On review of the company’s financial results, turnover levels have increased to £49,409,445 for the financial year to 31 December 2025 (£46,490,462 - 31 December 2024), amounting to a 6.3% increase year on year. In conjunction with the increase in turnover levels achieved, gross profits have increased to £9,089,552 in the same period (£8,149,955 - year to 31 December 2024), with gross margin levels at 18.4% for the financial year which is an increase from the gross margin level of 17.5% achieved in the 2024 financial year. The increase in turnover and margin levels are primarily linked to changes in pricing and customer demand levels within the company's portfolio of brands in the current financial year.

The company has recorded an operating profit of £856,913 for the financial year which is a increase from the previous financial year primarily as a result of increasing turnover and gross profit levels. The directors are satisfied with the company’s trading performance during the current financial year and confirm that overhead expenditure and cashflow levels continue to be tightly monitored by management.

The directors closely monitor the performance of the company, through active consideration of monthly management accounts, comparison to budgeted figures and regular management meetings. Budgeted projections for the financial year to 31 December 2026 indicate that turnover and profitability levels is expected to increase from the level achieved in the current financial year, as a result of changes within the company’s brand portfolio, and on consideration of actual results in post year-end management accounts to date, the directors are satisfied that the company is continuing to generate trading profits.

The company is exposed to financial risk that could materially and adversely affect its future operating profits or financial position. Such risks include credit risk, market risk, insolvency of supplier risk, economic and competitor risk, liquidity risk, data security and technology risks and risks posed by the UK leaving the European Union. The company seeks to limit the adverse effects of such risks on the financial performance of the company in the following way:

1. Credit risk

The company employs policies that require credit risk checks on potential customers before sales on a credit basis are completed which assists the company in mitigating customer credit risk. The company‘s credit control function monitors customer adherence to designated credit terms on a regular basis and applies impairment provisions where risk is identified.

2. Market risk

(i) Cash flow and fair value interest rate risk

The company is exposed to interest rate risk in that it holds third party borrowings, in the form of overdraft and invoice discounting facilities from Bank of Ireland. In the event that interest rates increase in future periods, the directors are satisfied that the company will be able to effectively manage future financial commitments through cashflows generated from its trading activities and access to additional financing if required, including in the form of shareholder support.

(ii) Foreign exchange risk

The company faces exposure to foreign exchange fluctuations due to it undertaking transactions in currencies other than its functional currency, particularly Euros. The directors carefully manage foreign currency transactions on a daily basis in conjunction with group undertakings to limit any potential exposure to adverse exchange rate movements.

3. Insolvency of supplier risk

In the event of a supplier being declared bankrupt or insolvent, the company would have financial exposure in that it may not be in a position to meet the demands of its customers for saleable finished goods. Such risk is mitigated by the company engaging and building relationships with quality brand suppliers with strong financial positions, but also through the careful management of stock levels in conjunction with sales budgets to minimise the likelihood of stock shortages arising.

4. Economic and competitor risk

The economic environment and competition in the wider marketplace and specific trading sector can affect the company’s business in respect of both turnover and gross margin levels achievable. Continuing market demand for its brands is crucial to the company’s success and the directors have a balanced and conservative view in respect of areas where growth and further development is achievable. The company actively competes for market share and will endeavour to mitigate the impact of negative economic market pressures and changes in its brand and customer profiles. The company continues to maintain excellent relationships with its brand suppliers and customers which assists in reducing the overall risk profile.

5. Liquidity risk

Liquidity risk can arise from cash flow timing mismatches relating to the realisation of assets and discharge of liabilities. The company manages such risks through the utilisation of available financing and cashflow sources, effective credit control procedures and undertaking detailed financial reviews prior to the acceptance of any proposed financial obligation to ensure it can continue to operate on a profitable basis and meet trading and other liabilities as they fall due. The operation and related procedures surrounding the utilisation of the company‘s invoice discounting facility are considered important in the management of liquidity levels.

6. Data Security and Technology risk

The company is dependent primarily on information technology systems for its principle operational business and financial processes. As the company utilises customer and supplier data as part of its operational activities, and retains same on its systems, there is an associated risk of a cyber security related attack which could result in unauthorised access to confidential information and resultant significant potential reputational and financial impacts. The company has in place system controls, disaster recovery and business continuity arrangements to mitigate the risk of an IT system failure, disruption to operational activities and limit the potential risk of a data breach occurring. The company utilises IT resources in conjunction with its parent undertaking whose primary functions include the monitoring, identification and correction of issues in operating systems as they arise, and also engages with third-party IT consultants as required.

