Registration number:
A & B Vintners Limited
for the Year Ended 31 December 2024
A & B Vintners Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Statement of Comprehensive Income |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
A & B Vintners Limited
Company Information
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Directors |
Mr John Charles Arnold Mr Simon Christopher Davies |
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Company secretary |
Mrs Sally Ann Arnold |
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Registered office |
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Auditors |
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A & B Vintners Limited
Strategic Report for the Year Ended 31 December 2024
The Directors present their strategic report for the year ended 31 December 2024.
Principal activity
The principal activity of the Company is the selling of fine wines.
Fair review of the business
Turnover has increased, up to £13.44m in 2024 from £12.54m in 2023, representing a 7% increase. The profit for the period after tax was £1,624,061, a 9% increase over the previous year. Against reports of a falling fine wine market, and continuing global economic and political uncertainty, this is an achievement. UK sales to our private clientele continue to be the backbone of the business. Burgundy continues to be our largest contributor but increasing interest in the wines from the Willamette Valley, as well as strong performances from the rest of France and Italy, keeps our supply side diverse and compelling.
The directors are continually looking at all angles of the business, for long-term efficiency and improvement. Our search for the finest suppliers is never-ending, both in the countries/regions which we already cover but new markets too. Thinking ahead to the future, three of our buying/sales team now under the age of thirty-five. Continued investment in technology allows us to maintain a very low employee headcount, yet high levels of service for all our clientele. We have invested heavily into customer in-bond storage, both in terms of premises and software, and client reserves are all at all-time high, with further growth expected.
Future prospects
The Directors are planning a similar annual schedule with regards to sales campaigns. Maintaining excellent customer and supplier relationships is paramount, the Company’s two most valued assets. Since April 2024, the Company has commissioned a new bespoke online platform to upgrade existing systems and support the continuous growth and improvement of the Company. This new development is designed to encompass all aspects of the business, with improvements in terms of customer usability and internal efficiency.
Analysis of development and performance
The Profit and Loss Account shows that the profit for the period after tax was £1,624,061, this represents a 9% increase compared to £1,492,597 for the year ended 31 December 2023. These results have been achieved by a 7% increase in turnover and maintaining solid margins.
The Company's key financial and other performance indicators during the year were as follows:
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Financial KPIs |
Unit |
2024 |
2023 |
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Turnover |
£000's |
13,440 |
12,538 |
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Gross Profit |
£000's |
3,725 |
3,585 |
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Net Profit |
£000's |
2,172 |
1,967 |
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Net Profit after Tax |
£000's |
1,624 |
1,493 |
A & B Vintners Limited
Strategic Report for the Year Ended 31 December 2024
Principal risks and uncertainties
Financial risk management
The Company has financial instruments including trade debtors and trade creditors which arise directly from its trade. The directors do not consider that the fair value of these instruments differ from the net book value. The risks arising as a result of the Company's financial instruments are outlined below.
Currency and price risk
Risk that the value of the Company's financial instruments will fluctuate as a result of market changes. The majority of the company's suppliers are international and therefore it is subject to fluctuations in foreign currency exchange rates. The Company reduces foreign exchange risk by forecasting future supplier payments and purchasing foreign currency in advance in order to reduce exposure.
Credit risk
Risk that one party to a financial instrument will fail to meet their obligation and therefore cause the other party a financial loss. The Company implements credit verification procedures for any new customers requiring credit. Customer debts are monitored on a regular basis to reduce the risk of bad debts. As a result of the Company's careful procedures there have been no bad debts written off in the period.
Liquidity risk
Risk that the Company will face difficulty raising funds in order to meet its financial commitments. The Company manages this risk through forecasting future cash flow requirements and maintaining a high level of bank balances which more than cover its commitments at any time. At the date of the financial statements the company held bank balances totalling of over £4.4m, the Directors are satisfied that this is more than adequate to meet the Company's needs.
The Company currently has no reliance on external funding and funds itself through retained trading profits. The Directors can foresee no reason why the Company would have to source any external funding in the future.
Economic risk
The UK and Global economies continue to be negatively impacted by ongoing wars, inflationary rises and interest fluctuations. The cost-of-living impact on UK customers continues to linger and the continued weak growth in the economy presents further uncertainty in the UK markets. The Company has a diverse portfolio of customers ranging from businesses, trade clients and private consumers, all being impacted at different points of the economic cycle therefore reducing the Company’s exposure to such external risk. The Company’s trade has not been directly impacted by these factors, yet the Directors will continue to monitor and manage exposure where possible.
Approved and authorised by the
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A & B Vintners Limited
Directors' Report for the Year Ended 31 December 2024
The Directors present their report and the financial statements for the year ended 31 December 2024.
