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Registered number:
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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THE HOOK NORTON BREWERY COMPANY LIMITED
COMPANY INFORMATION
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THE HOOK NORTON BREWERY COMPANY LIMITED
CONTENTS
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THE HOOK NORTON BREWERY COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
As a business, indeed as an industry and as a country, we appear to be facing extremely challenging times and the Board believe it important that shareholders understand the company’s perspective. We also wish to elucidate the financial results contained in the Annual Report & Accounts which have been distorted materially by the accounting treatment we have been forced to adopt with regards to the 2024 Stables fire, its’ costs and insurance receipts, and which might cause confusion unless explained.
In terms of the wider economic and political environment, it’s fair to say that political parties of all stripes have not been consistent encouragers of the brewing and hospitality industries which employ so many people and contribute so much revenue to the Exchequer. We have seen decades of state interventions (usually counter-productive), endless additional regulation and the second highest beer taxation in Europe. Despite the damage these things have done, the industry has remained innovative, productive and vibrant but it’s fair to say that the latest impositions since the election of a new government in 2024 are the most intense attack on the industry seen thus far and have the potential to be devastating. The increase in Employers’ National Insurance levies in 2024, especially those on part time and younger employees, have damaged employment prospects for many employees as well as employers. This increase alone cost your company over £200,000 in the first year.
Two further significantly above inflation increases in the Minimum Wage, with even higher increases for those aged 18-21, have added significant cost to the hospitality industry. Brewers and pubs were also hit with a new packaging disposal tax in 2024.
Additionally in the 2024 and 2025 Budgets, the Chancellor announced the two step abolition of Business Rate Relief for hospitality and other small businesses, something which quadrupled the Business Rates paid by pubs and other hospitality venues in two years. As if not extreme enough, the Chancellor also announced simultaneously a revised Business Rating system which analysts have said increases Business Rates by an average of 76%!, It appears no one in HM Treasury considered the implications for the industry in doing this, consequently igniting a political storm which resulted in the Chancellor instituting some additional three year transitional relief while promising to look again at the entire Business Rating system which heavily penalizes small businesses like pubs while favouring large ones like supermarkets and online retailers. However, even with this welcome transitional relief many pubs will still see large increases in their Business Rates this Spring.
Furthermore, HM Government is now signaling it wishes to reduce the drink driving limit to equal the lower level in Scotland, despite the experience of Scotland proving that such a reduction does not lead to a sustained reduction in drink driving. It will reduce the number of hospitality venues and breweries as such a reduction will have a chilling effect on consumer visits to especially rural pubs, thereby reducing employment and tax receipts. As a measure it smells of ideology, not practicality or efficacy.
In summary, the brewing and hospitality industries face an unprecedented range of attacks from the state in addition to those already experienced. The price paid for these attacks will be fewer much-valued local facilities, less employment, higher inflation and lower tax receipts. As a company, we are fortunate in our geographical location with its large visitor sector and prosperous demographics, but we must still adapt to succeed, which we will, but sadly much of the costs of these measures will need to be passed onto customers. As for the thinking behind the politicians’ implementation of these hostile measures, words fail.
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THE HOOK NORTON BREWERY COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
The key performance indicators used by the Directors to monitor performance are: turnover, gross profit margin, operating profit, profit for the year, net current assets and shareholders’ funds.
The year ended September 2025 was a year of much challenge across the business. The main focus was on rebuilding the fire damaged Stable block, and this work commenced in January 2025. Although being a rebuild of a Listed Building we decided to invest additional funds to better the specification of the stables and adjoining flats, including installing double glazing, better insulation, fixtures & fittings, and heat pumps. Consequently, we were required to gain planning permission and associated consents, which took several months. This work is now virtually complete, and it will be very good to get the site back to full use and occupancy.
We also invested in our energy security, adding a solar generation park at the back of the brewery which when fully connected should generate 70% of our annual usage. 50% is connected and operating with the remainder awaiting National Power’s upgrade of the transformer, something which should be completed by the date of the Annual General Meeting.
