Company No: 12153003 (England and Wales)

Contents

• Directors' Report
• Statement of Financial Position
• Notes to the Financial Statements

The directors present their annual report and the unaudited financial statements of the Company for the financial year ended 31 December 2024.

PRINCIPAL ACTIVITIES

The principal activity of the Company during the year was the manufacture and retail of spirits, in particular rum.

GOING CONCERN

The directors have prepared the financial statements on the going concern basis. Further details are provided in the notes to the financial statements.

STRATEGIC REPORT

Since the December 2024 year end there have been a number of significant and exciting developments for the company.

In June 2025, the company successfully closed it’s first investment round using the Republic (SeedRS) platform and raised additional funding from 198 individual investors at a pre-money valuation of £3.6 million.

During 2025 a strategic focus on revenue streams has resulted in year-to-date growth of both turnover and gross profit, with the overall gross profit margin increasing to a combined 69% for the year to date 2025.

Several new products are also currently under development, with launches planned for October 2025 and April 2026.

DIRECTORS

The directors, who served during the financial year and to the date of this report except as noted, were as follows:

Giles Hugh Gray
David John Seear

This Directors' Report has been prepared in accordance with the provisions applicable to companies entitled to the small companies' exemption provided by section 415A of the Companies Act 2006.

Approved by the Board of Directors and signed on its behalf by:

David John Seear Director

C/O Bishop Fleming Brook House Manor Drive
Clyst St. Mary
Exeter
EX5 1GD
United Kingdom

25 September 2025

	Note	2024		2023
		£		£
Fixed assets
Intangible assets	3	843		982
Tangible assets	4	54,006		67,324
		54,849		68,306
Current assets
Stocks		36,876		48,085
Debtors	5	65,857		99,751
Cash at bank and in hand		41,177		56,493
		143,910		204,329
Creditors: amounts falling due within one year	6	( 392,930)		( 414,148)
Net current liabilities		(249,020)		(209,819)
Total assets less current liabilities		(194,171)		(141,513)
Creditors: amounts falling due after more than one year	7	( 187,788)		( 102,204)
Provision for liabilities		( 9,650)		( 12,491)
Net liabilities		( 391,609)		( 256,208)
Capital and reserves
Called-up share capital	8	1		1
Profit and loss account		( 391,610 )		( 256,209 )
Total shareholder's deficit		( 391,609)		( 256,208)

For the financial year ending 31 December 2024 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The member has not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Statement of Income and Retained Earnings has not been delivered.

The financial statements of Devon Rum Company Ltd (registered number: 12153003) were approved and authorised for issue by the Board of Directors on 25 September 2025. They were signed on its behalf by:

David John Seear Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Devon Rum Company Ltd (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is C/O Bishop Fleming Brook House Manor Drive, Clyst St. Mary, Exeter, EX5 1GD, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The directors have assessed the Statement of Financial Position and likely future cash flows at the date of approving these financial statements. The directors note the negative net assets of the company at the balance sheet date. The Company is supported through loans from the directors and parent company. The directors have confirmed that the loan facilities will continue to be available for at least 12 months from the date of signing these financial statements and the directors will continue to support the Company. Given the current position, the directors believe that any foreseeable debts can be met 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.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Statement of Financial Position date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Statement of Income and Retained Earnings in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Interest income

Interest income is recognised when it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

Employee benefits

Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Statement of Income and Retained Earnings in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Statement of Financial Position.

Finance costs

Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Statement of Financial Position date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Intangible assets

Intangible assets are stated at cost or valuation, net of amortisation and any provision for impairment. Amortisation is provided on all intangible assets at rates to write off the cost or valuation of each asset over its expected useful life as follows:

Trademarks, patents and licences

10 years straight line

Trademarks, patents and licences

Separately acquired patents and trademarks are included at cost and amortised in equal annual instalments over a period of 10 years which is their estimated useful economic life. Provision is made for any impairment.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is provided on all tangible fixed assets, other than investment properties and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Land and buildings	6 years straight line
Plant and machinery	4 years straight line
Vehicles	20 % reducing balance
Office equipment	4 years straight line
Computer equipment	4 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Statement of Financial Position date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Income and Retained Earnings as described below.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

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.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Statement of Financial Position date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Ordinary share capital

The ordinary share capital of the Company is presented as equity.

2. Employees

	2024		2023
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	12		14

3. Intangible assets

	Trademarks, patents and licences		Total
	£		£
Cost
At 01 January 2024	1,391		1,391
At 31 December 2024	1,391		1,391
Accumulated amortisation
At 01 January 2024	409		409
Charge for the financial year	139		139
At 31 December 2024	548		548
Net book value
At 31 December 2024	843		843
At 31 December 2023	982		982

4. Tangible assets

	Land and buildings		Plant and machinery		Vehicles		Office equipment		Computer equipment		Total
	£		£		£		£		£		£
Cost
At 01 January 2024	25,413		6,036		64,793		6,632		2,723		105,597
Additions	0		430		0		1,469		0		1,899
At 31 December 2024	25,413		6,466		64,793		8,101		2,723		107,496
Accumulated depreciation
At 01 January 2024	2,937		1,993		30,432		1,373		1,538		38,273
Charge for the financial year	4,236		1,572		6,872		1,906		631		15,217
At 31 December 2024	7,173		3,565		37,304		3,279		2,169		53,490
Net book value
At 31 December 2024	18,240		2,901		27,489		4,822		554		54,006
At 31 December 2023	22,476		4,043		34,361		5,259		1,185		67,324

5. Debtors

	2024		2023
	£		£
Trade debtors	36,968		26,735
Prepayments	28,889		25,750
VAT recoverable	0		32,266
Other debtors	0		15,000
	65,857		99,751

6. Creditors: amounts falling due within one year

	2024		2023
	£		£
Bank loans and overdrafts	8,848		8,633
Trade creditors	25,703		18,815
Amounts owed to directors	75,236		4,988
Other loans	29,348		57,756
Accruals	4,464		2,250
Other taxation and social security	55,636		9,582
Obligations under finance leases and hire purchase contracts (secured)	11,155		23,830
Other creditors	182,540		288,294
	392,930		414,148

Obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.

7. Creditors: amounts falling due after more than one year

	2024		2023
	£		£
Bank loans	3,710		12,441
Amounts owed to Parent undertakings	70,000		70,000
Other loans	91,890		0
Obligations under finance leases and hire purchase contracts (secured)	22,188		19,763
	187,788		102,204

Obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.

Amounts repayable after more than 5 years are included in creditors falling due over one year:

	2024		2023
	£		£
Other loans	21,546		0

8. Called-up share capital

	2024		2023
	£		£
Allotted, called-up and fully-paid
1 Ordinary share of £ 1.00	1		1

9. Financial commitments

Commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

	2024		2023
	£		£
within one year	83,376		83,376
between one and five years	211,284		294,660
	294,660		378,036

Pensions

The Company operates a defined contribution pension scheme for the directors and employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.

	2024		2023
	£		£
Unpaid contributions due to the fund (inc. in other creditors)	948		933

10. Related party transactions

Transactions with the entity's directors

At the end of the year, the company owed the director £75,236 (2023: The director owed to the company £4,988). No interest is charged on the amounts and there is no fixed date for repayment.