REGISTERED NUMBER: SC199495 (Scotland)

Financial Statements For The Year Ended 31 December 2024

for

Speyside Distillers Company Limited

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

J McDonough

Y H Ho

W C Ting

REGISTERED OFFICE:

197 Bath Street

Glasgow

G2 4HU

REGISTERED NUMBER:

SC199495 (Scotland)

INDEPENDENT AUDITORS:

Robb Ferguson

Chartered Accountants & Statutory Auditors

Regent Court

70 West Regent Street

Glasgow

G2 2QZ

FIXED ASSETS

Intangible assets

4

31,080

18,212

Tangible assets

5

1,299,613

1,312,766

Investments

6

39,700

39,700

1,370,393

1,370,678

CURRENT ASSETS

Stocks

7

15,766,397

14,465,999

Debtors

8

3,422,895

1,952,059

Investments

9

8,800

8,800

Cash at bank and in hand

173,390

189,941

19,371,482

16,616,799

CREDITORS

Amounts falling due within one year

10

2,930,174

2,707,972

NET CURRENT ASSETS

16,441,308

13,908,827

TOTAL ASSETS LESS CURRENT LIABILITIES

17,811,701

15,279,505

CREDITORS

Amounts falling due after more than one year

11

(11,009,480

)

(9,015,358

)

PROVISIONS FOR LIABILITIES

(77,165

)

(84,066

)

NET ASSETS

6,725,056

6,180,081

CAPITAL AND RESERVES

Called up share capital

9

9

Share premium

671,243

671,243

Other reserves

1,327,750

1,327,750

Retained earnings

4,726,054

4,181,079

SHAREHOLDERS' FUNDS

6,725,056

6,180,081

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 17 May 2025 and were signed on its behalf by:

J McDonough - Director

1.	STATUTORY INFORMATION

Speyside Distillers Company Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover represents net invoiced sales of goods and services, excluding value added tax and trade discounts. Turnover is recognised when services are performed or goods are delivered.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Trademarks & licences are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Heritable property

-

in accordance with the property

Short leasehold

-

over the period of lease

Fixed plant and equipment

-

25% on cost, 25% on reducing balance and 5% on cost

Fixtures and fittings

-

25% on reducing balance and 15% on reducing balance

Motor vehicles

-

25% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads. This includes borrowing costs attributable to bringing the product to its present condition.

Financial instruments

Financial instruments are initially measured at fair value at the date on which a contract is entered into and are subsequently measured at fair value through profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted. Current tax is recognised at the amount of tax payable using the tax rates and laws that that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. Deferred tax is measured on a non-discounted basis.

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

Foreign currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Operating leases

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Investments

Investments are recognised initially at cost value. Subsequently, they are measured at fair value through profit or loss if the shares are publicly traded or their fair value can otherwise be measured reliably. This policy is not applied to immaterial investments, which are stated at cost.

Loans

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Loans and borrowings that are classified as payable or receivable within one year on initial recognition are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

Debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 16 (2023 - 17 ) .

4.	INTANGIBLE FIXED ASSETS

Trademarks

& licences

£

COST

At 1 January 2024

20,450

Additions

15,467

At 31 December 2024

35,917

AMORTISATION

At 1 January 2024

2,238

Amortisation for year

2,599

At 31 December 2024

4,837

NET BOOK VALUE

At 31 December 2024

31,080

At 31 December 2023

18,212

5.	TANGIBLE FIXED ASSETS

Fixed

Heritable

Short

plant and

property

leasehold

equipment

£

£

£

COST

At 1 January 2024

906,084

200,328

1,268,811

Additions

29,772

-

-

At 31 December 2024

935,856

200,328

1,268,811

DEPRECIATION

At 1 January 2024

-

127,241

1,008,891

Charge for year

-

15,998

25,757

At 31 December 2024

-

143,239

1,034,648

NET BOOK VALUE

At 31 December 2024

935,856

57,089

234,163

At 31 December 2023

906,084

73,087

259,920

Fixtures

and

Motor

fittings

vehicles

Totals

£

£

£

COST

At 1 January 2024

256,331

113,217

2,744,771

Additions

12,179

3,702

45,653

At 31 December 2024

268,510

116,919

2,790,424

DEPRECIATION

At 1 January 2024

219,113

76,760

1,432,005

Charge for year

7,474

9,577

58,806

At 31 December 2024

226,587

86,337

1,490,811

NET BOOK VALUE

At 31 December 2024

41,923

30,582

1,299,613

At 31 December 2023

37,218

36,457

1,312,766

There is no depreciation included for Heritable property in the accounts for the year ended 31 December 2024 as the cost relates to land purchased for development.

