Company No: 13739796 (England and Wales)

Contents

• Statement of Financial Position
• Notes to the Financial Statements

	Note	2025		2024
		£		£
				Restated - note 2
Fixed assets
Tangible assets	4	1,140,625		1,159,588
		1,140,625		1,159,588
Current assets
Stocks		511,731		464,723
Debtors	5	50,064		71,587
Cash at bank and in hand		222,609		115,341
		784,404		651,651
Creditors: amounts falling due within one year	6	( 230,041)		( 224,938)
Net current assets		554,363		426,713
Total assets less current liabilities		1,694,988		1,586,301
Creditors: amounts falling due after more than one year	7	( 422,980)		( 467,879)
Net assets		1,272,008		1,118,422
Capital and reserves
Called-up share capital	8	1,756		1,564
Share premium account		3,616,936		2,543,470
Profit and loss account		( 2,346,684 )		( 1,426,612 )
Total shareholders' funds		1,272,008		1,118,422

For the financial year ending 30 November 2025 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of Modern Rum Co Ltd (registered number: 13739796) were approved and authorised for issue by the Board of Directors on 27 August 2026. They were signed on its behalf by:

L J Hayes Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Modern Rum Co Ltd (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Woodwater House, Pynes Hill, Exeter, EX2 5WR, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The director has assessed the Statement of Financial Position and likely future cash flows at the date of approving these financial statements. The director has a reasonable expectation that the Company will obtain further funding from investors and has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Prior year adjustment

Whilst preparing the 2025 accounts, it was noticed that closing stock from prior year was overstated as the closing figure included obsolete items with a value of £39,500. The closing stock figure for 2024 has been amended to £464,723 and accordingly the opening stock figure for 2025 has been amended. Further details are in note 2 of the accounts.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Statement of Financial Position date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Profit and Loss Account in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Interest income

Interest income is recognised when it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

Employee benefits

Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Profit and Loss Account in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Statement of Financial Position.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Statement of Financial Position date.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is provided on all tangible fixed assets, other than investment properties and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a reducing balance / straight-line basis over its expected useful life, as follows:

Leasehold improvements	20 years straight line
Plant and machinery	20 years straight line
	25 % reducing balance
Computer equipment	25 % reducing balance

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Leases

The Company as lessee
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives, unless ownership is expected to transfer to the company in which case the asset is depreciated over its useful economic life. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Statement of Income and Retained Earnings over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Statement of Financial Position date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.

Non-financial assets
At each balance sheet date, the Company reviews 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). The recoverable amount of an asset is the higher of its fair value less costs to sell and its 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.

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. 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.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. For the year ended 30 November 2024, cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity, however, for year ended 30 November 2025, cost excludes direct labour and an attributable portion of manufacturing overheads. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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 Company after deducting all of its liabilities.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Ordinary share capital

The ordinary share capital of the Company is presented as equity.

2. Prior year adjustment

Whilst preparing the 2025 accounts, it was noticed that closing stock from prior year was overstated as the closing figure included obsolete items with a value of £39,500. The closing stock figure for 2024 has been amended to £464,723 and accordingly the opening stock figure for 2025 has been amended.

		As previously reported		Adjustment		As restated
Year ended 30 November 2024		£		£		£
Stocks (Statement of Financial Position)		504,223		(39,500)		464,723
Closing stock (Profit and Loss Account)		(504,223)		39,500		(464,723)

3. Employees

	2025		2024
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	8		9

4. Tangible assets

	Leasehold improve- ments		Plant and machinery		Computer equipment		Total
	£		£		£		£
Cost
At 01 December 2024	212,993		1,062,946		8,093		1,284,032
Additions	0		54,500		2,565		57,065
Disposals	0		( 10,500)		0		( 10,500)
At 30 November 2025	212,993		1,106,946		10,658		1,330,597
Accumulated depreciation
At 01 December 2024	16,226		105,164		3,054		124,444
Charge for the financial year	10,649		55,081		1,592		67,322
Disposals	0		( 1,794)		0		( 1,794)
At 30 November 2025	26,875		158,451		4,646		189,972
Net book value
At 30 November 2025	186,118		948,495		6,012		1,140,625
At 30 November 2024	196,767		957,782		5,039		1,159,588

5. Debtors

	2025		2024
	£		£
Trade debtors	41,952		32,472
Amounts owed by directors	1,625		241
Prepayments	0		5,100
VAT recoverable	5,939		8,574
Corporation tax	548		0
Other debtors	0		25,200
	50,064		71,587

6. Creditors: amounts falling due within one year

	2025		2024
	£		£
Trade creditors	16,670		40,804
Amounts owed to directors	67,348		47,403
Other loans (secured)	122,489		109,907
Accruals	5,102		4,751
Witholding tax	0		1,441
Taxation and social security	16,789		17,591
Other creditors	1,643		3,041
	230,041		224,938

Other loans are secured over the assets to which they relate.

7. Creditors: amounts falling due after more than one year

	2025		2024
	£		£
Amounts owed to directors	232,752		166,560
Other loans (secured)	190,228		301,319
	422,980		467,879

Other loans are secured over the assets to which they relate.

8. Called-up share capital

	2025		2024
	£		£
Allotted, called-up and fully-paid
3,398,249 Ordinary shares of £ 0.0005 each (2024: 15,074 shares of £ 0.10 each)	1,699		1,507
114,000 Ordinary A shares of £ 0.0005 each (2024: 570 shares of £ 0.10 each)	57		57
	1,756		1,564

In the financial year 2025 class Ordinary shares were allotted with an aggregate nominal value of £191.72 and consideration of £1,073,657.20 was received. On 30 September 2025, there was a sub-division of shares, £0.0005 per share.

9. Financial commitments

Commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

	2025		2024
	£		£
Within one year	21,000		21,000
Between one and five years	28,000		49,000
	49,000		70,000

Pensions

The Company operates a defined contribution pension scheme for the directors and employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.

	2025		2024
	£		£
Unpaid contributions due to the fund (inc. in other creditors)	2,967		2,914

10. Related party transactions

Transactions with the entity's directors

	2025		2024
	£		£
Amounts owed by a director, at the balance sheet date	1,625		241
Amounts owed to a director, at the balance sheet date	(300,100)		(213,963)

The balance owed by a director is interest free and repayable on demand.
The balance owed to a director bears interest at 12% and is repayable equally over 5 years.