We have mentioned energy prices before, and with brewing being an energy intensive process we were keen to both reduce costs and enhance resilience. A new boiler was commissioned during the year and is proving far more efficient, especially when combined with two modern highly insulated hot water tanks which can also be heated by the solar park. These investments will reduce our carbon emissions, something which is only going to become even more of a consideration as the net zero agenda is pursued. We are already enjoying significant reductions in electricity costs, both from the connection of the solar park and a new external supply contract. The year started reasonably well, with a good Christmas, and seemingly less of a ‘Dry January’ effect. Pub going habits have changed significantly since Covid, with late night trade having collapsed, and much earlier visits to hospitality establishments being seen. The summer weather was very favourable to trade, especially as we have many pub customers in the Cotswolds area. Outdoor trade was strong, and the summer events we supply were all successful. We are fortunate to be in a relatively affluent area, with good tourist numbers. Our income from private hire events facilities suffered, being affected visually by the rebuild of the Stables, but other visitor numbers performed well, with tourist visits strong. Direct to consumer remains a key and growing part of the business, and it also helps underscore our focus on great products consumed in great venues.
Operating costs across the hospitality sector saw further increases, but we continued our policy of trying to protect our customers and manage our cost base and efficiencies as hard as we could. Our pub estate performed reasonably well, and the move of The Crown Inn from a managed site to a tenancy has proven successful. The pub estate is in good shape, and we ended the year with all pubs let. The traditional brewery pub tenancy model continues to attract interest, part of this being due to the relationships a family brewer has with their tenants, as was seen in the Covid period. Two pubs were disposed of during the year, The Crown and Tuns in Deddington, and The Carpenters Arms in Lower Boddington; the latter being severely affected by the HS2 works.
The pub, and cask ale, remain unique British institutions, and we will continue to do what we do best, whilst remaining dynamic in responding to market trends. Once again, support of all stakeholders – shareholders, licensees, staff and customers has been stalwart, and we are lucky to have long term relationships across the business, which enable us to make decisions for the long term, and ride out the challenges thrown at us.
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THE HOOK NORTON BREWERY COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
It is important to clarify the difference between the underlying operating profit from that shown in the headline Statement of Comprehensive Income, the latter being masked by the profit made on freehold asset disposals of £633,000 and accounting for the costs of the rebuilding of the stables after the fire and the receipt of insurance payments for the year to 30 September 2025 because the latter two entries are so material, as shown in Note 12 to the Financial Statements. Neither the rebuild costs nor the finalization of the insurance payments to be received had been confirmed as at the signing of the accounts for the year ended 30 September 2025 so neither are accounted for in full in the year.
Turnover declined by 2.2% to £9.22 million in 2025, a decline largely attributable to the conversion of the Crown at Benson from management to tenancy and to the disruption of hospitality events at the brewery site caused by the fire reconstruction works. However, the headline Operating profit increased by 125% to £1.26 million but excluding Property Disposal Profits and the impact of accounting for the Exceptional Stables rebuild costs and insurance receipts, underlying Operating profit rose from £186,000 in 2024 to £240,000 in 2025 or by 29%.
The cash position remained healthy with £2.23 million held at the bank, and bank debt declining to £378,000, the company is financially very strong and able to continue to invest for the future.
In the course of its ordinary business the Company faces various risks and uncertainties that could prevent it from achieving its objectives. The Directors regularly review the Company’s exposure to these risks and uncertainties so as to manage and mitigate the impact of them on the Company’s activities wherever possible.
We now have a difficult period ahead of us as the economy toughens, and we may enter a recession. Some of our competitors who may have high borrowings will find it difficult, and this may provide opportunity for us.
As part of the leisure industry there is always the risk from the state of the economy and the impact this has on consumer spending.
The Company continues to invest in brands and facilities to ensure it remains strongly placed to take advantage of new opportunities as they arise. However, inflation, unemployment, taxation and interest rates could lower consumer spending and have a negative impact on the Company’s trading and results.
The Company’s activities are financed by a structured loan facility with its Bankers and financiers. The Company’s cash deposits remain strong as a result of better working capital management. As such, the Directors do not consider the Company to have significant exposure to interest rate or liquidity risk. During the year £43,470 debt was paid down (2024: £1,042,804).
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THE HOOK NORTON BREWERY COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
Turnover for the year remained consistent at £9,220,488 (2024: £9,432,515) with a gross profit margin of 41.5% (2024: 40.9%). Combined with tight control of overheads, the Company recorded a profit before tax for the year of £1,163,718 (2024: £589,786).The Company's profit before tax before exceptionals was £240,175 (2024: £186,409).
The Company remains securely capitalised with net current assets of £2,306,141 (2024: £1,669,814) and shareholder funds of £10,608,681 (2024: £9,677,377) and it continues to invest for the future of the business.
On an underlying basis, the operating performance of the Company was much stronger than in the previous year because there were gains of £632,722 on asset sales in 2025 (2024: £381,750).
This report was approved by the board and signed on its behalf.
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THE HOOK NORTON BREWERY COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
The Directors present their report and the financial statements for the year ended 30 September 2025.