6.	FIXED ASSET INVESTMENTS

Other

investments

£

COST

At 1 January 2024

and 31 December 2024

79,700

PROVISIONS

At 1 January 2024

and 31 December 2024

40,000

NET BOOK VALUE

At 31 December 2024

39,700

At 31 December 2023

39,700

The company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Speyside Distillery Company Limited

Registered office: United Kingdom

Nature of business: Non-trading company

%

Class of shares:

holding

Ordinary

100.00

Speyside Bonding Company Limited

Registered office: United Kingdom

Nature of business: Non-trading company

%

Class of shares:

holding

Ordinary

100.00

Forbes Ross & Company Limited

Registered office: United Kingdom

Nature of business: Whisky trademark owner

%

Class of shares:

holding

Ordinary

100.00

Included in the cost of other investments is the sum of £5,000 in respect of the cost of the investment in Forbes Ross & Company Limited.

Harvies of Edinburgh Limited

Registered office: United Kingdom

Nature of business: Non-trading company

%

Class of shares:

holding

Ordinary

100.00

The Scotch Whisky Heritage Centre Limited

Registered office: United Kingdom

Nature of business: Private trading company limited by share

%

Class of shares:

holding

Ordinary

2.33

Included in the cost of other investments is the sum of £34,700 in respect of the cost of the investment in The Scotch Whisky Heritage Centre Limited.

Drumguish Distillery Company Limited

Registered office: United Kingdom

Nature of business: Non-trading company

%

Class of shares:

holding

Ordinary

100.00

Speyside Spring Water Company Limited

Registered office: United Kingdom

Nature of business: Non-trading company

%

Class of shares:

holding

Ordinary

100.00

Glentromie Distillery Company Limited

Registered office: United Kingdom

Nature of business: Non-trading company

%

Class of shares:

holding

Ordinary

100.00

Investments have been shown at cost. As the investments are held in private limited companies, it is impracticable to measure fair value reliably without undue cost or effort.

7.

STOCKS

2024

2023

£

£

Stock - whisky fillings

14,289,614

12,943,012

Materials and cased goods

1,476,783

1,522,987

15,766,397

14,465,999

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

1,644,426

1,511,275

Other debtors

14,254

14,254

VAT

99,055

82,953

Prepayments and accrued income

1,665,160

343,577

3,422,895

1,952,059

9.	CURRENT ASSET INVESTMENTS

2024

2023

£

£

Unlisted investments

8,800

8,800

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade creditors

1,270,843

1,498,845

Tax

427,807

227,659

Social security and other taxes

22,071

47,960

Other creditors

800,227

800,185

Accrued expenses

403,936

128,622

Deferred government grants

5,290

4,701

2,930,174

2,707,972

Other Creditors

Over several years, the company has settled a small number of claims made by customers, in relation to whisky stored by the company on their behalf.

The claims related to a period prior to 2012 when the company was under different ownership.

A number of claims have also been dismissed, and settlements which have been made have been on a commercial basis.

The directors consider that provision has been made in full against all claims which could be expected to be made in future years, and this provision (£800,227) is included in the financial statements as Other Creditors.

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Bank loans - 1-2 years

-

9,000,000

Bank loans - 2-5 years

11,000,000

-

Deferred government grants

9,480

15,358

11,009,480

9,015,358

12.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2024

2023

£

£

Within one year

65,846

127,537

Between one and five years

54,167

110,012

120,013

237,549

13.	SECURED DEBTS

The following secured debts are included within creditors:

2024

2023

£

£

Bank loans

11,000,000

9,000,000

The company's banking facilities are secured by a standard security over the assets, a counter indemnity and floating charge over the whole of the assets of the company.

14.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was qualified on the following basis:

Basis for qualified opinion

We would draw your attention to Note 10 to the financial statements. In relation to the Other Creditors balance included within the financial statements (£800,227), we have not been able to obtain sufficient appropriate audit evidence in respect of the completeness of Other Creditors as this relates to potential future customer claims against the company which it is not possible to quantify at the date of signing of the financial statements. Consequently we were unable to determine whether any adjustment to this balance 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 Auditors' 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 the provisions available for small entities, in the circumstances set out in note sixteen to the financial statements, 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. Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors, including "APB Ethical Standard - Provisions available for Small Entities (Revised)", 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 qualified opinion.

Matters required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, we have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of directors' remuneration specified by law are not made.

- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Janice Alexander (Senior Statutory Auditor)

for and on behalf of Robb Ferguson

15.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

HOE International Limited

Parent Company

During the year total sales and expenses recharged to the parent company were £6,268,110 (2023 - £4,535,216). Goods and services recharged from the parent company in the year amounted to £327,901 (2023 - £98,669).

At the year end there was an amount due from HOE International Limited of £2,654,213 (2023 - £820,641).

Speyside Trading Company Limited

Company with common director

During the year total sales to Speyside Trading Company Limited amounted to £10 (2023 - £219,124).

Goods and services recharged from the company in the year amounted to £6,752 (2023 - £14,755).

At the year end there was an amount due from Speyside Trading Company Limited of £234,043 (2023 - £240,786).

16.	FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

17.	ULTIMATE PARENT COMPANY

The ultimate parent company is Harvey's of Edinburgh International Ltd which is registered in Taiwan. Its registered office is 7F-1., No.151, Zhouzi St., Neihu Dist., Taipei City 114, Taiwan (R.O.C.).