7. Cross Border Trading Risk

The company is exposed to risks and uncertainties associated with the continuity of supply of trading stocks and the potential impact on the marketplace of the imposition of tariffs. Volatility in the cost of raw materials used by suppliers or changes in tariffs, import taxes or duties on goods purchased from suppliers outside of the UK could result in increased costs to the company and potential decline in margin levels achievable. The directors have implemented safeguards to protect the supply of goods and related costs by primarily sourcing suppliers based in the UK. The directors continue to carefully monitor the impact of market conditions on the company‘s business operations and are satisfied that it has sufficient resources available to maintain and expand its trading activities.

The directors continue to actively assess the company‘s financial position and they are satisfied that the company has, in conjunction with the generation of trading profits in the current and previous financial years, sufficient financial resources available to ensure that it can discharge its liabilities as they fall due. The directors remain satisfied that the company has sufficient access to trading stocks to meet expected future customer demand, continues to have the support of its primary customers, suppliers and bankers, and that sufficient cashflow financing is available as required.

In addition, the company has insurances, business policies and organisational structures to limit the risks detailed above and the board of directors regularly review and reassess these risks to proactively limit the associated risk. There is a high-quality management team to manage day to day operations and relationships with the company‘s bankers, customers and suppliers remain strong.

The company has continued to further develop its operations during the financial year and the directors can confirm their satisfaction with the overall financial performance and profits generated in conjunction with the the increase in turnover levels achieved the previous financial year. These developments include the following:

- Increasing product ranges through continuous development of relationships with key suppliers and engaging and marketing of new brands.

- Provision of improved offerings to customers in conjunction with agreement of terms with brand partners.

- Development and continuing improvement in IT systems to achieve greater operational and trading efficiencies.

- Employment and allocation of staffing resources to key brand promotion and operational functions.

- Maintenance of relationships with warehousing and distribution partners to allow for the utilisation of additional capacity.

The directors confirm that the company’s relationships with key suppliers and customers continue to be excellent and they are satisfied that this will assist the company in the generation of profitability and positive cashflows into the future. In addition, they confirm that the company’s parent undertaking Richmond Marketing Limited has committed to provide support to the company if required to ensure that it can take advantage of opportunities as they arise, which will assist in the continued expansion of trading activity levels, and allow it to discharge current and future liabilities as they fall due.

Subsequent to the financial year end, the directors can confirm that the company has continued to actively engage in the selling and promotion of its product range while also seeking opportunities to further expand its range of brands, including extending operations into adjacent categories with new partners.

While the trading environment remains challenging, the directors confirm their expectation that the company will generate further trading profits in future periods through the availability of cashflow resources and financing facilities in conjunction with existence of a quality management team.

We identify and assess risks of material misstatement in the financial statements, whether due to fraud of error, and designed and performed audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations, we considered the following:

- results of our enquiries of management and those charged with governance about their own identification and assessment of the risks of irregularities.

- any matters we identified having obtained and reviewed the company’s documentation of their policies and procedures relating to:

   >identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

   >detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

   >the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud are in respect of the valuation of trading stock and the potential for under or overstatement of liabilities. These were raised with management as key audit matters in the current financial year. In common with audit assignments under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on the provisions of applicable laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006 and applicable tax legislation.

In addition, we consider the provisions of other applicable laws and regulations which while not having a direct effect on the financial statements, associated compliance may be fundamental to the company’s ability to continue to operate or to avoid a material penalty. These include the company’s covenant requirements on banking facilities and agreed terms with partner suppliers.                

Audit response to risks identified

As a result of performing the above, we identified the valuation of the company's inventory of finished goods for resale and accurate recognition of liabilities as key audit matters related to the potential risk of fraud. The specific procedures we performed in response to the risks identified included the following:

- Reviewing the financial statement classification and disclosures as well as undertaking specific substantive testing procedures to assess compliance with the provisions of relevant laws and regulations described as having a direct effect on the financial statements.

- enquiring of management concerning actual and potential litigation and claims.

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.

- reading minutes of meetings of those charged with governance.

- reading the terms and conditions noted in bank correspondence and reviewing a sample of distribution agreements with suppliers;

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments from a cut-off perspective, assessing whether the judgements made in making accounting estimates are indicative of a potential bias, and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, including internal specialists and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit process.

