The directors present their strategic report for the year ended 31 December 2025.

Overview

2025 was a year of strong operational and financial progress. Volume growth, combined with a firm focus on cost control, translated into a substantial improvement in profitability.

Net revenue for the year increased by 3% to £94.8m (2024: £92.2m). Operating profit more than doubled, increasing by £4.5m (188%) to £6.9m (2024: £2.4m). The improvement was driven entirely by gross margin expansion, as the benefits of higher volumes and a favourable production mix were only partly offset by continued inflationary pressure on the cost base.

Contract Manufacturing

The contract manufacturing business delivered another year of growth. This performance was underpinned by higher production volumes with key partners, together with disciplined management of overheads, meaning profit growth outpaced the underlying increase in volume. The company continued to diversify its co-packing customer base during the year, reducing reliance on any single relationship, although a small number of key partners continue to represent a significant proportion of total activity.

Own-Brand Portfolio

The own-brand portfolio returned to a combined operating profit. This reflected a strong performance from the company's tertiary cider brands, which delivered increased profitability on the back of retained and expanded retail listings. It was partially offset by expected losses in the craft brands, some of which are in the introductory stages of their product lifecycle and margin pressure in the private label business, where competitive retail pricing reduced profitability despite volume growth.

Financial Performance

Gross margin improved by £6.7m (40%) year-on-year. This reflected the benefit of higher volumes and a favourable shift in production mix, partly offset by higher warehousing, logistics and utility costs associated with the increased scale of operations.

Operating expenses increased by £1.8m (12%) to £16.3m, principally reflecting the impact of the increase in employer's National Insurance from April 2025, an upward revaluation of business rates, and higher planned building and plant repair costs.

The Company maintained a strong balance sheet and liquidity position throughout the year, ending the year with cash balances of £12.6m. Capital expenditure of £5.5m was invested during the year, principally in warehouse capacity, production line upgrades and utilities infrastructure, reflecting the Board's continued commitment to supporting the company's growth through targeted investment in its asset base.

The Board considers the principal risks and uncertainties facing the company to be as follows:

• Input cost inflation - the company remains exposed to inflation in energy, raw materials, packaging and labour costs, including the impact of statutory increases in employer's National Insurance and the National Living Wage.

• Supply chain and raw material availability - reliance on third-party suppliers for key raw materials exposes the company to the risk of non-delivery or disruption, as experienced during the year, which can result in lost revenue and additional cost.

• Property and occupancy costs - the company is exposed to upward revaluation of business rates and the ongoing cost of maintaining a multi-site production and warehousing estate, requiring sustained capital and revenue investment.

• Stock and inventory control - the increasing scale and complexity of the company's multi-site warehousing footprint, including third-party managed sites, increases the risk of stock discrepancies. The company continues to invest in process and control improvements in this area.

Future Developments and Outlook

The Board remains confident in the Company's prospects for 2026. Key areas of focus include:

• Continued execution of the capital investment programme, including further warehousing and production capacity, to support ongoing volume growth in the contract manufacturing business.

• Development and delivery of a new medium-term brand strategy for the own-brand portfolio, led by recently strengthened commercial leadership, aimed at improving long-term marketing return on investment.

• Conclusion of ongoing retail customer negotiations, which are expected to influence the shape and profitability of the own-brand business over the coming year.

• Sustained investment in stock control, systems and financial process improvement across an increasingly complex operation.

The Board is satisfied that the Company is well placed to build on the progress made in 2025, supported by a strong balance sheet, a diversified revenue base and continued investment in its operational capability.

The Directors have had regard to the matters set out in Section 172 of the Companies Act 2006 in discharging their duty to promote the success of the company for the benefit of its members as a whole, and in doing so have had regard to:

• Employees - the company's workforce is central to delivery of the business's performance. The Board is committed to maintaining safe working conditions and fair employment practices, and is continuing to invest in people, payroll and reward structures to support the wider business throughout the year.

• Customers and suppliers - the Company seeks to build long-term, collaborative relationships with both its customers and its suppliers, recognising the mutual benefit of stable, well-managed commercial partnerships.

• The community and environment - the Company continues to review its environmental footprint, with key focus on packaging, effluent and energy usage, and engages constructively with regulatory bodies on environmental matters. The company supports charities and initiatives within its local community.

• High standards of business conduct - the Board maintains a strong internal control environment and continues to invest in financial systems, governance and process improvements across the business.

• The long-term consequences of decisions - capital allocation decisions during the year, including investment in warehousing and production capacity, were made with regard to the long-term sustainability and growth of the Company.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2025.

