The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

The financial statements were approved and authorised for issue by the Board of Directors on 31 October 2025.

Signed on behalf of the Board of Directors

Isle of Barra Distillers Limited is a private company limited by shares, registered in Scotland. The address of the registered office and registration number are as below:

Castlebay Business Estate

Castlebay

Isle of Barra

HS9 5XF

These financial statements have been prepared in accordance with FRS 102 the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland as adapted by Section 1A of FRS 102 and the Companies Act 2006.

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 have been prepared on a going concern basis.

The directors acknowledge that the prior financial year was particularly challenging, with elevated levels of debt and constrained cash flow. However, significant progress has been made in strengthening the company's financial position. Notably, the company has secured funding, providing vital capital to support the ongoing construction of its whisky distillery. During the year, the company appointed a new board member with extensive experience in the whisky and broader spirits industry. This strategic addition brings deep sector knowledge, commercial insight, and governance expertise at a critical stage in the company's development. The company's debt is now at its lowest level since inception, and recent export agreements with major supermarket chains have opened up new commercial opportunities and revenue streams. Further funding is expected to be secured, which will support the completion of the distillery and expansion into international markets. Based on current forecasts, committed funding, and the strength of new commercial partnerships, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

Intangible assets acquired separately from a business are capitalised at cost. Intangible assets acquired on business combinations are capitalised separately from goodwill if the fair value can be measured reliably on initial recognition.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Intangible assets are amortised on a straight line basis over their useful lives. The useful lives of intangible assets are as follows:

Provision is made for any impairment.

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Assets under construction will not be depreciated until asset is ready for use

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

The Company has chosen to adopt Section 11 of FRS102 in respect of financial instruments.

The ordinary share capital of the company is presented as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Other financial assets, including trade debtors for goods sold to customers on short-term credit, are initially measured at the transaction price including transaction costs, and are subsequently measured at the transaction price plus transaction costs not yet recognised, cumulative interest income less repayments and impairment, where there is evidence of impairment.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Other financial liabilities, including trade creditors, are initially measured at transaction price less transaction costs, and are subsequently measured at the transaction price less transaction costs not yet recognised in profit or loss and repayments plus cumulative interest expenses incurred.

At the end of each reporting period, the company assesses whether there is evidence of impairment of any financial assets, including investments, loans, trade debtors and cash. If there is evidence of impairment, impairment losses are recognised in the Profit and Loss account in that financial year.

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Where the circumstances causing an impairment of an asset, other than goodwill, no longer apply, then the impairment is reversed through the profit and loss account. An impairment loss recognised for goodwill is not reversed in subsequent periods.

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors.

Incentives received to enter into a finance lease reduce the fair value of the asset and are included in the calculation of present value of minimum lease payments.

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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 have been enacted or substantively enacted by the balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

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.

Turnover is stated net of trade discounts, volume rebates, VAT and similar taxes and derives from the provision of goods and services falling within the company's ordinary activities. Turnover on sale of goods is recognised when the company has transferred the significant risks and rewards of ownership in the goods, which usually takes place when the goods are physically delivered to the buyer. Deposits received from customers in advance of completion of sales of goods at the end of the financial year are not recognised as income and are included in creditors.

Grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received

Grants are recognised using the accrual model and the performance model.

Under the accrual model, grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.

Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on therecipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet 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.

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

Short term benefits, including holiday pay, are recognised as an expense in the period in which employees have become entitled to the benefits as a result of service rendered to the company.

The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

Virgin Bank hold a floating charge dated 24 February 2017 and HSBC UK Bank Plc hold also hold floating charge dated 1 March 2022 over all assets and undertakings of the company.

Virgin Bank hold a floating charge dated 24 February 2017 and HSBC UK Bank Plc hold also hold floating charge dated 1 March 2022 over all assets and undertakings of the company.

The company has an unrecognised deferred tax asset of £263,315 (2024: £76,727) which has arisen from fixed asset and short-term timing differences and losses carried forward. Its recoverability is dependent upon future taxable prodits arising, the likelihood of which cannot at this stage be determined with reasonable certainty.

On 2 August 2024 the share capital was diluted from 100 shares of £1.00 per share to 1,000,000 shares at £0.0001 per share.

On 25 November 2024 328,463 ordinary shares with aggregate nominal value of £32.85 were issued for cash proceeds of £3.75 per share.

On 1 December 2024 36,866 ordinary shares with aggregate nominal value of £3.69 were issued for cash proceeds of £8.62 per share.

On 1 December 2024 25,414 ordinary shares with aggregate nominal value of £2.54 were issued for cash proceeds of £8.62 per share.

The company allotted 53,512 further ordinary shares with a nominal value of £0.0001 for £7.69 per share on 30 June 2025.

The company allotted 2,981 further ordinary shares with a nominal value of £0.0001 for £11.74 per share on 30 June 2025.

Included in debtors at year end is £13,226 due to from one of the directors (2024 creditors: £16,613). The loan was due to the company and interest has been charged on this loan at the official rate of interest set by HMRC. The loan has been repaid post year.