Company Registration No. 09140632 (England and Wales)
Salcombe Distilling Company Ltd
Unaudited accounts
for the year ended 28 February 2026
Salcombe Distilling Company Ltd
Unaudited accounts
Contents
Salcombe Distilling Company Ltd
Company Information
for the year ended 28 February 2026
Directors
Mr Charles Angus Hamilton Lugsdin
Mr Nicholas Simon Marshall
Mr Howard Lawrence Davies
Ms Helen Elizabeth Michels
Company Number
09140632 (England and Wales)
Registered Office
The Boathouse
28 Island Street
Salcombe
TQ8 8DP
England
Accountants
Wessex Commercial Solutions Limited
Yeovil Innovation Centre
Barracks Close
Yeovil
BA22 8RN
Salcombe Distilling Company Ltd
Statement of financial position
as at 28 February 2026
Intangible assets
14,264
33,830
Tangible assets
120,925
137,214
Inventories
487,752
542,920
Cash at bank and in hand
220,954
459,015
Creditors: amounts falling due within one year
(370,378)
(250,954)
Net current assets
606,924
940,159
Net assets
742,213
1,111,303
Called up share capital
24,953
24,953
Share premium
4,364,762
4,364,762
Capital redemption reserve
508,421
290,438
Profit and loss account
(4,155,923)
(3,568,850)
Shareholders' funds
742,213
1,111,303
For the year ending 28 February 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 in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of FRS 102 Section 1A - Small Entities. The profit and loss account has not been delivered to the Registrar of Companies.
The financial statements were approved by the Board of Directors and authorised for issue on 29 October 2026 and were signed on its behalf by
Mr Charles Angus Hamilton Lugsdin
Director
Company Registration No. 09140632
Salcombe Distilling Company Ltd
Notes to the Accounts
for the year ended 28 February 2026
Salcombe Distilling Company Ltd is a private company, limited by shares, registered in England and Wales, registration number 09140632. The registered office is The Boathouse, 28 Island Street , Salcombe, TQ8 8DP, England.
2
Compliance with accounting standards
The accounts have been prepared in accordance with the provisions of FRS 102 Section 1A Small Entities. There were no material departures from that standard.
The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.
The accounts have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets.
The accounts are presented in sterling.
The financial statements have been prepared on a going concern basis. In adopting this basis, the Directors have undertaken a comprehensive review of the company’s financial position, performance, and cash flow forecasts, covering a period of at least 24 months from the date of approval of these financial statements.
This review has included consideration of key risks and uncertainties, together with an assessment of the wider economic environment and its potential impact on the company’s operations. The Directors have also evaluated the effectiveness of measures implemented to improve operational efficiency and reduce costs.
As a result of these initiatives, the company has continued to improve its financial performance, with reduced losses. Forecasts and budgets prepared by management are based on prudent and reasonable assumptions, including conservative revenue expectations and careful management of operating costs and capital expenditure.
Having considered these forecasts, together with the company’s current working capital position and available resources, the Directors are satisfied that the company has adequate financial resources to continue in operational existence for the foreseeable future and to meet its liabilities as they fall due.
Accordingly, the financial statements have been prepared on the going concern basis.
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover from the sale of goods is recognised when goods have been dispatched to customers such that risks and rewards of ownership have transferred to them. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Salcombe Distilling Company Ltd
Notes to the Accounts
for the year ended 28 February 2026
Tangible fixed assets and depreciation
Tangible assets are included at cost less depreciation and impairment. Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives:
Land & buildings
Straight line 7-20%
Plant & machinery
Straight line 7-20%
Motor vehicles
Reducing balance 15%
Computer equipment
Straight line 20-33%
Intangible fixed assets (including purchased goodwill and patents) are included at cost less accumulated amortisation.
Development costs - 33% Straight line
Intellectual Property - 10%-33% Straight line
Inventories have been valued at the lower of cost and estimated selling price less costs to complete and sell. In respect of work in progress and finished goods, cost includes a relevant proportion of overheads according to the stage of manufacturing/completion.
Expenditure on research and development is written off in the year in which it is incurred.
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rates of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
Government grants in relation to tangible fixed assets are credited to profit and loss account over the useful lives of the related assets, whereas those in relation to expenditure are credited when the expenditure is charged to profit and loss.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profit on a straight line basis over the lease term.
Assets held under finance leases and hire purchase contracts are capitalised and depreciated over their useful lives. The corresponding lease or hire purchase obligation is treated in the balance sheet as a liability. The interest element of rental obligations is charged to the profit and loss account over the period of the lease at a constant proportion of the outstanding balance of capital repayments.
