Verdant Brewing Company Limited

	Page
Strategic Report	1—2
Directors' Report	3
Independent Auditor's Report	4—7
Profit and Loss Account	8
Statement of Comprehensive Income	9
Balance Sheet	10
Statement of Changes in Equity	11
Cash Flow Statement	12
Notes to the Cash Flow Statement	13
Notes to the Financial Statements	14—23

The directors present their strategic report for the year ended 31 December 2024.

Review of the Business

Turnover and Sales Channels

In 2024, turnover decreased by 2.5% compared to the previous year. This decline was largely driven by the reduced contribution from Schooners bar, which was operated as part of the Brewery in 2023 and contributed an additional £309k in sales. However, Schooners is now managed by our sister company, Green Spaces (Cornwall) Ltd. Excluding this factor, trade sales for the Brewery showed a modest growth of 2.16%. While encouraging, this growth fell short of our forecasted targets for the year. Additionally, webshop sales declined by 2.3%, a trend attributed to the ongoing cost-of-living pressures that have affected consumer spending habits. Despite a 7% increase in the number of orders, the average spend per order decreased as consumers tightened their budgets.

Cost Management and Margins

Despite persistent inflationary pressures, we were able to increase our trade margin by 2% and maintain a stable overall gross margin of 43%. This was achieved through careful management of cost increases, particularly in raw ingredients, which showed some signs of stabilisation. However, costs related to labour, packaging, and distribution continued to rise in line with inflation. A notable achievement this year was the team’s focus on improving operational efficiency, especially in managing CO2 usage, which contributed to cost savings in production.

Overhead and Investment in Growth

Overhead costs saw a significant increase of 14.83%, outpacing revenue growth. As a result, the revenue-to-overhead ratio increased by 6.5%, highlighting a higher proportion of costs relative to sales. While this increase was slightly above our forecasted range, it is important to note that a substantial portion of this rise was driven by strategic investments in staff to support future growth. This long-term investment, though contributing to a decrease in operating profit compared to last year, positions the company for sustainable expansion. Despite this dip in operating profit, the business remains profitable and on track for continued growth.

Outlook and Sustainability

Overall, the company’s performance in 2024 remains in line with expectations. We have continued to grow at a sustainable pace while maintaining our high standards for production quality and preserving key relationships that are crucial to both our brand and our stakeholders. Despite some challenges, the business has shown resilience, and we remain confident in our long-term strategy for growth and profitability.

Principal Risks and Uncertainties

Financial risks

External Market

As a consumer facing business, we are exposed to macroeconomic fluctuations that impact both costs and consumer demands, as seen with the inflationary pressures in the year. Our economic risks are managed and mitigated by continuing to evaluate and expand our market channels, regular stress testing of scenarios and keeping a varied product mix.

Liquidity

The company maintains a strong liquidity position, underpinned by ample cash reserves and access to undrawn credit facilities. This robust liquidity buffer provides resilience against short-term financial shocks and ensures the firm can meet its operational and strategic commitments without disruption. Current ratios and cash flow forecasts are monitored closely to maintain working capital levels and align with the company’s risk appetite. Given the stability of cash flows and capital management, the risk of a liquidity shortfall is considered low.

Credit Risk

Credit risk is actively managed through an implemented risk assessment framework. The company conducts thorough due diligence and credit evaluations before extending credit to customers or counterparties. Regular monitoring of receivables helps mitigate potential losses. Concentration risk is minimised by maintaining a diversified customer base, and exposure limits are set based on internal risk ratings and external credit scores. As of the latest reporting period, there are no significant overdue receivables or indications of counterparty default, reflecting the effectiveness of current credit risk controls.

Non-financial

...CONTINUED

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Verdant Brewing Company Limited

Strategic Report (continued)

For The Year Ended 31 December 2024

Principal Risks and Uncertainties - continued

Supply Chain Risk

The company is reliant on a consistent supply of high-quality ingredients such as specialty hops, malt, and yeast; many of which are sourced from a small number of key suppliers, both locally and internationally. Disruptions due to climate events, transportation delays, or supplier insolvency can impact production schedules and cost structures. To mitigate this, the company maintains strong relationships with diversified suppliers and holds strategic reserves of critical inputs. Supplier risk assessments and contingency sourcing strategies are regularly reviewed to enhance supply chain resilience.

