For the financial year ended 31 January 2026 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its financial statements for the year in question 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.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

Otter Brewery Limited is a private company limited by shares incorporated in England and Wales. The registered office is Otter Brewery, Luppitt, Honiton, Devon, EX14 4SA.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 £.

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

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes.

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.

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation.

Depreciation is recognised so as to write off the cost 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.

Stock is valued at the lower of cost, including direct labour and attributable overheads, and net realisable value. Stock comprises of raw materials, stock in progress, finished goods and consumables.

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.

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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

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

Other creditors include hire purchase obligations of £64,082 (2025: £44,891) which are secured on the assets to which they relate.

Included within the bank loan balance is £44,891 (2025: £30,764) which represents the current portion of loans secured on the trade and assets of the company.

Other creditors include hire purchase obligations of £180,596 (2025: £33,613) which are secured on the assets to which they relate.

Included within the bank loans and overdrafts balance is £133,128 (2025: £168,019) which represents the non-current portion of loans which are secured against the trade and assets of the company.

The following is the analysis of the deferred tax balances for financial reporting purposes:

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

Connected company loans

Loan 1:

During the year, the company adjusted a loan to a limited company which is owned and directed by family members of the directors of Otter Brewery Limited down to its recoverable amount. The loan balance written off was £54,730 leaving a recoverable balance of £1,600 due to Otter Brewery Limited (2025: £58,730). The loan was unsecured, interest free and repayable upon demand.

Loan 2:

During the year, Otter Brewery Limited took out a £100,000 bank loan which was then advanced to a related company which is owned and directed by the directors of Otter Brewery Limited and their family members. This is in addition to the £100,000 taken out in the prior year. The related company is covering the loan repayments in full, including the interest charged by the bank.

The company also covered various costs of the related company during the accounting period leaving the total amount owed to Otter Brewery Limited as £252,535 (2025: £157,997) at the balance sheet date. Of this balance, £84,516 (2025: £59,214) was interest free with the remaining £168,019 (2025: £98,783) having interest recharged to the business at the same rate as the underlying bank loan. This loan is unsecured and deemed repayable on demand.