The directors present their strategic report together with the audited financial statements of HT Drinks Holdings Limited (Company) together with its subsidiaries (Group) for the year ended 31 March 2025.
The consolidated income statement is set out on pages 11 and 12, the group reported turnover of £207.2m (2024: £204.1m) and a gross profit of £21.7m (2024: £22.7m).
The group's net assets, increased to £48.8m, as at 31st March 2025 (2024: £48.6m). This is mainly attributable to the profit made in the year. The company paid final dividends in the year of £1.35m (2024: £1.15m).
Principal risks and uncertainties
The Group's risk management framework includes a process for identifying, assessing and responding to risk and supporting the company's strategy and business objectives.
Risk management, operates at all levels throughout the business. However the Board takes overall responsibility, determining the nature and the extent of principal risks, it is willing to take to achieve the company's strategic objectives and maintaining the company's risk of governance structure and appropriate internal control framework.
Competition
The directors continually assess and evaluate the main risks to the company achieving its business objectives and these are identified below.
Regulation
The group operates in an environment increasingly controlled by strict regulations. The group has implemented policies that require appropriate due diligence to be executed on customers and suppliers and simultaneously focussing on adequate internal processes and systems to ensure compliance with the regulatory framework. The directors take their responsibilities towards these very seriously and regularly review the group's compliance with all applicable laws and regulations.
Financial Instruments
In the opinion of the directors, there is no material difference between the current carrying value and fair value of any of the company's financial instruments at either the current or prior year end.
The principal financial risks are addressed below:
Credit risk
The group's main financial assets are cash and trade debtors. The directors considered there to be minimal credit risk in relation to the group's cash balances as these are all held at reputable financial institutions. The directors manage credit risk in respect of the group's trade debtors by reviewing and stipulation credit limits for all customers. The group has implemented policies to undertake due diligence and credit checks on customers to manage credit risk.
Liquidity risk
The group actively manages its liquidity risk in order to meets its foreseeable needs both in the short and medium term, where the directors consider that surplus funds are sufficient, these are placed on deposits.
Currency risk
A small proportion of the group's sales and purchases are denominated in currencies other than Sterling. Therefore, the directors consider there to be limited exposure to currency risk and where limited risk arises, the group makes use of short term forward currency contracts as required.
We delivered financial results for the year 2024/25 in line with our expectations. The directors aim to continue with the management policies which have resulted in the group's steady growth. They consider that 2025/26 will show a further steady growth in sales.
While we remain cautious about the current economic climate, we hope to demonstrate the strength of our business model with the continued support of our employees and successful relationships with our suppliers and customers.
Going conern
The directors have made an assessment of the group's ability to continue as a going concern, based on the group's cash resources, borrowing facilities, sales income, committed capital and other expenditure and dividend distributions.
The directors use both financial and non-financial performance indicators to monitor the company's position.
The key financial performance indicators of the company are sales of £207.2m (2024: £204.1m), operating profit of £3.3m (2024: £4m).
The key non-financial performance indicators of the company are customer service and satisfaction, and stakeholder relationships. The directors review the performance with constant feedback from customers and stakeholders.
The directors are of the belief that the monitoring of the above-mentioned indicators is an effective aspect of business performance review.
Section 172 of the Companies Act 2006 requires directors to act in good faith, fairly and in a way that promotes the long-term success of the Group, taking into account the interests of stakeholders and other relevant matters.
Stakeholder Engagement
The Board regularly considers the interests of employees, shareholders, suppliers, customers, and the wider community when making decisions. Directors have received refresher training on Section 172, helping them reflect on engagement with stakeholders and identify opportunities for improvement.
Employees
The Group promotes employee involvement, wellbeing, and development. During the year, enhanced training, mentoring, and career progression programmes were implemented, fostering an inclusive culture built on trust and respect.
Suppliers
A supplier consolidation strategy has been adopted, strengthening relationships with key partners while improving operational efficiency and sustainability. Ethical and socially responsible practices remain central to these relationships.
Customers
The Group seeks mutually beneficial relationships with key customers, regularly engaging to understand their priorities and ensuring alignment with the Group’s values and ethos.
ESG Progress
The Board continues to advance the Group’s ESG agenda, including increased use of renewable energy and initiatives to reduce environmental impact, demonstrating a commitment to sustainable business practices.
Governance
Governance has been enhanced during the year, with reviews and improvements to policies on anti-corruption, anti-bribery, equal opportunities, and whistleblowing, strengthening oversight, risk management, and accountability.