Cyber Risk

The company is increasingly dependent on digital platforms for sales, logistics, and customer engagement. This reliance exposes the business to cyber threats, including data breaches, ransomware, and system outages. With e-commerce and direct-to-consumer sales channels growing, the company has implemented basic cybersecurity protocols, including data encryption, firewall protection, and regular system audits. Ongoing staff training and engagement with third-party IT security partners support efforts to strengthen the company's cybersecurity position.

Reputational and Brand Risk

The Verdant Brand identity is critical to our success in the craft beer market, where customer loyalty and perception are heavily influenced by authenticity, community engagement, and product quality. Negative publicity from quality issues, customer service lapses, or controversial marketing could damage brand equity and consumer trust. The company mitigates this risk through stringent quality control processes, transparent communication, and active participation in local and industry events. Social media is monitored closely to ensure timely responses to customer concerns or emerging reputational issues.

Regulatory Compliance

The alcohol industry is highly regulated, with compliance required across brewing, labeling, distribution, advertising, and environmental standards. The company closely monitors legal developments at the national and international levels to ensure full compliance. Regular audits, training for staff on legislative requirements, and active participation in industry associations help maintain awareness and readiness. Non-compliance could lead to fines, reputational harm, or operational restrictions, so regulatory risk remains a key focus in strategic planning.

On behalf of the board

Mr Christopher Flanigan

Director

30th September 2025

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Verdant Brewing Company Limited

Company No. 09242115

Directors' Report For The Year Ended 31 December 2024

Directors' Report

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

Principal Activity

The company's principal activity continues to be that of brewing beer.

Directors

The directors who held office during the year were as follows:

Mr Adam Robertson

Mr James Heffron

Mr Richard White

Mr Christopher Flanigan

Statement of Directors' Responsibilities

The directors are responsible for preparing the Strategic Report, the 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, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', 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 the 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;
state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of Disclosure of Information to Auditors

In the case of each director in office at the date the Directors' Report is approved:

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

Independent Auditors

The auditors, RRL LLP, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.

On behalf of the board

Mr Christopher Flanigan

Director

30th September 2025

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Independent Auditor's Report

to the Members of

Verdant Brewing Company Limited

Independent Auditor's Report

Qualified opinion

We have audited the financial statements of Verdant Brewing Company Limited (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the cash flow statement and notes to the financial statements, including 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, except for the possible material effects of the matter described in the basis for qualified opinion section of our report, 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 Qualified Opinion

We were not appointed as auditor of the company until after 31 December 2023 and thus did not observe the counting of physical stock at the end of the prior year in relation to the opening stock. We were unable to satisfy ourselves by alternative means concerning the stock quantities held at 31 December 2023, which are included in the balance sheet at £524,872, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary.

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 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. 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 themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the opening inventory quantities of £524,872 held at 31 December 2023. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason.

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Independent Auditor's Report (continued)

to the Members of

Verdant Brewing Company Limited

Opinions on Other Matters Prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our 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

Except for the matter described in the basis for qualified opinion section of our report, 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.

Arising solely from the limitation on the scope of our work relating to stock, referred to above:

we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and

we were unable to determine whether adequate accounting records have been kept.

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.

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Independent Auditor's Report (continued)

to the Members of

Verdant Brewing Company Limited

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.

As part of our audit work, we obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate. We determined that the laws and regulations most significant to the company, as well as the laws and regulations that have a direct impact on the preparation of the financial statements are: the Companies Act 2006, employment legislation, health and safety and food hygiene regulations.

The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

Discussion with management as to how compliance with these laws and regulations is monitored;

Review of the disclosures in the financial statements and testing to supporting documentation;

Enquiries of management concerning actual and potential litigation and claims;

Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

Reviewing minutes of directors’ meetings and correspondence with regulators;

Performing audit work in connection with the risk of management override of controls, including testing journal entries for reasonableness and evaluating the business rationale of significant transactions outside the normal course of business.

