Cave Direct Limited Company accounts

COMPANY REGISTRATION NUMBER: 06738514

Cave Direct Limited

Financial Statements

For the year ended

31 December 2024

R E Jones and Co.

Cave Direct Limited

Financial Statements

Year ended 31 December 2024

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	5

Independent auditor's report to the members	7

Statement of income and retained earnings	12

Statement of financial position	13

Statement of cash flows	15

Notes to the financial statements	17

R E Jones and Co.

Cave Direct Limited

Officers and Professional Advisers

The board of directors	Mr C Gilhespy
	Mrs L Smale
	Mr N Kitching

Registered office	Unit B10, Larkfield Trading Estate
	New Hythe Lane
	Larkfield
	Kent
	England
	ME20 6SW

Auditor	R. E. Jones & Co.
	Chartered accountants & statutory auditor
	132 Burnt Ash Road
	Lee
	London
	SE12 8PU

Bankers	National Westminster Bank plc
	Chatham Customer Service Centre
	Waterside Court
	Chatham Maritime
	Kent
	ME4 4RT

R E Jones and Co.

Cave Direct Limited

Strategic Report

Year ended 31 December 2024

Fair review of the business, and of its development and performance The Company's principal activity was that of the sale of the beers and associated products throughout this and the previous year. During the year, the Company consolidated its long-term business plan by concentrating on expansion through its Southern and Northern bases. The results are found on pages 14 to 34. The turnover for the year ended 31st December 2024 increased by 4% on the previous year however, the gross margin decreased from 24.4% to 24.3%, the Directors are pleased with the increase in turnover and the stability of margin per unit. The net profit before tax decreased from £312,362 to £221,337. The Directors are satisfied with the profit for this year given the tough trading conditions and the relatively high interest rates. The market continues to be very competitive with aggressive pricing being offered by competitors. The approach of the Company has been cautious, not wanting to enter contracts which are not profitable, and to concentrate on area which will allow growth within the Company. Principal risks and uncertainties facing the Company The directors have performed a robust and systematic review of those risks that they believe could seriously affect the Company's performance, future prospects, reputation or its ability to deliver against its priorities. They maintain a Risk Register of the principal risks faced by the Company. The Directors have tailored specific business continuity plans relating risks facing the Company, with the aim of enabling the Company to be more proactive in all commercial, operational and health and safety scenarios. It was felt this was a huge success and enabled the Company to continue to trade. All departments perform regular risk assessments that consider and assess the Company's principal risks and specific local risks pertinent to the market in which they operate. This process ensures a consistent approach to the assessment of risk across the departments. The content of the Risk Register is considered and discussed through regular meetings with senior management and reviewed by the Directors. This development of our risk process has resulted in the inclusion of liquidity risk as a principal risk in this section. Analysis of key performance indicators The directors monitor the Company's performance by reviewing the following key performance indicators (KPI's):

	2024	2023
	£	£
PERFORMANCE
Gross profit margin (%)	24	24
Operating margin (%)	1	2
Net profit margin (%)	1	1
EBITDA	613,134	684,213
Net asset turnover	25	24

	2024	2023
	£	£
LIQUIDITY
Current ratio	1	1
Quick ratio	1	1

	2024	2023
	£	£
SOLVENCY
Net gearing (%)	201	185
Gross gearing (%)	241	244
Asset cover ratio	2	2

Year end position The directors are satisfied with the Company's Statement of Financial Position at the year end, the directors continue to maintain robust controls over debtors and creditors. The internet sales with customers paying for their goods before delivery and encouraging more customers onto direct debits has eased cashflow. The outlook for the business continues to remain positive with key personnel and business infrastructure in place, excellent financial control, review of suppliers to maximise margins and a sufficient level of available working capital to allow the business to expand organically. Future developments The Directors have entered into a new contract with the Stiegl brewery from Austria and Sierra Nevada from the USA, which gives the Company exclusive rights to sell all their products in the United Kingdom. The Directors are confident this move will increase sales and provide new opportunities. The Company has agreed a lease for a new larger warehouse in Manchester. The Directors also carefully continue to consider the impact of the various Brexit scenarios and potential trade tariffs upon the business, they are convinced they have prepared as best they can, by research, planning and implementation of new import systems. The Directors are confident they have mitigated the risk as much as possible.

