Company registration number 02710556 (England and Wales)
CASELLA FAMILY BRANDS (EUROPE) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
CASELLA FAMILY BRANDS (EUROPE) LIMITED
COMPANY INFORMATION
Directors
G M Casella
S D Lawson
Company number
02710556
Registered office
The Stores
Officers' Mess
Royston Road
Duxford
Cambridgeshire
CB22 4QH
Auditor
S&W Audit
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
Bankers
Santander UK plc
Bridle Road
Bootle
Merseyside
L30 4GB
CASELLA FAMILY BRANDS (EUROPE) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of cash flows
10
Notes to the financial statements
11 - 20
CASELLA FAMILY BRANDS (EUROPE) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2025
- 1 -

The directors present the strategic report for the year ended 30 June 2025.

Review of the business

In the year ended 30th June 2025, total sales volumes grew by +5.4% and revenue increased by +7.0%. [yellow tail] continued to grow both value and volume share in a challenging market, establishing itself as the UK’s No.1 wine brand by sales value and No.2 by volume.

Brand health remains strong, with [yellow tail] named the UK’s most powerful wine brand by IWSR in May 2025. In June, [yellow tail] was placed No.6 in The Grocer’s annual ranking of the biggest alcohol brands in the UK by value and volume, one of only 3 wine brands in the top 10 to show growth. We continue to be guided by our “know, buy, love” framework, with the aim that more people know us (driving awareness), buy us (increasing shoppers and purchase frequency), and love us (with great tasting wine and a closer connection with consumers).

We partnered with London-based creative agency isobel to launch a new [yellow tail] advertising campaign for 2025 and beyond. The “Good on ya!” campaign made its TV debut in May 2025, supported by an ongoing digital campaign. This coincided with the launch of a refreshed, contemporary pack redesign. The year also saw the launch of [yellow tail] Prosecco, combining for the first time the UK’s most loved wine brand with the No.1 product style in the sparkling category.

In 2025 we appointed a new UK distributor for Peter Lehmann, a strategic step to grow distribution and build brand equity with the trade, influencers and, ultimately, consumers. Elsewhere in the portfolio, PepperBox continues to carve out a position as the go-to popular premium brand for food pairing occasions.

From 1 April 2025, under the UK’s Extended Producer Responsibility (EPR) legislation, producers became responsible for the full recycling costs of packaging materials – equivalent to c.8p per 75cl bottle. In response, CFBE passed this cost through to UK customers to support long-term sustainable profitability.

Accounting guidance issued by PwC requires producers to recognise the full Year 1 EPR liability on 1st April 2025, rather than spread the cost over the fee recovery period (April 2025 – March 2026). Consequently, the financial statements for the year ended 30th June 2025 reflect a £3.8M P&L charge, with an associated provision, to account for our full Year 1 producer liability under EPR. While this accounting adjustment adversely impacts reported year-on-year profitability, it is partially offset by customer price increases, savings in demurrage and other operational expenses, as well as lower costs associated with customer discounts and rebates.

Principal risks and uncertainties

The main risks the company is exposed to are as follows:

Duty Rate Changes: Wine excise duty rates increased on 1st February 2025, leading to higher retail prices for most of our products in the UK. A further duty rise is anticipated in February 2026. The impact of these changes on future consumer demand remains uncertain. We continue to invest in our brands to support consumer demand and mitigate the effect of higher pricing on volume.

Exchange Rate: While the company has secured medium-term pricing in GBP for the vast majority of wine and service supplies, currency volatility – particularly movements in US and Australian dollars against GBP – remains a longer-term financial risk. Suppliers may look to recover adverse exchange movements through cost increases on key inputs.

Credit Risk: The company actively monitors the creditworthiness of all customers across the UK and Europe. Overdue debt is a key performance indicator reviewed regularly by the Executive and Sales teams, with any overdue balances closely managed by both Sales and Finance. The company recorded no bad debts in the year ended 30th June 2025.