We also communicate relevant identified laws and regulations and potential fraud risk to all engagement team members and remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit approach also considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud being in respect of cut off and completion risk around revenue recognition. Under ISA (UK) we are also required to undertake procedures to respond to the risk of management override of controls. Our procedures included the following:

Undertaking transactional testing on revenue, including cash sales

Performing reconciliation work from the production system to the nominal ledger to prove income in total between the different operating systems

Performing cut off testing

Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale for significant transactions outside the normal course of business

Reviewing estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making estimates.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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Independent Auditor's Report (continued)

to the Members of

Verdant Brewing Company Limited

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.

Josh Stevens ACA (Senior Statutory Auditor)

for and on behalf of RRL LLP , Statutory Auditor

30th September 2025

RRL LLP

Peat House

Newham Road

Truro

Cornwall

TR1 2DP

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Verdant Brewing Company Limited

Profit and Loss Account

For The Year Ended 31 December 2024

Profit and Loss Account

		2024	2023
	Notes	£	£
TURNOVER	3	7,777,065	7,977,957
Cost of sales		(4,390,231 )	(4,543,038 )

GROSS PROFIT		3,386,834	3,434,919

Administrative expenses		(3,011,312 )	(2,564,733 )
Other operating income		1,075	1,344

OPERATING PROFIT	5	376,597	871,530
Loss on disposal of fixed assets		(2,165 )	(150 )
Other interest receivable and similar income	10	4,836	4,111
Interest payable and similar charges	11	(228,419 )	(192,620 )

PROFIT BEFORE TAXATION		150,849	682,871
Tax on Profit	12	277,363	(92,343 )

PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR		428,212	590,528

The notes on pages 13 to 23 form part of these financial statements.

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Verdant Brewing Company Limited

Statement of Comprehensive Income

For The Year Ended 31 December 2024

Statement of Comprehensive Income

	2024	2023
	£	£
PROFIT FOR THE FINANCIAL YEAR	428,212	590,528
OTHER COMPREHENSIVE INCOME FOR THE YEAR	-	-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR	428,212	590,528

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Verdant Brewing Company Limited

Balance Sheet

As At 31 December 2024

Balance Sheet

Registered number: 09242115

		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	13		-		1,253
Tangible Assets	14		3,756,955		3,828,561

			3,756,955		3,829,814
CURRENT ASSETS
Stocks	15	660,060		524,872
Debtors	16	1,248,394		409,899
Cash at bank and in hand		306,451		789,810

		2,214,905		1,724,581
Creditors: Amounts Falling Due Within One Year	17	(778,609 )		(1,030,993 )

NET CURRENT ASSETS (LIABILITIES)			1,436,296		693,588

TOTAL ASSETS LESS CURRENT LIABILITIES			5,193,251		4,523,402

Creditors: Amounts Falling Due After More Than One Year	18		(901,994 )		(485,664 )

PROVISIONS FOR LIABILITIES
Deferred Taxation	21		(193,132 )		(367,825 )

NET ASSETS			4,098,125		3,669,913

CAPITAL AND RESERVES
Called up share capital	23		9,700		9,700
Share premium account			1,353,413		1,353,413
Profit and Loss Account			2,735,012		2,306,800

SHAREHOLDERS' FUNDS			4,098,125		3,669,913

On behalf of the board

Mr Christopher Flanigan

Director

30th September 2025

The notes on pages 13 to 23 form part of these financial statements.

