Canned Wine Company Ltd

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—7

1. General Information

Canned Wine Company Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 12147507 . The registered office is 2.04 Newark Works, Foundry Lane, Bath, Somerset, BA2 3GZ.

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 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Going Concern Disclosure

Company law requires the directors to consider the appropriateness of the going concern basis when preparing the financial statements. Having considered the period to December 2026, the directors confirm that they consider that the going concern basis remains appropriate. In arriving at this conclusion, the directors have considered both financial and operational aspects surrounding the Company’s trading outlook and continued momentum in 2005, including the expected availability of funding and the ability of the Company to implement contingency plans, if necessary, to continue as a going concern. The directors are therefore comfortable that the Company has sufficient access to cash resources to cover both working capital and growth spend requirements.

The directors have reviewed the Company’s detailed trading budget and cash flow projections and taken into account relevant risk factors including market positioning. Based on the analysis performed, the directors believe that the Company has sufficient resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.

2.3. Turnover

Revenue is recognised when (or as) a performance obligation is satisfied at the amount of the transaction price that is allocated to that performance obligation. At contract inception, the Company assesses the goods promised in the contract with the customer and identifies as a performance obligation each promise to transfer to the customer goods that are distinct, or a series of distinct goods that are substantially the same and that have the same pattern of transfer to the customer. The Company’s primary revenue stream is the sale of wine as trade sales and direct sales.

Trade sales: The performance obligation for trade sales is the delivery of the wine to the customer. Revenue is therefore recognised at the point in time when control of the goods transfers to the customer, which ordinarily would be at the point at which the customer receives the goods, however for practicality purposes the revenue is recognised at the point of receipt by the customer. This approach has an immaterial impact on revenue recognition in the Company’s accounts. Trade sales are sometimes under sale or return arrangements and estimates are many of potential returns based on historic trends of other known factors. Trade sales are often made with rebates and to customers for promotional support and such costs are accrued as a cost as realised.

Direct sales: The performance obligation for direct sales is the delivery of the wine to the customer. Revenue is therefore recognised at the point in time when control of the goods has transferred to the customer. For sales that are made via the Company’s website, revenue is recognised at the point of despatch rather than at the point the customer physically receives the goods. This approach is taken for practicality purposes and has an immaterial impact on revenue recognition in the Company’s accounts.

2.4. Intangible Fixed Assets and Amortisation - Other Intangible

Other intangible assets are Trademarks and the Website. It is amortised to the profit and loss account over its estimated economic life of 10 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:

Leasehold	25% Reducing Balance
Plant & Machinery	25% Reducing Balance
Motor Vehicles	25% Straight Line
Computer Equipment	33% Straight Line

Page 3

Page 4

Canned Wine Company Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.6. Stocks and Work in Progress

Inventories are valued at the lower of cost or deemed cost and net realisable value. Cost is calculated on an average cost basis. Inventory costs include direct costs of the winery plus attributable overheads that relate to bringing inventories to their present location and condition.

2.7. Foreign Currencies

Functional and presentational currency items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in pounds sterling, which is Canned Wine Company Ltd’s functional and presentation currency. Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each year end foreign currency monetary items are translated using the closing rate. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income. Foreign exchange gains and losses are presented in the Statement of Comprehensive Income under the heading to which they relate.

2.8. 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 years 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.

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

3. Average Number of Employees

Average number of employees, including directors, during the year was: 12 (2023: 11)

4. Intangible Assets

	Other
	£
Cost
As at 1 January 2024	40,731
Additions	46,668

As at 31 December 2024	87,399

Amortisation
As at 1 January 2024	-
Provided during the period	14,083

As at 31 December 2024	14,083

...CONTINUED

Page 4

Page 5

Canned Wine Company Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

Net Book Value
As at 31 December 2024	73,316

As at 1 January 2024	40,731

Business Acquisition

During the financial year, Canned Wine Ltd acquired certain intangible assets from O&T Wines Ltd, trading as The Copper Crew for £17,165. These assets comprise:

Goodwill associated with The Copper Crew brand

The domain name and associated digital presence

Assigned intellectual property rights

Proprietary content and marketing materials

The acquisition reflects Canned Wine Ltd’s strategic expansion into complementary product lines and markets. The intangible assets have been recognised at fair value and are being amortised over their estimated useful economic lives, in accordance with the company’s accounting policies.