The company’s principal activity is the manufacture and packing of a range of alcoholic and non-alcoholic beverages, for both company-owned brands and as a contract packer. The company also generates modest ancillary revenue from the commercial letting of retail and visitor space at its Kilver Court site. There were not any significant changes to operations during the period.

These activities are reported to the Board and reviewed internally on a divisional basis for management purposes; however, as the Company operates as a single registered legal entity, this Strategic Report is presented on a whole-company basis

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £2,820,638. Post year-end final dividends were paid amounting to £3,525,797.50.

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

The directors' report does not include a description of a fair review of the business, details of the risks and uncertainties and future developments, as this information is documented within the Strategic Report as required under s414C (11).

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

The company continued to develop own brand products in the year along with seeking innovative improvements in production processes.

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The company's policy is to consult and discuss with employees, through unions and at meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

The directors have due regard for maintaining strong relationships with the key stakeholders, in particular customers and suppliers. The directors maintain regular correspondence with these stakeholders to invest in the business relationship.

Saffery LLP have expressed their willingness to continue in office.

Energy usage covered in this disclosure covers all services provided in the UK, and is primarily the electricity consumption within our manufacturing sites, office buildings and warehouses.

Energy usage has been calculated based on gas and electricity meter readings and invoices, extrapolated where readings were not available. Fuel used in respect of both reimbursed business mileage and in respect of vehicles owned by the company have been taken from expense claims and have been extrapolated where data was not available.

We have followed the 2019 HM Government Environmental Reporting Guidelines and used the GHG Reporting Protocol – Corporate Standard for Company Reporting.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per litre of finished product, the recommended ratio for the sector.

As part of our commitment to improving environmental sustainability, and in accordance with the Streamlined Energy and Carbon Reporting (SECR) framework, the company reports the following energy efficiency actions have been undertaken during the financial year ended 31 December 2025:

• Completed the installation of a new sugar dissolving plant, which enables the purchase of sugar in dry, granulated form as opposed to whole tankers of liquid sugar purchased to date. Resulting in a 60,000 mile per annum reduction in transport requirements for the delivery of sugar to site.

• A full compressed air leak survey was conducted across all sites to identify and quantify inefficiencies within the compressed air network, a significant source of avoidable energy consumption in manufacturing operations. Following the survey, remedial welding and pipework repair works were carried out at all sites to seal these leaks, reducing unnecessary compressor run-time and associated electricity consumption.

• In addition to the air leak survey, a new energy-efficient air compressor was delivered and installed at the Cider Mill.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk management objectives and policies which are contained within the Principal risks and uncertainties section of the report.

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.

We have audited the financial statements of Brothers Drinks Co. Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, 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 31 December 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' 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.

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.

As explained more fully in the directors' responsibilities statement, 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 intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

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.

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

Brothers Drinks Co. Limited is a private company limited by shares incorporated in England and Wales. The registered office is Showerings Cider Mill, Kilver Street, Shepton Mallet, England, BA4 5ND.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 405 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Group accounts are not prepared in the current year as the company's subsidiaries are dormant and its net assets immaterial.

The directors have considered the appropriateness of the going concern basis in preparing the financial statements for the year ended 31 December 2025.true

In assessing the Group’s ability to continue as a going concern, the directors have reviewed the Group’s cash flow forecasts and financial plans for the coming year. The company acknowledges the risk derived from the current inflationary environment and as such has considered potential adverse changes in trading performance and cost pressures.

The directors have also considered the Group’s current cash resources, available banking facilities, and its historic ability to manage working capital requirements effectively. Based on this assessment, the directors are satisfied that the Group has adequate resources to continue with operations and deliver outstanding customer service for the foreseeable future.

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.

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.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

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:

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.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The fair value of investment properties is assessed by management, assessing current market conditions where professional valuations are not sought. Changes in fair value are recognised in profit or loss.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Cost is calculated using the weighted average cost methodology.

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.

Cash and cash equivalents are basic financial assets and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

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

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in profit or loss.

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

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.

Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The 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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

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 leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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.

Brothers Drinks Co. Limited has recognised a provision for rates and taxation in its financial statements which requires management to make judgements. The judgements, estimates and associated assumptions necessary to calculate these provisions are based on historical experience and other relevant factors.

FRS 102 Section 16 requires investment property to be stated at its fair value at each reporting year end

Management used the net revenue relating to investment property to inform its assessment of the year-end fair value. Considering the property's financial performance during the year, together with available market data regarding rental yields, management considers that there has been no material movement in the fair value of the property since the previous year.

The company acquired a brand which is held as an intangible asset. To assess the recoverability of this asset, management carry out an impairment review at the year end by calculating the expected discounted cash flows to be generated from the asset.