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Verdant Brewing Company Limited

Statement of Changes in Equity

For The Year Ended 31 December 2024

Statement of Changes in Equity

	Share Capital	Share Premium	Profit and Loss Account	Total
	£	£	£	£
As at 1 January 2023	9,700	1,353,413	1,716,272	3,079,385
Profit for the year and total comprehensive income	-	-	590,528	590,528

As at 31 December 2023 and 1 January 2024	9,700	1,353,413	2,306,800	3,669,913


Profit for the year and total comprehensive income	-	-	428,212	428,212

As at 31 December 2024	9,700	1,353,413	2,735,012	4,098,125

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Verdant Brewing Company Limited

Cash Flow Statement

For The Year Ended 31 December 2024

Cash Flow Statement

		2024	2023
	Notes	£	£
Cash flows from operating activities
Net cash (used in)/generated from operations	1	(57,414 )	1,161,022
Interest paid		(228,419 )	(192,620 )

Net cash (used in)/generated from operating activities		(285,833 )	968,402

Cash flows from investing activities
Purchase of tangible assets		(320,006 )	(66,050 )
Proceeds from disposal of tangible assets		260	5,050
Grants received		1,075	1,344
Interest received		4,836	4,111
Purchase of tangible assets via hire purchase		53,390	-

Net cash used in investing activities		(260,445 )	(55,545 )

Cash flows from financing activities
Proceeds from new bank borrowings		381,380	-
Repayment of bank borrowings		-	(196,831 )
Repayment of finance leases		(318,461 )	(388,736 )

Net cash generated from/(used in) financing activities		62,919	(585,567 )



(Decrease)/increase in cash and cash equivalents		(483,359 )	327,290
Cash and cash equivalents at beginning of year	2	789,810	462,520

Cash and cash equivalents at end of year	2	306,451	789,810

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Verdant Brewing Company Limited

Notes to the Cash Flow Statement

For The Year Ended 31 December 2024

Notes to the Cash Flow Statement

1. Reconciliation of profit for the financial year to cash (used in)/generated from operations

	2024	2023
	£	£
Profit for the financial year	428,212	590,528
Adjustments for:
Tax on profit	(277,363 )	92,343
Interest expense	228,419	192,620
Interest income	(4,836 )	(4,111 )
Amortisation of intangible assets	1,253	2,952
Depreciation of tangible assets	335,797	356,127
Loss on disposal of tangible assets	2,165	150
Grant income	(1,075)	(1,344)
Movements in working capital:
Increase in stocks	(135,188 )	(82,954 )
Increase in trade and other debtors	(735,825 )	(64,312 )
Increase in trade and other creditors	101,027	79,023

Net cash (used in)/generated from operations	(57,414 )	1,161,022

2. Cash and cash equivalents

Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:

	2024	2023
	£	£
Cash at bank and in hand	306,451	789,810

3. Analysis of changes in net debt

	As at 1 January 2024	Cash flows	As at 31 December 2024
	£	£	£
Cash at bank and in hand	789,810	(483,359)	306,451
Finance leases	(447,793)	318,461	(129,332)
Debts falling due within one year	(117,753 )	75,075	(42,678 )
Debts falling due after more than one year	(387,368)	(456,455)	(843,823)

	(163,104)	(546,278)	(709,382)

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Verdant Brewing Company Limited

Notes to the Financial Statements

For The Year Ended 31 December 2024

Notes to the Financial Statements

1. General Information

Verdant Brewing Company Limited is a private company, limited by shares, incorporated in England & Wales, registered number 09242115 . The registered office is Unit 30 Parkengue, Kernick Industrial Estate, Penryn, Cornwall, TR10 9EP.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £1.

2.2. Significant judgements and estimations

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.

2.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services.

Sale of goods

Revenue from production and supply of craft beers is recognised when, and to the extent that the company obtains the right to consideration in exchange for goods and services provided.

Revenue from the supply of bar and food products is recognised when the company supplies the products to the customers.

2.4. Intangible Fixed Assets and Amortisation - Other Intangible

Intangible assets include website development costs. It is amortised to profit and loss account over its estimated economic life of 5 years.

2.5. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold	None
Leasehold	6 year straight line
Plant & Machinery	10% & 20% straight line
Motor Vehicles	10% straight line
Fixtures & Fittings	10% straight line
Computer Equipment	20% straight line

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 recognised in the profit and loss account.