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

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Section 33.6 of FRS 102, defines key management personnel as "those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (executive or otherwise) of that entity". The directors have identified that 2 individuals, being the members of the board of directors, meet the classification of key management personnel in the financial year to 31 December 2025 (2 people in year to 31 December 2024).

Full disclosure in accordance with the requirements of FRS 102 of total employee benefits, including salary and pension, for key management personnel is disclosed in the directors remuneration and transactions note to the financial statements.

Bank overdraft and invoice discounting facilities from Bank of Ireland utilised by the company, amounting to £7,117,656 at 31 December 2025 (31/12/2024 - £4,785,695), are secured by the following:

1) an assignment of receivables with respect to the invoice discounting facility;

2) fixed charge over present and future interests in plant, lands, machinery, etc., goodwill and uncalled capital, present and future interest in insurance proceeds, stock, shares and other securities, debts;

3) floating charge over undertakings, rights and assets of the company but so that the company is not to be at liberty to create any mortgage or charge on the property hereby charged or any part of parts thereof, otherwise than is in existence at the date hereof;

4) Composite Cross Guarantees and indemnities from Richmond Marketing Limited;

5) A letter of set-off over cash deposits held by Richmond Marketing Limited with the bank.

Through its banking facilities with Bank of Ireland, the company has provided a guarantee of £300,000 in favour of HMRC in respect of deferred payment of duty.

The company has also provided a cross guarantee to Bank of Ireland with respect to similar facilities provided to group undertakings Richmond Marketing Limited and Labarum Services Unlimited. The company continues to have registered charges in favour of Ulster Bank Limited and it is intended to have satisfactions registered of these charges in the near future.

The company has chosen to apply the provisions of Section 11 and 12 of FRS 102 to account for all of its financial instruments.

The company is exposed to four main areas of risk - foreign exchange currency exposure, liquidity risk, customer credit exposure and interest rate risk.

Cash flow and fair value interest rate risk

The company is exposed to interest rate risk in that it holds third party borrowings, in the form of overdraft and invoice discounting facilities. In the event that interest rates increase in future periods, the directors are satisfied that the company has the ability to effectively manage borrowing costs into the future through positive cashflows generated from its trading activities and access to current financing facilities, including in the form of shareholder support if required, to allow it to adequately fund any increases should they occur. The directors also continually review conditions within the market for available financing facilities on more favourable terms.

In the current financial year, the company was charged promotional costs and trade related rebates totalling £57,137 (2024 - £119,371) by Jeeves Hospitality Limited and related group undertakings involved in the ownership of public houses and similar properties in Northern Ireland. The balance payable to Jeeves Hospitality Limited at 31 December 2025 is considered to directly relate to trading activities and is payable in accordance with trading terms between the companies, without the application of interest. Jeeves Hospitality Limited is a company registered in Northern Ireland which is connected to the company through common directors and is under the ultimate control of Vetranio Unlimited.

In the current financial year, the company purchased goods totalling £26,877 (2024 - £136,337) from Cider of Sweden Limited, a company registered in the United Kingdom which is involved in the marketing and sale of alcoholic beverages. In addition, under agreed terms between the companies, the company undertook sales transactions with Cider of Sweden Limited totalling £1,488,714 (2024 - £1,665,337) and incurred stock purchase and related costs associated with these sales totalling £1,481,325 (2024 - £1,660,552). The company also provides administration and management services to Cider of Sweden Limited and income of £117,667 (2024 - £110,000) has been recognised in this respect. Cider of Sweden Limited is connected to the company through common directors.

In the current financial year, the company purchased finished goods, net of directly applicable rebates and related costs, totalling £1,362,360 (2024: £2,224,669) from Red Star Brands Limited, a company registered in Northern Ireland which is involved in the sale, marketing and distribution of beverages and snacks in the UK market. In addition, under agreed terms between the companies, the company undertook sales transactions with Red Star Brands Limited totalling £68,916 (2024: £27,396). The company provided administration and management services to Red Star Brands Limited and income of £71,493 (2024: £100,000) has been recognised in respect of this. The balance payable to Red Star Brands Limited at 31 December 2025 is confirmed as exclusively relating to trading activities and is payable in accordance with trading terms between the companies. Red Star Brands Limited is under the control of the company's ultimate parent undertaking Vetranio Unlimited.?