Directors of the Company
The Directors who held office during the year were as follows:
Dividends
Ordinary dividends were paid during the year amounting to £1,400,000. The directors do not recommend payment of a final dividend.
Results
Results for the year are set out on page 10 of the financial statements.
Information included in the Strategic Report
The Directors have chosen to disclose the following information within the strategic report under the FRS102 medium company exemption: Principal activity of the Company, fair review of business, future prospects, analysis of development and performance, financial KPIs and principal risks and uncertainties.
Going concern
As shown in the financial statements the Company holds considerable reserves and remains profit making, as such the Directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Disclosure of information to the auditors
Each Director has taken steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of that information. The Directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium sized companies exemption.
Approved and authorised by the
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A & B Vintners Limited
Statement of Directors' Responsibilities
The Directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
A & B Vintners Limited
Independent Auditor's Report to the Members of A & B Vintners Limited
Opinion
We have audited the financial statements of A & B Vintners Limited (the 'Company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 Director's 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 original financial statements were 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
A & B Vintners Limited
Independent Auditor's Report to the Members of A & B Vintners Limited
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the strategic report and the directors' report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
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 5], the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor 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 an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A & B Vintners Limited
Independent Auditor's Report to the Members of A & B Vintners Limited
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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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; |
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we identified the laws and regulations applicable to the company through discussions with directors and other management; |
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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, Financial Reporting Standard 102, taxation legislation, employment and health and safety legislation; |
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we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting relevant correspondence; and |
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identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
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We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
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making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
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considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and |
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understanding the design of the company’s remuneration policies. |
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To address the risk of fraud through management bias and override of controls, we: |
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determined the susceptibility of the company to management override of controls by checking the implementation of controls and enquiring of individuals involved in the financial reporting; |
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performed analytical procedures to identify any unusual or unexpected relationships; |
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tested journal entries to identify unusual transactions; |
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assessed whether judgements and assumptions made in determining the accounting estimates as set out in note 2 were indicative of potential bias; |
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investigated the rationale behind significant or unusual transactions; and |
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performed appropriate tests in respect of the risk of fraud in revenue recognition by carrying out a detailed review of turnover and the post year end activity, by performing existence and cut-off tests on both income and trade debtors. The receivables and advances were verified through a review of the sales and the En Primeur transactions. In respect of En Primeur transactions where the delivery is the important driver for revenue recognition, we reviewed the debtor and creditor balances as well as the delivery dates to ensure revenue was recognised in the appropriate period. In respect of ongoing matters, we had discussions with senior members of management, reviewed relevant correspondence, reviewed supporting schedules and reviewed the disclosures in the financial statements. |
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
A & B Vintners Limited
Independent Auditor's Report to the Members of A & B Vintners Limited
Other matters
The financial statements of the company for the year ended 31 December 2023 are unaudited.
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 an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
For and on behalf of
Chartered Accountants
43-45 Dorset Street
London
W1U 7NA
A & B Vintners Limited
Profit and Loss Account for the Year Ended 31 December 2024
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Note |
2024 |
2023 (Unaudited) |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Operating profit |
1,992,893 |
1,927,611 |
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Other interest receivable and similar income |
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Interest payable and similar expenses |
( |
( |
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178,675 |
39,545 |
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Profit before tax |
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Tax on profit |
( |
( |
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Profit for the financial year |
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The above results were derived from continuing operations.
The Company has no recognised gains or losses for the year other than the results above.
A & B Vintners Limited
Statement of Comprehensive Income for the Year Ended 31 December 2024
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2024 |
2023 (Unaudited) |
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Profit for the year |
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Total comprehensive income for the year |
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A & B Vintners Limited
(Registration number: 03570581)
Balance Sheet as at 31 December 2024
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Note |
2024 |
2023 (Unaudited) |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Investments |
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Current assets |
|||
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
50,000 |
50,000 |
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Retained earnings |
3,401,625 |
3,177,564 |
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Shareholders' funds |
3,451,625 |
3,227,564 |
These financial statements have been prepared in accordance with the provisions relating to medium-sized
companies.