This report was approved by the board of directors on 30 September 2025 and signed on behalf of the board by:

Mr C Gilhespy

Director

R E Jones and Co.

Cave Direct Limited

Directors' Report

Year ended 31 December 2024

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

Directors

The directors who served the company during the year were as follows:

Mr C Gilhespy
Mrs L Smale
Mr N Kitching

Dividends

Particulars of recommended dividends are detailed in note 13 to the financial statements.

Future developments

Future Developments are disclosed in the Strategic Report.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 30 September 2025 and signed on behalf of the board by:

Mr C Gilhespy

Director

R E Jones and Co.

Cave Direct Limited

Independent Auditor's Report to the Members of Cave Direct Limited

Year ended 31 December 2024

Opinion

We have audited the financial statements of Cave Direct Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, 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 FRS 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; - 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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The 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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- 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 the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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. 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: Capability of the audit in detecting irregularities, including fraud The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Based on our understanding of the company and industry, and through discussion with the directors and other managed (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alter to any indications of non-compliance throughout the audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or or reduce expenditure and management bias in accounting estimates. Audit procedures performed by the engagement team included : " Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud; and " Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud; and " Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions that may indicate risks of material misstatements due to fraud; and " Identifying and testing journal entries, in particular any manual entries made ate year-end for financial statement preparation. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.

S E Jones

(Senior Statutory Auditor)

For and on behalf of

R. E. Jones & Co.

Chartered accountants & statutory auditor

132 Burnt Ash Road

Lee

London

SE12 8PU

30 September 2025

R E Jones and Co.

Cave Direct Limited

Statement of Income and Retained Earnings

Year ended 31 December 2024

		2024	2023
Note		£	£
Turnover	4	22,691,967	21,824,199

Cost of sales	17,202,967	16,489,812
	--------------	--------------
Gross profit	5,489,000	5,334,387

Administrative expenses		5,217,984	4,919,849
Other operating income	5	–	1,959
		-------------	-------------
Operating profit	6	271,016	416,497

Income from shares in group undertakings	10	60,000	60,000
Interest payable and similar expenses	11	127,516	164,135
		-------------	-------------
Profit before taxation		203,500	312,362

Tax on profit	12	( 6,729)	89,704
		----------	----------
Profit for the financial year and total comprehensive income		210,229	222,658
		----------	----------

Dividends paid and payable	13	( 153,000)	( 206,052)

Retained earnings at the start of the year	894,945	878,339
	----------	----------
Retained earnings at the end of the year	952,174	894,945
	----------	----------

All the activities of the company are from continuing operations.

R E Jones and Co.

Cave Direct Limited

Statement of Financial Position

31 December 2024

	2024		2023
Note	£	£	£

Fixed assets

Tangible assets	15	789,187	601,730
Investments	16	1,000	1,000
		----------	----------
		790,187	602,730

Current assets

Stocks	17	1,428,955	1,646,015
Debtors	18	3,752,309	3,326,510
Cash at bank and in hand		352,268	530,339
		-------------	-------------
		5,533,532	5,502,864

Creditors: amounts falling due within one year	20	4,223,531		3,994,215
		-------------		-------------
Net current assets			1,310,001	1,508,649
			-------------	-------------
Total assets less current liabilities			2,100,188	2,111,379

Creditors: amounts falling due after more than one year	21		1,072,246	1,134,957

Provisions

Taxation including deferred tax	23	74,768	80,477
		-------------	-------------
Net assets		953,174	895,945
		-------------	-------------

R E Jones and Co.

Cave Direct Limited

Statement of Financial Position (continued)

31 December 2024

	2024		2023
Note	£	£	£

Capital and reserves

Called up share capital	27	1,000	1,000
Profit and loss account		952,174	894,945
		----------	----------
Shareholders funds		953,174	895,945
		----------	----------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 30 September 2025 , and are signed on behalf of the board by:

Mrs L Smale

Director

Company registration number: 06738514

R E Jones and Co.