The Directors who served during the year were:
The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Company's financial statements 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;
∙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 to 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.
The profit for the year, after taxation, amounted to £977,042 (2024 - £545,230).
The Directors have declared for a dividend of £45,738 (2024 - £37,928).
The Directors are of the opinion that the aggregate market value of the Company's freehold properties exceeds their current book value at the balance sheet date.
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THE HOOK NORTON BREWERY COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
The auditor, James Cowper Kreston Audit, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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THE HOOK NORTON BREWERY COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE HOOK NORTON BREWERY COMPANY LIMITED
We have audited the financial statements of The Hook Norton Brewery Company Limited for the year ended 30 September 2025, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of 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 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.
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THE HOOK NORTON BREWERY COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE HOOK NORTON BREWERY COMPANY LIMITED (CONTINUED)
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.
In our opinion, based on the work undertaken in the course of the 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.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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THE HOOK NORTON BREWERY COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE HOOK NORTON BREWERY COMPANY LIMITED (CONTINUED)
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.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:
∙Enquiry of management and those charged with governance around actual and potential litigation and claims;
∙Enquiry of management and those charged with governance to identify any material instances of noncompliance with laws and regulations.
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
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THE HOOK NORTON BREWERY COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE HOOK NORTON BREWERY COMPANY LIMITED (CONTINUED)
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.
for and on behalf of
Chartered Accountants and Statutory Auditor
201 Cumnor Hill
Cumnor
Oxfordshire
OX2 9PJ
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THE HOOK NORTON BREWERY COMPANY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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THE HOOK NORTON BREWERY COMPANY LIMITED
REGISTERED NUMBER: 00066594
BALANCE SHEET
AS AT 30 SEPTEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 29 form part of these financial statements.
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THE HOOK NORTON BREWERY COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2025
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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THE HOOK NORTON BREWERY COMPANY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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THE HOOK NORTON BREWERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
The Company is a limited liability company incorporated and domiciled in England and Wales with registered number 00066594. The Company's registered office can be found on the company information page of these financial statements.
The Company's principal activity is the brewing and distribution of beer. The financial statements cover the period from 29 September 2024 to 27 September 2025.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The functional and presentational currency is Great British Pounds, the amounts included are rounded to the nearest pound.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has prepared forecasts and projections using what the Directors believe to be reasonable assumptions relating to the Company’s financial performance, current financial position and existing financial resources for a period of at least 12 months from signing of the financial statements which show the Company to be a going concern. These forecasts and projections show the Company to be a going concern based on current cash and borrowings available.
Based on the above, the Directors are of the opinion that the going concern principle is applicable and that the Company has the necessary resources to continue as a going concern for the foreseeable future.
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THE HOOK NORTON BREWERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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THE HOOK NORTON BREWERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2.Accounting policies (continued)
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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 value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The Company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares
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THE HOOK NORTON BREWERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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THE HOOK NORTON BREWERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2.Accounting policies (continued)
Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
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THE HOOK NORTON BREWERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
Impairment of tangible fixed assets Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a multiple of earnings basis. The cash flows are derived from actual earnings. Bad debt provision Each year the Company assesses each of its trade debtors for recoverability and any deemed to not be recoverable are provided for in full. Stock valuation Included within the valuation of own brewed stock is a cost per barrel of brewery overheads. The Company bases this on the total overheads incurred divided by the number of barrels produced.
Analysis of turnover by country of destination:
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THE HOOK NORTON BREWERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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THE HOOK NORTON BREWERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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THE HOOK NORTON BREWERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
10.Taxation (continued)
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THE HOOK NORTON BREWERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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THE HOOK NORTON BREWERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
Page 25
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THE HOOK NORTON BREWERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
Page 26
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THE HOOK NORTON BREWERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
Share premium account
Capital redemption reserve
Profit & loss account
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THE HOOK NORTON BREWERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
During the prior year, the Company submitted an insurance claim in respect of the fire damaged stable block and business interruption. The Company believes the claim is valid and further insurance monies will be received. As the final settlement has not been agreed, it is not considered virtually certain, and the Company is unable to make a reliable estimate and therefore, no asset has been recognised in the financial statements.
The Company operates a defined contribution pension scheme for the benefit of its employees. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £101,542 (2024: £97,660). Contributions totalling £18,241 (2024: £14,037) were payable to the fund at the balance sheet date and included in creditors.
During the year, the Company declared aggregate dividends to Directors of £45,738 (2024: £37,928).
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THE HOOK NORTON BREWERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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