2.6. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

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Verdant Brewing Company Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.7. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

2.8. Cash and Cash Equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.

2.9. Financial Instruments

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

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

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

Basic financial assets

Basic financial assets receivable within one year, such as trade debtors and bank balances, are measured at transaction price less any impairment.

Basic financial assets receivable within more than one year are measured at amortised cost less any impairment.

Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, or the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Basic financial liabilities

Basic financial liabilities that have no stated interest rate and are payable within one year, such as trade creditors, are measured at transaction price.

Other basic financial liabilities are measured at amortised cost.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

2.10. Taxation

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other year and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

...CONTINUED

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Page 16

Verdant Brewing Company Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.10. Taxation - continued

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and asset reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

2.11. Pensions

The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

2.12. Government Grant

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

3. Turnover

Analysis of turnover by class of business is as follows:

	2024	2023
	£	£
Other income	58,569	64,275
Sale of goods	7,718,496	7,913,682

	7,777,065	7,977,957

Analysis of turnover by geographical market is as follows:

	2024	2023
	£	£
United Kingdom	7,004,055	7,304,730
Rest of the world	773,010	673,227

	7,777,065	7,977,957

4. Other Operating Income

	2024	2023
	£	£
Grant income	1,075	1,344

	1,075	1,344

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Page 17

Verdant Brewing Company Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

5. Operating Profit

The operating profit is stated after charging:

	2024	2023
	£	£
Bad debts	15,403	3,891
Operating lease rentals	15,062	-
Depreciation of tangible fixed assets - owned	275,993	276,916
Depreciation of tangible fixed assets - finance leases and hire purchase contracts	59,804	79,211
Amortisation of intangible fixed assets	1,253	2,952

6. Auditor's Remuneration

Remuneration received by the company's auditors and their associates during the year was as follows:

	2024	2023
	£	£
Audit Services
Audit of the company's financial statements	12,932	12,000

7. Staff Costs

Staff costs, including directors' remuneration, were as follows:

	2024	2023
	£	£
Wages and salaries	2,024,657	1,789,384
Social security costs	201,647	172,473
Other pension costs	39,136	32,886

	2,265,440	1,994,743

8. Average Number of Employees

Average number of employees, including directors, during the year was: 66 (2023: 65)

9. Directors' remuneration

	2024	2023
	£	£
Emoluments	380,241	309,382
Company contributions to money purchase pension schemes	5,283	4,073

	385,524	313,455

The number of directors to whom retirement benefits were accruing was as follows:

	2024		2023
Money purchase pension schemes	4		4

Information regarding the highest paid director was as follows:

	2024	2023
	£	£
Emoluments	100,310	101,217
Company contributions to money purchase pension schemes	1,321	1,321

	101,631	102,538

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Verdant Brewing Company Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

10. Interest Receivable and Similar Income

	2024	2023
	£	£
Bank interest receivable	4,836	4,111

11. Interest Payable and Similar Charges

	2024	2023
	£	£
Bank loans and overdrafts	131,063	89,002
Finance charges payable under finance leases and hire purchase contracts	97,356	103,618

	228,419	192,620

12. Tax on Profit

	Tax Rate		2024	2023
The tax (credit)/charge on the profit for the year was as follows:
	2024	2023	£	£
Current tax
UK Corporation Tax	25.0%	25.0%	-	-
Prior period adjustment			(102,670 )	-

			(102,670 )	-
Deferred Tax
Origination and reversal of timing differences			(174,693 )	92,343


Total tax charge for the period			(277,363 )	92,343


The prior period adjustment includes £102,670 in relation to a Research & Development tax credit claim under the SME scheme for the year ended 31 December 2023, which was submitted and recognised during 2024. The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
			2024	2023
			£	£
Profit before tax			150,849	682,871

Tax on profit at 25% (UK standard rate)			37,712	682,871
Goodwill/depreciation not allowed for tax			2,055	4,046
Expenses not deductible for tax purposes			2,338	782
Tax losses utilised			(12,848 )	(578,005 )
Capital allowances			(29,257 )	(109,694 )
Short term timing differences			(174,693 )	92,343
Prior period adjustment			(102,670 )	-

Total tax charge for the period			(277,363)	92,343

At 31 December 2024, the company had tax losses of £581,401 available for carry forward (2023: £86,481).