Cave Direct Limited

Statement of Cash Flows

Year ended 31 December 2024

	2024	2023
Note	£	£

Cash flows from operating activities

Profit for the financial year	210,229	222,658

Adjustments for:
Depreciation of tangible assets	264,280	207,716
Government grant income	–	( 1,959)
Income from shares in group undertakings	( 60,000)	( 60,000)
Interest payable and similar expenses	127,516	164,135
Loss on disposal of tangible assets	–	25,542
Tax on profit	( 6,729)	89,704
Accrued expenses/(income)	56,007	( 21,591)

Changes in:
Stocks	217,060	144,286
Trade and other debtors	( 425,799)	239,753
Trade and other creditors	267,223	( 911,233)
	----------	----------
Cash generated from operations	649,787	99,011

Interest paid	( 127,516)	( 164,135)
Tax paid	( 91,349)	( 34,888)
	----------	----------
Net cash from/(used in) operating activities	430,922	( 100,012)
	----------	----------

Cash flows from investing activities

Purchase of tangible assets	( 451,737)	( 216,309)
Proceeds from sale of tangible assets	–	36,050
Dividends received	60,000	60,000
	----------	----------
Net cash used in investing activities	( 391,737)	( 120,259)
	----------	----------

Cash flows from financing activities

Proceeds from borrowings	( 324,274)	632,688
Proceeds from loans from group undertakings	–	( 48,001)
Government grant income	–	1,959
Payments of finance lease liabilities	259,515	( 81,114)
Dividends paid	( 153,000)	( 206,052)
	----------	----------
Net cash (used in)/from financing activities	( 217,759)	299,480
	----------	----------

R E Jones and Co.

Cave Direct Limited

Statement of Cash Flows (continued)

Year ended 31 December 2024

		2024	2023
Note		£	£
Net (decrease)/increase in cash and cash equivalents		( 178,574)	79,209
Cash and cash equivalents at beginning of year		530,339	451,130
		----------	----------
Cash and cash equivalents at end of year	19	351,765	530,339
		----------	----------

R E Jones and Co.

Cave Direct Limited

Notes to the Financial Statements

Year ended 31 December 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit B10, Larkfield Trading Estate, New Hythe Lane, Larkfield, Kent, ME20 6SW, England.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Goodwill	-	10% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Leasehold property	-	Length of lease
Plant and machinery	-	25% reducing balance
Fixtures and fittings	-	25% reducing balance
Equipment	-	25% reducing balance

	Website costs	-	25% reducing balance

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Investments in associates

Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition.

Investments in joint ventures

Investments in jointly controlled entities accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in jointly controlled entities accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the joint venture arising before or after the date of acquisition.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

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 entity after deducting all of its financial liabilities. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2024	2023
	£	£
Sale of goods	22,691,967	21,824,199
	--------------	--------------

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Other operating income

	2024	2023
	£	£
Government grant income	–	1,959
	----	-------

6. Operating profit

Operating profit or loss is stated after charging:

	2024	2023
	£	£
Depreciation of tangible assets	264,280	207,716
Loss on disposal of tangible assets	–	25,542
Impairment of trade debtors	110,058	34,212
	----------	----------

7. Auditor's remuneration

	2024	2023
	£	£
Fees payable for the audit of the financial statements	8,900	8,500
	-------	-------

8. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2024	2023
	No.	No.
Distribution staff	16	16
Administrative staff	10	10
Management staff	7	7
Number of direct staff	35	35
	----	----
	68	68
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2024	2023
	£	£
Wages and salaries	2,505,450	2,406,309
Social security costs	241,984	225,980
Other pension costs	52,154	52,323
	-------------	-------------
	2,799,588	2,684,612
	-------------	-------------

9. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2024	2023
	£	£
Remuneration	107,373	53,494
Company contributions to defined contribution pension plans	1,701	664
	----------	---------
	109,074	54,158
	----------	---------

10. Income from shares in group undertakings

	2024	2023
	£	£
Income from group undertakings	60,000	60,000
	---------	---------

11. Interest payable and similar expenses

	2024	2023
	£	£
Interest on banks loans and overdrafts	90,405	140,508
Interest on obligations under finance leases and hire purchase contracts	37,111	23,627
	----------	----------
	127,516	164,135
	----------	----------

12. Tax on profit

Major components of tax (income)/expense

	2024	2023
	£	£

Current tax:

UK current tax (income)/expense	( 1,020)	92,369

Deferred tax:

Origination and reversal of timing differences	( 5,709)	( 2,665)
	-------	---------
Tax on profit	( 6,729)	89,704
	-------	---------

Reconciliation of tax (income)/expense

The tax assessed on the profit on ordinary activities for the year is lower than (2023: higher than) the standard rate of corporation tax in the UK of 19 % (2023: 23.52 %).