Costs: Sea freight costs continue to be impacted by the Red Sea crisis, which has resulted in higher costs and reduced vessel reliability. We also expect further cost changes resulting from EPR legislation, with Year 2 fees subject to modulation based on recyclability assessments.

CASELLA FAMILY BRANDS (EUROPE) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 2 -
Future plans

Our purpose is simple: to create great-tasting wines that everyone can enjoy – this guiding principle is at the heart of everything we do. Our goal is to establish [yellow tail] as a true cornerstone of the wine category, and we are confident that our plans – underpinned by sustained marketing investment – will help us realise that vision.

We make our wines easy to find, easy to drink, and easy to enjoy. With this in mind, we will continue to build brand equity and deepen consumer engagement. This will be supported by robust advertising and promotional plans and a strong social media presence, with the ultimate aim of continuing to sustainably grow our market share.

Looking ahead to FY26, we anticipate flat sales volumes, as new duty rates and EPR-related costs are expected to create headwinds across the wine category. In this context, we will stay focused on delivering exceptional taste and will remain resolute in our commitment to quality.

Promoting the success of the company

The board of directors of Casella Family Brand (Europe) Limited consider, both individually and together, that they have acted in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172 (1) (a-f) of the Act) in the decisions taken during the year ended 30 June 2025.

The Directors of CFBE and the Executive team agree the company’s long-term strategy and annual plans and ensure execution is measured quantitatively and qualitatively with decisions and course correction made in the long-term interests and prosperity of the business and its wider community and partners. We continue to rank highly in the Advantage Group customer survey and have received recognition for the quality of our supply chain and customer service across our customer base.

In addition to brand and market investment, employee happiness and engagement is at the heart of the company’s success and helps drive the increasing breadth and depth of relationship with key customers and suppliers. In recognition of our commitment to people and culture, we’re proud to have been named a Sunday Times Best Place to Work for the second consecutive year.

Our mission is to deliver sustainable growth. Our two principal supply partners – Casella Wines Pty Ltd (Australian winery) and Encirc Ltd (UK bottler) – are both advancing net-zero pathways aligned with the UN Global Climate Agreement. In January 2025, Casella Wines achieved certification from Sustainable Winegrowing Australia (SWA), a community of growers and winemakers dedicated to producing exceptional wines with minimal environmental impact. The SWA program reflects global best practice, aligns with the UN Sustainable Development Goals, and ensures consumers can trust the sustainability credentials of the wines they choose. We also play an active role in shaping a better future for our industry, supporting institutions such as the Wine & Spirit Education Trust and The Drinks Trust.

On behalf of the board

G M Casella
Director
5 January 2026
CASELLA FAMILY BRANDS (EUROPE) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2025
- 3 -

The directors present their annual report and financial statements for the year ended 30 June 2025.

Principal activities

The principal activity of the company continued to be that of wine distribution in the United Kingdom and Europe.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £5,000,000. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

G M Casella
S D Lawson
Auditor

The auditor, S&W Audit (formerly CLA Evelyn Partners Limited), is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

The company itself has consumed less than 40,000kWh in the UK and the bulk of its operations are outsourced, which makes it impractical to obtain this information. Therefore the company has not disclos ed its emissions and energy consumption.

Statement of directors' responsibilities

The directors are responsible for preparing the annual 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 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 these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

- 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.

CASELLA FAMILY BRANDS (EUROPE) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
G M Casella
Director
5 January 2026
CASELLA FAMILY BRANDS (EUROPE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CASELLA FAMILY BRANDS (EUROPE) LIMITED
- 5 -
Opinion

We have audited the financial statements of Casella Family Brands (Europe) Limited (the 'company') for the year ended 30 June 2025 which comprise the statement of income and retained earnings, the balance sheet, the 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).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 30 June 2025 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 opinion

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.

We have nothing to report in this regard.