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Page 19

Verdant Brewing Company Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

13. Intangible Assets

	Other
	£
Cost
As at 1 January 2024	16,894

As at 31 December 2024	16,894

Amortisation
As at 1 January 2024	15,641
Provided during the period	1,253

As at 31 December 2024	16,894

Net Book Value
As at 31 December 2024	-

As at 1 January 2024	1,253

14. Tangible Assets

	Land & Property
	Freehold	Leasehold	Plant & Machinery	Motor Vehicles
	£	£	£	£
Cost
As at 1 January 2024	2,194,988	60,331	2,501,111	49,374
Additions	-	-	200,512	53,390
Disposals	(1,000 )	-	(3,438 )	-

As at 31 December 2024	2,193,988	60,331	2,698,185	102,764

Depreciation
As at 1 January 2024	-	56,486	1,227,278	12,344
Provided during the period	-	3,845	272,632	8,941
Disposals	-	-	(2,013 )	-

As at 31 December 2024	-	60,331	1,497,897	21,285

Net Book Value
As at 31 December 2024	2,193,988	-	1,200,288	81,479

As at 1 January 2024	2,194,988	3,845	1,273,833	37,030


	Fixtures & Fittings	Computer Equipment	Total
	£	£	£
Cost
As at 1 January 2024	445,680	50,030	5,301,514
Additions	6,949	5,765	266,616
Disposals	-	(538 )	(4,976 )

As at 31 December 2024	452,629	55,257	5,563,154

...CONTINUED

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Page 20

Verdant Brewing Company Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

Depreciation
As at 1 January 2024	143,213	33,632	1,472,953
Provided during the period	45,021	5,358	335,797
Disposals	-	(538 )	(2,551 )

As at 31 December 2024	188,234	38,452	1,806,199

Net Book Value
As at 31 December 2024	264,395	16,805	3,756,955

As at 1 January 2024	302,467	16,398	3,828,561

Finance leases are secured on the assets to which they relate. Bank loans are secured by fixed and floating charges over the company’s assets.

The net book value of motor vehicles held under hire purchase at the reporting date of 31 December 2024 was £49,386 (2023: £59,804). These assets are secured against the related hire purchase liabilities, which are disclosed in the notes to the financial statements.

15. Stocks

	2024	2023
	£	£
Materials	414,355	388,420
Finished goods	144,205	86,964
Work in progress	101,500	49,488

	660,060	524,872

16. Debtors

	2024	2023
	£	£
Due within one year
Trade debtors	265,224	289,953
Other debtors	983,170	119,946

	1,248,394	409,899

17. Creditors: Amounts Falling Due Within One Year

	2024	2023
	£	£
Net obligations under finance lease and hire purchase contracts	71,161	349,497
Trade creditors	176,511	149,204
Bank loans and overdrafts	42,678	117,753
Other creditors	31,360	30,031
Taxation and social security	241,274	282,340
Accruals and deferred income	215,625	102,168

	778,609	1,030,993

Finance leases and hire purchase contracts are secured on the assets to which they relate.

Included within accruals and deferred income is £53,638 in relation to a IETF grant for carbon recapture equipment.

Page 20

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Verdant Brewing Company Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

18. Creditors: Amounts Falling Due After More Than One Year

	2024	2023
	£	£
Net obligations under finance lease and hire purchase contracts	58,171	98,296
Bank loans	843,823	387,368

	901,994	485,664

Of the creditors falling due after more than one year the following amounts are due after more than five years.

	2024		2023
	£		£
Bank loans	694,274		-

19. Loans

At the balance sheet date, the company had the following bank borrowings:

A Bounce Back Loan with NatWest of £14,791, originally £50,000, repayable in monthly instalments over 7 years at 2.5% per annum.

A bank loan of £12,258, originally £25,000, repayable over 10 years with interest at 5.6%.