	2024	2023
	£	£
Profit on ordinary activities before taxation	203,500	312,362
	----------	----------
Profit on ordinary activities by rate of tax	38,665	73,467
Effect of expenses not deductible for tax purposes	1,880	493
Effect of capital allowances and depreciation	( 41,369)	18,409
Utilisation of tax losses	( 196)	–
Deferred tax provision	( 5,709)	( 2,665)
	----------	----------
Tax on profit	( 6,729)	89,704
	----------	----------

13. Dividends

Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):

	2024	2023
	£	£
Dividends on equity shares	153,000	206,052
	----------	----------

14. Intangible assets

	Goodwill
	£
Cost
At 1 January 2024 and 31 December 2024	439,750
	----------
Amortisation
At 1 January 2024 and 31 December 2024	439,750
	----------
Carrying amount
At 31 December 2024	–
	----------
At 31 December 2023	–
	----------

15. Tangible assets

	Land and buildings	Plant and machinery	Fixtures and fittings	Equipment	Website costs	Total
	£	£	£	£	£	£
Cost
At 1 Jan 2024	25,225	1,912,281	24,606	26,725	188,932	2,177,769
Additions	–	451,737	–	–	–	451,737
Disposals	–	–	( 6,410)	( 8,861)	(26,135)	( 41,406)
	---------	-------------	---------	---------	----------	-------------
At 31 Dec 2024	25,225	2,364,018	18,196	17,864	162,797	2,588,100
	---------	-------------	---------	---------	----------	-------------
Depreciation
At 1 Jan 2024	15,066	1,347,419	21,818	24,235	167,501	1,576,039
Charge for the year	2,054	255,528	697	643	5,358	264,280
Disposals	–	–	( 6,410)	( 8,860)	(26,136)	( 41,406)
	---------	-------------	---------	---------	----------	-------------
At 31 Dec 2024	17,120	1,602,947	16,105	16,018	146,723	1,798,913
	---------	-------------	---------	---------	----------	-------------
Carrying amount
At 31 Dec 2024	8,105	761,071	2,091	1,846	16,074	789,187
	---------	-------------	---------	---------	----------	-------------
At 31 Dec 2023	10,159	564,862	2,788	2,490	21,431	601,730
	---------	-------------	---------	---------	----------	-------------

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Plant and machinery
	£
At 31 December 2024	528,119
	----------
At 31 December 2023	298,508
	----------

16. Investments

	Shares in group undertakings
	£
Cost
At 1 January 2024 and 31 December 2024	1,000
	-------
Impairment
At 1 January 2024 and 31 December 2024	–
	-------

Carrying amount
At 31 December 2024	1,000
	-------
At 31 December 2023	1,000
	-------

Subsidiaries, associates and other investments

	Class of share	Percentage of shares held
Subsidiary undertakings
Cave Direct North Limited Unit B10 Larkfield Trading Estate, New Hythe Lane, Larkfield, Aylesford, Kent, UK, ME20 6SW	Ordinary	100

17. Stocks

	2024	2023
	£	£
Raw materials and consumables	1,428,955	1,646,015
	-------------	-------------

18. Debtors

	2024	2023
	£	£
Trade debtors	3,326,742	2,799,040
Amounts owed by group undertakings	145,181	225,381
Prepayments and accrued income	191,945	164,348
Corporation tax repayable	1,020	–
Other debtors	2,497	2,497
Other debtors	84,924	135,244
	-------------	-------------
	3,752,309	3,326,510
	-------------	-------------

19. Cash and cash equivalents

Cash and cash equivalents comprise the following:

	2024	2023
	£	£
Cash at bank and in hand	352,268	530,339
Bank overdrafts	( 503)	–
	----------	----------
	351,765	530,339
	----------	----------