The Board remains committed to responsible decision-making that balances stakeholder interests, supports sustainable growth, and promotes long-term success for the Group and its members.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 March 2025.
An analysis of the group's performance including information on the financial risk management strategy of the group and the exposure of the group to credit risk, liquidity risk and currency risk is contained in the strategic report.
The company paid dividends amounting to £1.35m during the year (2024: £1.15m) in respect of the financial year ended 31 March 2025.
Charitable contributions
During the year the group made charitable contributions of £29,000 (2024: £14,000)
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The auditor, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
In line with the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 our energy use and greenhouse gas (GHG) emissions are set out below.
The boundaries of this report are based on operational control. We report our emissions with reference to the latest Greenhouse Gas Protocol Corporate Accounting and Reporting Standard (GHG Protocol). In accordance with the 2018 Regulations, the energy use and associated greenhouse gas emissions are for those within the UK only that come under the operational control boundary. Therefore, energy use and emissions are aligned with financial reporting for the UK subsidiaries and exclude the non-UK based subsidiaries that would not qualify under the 2018 Regulations in their own right.
The 2024 UK Government GHG Conversion Factors for Company Reporting published by the Department for Energy Security and Net Zero are used to convert energy use in our operations to emissions of CO2e. Carbon emission factors for purchased electricity calculated according to the ‘location-based grid average’ method. This reflects the average emission of the grid where the energy consumption occurs. Data sources include billing, invoices and internal systems. We purchase 100% renewable electricity for four sites for a portion of the reporting period and have included an additional net emissions figure calculated using market-based factors to account for this in our report above. There were some cases of data being unavailable for gas and electricity, therefore, where relevant this has been estimated based on available actual consumption figures. For transport data where actual usage data (e.g. litres) was unavailable conversions were made using average fuel consumption factors to estimate the usage. Information on electric vehicles was unavailable and has therefore been excluded.
We have chosen to report our gross emissions as Intensity Metric CO2 to FTE (tCO2e)
We have audited the financial statements of HT Drinks Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows 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).
Basis for 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 group's and parent 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. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the group's and parent company’s ability to continue as going concern.
Other information
Opinions on other matters prescribed by the Companies Act 2006
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector; and
we focused on specific laws and regulations which we considered may have a direct material effect on the operations of the company financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
To address the risk of non-compliance with laws and regulations, we communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation) and taxation legislation (including payroll taxes) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statements items.
Secondly, the group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the Group’s license to operate. We identified the following areas as those most likely to have such an effect: Alcohol Wholesaler Registration Scheme and healthcare and safety legislation regulations. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards; for instance, any non-compliance with laws and regulations and fraud which is far removed from transactions reflected in the financial statements would diminish the likelihood of detection. Furthermore, the risk of not detecting a material misstatement due to fraud is greater than the risk of not detecting one resulting from error.
Fraud may involve deliberate concealment by, for example, forgery or intentional omissions, misrepresentation, or through an act of collusion that would mitigate internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,351,000 (2024 - £374,337 profit).
HT Drinks Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 31-37 Park Royal Road, Park Royal, London, NW10 7LQ.
The group consists of HT Drinks Holdings Ltd and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the group. Monetary amounts in these financial statements are rounded to the nearest £'000.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company HT Drinks Holdings Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 March 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the Group.
The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.
The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
The financial performance of the group is set out in the strategic report and in the group statement of profit or loss and the other comprehensive income. The financial position of the group is set out in the group statement of financial position.
In addition, the directors are not aware of any likely events, conditions or business risks beyond this period that may cast significant doubt on the group's ability to continue as a going concern. At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Turnover represents the invoiced value, net of Value Added Tax, of goods sold to customers and is recognised at the point of sale. Supplier rebates are accounted for on a receivable basis.
Rental income is accounted for in the period it is earned.
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.
Computer equipment and associated software is included in plant and machinery and is depreciated over two years.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The 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 net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instruments.
Comparatives
There were no changes in comparative figures during the year.
In the application of the group’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.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Management reviews the useful lives, depreciation methods and residual values of the items of intangible fixed assets and tangible fixed assets and on a regular basis. During the year, the directors determined no significant changes in the useful lives and residual values. The carrying amounts of intangible fixed assets and tangible fixed assets are disclosed in notes 12 and 13 respectively.
Stocks are valued at the lower cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends.
Impairment of trade receivables - The directors review the portfolio of trade receivables on an annual basis. In determining whether receivables are impaired, the directors make judgement as to whether there is any evidence indicating that there is a measurable decrease in the estimate future cash flows expected.