A mortgage with NatWest of £371,810, originally £377,319, repayable in monthly instalments over 15 years at 7.9% per annum, secured on freehold property.

Two loans with NatWest totalling £487,642, originally £500,000, commenced April 2024, repayable in monthly instalments over 15 years at interest rates between 7.5% and 7.8% per annum.

Bank loans and overdrafts are secured by fixed and floating charges over the assets of the company.

An analysis of the maturity of loans is given below:

	2024	2023
	£	£
Amounts falling due within one year or on demand:
Bank loans	42,678	117,753

	2024	2023
	£	£
Amounts falling due between one and five years:
Bank loans	149,549	387,368

	2024	2023
	£	£
Amounts falling due after more than five years:
Bank loans	694,274	-

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Page 22

Verdant Brewing Company Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

20. Obligations Under Finance Leases and Hire Purchase

	2024	2023
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	71,161	349,497
Later than one year and not later than five years	58,171	98,296

	129,332	447,793

	129,332	447,793

Finance leases are secured on the assets to which they relate. Bank loans are secured by fixed and floating charges over the company’s assets.

21. Deferred Taxation

The provision for deferred tax is made up as follows:

	2024	2023
	£	£
Other timing differences	193,132	367,825

The deferred tax liability set out above relates predominantly to accelerated capital allowances and this is expected to reverse over the useful economic lives of the related assets.

22. Provisions for Liabilities


	Deferred Tax	Total
	£	£
As at 1 January 2024	367,825	367,825
Utilised	(191,938 )	(191,938)
Reversals	17,245	17,245

Balance at 31 December 2024	193,132	193,132

23. Share Capital

	2024	2023
Allotted, called up and fully paid	£	£
300 Ordinary Shares of £ 0.0100 each	3	3
90,341,922 Ordinary A shares of £ 0.0001 each	9,034	9,034
6,633,813 Ordinary B shares of £ 0.0001 each	663	663

	9,700	9,700

Ordinary ‘founder shares’ have voting rights, rights to attend general meetings and to receive dividends.

Ordinary ‘A’ shares have voting rights, rights to attend general meetings and to receive dividends.

Ordinary ‘B’ shares do not have voting rights nor rights to attend general meetings. They have rights to receive dividends but no pre-emption rights.

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Page 23

Verdant Brewing Company Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

24. Capital Commitments

	2024	2023
	£	£
At the end of the period	71,101	-

At the end of the period, the company had capital commitments contracted for but not provided in these financial statements

25. Other Commitments

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

	2024	2023
	£	£
Not later than one year	62,448	40,598
Later than one year and not later than five years	300,467	152,214
Later than five years	57,790	131,061

	420,705	323,873

26. Pension Commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.

During the year the charge to profit or loss in respect of defined contribution schemes was £39,136 (2023: £32,886).

At the balance sheet date contributions of £10,315 were due to the fund and are included in creditors.

27. Related Party Disclosures

During the year the company entered into transactions with Green Spaces (Cornwall) Ltd, a company under the common control of the directors of Verdant Brewing Company Limited.

The company raised sales invoices totalling £150,772 (2023: £nil) to Green Spaces (Cornwall) Ltd.

At 31 December 2024, the company had an outstanding sales ledger balance due from Green Spaces (Cornwall) Ltd of £13,122 (2023: £nil).

The company re-invoiced costs totalling £539 (2023: £nil) to Green Spaces (Cornwall) Ltd.

At 31 December 2024, the company had an outstanding loan balance due from Green Spaces (Cornwall) Ltd of £701,607 (2023: £10,070). The loan balance represents the net of trading transactions and intercompany funding. The loan is unsecured, interest-free and repayable on demand.

The transactions and balances are not considered to be on an arm’s length basis.

28. Controlling Parties

The company's controlling party is the board of directors by virtue of their interest in the share capital of the company.

29. Auditors liability

For the year ended 31 December 2024, the company entered into a liability limitation agreement with its auditors, the principal terms of which limit the liability of the auditors to £5,000,000 to relation to their responsibilities as auditors of the company. The date of approving this agreement was 12 June 2025.

Page 23