20. Creditors: amounts falling due within one year

	2024	2023
	£	£
Bank loans and overdrafts	1,073,771	1,118,896
Trade creditors	2,127,639	1,953,170
Accruals and deferred income	70,843	14,836
Corporation tax	–	92,369
Social security and other taxes	728,555	644,740
Obligations under finance leases and hire purchase contracts	170,888	131,555
Director loan accounts	1,467	6,275
Other creditors	50,368	32,374
	-------------	-------------
	4,223,531	3,994,215
	-------------	-------------

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

	2024	2023
	£	£
Bank loans and overdrafts	433,249	707,087
Obligations under finance leases and hire purchase contracts	439,974	219,792
Other creditors	199,023	208,078
	-------------	-------------
	1,072,246	1,134,957
	-------------	-------------

22. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	2024	2023
	£	£
Not later than 1 year	170,888	131,555
Later than 1 year and not later than 5 years	439,974	219,792
	----------	----------
	610,862	351,347
	----------	----------

23. Provisions

	Deferred tax (note 24)
	£
At 1 January 2024	80,477
Charge against provision	( 5,709)
	---------
At 31 December 2024	74,768
	---------

24. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2024	2023
	£	£
Included in provisions (note 23)	74,768	80,477
	---------	---------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2024	2023
	£	£
Accelerated capital allowances	74,768	80,477
	---------	---------

No disclosure for deferred taxation has been made in these accounts as it is not applicable.

25. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 50,453 (2023: £ 51,659 ).

26. Government grants

The amounts recognised in the financial statements for government grants are as follows:

	2024	2023
	£	£

Recognised in other operating income:

Government grants recognised directly in income	–	1,959
	----	-------

27. Called up share capital

Issued, called up and fully paid

	2024		2023
	No.	£	No.	£
Ordinary shares of £ 1 each	800	800	800	800
Ordinary Class 2 shares of £ 1 each	200	200	200	200
	-------	-------	-------	-------
	1,000	1,000	1,000	1,000
	-------	-------	-------	-------

28. Analysis of changes in net debt

	At 1 Jan 2024	Cash flows	At 31 Dec 2024
	£	£	£
Cash at bank and in hand	530,339	(178,071)	352,268
Bank overdrafts	–	(503)	(503)
Debt due within one year	(1,256,726)	11,103	(1,245,623)
Debt due after one year	(926,879)	53,656	(873,223)
	-------------	----------	-------------
	( 1,653,266)	( 113,815)	( 1,767,081)
	-------------	----------	-------------

29. Operating leases

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

	2024	2023
	£	£
Not later than 1 year	460,075	518,463
Later than 1 year and not later than 5 years	713,701	940,144
Later than 5 years	934,528	1,168,160
	-------------	-------------
	2,108,304	2,626,767
	-------------	-------------

R E Jones and Co.

Cave Direct Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

30. Charges on assets

Aib Group (UK)P.L.C. hold a fixed and floating debenture charge over the Company.

Cynergy Business Finance Limited hold a fixed and floating charge over all the property of the Company including a negative pledge.

31. Directors' advances, credits and guarantees

During the year the directors entered into the following advances and credits with the company:

	2024
	Balance brought forward	Advances/ (credits) to the directors	Balance outstanding
	£	£	£
Mr C Gilhespy	( 6,228)	4,875	( 1,353)
Mrs L Smale	( 47)	( 19)	( 66)
Mr N Kitching	–	( 48)	( 48)
	-------	-------	-------
	( 6,275)	4,808	( 1,467)
	-------	-------	-------

	2023
	Balance brought forward	Advances/ (credits) to the directors	Balance outstanding
	£	£	£
Mr C Gilhespy	( 4,400)	( 1,828)	( 6,228)
Mrs L Smale	( 245)	198	( 47)
Mr N Kitching	( 1)	1	–
	-------	-------	-------
	( 4,646)	( 1,629)	( 6,275)
	-------	-------	-------

32. Related party transactions

Included in debtors is a loan of £225,381 (2023 : £145,181) owed by an associated company Beer Merchants Limited, this is an interest free loan with no fixed terms for repayment. During the year the Company traded with an associated company, Beer Merchants Limited selling goods and services for £400,763 (2023 : £343,268), these transactions took place during the normal course of business and the normal market price was charged. At the year end, a trading debt of £115,051 (2023 : £29,311) was owed by the associated company. No other transactions with related parties were undertaken such as are required to be disclosed under FRS102.