O&T Wines Ltd retains a financial interest in Canned Wine Ltd through a shareholding of £1.40 in ordinary shares, representing a related party relationship.

The directors of O&T Wines Ltd remain brand ambassadors for the Copper Crew and Canned Wine Ltd manages the operations, marketing and sales for the entity.

5. Tangible Assets

	Land & Property
	Leasehold	Plant & Machinery	Computer Equipment	Total
	£	£	£	£
Cost
As at 1 January 2024	7,505	67,749	17,262	92,516
Additions	-	7,089	-	7,089

As at 31 December 2024	7,505	74,838	17,262	99,605

Depreciation
As at 1 January 2024	200	21,515	11,648	33,363
Provided during the period	1,826	23,531	3,396	28,753

As at 31 December 2024	2,026	45,046	15,044	62,116

Net Book Value
As at 31 December 2024	5,479	29,792	2,218	37,489

As at 1 January 2024	7,305	46,234	5,614	59,153

6. Stocks

	2024	2023
	£	£
Finished goods	608,850	599,488

Page 5

Page 6

Canned Wine Company Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

7. Debtors

	2024	2023
	£	£
Due within one year
Trade debtors	184,295	97,608
Other debtors	21,177	45,837

	205,472	143,445

8. Creditors: Amounts Falling Due Within One Year

	2024	2023
	£	£
Trade creditors	496,956	338,416
Bank loans and overdrafts	7,390	12,602
Other creditors	275,164	339,467
Taxation and social security	44,880	41,299

	824,390	731,784

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

	2024	2023
	£	£
Bank loans	-	10,000
Other creditors	154,411	129,878

	154,411	139,878

10. Deferred Taxation

Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, where the transactions or events that give rise to an obligation to pay more or less tax in the future have occurred.

Deferred tax assets are recognised only to the extent that it is probable they will be recovered against future taxable profits or the reversal of deferred tax liabilities.

The deferred tax balances have been measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply when the timing differences reverse.

The company has unutilised tax losses of £2,227,847 (2023: £1,648,027) available for carry forward. No deferred tax asset has been provided in respect of these losses due to uncertainty over the availability of future taxable profits against which the losses can be utilised.

As at 31/12/2024, the company has recognised a deferred tax liability of £17,552 (2023: £Nil) in respect of accelerated capital allowances.

	2024	2023
	£	£
Other timing differences	17,552	-

11. Share Capital

	2024	2023
	£	£
Allotted, Called up and fully paid	188	148

Page 6

Page 7

Canned Wine Company Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

12. Exceptional Items

The Company determines exceptional items as material, infrequent costs which are incurred outside the normal course of business, and by virtue of their nature, significant size and infrequent occurrence, merit separate disclosure in the accounts in order to facilitate a clearer, more consistent view of the underlying performance of the Company.

Page 7

		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		73,316		40,731
Tangible Assets	5		37,489		59,153

			110,805		99,884
CURRENT ASSETS
Stocks	6	608,850		599,488
Debtors	7	205,472		143,445
Cash at bank and in hand		11,253		4,211

		825,575		747,144
Creditors: Amounts Falling Due Within One Year	8	(824,390 )		(731,784 )

NET CURRENT ASSETS (LIABILITIES)			1,185		15,360

TOTAL ASSETS LESS CURRENT LIABILITIES			111,990		115,244

Creditors: Amounts Falling Due After More Than One Year	9		(154,411 )		(139,878 )

PROVISIONS FOR LIABILITIES
Deferred Taxation	10		(17,552 )		-

NET LIABILITIES			(59,973 )		(24,634 )

CAPITAL AND RESERVES
Called up share capital	11		188		148
Share premium account			1,586,020		1,056,725
Profit and Loss Account			(1,646,181 )		(1,081,507 )

SHAREHOLDERS' FUNDS			(59,973)		(24,634)