Approved and authorised by the
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A & B Vintners Limited
Statement of Changes in Equity for the Year Ended 31 December 2024
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Share capital |
Retained earnings |
Total |
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At 1 January 2024 |
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Profit for the year |
- |
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Dividends |
- |
( |
( |
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At 31 December 2024 |
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Share capital |
Retained earnings |
Total |
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At 1 January 2023 |
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Profit for the year |
- |
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Dividends |
- |
( |
( |
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At 31 December 2023 |
50,000 |
3,177,564 |
3,227,564 |
A & B Vintners Limited
Statement of Cash Flows for the Year Ended 31 December 2024
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Note |
2024 |
2023 (Unaudited) |
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Cash flows from operating activities |
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Profit for the year |
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Adjustments to cash flows from non-cash items |
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Depreciation and amortisation |
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Profit on disposal of tangible assets |
( |
- |
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Finance income |
( |
( |
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Finance costs |
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Income tax expense |
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Foreign exchange gains/losses |
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Working capital adjustments |
|||
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Decrease/(increase) in stocks |
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( |
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Decrease/(increase) in trade debtors |
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( |
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Increase in trade creditors |
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Decrease in deferred income, including government grants |
( |
( |
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Cash generated from operations |
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Income taxes paid |
( |
( |
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Net cash flow from operating activities |
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Cash flows from investing activities |
|||
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Interest received |
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Acquisitions of tangible assets |
( |
( |
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Proceeds from sale of tangible assets |
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- |
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Net cash flows from investing activities |
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Cash flows from financing activities |
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Interest paid |
( |
( |
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Dividends paid |
( |
( |
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Net cash flows from financing activities |
( |
( |
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Net increase in cash and cash equivalents |
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Cash and cash equivalents at 1 January |
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Effect of exchange rate fluctuations on cash held |
( |
( |
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Cash and cash equivalents at 31 December |
4,414,484 |
3,061,630 |
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A & B Vintners Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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General information |
The Company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are prepared in Sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
Group accounts not prepared
Key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
A & B Vintners Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The Company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the Company's activities.
Turnover relating to En Primeur wine sales is recognised when the wine is made available for delivery to the customer. This is invoiced to the customer at the time of the order and the income is carried forward as deferred revenue until the order is fulfilled. The cost of the wine is carried forward as a supplier prepayment until the point that the wine becomes available to the customer when it is recognised as a cost of sale.
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated and is amortised over the period during which the company is expected to benefit.
Foreign currency transactions and balances
dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in
foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising
on translation in the period are included in profit or loss.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates taxable income.
Deferred tax liabilities are considered and are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
A & B Vintners Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Fixtures, fittings & equipment |
15% and 20% Reducing balance basis |
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Motor vehicle |
25% Reducing balance basis |
Intangible assets
Intangible assets are stated in the balance sheet at cost, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.
The cost of intangible assets includes directly attributable development costs incurred.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
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IT Development Costs |
25% Reducing Balance |
Investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stock is stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is calculated using the purchase price for the wines held in stock. Provision is made for obsolete, slow-moving or defective items where appropriate.
A & B Vintners Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Provisions
Provisions are recognised when the Company has an obligation at the reporting date 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.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
A & B Vintners Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Financial instruments
Classification
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Recognition and measurement
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
A & B Vintners Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Impairment
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of
ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
A & B Vintners Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Turnover |
The company's turnover comprises entirely of sales to UK customers. The analysis of the company's revenue for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
Sale of goods |
|
|
|
Rendering of services |
|
|
|
Other revenue |
|
|
|
|
|
|
Other gains and losses |
The analysis of the company's other gains and losses for the year is as follows:
|
2024 |
2023 |
|
|
Gain/(loss) on disposal of property, plant and equipment |
|
- |
|
Operating profit |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Depreciation expense |
|
18,305 |
|
Amortisation expense |
|
13,763 |
|
Foreign exchange losses |
|
69 |
|
Profit on disposal of property, plant and equipment |
( |
- |
|
Other interest receivable and similar income |
|
2024 |
2023 |
|
|
Interest income on bank deposits |
|
39,546 |
Interest income comprises entirely from interest on financial assets not measured at fair value through profit or loss.
|
Interest payable and similar expenses |
|
2024 |
2023 |
|
|
Interest on bank overdrafts and borrowings |
|
|
A & B Vintners Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the Company (including Directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Administration and support |
|
|
|
Sales, marketing and distribution |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
523,250 |
488,250 |
During the year the number of directors enrolled in the defined contribution pension scheme was 1 (2023 - 1).
In respect of the highest paid Director:
|
2024 |
2023 |
|
|
Remuneration |
|
364,250 |
|
Pension costs, defined contribution scheme |
|
24,000 |
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of the financial statements |
|
- |
A & B Vintners Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Taxation |
Tax charged/(credited) in the income statement
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
472,486 |
|
UK corporation tax adjustment to prior periods |
- |
(121) |
|
537,501 |
472,365 |
|
|
Deferred taxation |
||
|
Arising from write-down or reversal of write-down of deferred tax asset |
|
2,194 |
|
Tax expense in the income statement |
|
474,559 |
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
1,967,156 |
|
Corporation tax at standard rate |
|
462,675 |
|
Deferred tax expense (credit) from timing differences |
|
2,194 |
|
Increase (decrease) in current tax from adjustment for prior periods |
- |
(121) |
|
Tax increase (decrease) from effect of capital allowances and depreciation |
( |
3,651 |
|
Tax effects for reconciliation of non deductible expenses |
|
6,150 |
|
Difference due to rounding |
- |
10 |
|
Total tax charge |
|
474,559 |
Deferred tax
Deferred tax include is calculated on the difference between the net book value of fixed assets in the financial statements and the tax written down value at the end of the period.