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' r eport 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.

CASELLA FAMILY BRANDS (EUROPE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CASELLA FAMILY BRANDS (EUROPE) LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

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' r esponsibilities s tatement, 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 are to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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.

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;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and intellectual property legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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;

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

- understanding the design of the company’s remuneration policies.

CASELLA FAMILY BRANDS (EUROPE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CASELLA FAMILY BRANDS (EUROPE) LIMITED (CONTINUED)
- 7 -

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;

- reviewed management and post-year end information;

- 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.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

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.

Keir Singleton (Senior Statutory Auditor)
For and on behalf of S&W Audit, Statutory Auditor
Chartered Accountants
22 Wycombe End
Beaconsfield
Buckinghamshire
HP9 1NB
12 January 2026
CASELLA FAMILY BRANDS (EUROPE) LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 JUNE 2025
- 8 -
2025
2024
Notes
£
£
Turnover
3
101,004,496
94,358,366
Cost of sales
(86,581,449)
(79,746,362)
Gross profit
14,423,047
14,612,004
Administrative expenses
(8,924,725)
(8,044,827)
Other operating income
18,930
51,394
Operating profit
4
5,517,252
6,618,571
Interest receivable and similar income
8
168,818
101,503
Interest payable and similar expenses
9
(880,055)
(985,752)
Profit before taxation
4,806,015
5,734,322
Tax on profit
10
(1,215,900)
(1,444,644)
Profit for the financial year
3,590,115
4,289,678
Retained earnings brought forward
18,575,940
20,786,262
Dividends
11
(5,000,000)
(6,500,000)
Retained earnings carried forward
17,166,055
18,575,940

The profit and loss account has been prepared on the basis that all operations are continuing operations.

CASELLA FAMILY BRANDS (EUROPE) LIMITED
BALANCE SHEET
AS AT
30 JUNE 2025
30 June 2025
- 9 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
12
11,049
15,426
Current assets
Stocks
13
20,929,747
20,719,815
Debtors
14
21,078,031
22,892,590
Cash at bank and in hand
6,495,057
8,504,117
48,502,835
52,116,522
Creditors: amounts falling due within one year
15
(24,597,819)
(23,805,998)
Net current assets
23,905,016
28,310,524
Total assets less current liabilities
23,916,065
28,325,950
Creditors: amounts falling due after more than one year
16
(6,750,000)
(9,750,000)
Net assets
17,166,065
18,575,950
Capital and reserves
Called up share capital
19
10
10
Profit and loss reserves
17,166,055
18,575,940
Total equity
17,166,065
18,575,950
The financial statements were approved by the board of directors and authorised for issue on 5 January 2026 and are signed on its behalf by:
G M Casella
Director
Company registration number 02710556 (England and Wales)
CASELLA FAMILY BRANDS (EUROPE) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2025
- 10 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
8,082,384
843,886
Interest paid
(880,055)
(985,752)
Income taxes paid
(1,374,181)
(1,208,799)
Net cash inflow/(outflow) from operating activities
5,828,148
(1,350,665)
Investing activities
Purchase of tangible fixed assets
(6,026)
(7,705)
Interest received
168,818
101,503
Net cash generated from investing activities
162,792
93,798
Financing activities
Proceeds from new bank loans
-
0
15,000,000
Repayment of bank loans
(3,000,000)
(8,566,050)
Dividends paid
(5,000,000)
(6,500,000)
Net cash used in financing activities
(8,000,000)
(66,050)
Net decrease in cash and cash equivalents
(2,009,060)
(1,322,917)
Cash and cash equivalents at beginning of year
8,504,117
9,827,034
Cash and cash equivalents at end of year
6,495,057
8,504,117
CASELLA FAMILY BRANDS (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
- 11 -
1
Accounting policies
Company information

Casella Family Brands (Europe) Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Stores, Officers' Mess, Royston Road, Duxford, Cambridgeshire, CB22 4QH.