Freehold properties are revalued annually at fair value. Fair value is ascertained through review of a number of factors and information flows, including market knowledge, recent market movements, recent sales of similar properties and historical experience. There is an inevitable degree of judgement involved and value can only be reliably tested ultimately in the market itself. Given the property market knowledge and expertise of the directors valuations are carried out by a mixture of external independent valuers and internal specialists.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
There were no persons apart from executive directors employed by the company during the year (2024: none). The directors' emoluments were borne by one of the subsidiary companies.
Emolument of the highest paid director, excluding pension contributions, amounted to £127,500 (2024: £168,333). The total remuneration paid to key management personnel during the year was £563,694 (2024: £658,000)
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
The net book value of tangible fixed assets includes an amount of £122,782 (2024: £211,712) in respect of assets acquired and capitalised under finance leases and hire purchase contracts. The related depreciation charge for the year was £125,967 (2024: £155,571).
The freehold properties are stated at their revaluation at 31 March 2024. The properties were revalued by Savillis (UK) Ltd and the valuations have been prepared in accordance with the current edition of The Appraisal and Valuation Standards published by the Royal Institute of Chartered Surveyors.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Details of the company's subsidiaries at 31 March 2025 are as follows:
Included in the other debtors are:
Other debtors include loans with personal guarantees received of £15,828,546 (2024: £10,459,609) which bears interest at market rates.
The amount owed to other group companies is interest free and repayable on demand on notice of not less than one year.
The bank loans and overdrafts are secured by first legal charge over the group's freehold land and building and unlimited multilateral guarantee from group companies. In addition the sales financing facility is secured by fixed and floating charge over all other assets. Commercial rate of interest was charged on the borrowings.
Finance lease payments represent rentals payable by the group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 to 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The company has guaranteed certain bank borrowings of its subsidiaries undertakings HT Drinks Limited, Champers (Wholesale) Limited, Valecorp Limited and Trinart Limited. At 31 March 2025, the liabilities covered by this guarantee amounted to £26.606m (2024: £19.266m)
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The group entered into the following arrangements with related parties:
(a) The following transactions were undertaken during the year between companies controlled by HT Drinks Holdings Limited.
(i) HT Drinks Limited and Drinksupermarket.com Limited
Sales of goods and services totalling £291,953 (2024 :£365,863).
Purchase of goods and services of £165,931 (2024: £14,283).
A management fee & expenses charged to Drinksupermarket.com Limited of £Nil (2024: £2,000)
The amount owed by Drinksupermarket.com Limited at the year end was £Nil (2024: £110,677).
The amount owed to Drinksupermarket.com Limited at the year end was £24,812(2024: £Nil).
(ii) HT Drinks Limited and Champers (Wholesale) Limited
Sales of goods and services totalling £21,330,246 (2024: £21,513,726)
Purchase of goods and services totalling £2,822,123 (2024: £2,559,375)
A management fee & expenses charged to Champers (Wholesale) Limited of £55,000 (2024: £66,000)
The amount owed by Champers (Wholesale) Limited at the year end was £1,909,865 (2024: £926,170).
(iii) Champers (Wholesale) Limited and Drinksupermarket.com Limited
Sales of goods & services totalling £5,056,735 (2024: £5,746,075)
Purchase of goods & services totalling £255,957 (2024: - £48,052 )
The amount receivable at the year-end was £1,105,585 (2024: £746,756)
(iv) Champers (Wholesale) Limited and Gift Creation and Design Limited
Purchase of goods & services totaling £200 (2024: £3,144)
(v) The following transaction was undertaken by HT Drinks Limited during the year with Bexville Properties Limited, a company controlled by Mr. Prakash Thakrar. Rent paid of £180,000 (2024: £138,250).
(vi) The following transactions were undertaken by Champers (Wholesale) Limited on commercial terms during the year with Sweetbay Properties Limited which is controlled and owned by Mr P Thakrar, the company's ultimate controlling party. Rent and insurance payments of £510,000 (2024: £415,000)
(vii) On 31 March 2025, the company owed an amount of £978 (2024: £11,906) to Mr P Thakrar a director of the company.
The group has taken advantage of the exemption granted under FRS 102 not to disclose transactions or balances with members of the group headed by HT Drinks Holdings Limited on the grounds that 100% of the voting rights of other group companies are controlled by HT Drinks Holdings Limited. The controlling ownerships in Drinksupermarket.com Limited is 80% and Champers (Wholsesale) Limited is 75%.