING PROFIT

5

1,825,796

2,319,548

Exceptional items

6

377,687

-

2,203,483

2,319,548

Interest receivable and similar income

15,693

9,039

2,219,176

2,328,587

Interest payable and similar expenses

7

82,083

169,157

PROFIT BEFORE TAXATION

2,137,093

2,159,430

Tax on profit

8

(632,571

)

459,301

PROFIT FOR THE FINANCIAL YEAR

2,769,664

1,700,129

PROFIT FOR THE YEAR

2,769,664

1,700,129

OTHER COMPREHENSIVE INCOME

Revaluation Reserve

-

(1,400,665

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(1,400,665

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,769,664

299,464

FIXED ASSETS

Intangible assets

10

-

21,500

Property, plant and equipment

11

1,926,238

11,259,315

Investments

12

10,483

10,483

1,936,721

11,291,298

CURRENT ASSETS

Inventories

13

9,296,245

9,896,688

Debtors

14

15,972,128

6,133,344

Cash in hand

1,449,175

2,499,056

26,717,548

18,529,088

CREDITORS

Amounts falling due within one year

15

7,153,958

7,878,208

NET CURRENT ASSETS

19,563,590

10,650,880

TOTAL ASSETS LESS CURRENT LIABILITIES

21,500,311

21,942,178

CREDITORS

Amounts falling due after more than one year

16

-

(1,668,721

)

PROVISIONS FOR LIABILITIES

19

(232,351

)

(1,375,161

)

NET ASSETS

21,267,960

18,898,296

CAPITAL AND RESERVES

Called up share capital

20

100,000

100,000

Revaluation reserve

21

33,280

4,462,671

Retained earnings

21

21,134,680

14,335,625

SHAREHOLDERS' FUNDS

21,267,960

18,898,296

The financial statements were approved by the Board of Directors and authorised for issue on 28 July 2025 and were signed on its behalf by:

Mr C P Georgiou - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

100,000

13,035,496

5,863,336

18,998,832

Changes in equity

Dividends

-

(400,000

)

-

(400,000

)

Total comprehensive income

-

1,700,129

(1,400,665

)

299,464

Balance at 31 December 2023

100,000

14,335,625

4,462,671

18,898,296

Changes in equity

Dividends

-

(400,000

)

-

(400,000

)

Total comprehensive income

-

7,199,055

(4,429,391

)

2,769,664

Balance at 31 December 2024

100,000

21,134,680

33,280

21,267,960

Cash flows from operating activities

Cash generated from operations

1

(7,383,216

)

2,028,622

Interest paid

(82,083

)

(169,157

)

Tax paid

(423,842

)

(436,438

)

Net cash from operating activities

(7,889,141

)

1,423,027

Cash flows from investing activities

Purchase of tangible fixed assets

(255,459

)

(243,819

)

Purchase of fixed asset investments

-

(10,483

)

Sale of tangible fixed assets

9,437,998

542,711

Interest received

15,693

9,039

Net cash from investing activities

9,198,232

297,448

Cash flows from financing activities

Loan repayments in year

(1,958,972

)

(1,450,907

)

Equity dividends paid

(400,000

)

(400,000

)

Net cash from financing activities

(2,358,972

)

(1,850,907

)

Decrease in cash and cash equivalents

(1,049,881

)

(130,432

)

Cash and cash equivalents at beginning of year

2

2,499,056

2,629,488

Cash and cash equivalents at end of year

2

1,449,175

2,499,056

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

2024

2023

£

£

Profit before taxation

2,137,093

2,159,430

Depreciation charges

184,976

303,864

(Profit)/loss on disposal of fixed assets

(12,938

)

13,948

Decrease in Amount owed by inter-co

(8,595,906

)

126,380

Decrease in participating int debtors

1,032,859

-

Finance costs

82,083

169,157

Finance income

(15,693

)

(9,039

)

(5,187,526

)

2,763,740

Decrease/(increase) in inventories

600,443

(1,823,151

)

Increase in trade and other debtors

(2,275,736

)

(266,034

)

(Decrease)/increase in trade and other creditors

(520,397

)

1,354,067

Cash generated from operations

(7,383,216

)

2,028,622

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,449,175

2,499,056

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

2,499,056

2,629,488

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

2,499,056

(1,049,881

)

1,449,175

2,499,056

(1,049,881

)

1,449,175

Debt

Debts falling due within 1 year

(290,251

)

290,251

-

Debts falling due after 1 year

(1,668,721

)

1,668,721

-

(1,958,972

)

1,958,972

-

Total

540,084

909,091

1,449,175

1.	STATUTORY INFORMATION

Amathus Drinks PLC is a public company limited by shares, incorporated and registered in England and Wales. The company’s registered number and registered office address are set out on the Company Information page of this report.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The company's principal activity during the year under review continued to be that of specialist drinks importer, distributor and retailer.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

In preparing these financial statements the directors have made the following judgements:

- Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives, taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

- Revaluation of Tangible Fixed Assets

The company holds freehold land and buildings at fair value and performs a revaluation annually. This process involves significant management judgement, particularly in evaluating external valuations, selecting appropriate valuation methodologies, and determining relevant market comparables. Independent external valuations are used as the primary basis for determining fair value. However, these valuations rely on key estimates and assumptions, including local market trends, property condition, location, and evidence from recent comparable transactions.

- Stocks

Stock is valued at lower of cost and net realisable value. A source of estimation uncertainty surrounds the net realisable value of the stock and as to whether or not there is an indication of impairment. To address this, management review both historic and post year end sales of all stock lines compared to quantity of stock held and use this to form the basis for any impairment. In order to establish an appropriate cost of the stock, the cumulative value of the last purchase price, the cost of duty, commission and shipping are taken into account. These costs are re-assessed on an annual basis.

- Amortisation

The group exercises judgement to determine useful lives and residual values of intangible fixed assets. The assets are amortised down to their residual values over their estimated useful lives. Management considers that carrying value of intangible fixed assets is reasonable and therefore that no impairment charge is required in the current year.

- Provisions

Provisions have been made for trade debtors and inventory obsolescence and returns, where appropriate. These provisions are an estimate of the actual costs and the timing of future cash flows is dependent on future events. The difference between expectations and the actual future liability will be accounted for in the period when such determination is made.

Critical accounting judgements and key sources of estimation uncertainty

In preparing these financial statements the directors have made the following judgements:

Revenue

Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill

Goodwill being the amount paid in connection with the acquisition of a business in 2014 and the hive up of its subsidiary's net assets in 2017, is amortised evenly over its estimated useful life of 10 years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property - 1% on cost

Short leasehold - Over the life of the lease

Plant and machinery - 15% on reducing balance

Motor vehicles - 25% on reducing balance

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost includes costs directly attributable to making the asset capable of operating as intended.

Freehold land and buildings are revalued annually, with any movements in fair value recognised in other comprehensive income and accumulated in the revaluation reserve. Freehold land is not depreciated.

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

The company has adopted a policy not to depreciate the asset in the year of acquisition; however, full depreciation is provided in the year of disposal.

Inventories

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

Costs include all costs incurred in bringing each product to its present location and condition under first-in first-out (FIFO) basis.

Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. The Company's liability for current tax is calculating using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is realised, based on tax rates that have been enacted by the end of the reporting period.

Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that are

recognised in other comprehensive income or directly in equity.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial positiondate. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.