1.1
Basis of preparation

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 presented in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

A true t the time of approving the financial statements, t he directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Turnover is measured at the fair value of the consideration received or receivable for the sale of goods in the normal course of business, and is shown net of discounts and VAT.

Sale of goods

Revenue arises from the sale of bottled wine.

Revenue is recognised when the customer accepts delivery of the goods.

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.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures, fittings & equipment
20% - 25% straight line
Computer equipment
3 years 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 credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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).

CASELLA FAMILY BRANDS (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 12 -
1.6
Stocks

Stocks are stated at the lower of cost and net realisable value (estimated selling price less costs to complete and sell). Stock includes finished goods and goods in transit.

For finished goods, the cost formula used is the weighted average cost basis, which divides the total production costs by the total units produced. Production costs comprise direct materials and a proportion of production overheads incurred in bringing the stock to its present location and condition.

Goods in transit are measured at the lower of cost and net realisable value. Cost includes direct materials and attributable overheads incurred in bringing the stock to its present location and condition at the reporting date.

At each reporting date, stock is assessed for impairment. Any excess of the carrying amount over net realisable value is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ”Basic Financial Instruments” to all of its financial instruments.

Financial instruments are recognised in the company’s balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Short term debtors are measured at transaction price less any provision for impairment. Loans receivable are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method, less any provision for impairment.

Other financial assets

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.

Impairment of financial assets

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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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.

CASELLA FAMILY BRANDS (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 13 -
Basic financial liabilities

Short term creditors are measured at transaction price. Other financial liabilities, including bank loans and other loans, are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method.

Other financial liabilities

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 s ubsequently 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 th r ough 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.

Derecognition of financial liabilities

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

1.8
Taxation

The tax expense represents the sum of the tax currently payable.

Current 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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.

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 when the company has 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.

1.9
Employee benefits

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.

1.10
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

CASELLA FAMILY BRANDS (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 14 -
1.11
Leases
As lessee

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 lease s asset are consumed.

1.12
Foreign exchange

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.

2
Judgements and key sources of estimation uncertainty

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.

Key sources of estimation uncertainty

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.

Provisions for customer discounts and rebates

Sales to customers are often made with associated trade discounts and rebates, therefore revenue is recorded net of any such discounts. The provision for discounts and rebates is calculated based on the level of sales over the duration of customer contracts/agreements and assessments of management, using historical performance as a guide. Discounts and rebates are recognised when sales levels meet pre-agreed milestones, or based on anticipated depletions and future performance of promotions.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
90,708,467
84,357,001
Rest of Europe
10,296,029
10,001,365
101,004,496
94,358,366
2025
2024
£
£
Other revenue
Interest income
168,818
101,503
CASELLA FAMILY BRANDS (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 15 -
4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(18,105)
65,475
Depreciation of tangible fixed assets
10,403
13,751
Operating lease charges
79,880
78,496
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
43,500
42,150
For other services
Taxation compliance services
8,600
8,350
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2025
2024
Number
Number
General management
3
3
Sales
10
9
Marketing
6
6
Finance
5
4
Operations
8
7
Europe
1
1
Total
33
30

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
3,461,261
3,339,303
Social security costs
377,678
275,235
Pension costs
368,745
333,894
4,207,684
3,948,432
CASELLA FAMILY BRANDS (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 16 -
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
337,498
320,044
Company pension contributions to defined contribution schemes
7,699
31,273
345,197
351,317

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
337,498
296,727
Company pension contributions to defined contribution schemes
7,699
31,273
8
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
168,818
101,503
2025
2024
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
168,818
101,503
9
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost
Interest on bank overdrafts and loans
880,055
985,752
10
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
1,214,117
1,443,586
Foreign current tax on profits for the current period
1,783
530
Adjustments in foreign tax in respect of prior periods
-
0
528
Total current tax
1,215,900
1,444,644
CASELLA FAMILY BRANDS (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
10
Taxation
(Continued)
- 17 -