In the opinion of the directors disclosure of information relating to turnover attributable to markets supplied in the course of the year would be seriously prejudicial to the interests of the company. It is not, therefore, disclosed.

In January 2024 the Cider Mill and Kilver Court sites flooded resulting in damage to the properties. Total insurance proceeds of £1,496,276 were received to cover the cost of the rectification work. In 2025, £432,416 (2024: £1,063,860) of the insurance proceeds was recognised as income. The above amount represents the insurance proceeds recognised in excess of the repair work performed in each year.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2024 - 5).

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

Intangible fixed assets comprise the value attributable to a brand acquired in 2021. At the year-end this intangible had a carrying amount of £1,303,334 (2024: £1,533,334) the remainder of which will be amortised over the next six years.

If investment properties were stated on an historical cost basis rather than a fair value basis, then at the year end £2,288,524 (2024: £2,642,683) would have been included within the accounts.

Management obtained a vacant possession property valuation of the investment properties on 8 October 2024 which has been used to inform management's assessment of the year-end property value. Considering the valuation within the report together with available market data regarding rental yields, management consider there to be no movement in the fair value of the property since the previous year.

Unlisted investments relate to investments in an unrelated company.

These financial statements are separate company financial statements for Brothers Drinks Co. Limited.

Details of the company's subsidiaries at 31 December 2025 are as follows:

Investments in subsidiaries are all stated at cost. Each investment is in the ordinary share capital of the subsidiary. The registered address of Dulcote Limited and Showerings Cider Mill Limited is St Catherine's Court, Berkeley Place, Clifton, Bristol BS8 1BQ. The registered address of Showerings Limited is Showerings Cider Mill, Kilver Street, Shepton Mallet, BA4 5ND.

Current asset investment valuation is based on quoted market price as at the balance sheet date as stated on the London Stock Exchange. The book value of the investment at the balance sheet date was £421,520 (2024: £421,520).

HSBC hold a fixed charge over the land and buildings, chattels, goodwill and book debt, in addition to a floating charge over all other assets.

The company has provided for expected dilapidation expenses which would be required on exit of existing leases.

The company has provided for certain operational costs which it has a probable legal obligation to pay but which are uncertain of timing and amount. It is possible that future events will reveal that no liability exists in respect of the carry forward provision, but at the year end the directors consider it more likely than not that the costs will be incurred.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so.

It is not possible to quantify the expected reversal of deferred tax assets and liabilities in the year to 31 December 2025 due to the unknown timing of disposals in respect of current asset investments.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. At the balance sheet date £80,597 (2024: £80,190) was included within other creditors in respect of amounts owed to defined contribution schemes.

The company has one class of ordinary share which carries no right to fixed income. Each share is entitled to one voting right and an equal share of distributions upon winding up.

The share premium reserve reflects amounts paid for the ordinary share capital of the company in excess of the nominal value.

The capital redemption reserve was created after the buy back of preference shares in the company.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The operating leases represent leases of property to third parties. The leases are negotiated over terms of 1-5 years with rents comprising a fixed and variable element of consideration, contingent on the turnover of the lessee. All leases include a provision for upward rent reviews according to prevailing market conditions.

Contingent rents recognised as income in the year amount to £97,091 (2024: £199,885)

After the reporting date, a final dividend of £2.50 per share in respect of the year ended 31 December 2025 was declared and paid on 7 April 2026. The amount paid totalled £3,525,797.50.

During the year the directors were advanced £1,341,452 (2024: £35,468) by the company and repaid £450,445 (2024: £35,468). Interest of 2.25% per annum was charged on the balance to the 31st of March 2025 and 3.75% per annum from the 1st of April 2025. The total interest charged was £33,608 in 2025 (2024: £nil). As at the year end directors of the entity owed £924,615 (2024: £nil) to the Company. These amounts are unsecured and repayable on demand.

During the year key management personnel of the Company received remuneration totalling £3,347,064 (2024: £2,757,714). Related parties employed by the Company, who were not key management personnel, received remuneration of £571,732 (2024: £483,821). At the year-end £nil (2024: £nil) remained payable to these related parties.

During the year key management personnel of the Company received dividends totalling £1,468,306 (2024: £2,202,459). Related parties employed by the Company, who were not key management personnel, received dividends of £94,000 (2024: £141,000). Related parties, who were not employed by the Company and were not key management personnel, received dividends of £1,258,332 (2024: £1,887,498). At the year-end £nil (2024: £nil) remained payable to these related parties.

The directors are considered to be the ultimate controlling party by virtue of their ability to act in concert in respect of the operational and financial policies of the company and group.