A & B Vintners Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Intangible assets |
|
Other intangible assets |
Total |
|
|
Cost or valuation |
||
|
At 1 January 2024 |
|
|
|
At 31 December 2024 |
|
|
|
Amortisation |
||
|
At 1 January 2024 |
|
|
|
Amortisation charge |
|
|
|
At 31 December 2024 |
|
|
|
Carrying amount |
||
|
At 31 December 2024 |
|
|
|
At 31 December 2023 |
|
|
Amortisation is recognised on development costs in relation to the Company's website and trading platform.
A & B Vintners Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Tangible assets |
|
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
|||
|
At 1 January 2024 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
( |
( |
( |
|
At 31 December 2024 |
|
|
|
|
Depreciation |
|||
|
At 1 January 2024 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
( |
( |
( |
|
At 31 December 2024 |
|
|
|
|
Carrying amount |
|||
|
At 31 December 2024 |
|
|
|
|
At 31 December 2023 |
|
|
|
A & B Vintners Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Investments |
|
2024 |
2023 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 January 2024 |
|
|
Carrying amount |
|
|
At 31 December 2024 |
|
|
At 31 December 2023 |
|
Details of undertakings
Details of the investments in which the Company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2024 |
2023 |
|||
|
Subsidiary undertakings |
||||
|
|
England and Wales |
|
|
|
|
Subsidiary undertakings |
|
AB Vintners Limited The principal activity of AB Vintners Limited is |
|
Stocks |
|
2024 |
2023 |
|
|
Finished goods and goods for resale |
|
|
A & B Vintners Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Debtors |
|
Current |
2024 |
2023 |
|
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Accrued income |
|
|
|
|
|
Prepayments include £2,344,143 (2023: 2,594,119) in relation to the purchase of En Primeur wine.
|
Cash and cash equivalents |
|
2024 |
2023 |
|
|
Cash at bank |
|
|
|
Creditors |
|
Note |
2024 |
2023 |
|
|
Due within one year |
|||
|
Trade creditors |
|
|
|
|
Amounts due to related parties |
|
- |
|
|
Social security and other taxes |
|
|
|
|
Other payables |
|
|
|
|
Accrued expenses |
|
|
|
|
Income tax liability |
272,501 |
472,486 |
|
|
Deferred income |
|
|
|
|
|
|
Deferred income includes £3,634,124 (2023: 4,150,899) in relation to the sale of En Primeur wine.
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 1 January 2024 |
|
|
|
Increase (decrease) in existing provisions due to timing differences |
|
|
|
At 31 December 2024 |
|
|
|
|
||
A & B Vintners Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Pension and other schemes |
Defined contribution pension scheme
The Company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Company to the scheme and amounted to £
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
50,000 |
|
50,000 |
|
Dividends |
|
2024 |
2023 |
|||
|
£ |
£ |
|||
|
Interim dividend of £ |
1,400,000 |
700,000 |
||
|
Financial commitments, guarantees and contingent liabilities |
The company had a debenture in favour of HSBC Bank Plc with a fixed and a floating charge over all the assets of the company. On 11 January 2024, this debenture was fully satisfied.
A & B Vintners Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Related party transactions |
Dividends paid to Directors
|
2024 |
2023 |
|||
|
|
||||
|
The following dividends were paid during the year in respect of shares held by the company's directors. |
1,260,000 |
630,000 |
||
|
Other transactions with Directors |
At the balance sheet date, the company owed £912,683 in respect of the director's current account. The loan is interest free and repayable on demand. This figure is included in amounts due to related parties.
Summary of transactions with other related parties
|
During the year the company incurred costs for support services provided by related parties totalling £96,600. These transactions were on an arm's length basis.
|
A & B Vintners Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Financial instruments |
Categorisation of financial instruments
|
2024 |
2023 |
|
|
Carrying amount of financial assets include: |
||
|
Debt instruments measured at amortised cost |
2,902,879 |
3,104,574 |
|
Carrying amount of financial liabilities include: |
||
|
Measured at amortised cost |
5,862,337 |
5,421,756 |
|
Ultimate controlling party |
The ultimate controlling party is
|
Non adjusting events after the financial period |
|
|