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:

2025
2024
£
£
Profit before taxation
4,806,015
5,734,322
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
1,201,504
1,433,581
Tax effect of expenses that are not deductible in determining taxable profit
11,518
8,494
Adjustments in respect of prior years
-
0
528
Permanent capital allowances in excess of depreciation
1,095
1,511
Foreign tax
1,783
530
Taxation charge for the year
1,215,900
1,444,644
11
Dividends
2025
2024
£
£
Interim paid
5,000,000
6,500,000
12
Tangible fixed assets
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
Cost
At 1 July 2024
34,173
128,210
162,383
Additions
-
0
6,026
6,026
At 30 June 2025
34,173
134,236
168,409
Depreciation and impairment
At 1 July 2024
30,271
116,686
146,957
Depreciation charged in the year
2,186
8,217
10,403
At 30 June 2025
32,457
124,903
157,360
Carrying amount
At 30 June 2025
1,716
9,333
11,049
At 30 June 2024
3,902
11,524
15,426
CASELLA FAMILY BRANDS (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 18 -
13
Stocks
2025
2024
£
£
Contract work in progress
10,674,938
8,552,087
Finished goods and goods for resale
10,254,809
12,167,728
20,929,747
20,719,815

The company made a voluntary change to the stock valuation policy in the prior year, from a historic cost basis to weighted average cost policy.

14
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
20,868,500
22,427,862
Other debtors
4,216
4,216
Prepayments and accrued income
205,315
460,512
21,078,031
22,892,590
15
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Bank loans
17
3,000,000
3,000,000
Trade creditors
9,783,406
11,049,328
Corporation tax
705,342
863,623
Other taxation and social security
1,330,521
1,091,051
Other creditors
3,740,321
6,613,891
Accruals and deferred income
6,038,229
1,188,105
24,597,819
23,805,998
16
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Bank loans and overdrafts
17
6,750,000
9,750,000
CASELLA FAMILY BRANDS (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 19 -
17
Loans and overdrafts
2025
2024
£
£
Bank loans
9,750,000
12,750,000
Payable within one year
3,000,000
3,000,000
Payable after one year
6,750,000
9,750,000

Bank loans are secured by fixed charges over the company's assets.

18
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
368,745
333,894

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

19
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10
10
10
10
20
Related party transactions

During the year the company entered into the following transactions with Casella Wines Pty Limited, a company which is under common control:

Purchase of goods: £51,246,925 (202 4: £46,577,348).

At the balance sheet date, the company owed £7,261,321 (202 4: £11,972,502) to Casella Wines Pty Limited, which is included within creditors due within one year.

21
Ultimate controlling party

The immediate parent company is Casella Family Brands (Europe) Pty Limited and the ultimate parent company is JMCTT Pty Limited. Both companies are registered in Australia.

CASELLA FAMILY BRANDS (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 20 -
22
Cash generated from operations
2025
2024
£
£
Profit after taxation
3,590,115
4,289,678
Adjustments for:
Taxation charged
1,215,900
1,444,644
Finance costs
880,055
985,752
Investment income
(168,818)
(101,503)
Depreciation and impairment of tangible fixed assets
10,403
13,751
Movements in working capital:
(Increase)/decrease in stocks
(209,932)
3,497,002
Decrease/(increase) in debtors
1,814,559
(2,435,013)
Increase/(decrease) in creditors
950,102
(6,850,425)
Cash generated from operations
8,082,384
843,886
23
Analysis of changes in net debt
1 July 2024
Cash flows
30 June 2025
£
£
£
Cash at bank and in hand
8,504,117
(2,009,060)
6,495,057
Borrowings excluding overdrafts
(12,750,000)
3,000,000
(9,750,000)
(4,245,883)
990,940
(3,254,943)
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