Investments in shares are included at fair value.
Salcombe Distilling Company Ltd
Notes to the Accounts
for the year ended 28 February 2026
Disclosure of share options issued
The company operates an equity-settled share-based payment scheme under which share options are granted to key employees, non-executive directors and specialist advisers / contractors. The employee share options vest after three years of service and are exercisable over a three-year period at an exercise price of £0.01 per share. If staff under EMI scheme leave within 3 years of the issue of the share options, they lose the share options.
During 2024 financial year, the company granted 169238 options to the employees and non-executive directors with a fair value of £6.04 per option, as determined using the Black-Scholes model. The fair value was based on the following assumptions: expected volatility of 40%, a risk-free interest rate of 4%, and a dividend yield of 0%.
The total expense recognised in respect of share-based payments for the 2026 financial year was £217983, which has been categorised under Staff Training and Welfare. This amount has been credited to the share-based payment reserve. At year-end, the weighted average exercise price of the options was £0.01, and the weighted average remaining contractual life was 11 months. If all outstanding options were exercised, the dilution effect would be approximately 5.25%.
Share Options Outstanding:
Description Number of Options Exercise Price £ Contractual Life (m)
Outstanding at 1 March 2023 0 0 0m
Granted 169238 0.01 36m
Outstanding at 28 February 2024 169238 0.01 35m
Outstanding at 1 March 2024 169238 0.01 35m
Granted during the year 0
Cancelled/Forfeited during the year(17037)
Outstanding at 28 Feb 2025 152201 0.01 23m
Granted on 28th October 2025 11682 0.01 24m
Cancelled/Forfeited during the year(32,857)
Outstanding at 28 Feb 2026 131026 0.01 11m/32m
Extended Producer Responsibility (EPR) Packaging Costs
A total of £26,547.5 for Extended Producer Responsibility (EPR) packaging regulations provision has been included in 'Other Direct Costs' on the profit and loss report and 'Other Creditors' on the balance sheet. Of the total £26,547.5 EPR, £11,010.7 relates to the year ended 28 February 2025 and £15,536.80 relates to the year ended 28th February 2026.
Events After the Reporting Period
Subsequent to the balance sheet date, on 6 August 2026, the company completed an allotment of shares under the 2026 investment round.
Pursuant to authority granted under Section 551 of the Companies Act 2006 and the disapplication of statutory pre-emption rights, the company allotted 63,224 C Ordinary Shares of nominal value £0.01 each for a cash consideration of £5.24 per share.
The Other Operating Income is primarily made up of the following income:
Rental income from part of the Dartmouth store
Warehouse and distribution services provided to third parties
Sales commission earned
Salcombe Distilling Company Ltd
Notes to the Accounts
for the year ended 28 February 2026
4
Intangible fixed assets
Other
At 28 February 2026
332,674
Charge for the year
33,846
At 28 February 2026
318,410
At 28 February 2026
14,264
At 28 February 2025
33,830
5
Tangible fixed assets
Land & buildings
Plant & machinery
Motor vehicles
Computer equipment
Total
Cost or valuation
At cost
At cost
At cost
At cost
At 1 March 2025
183,418
223,552
-
121,774
528,744
Additions
1,968
3,261
8,100
11,029
24,358
Disposals
-
-
-
(516)
(516)
At 28 February 2026
185,386
226,813
8,100
132,287
552,586
At 1 March 2025
130,961
158,277
-
102,292
391,530
Charge for the year
11,720
14,125
1,215
13,587
40,647
On disposals
-
-
-
(516)
(516)
At 28 February 2026
142,681
172,402
1,215
115,363
431,661
At 28 February 2026
42,705
54,411
6,885
16,924
120,925
At 28 February 2025
52,457
65,275
-
19,482
137,214
6
Investments
Subsidiary undertakings
Valuation at 1 March 2025
100
Valuation at 28 February 2026
100
Salcombe Distilling Company Ltd
Notes to the Accounts
for the year ended 28 February 2026
Amounts falling due within one year
Trade debtors
198,790
145,543
Accrued income and prepayments
69,324
43,635
8
Creditors: amounts falling due within one year
2026
2025
Trade creditors
190,285
110,567
Taxes and social security
28,776
20,177
Other creditors
41,605
17,557
Allotted, called up and fully paid:
671,250 Ordinary A shares of £0.01 each
6,712.50
6,712.50
1,425,680 Ordinary B shares of £0.01 each
14,256.80
14,256.80
398,329 Ordinary C shares of £0.01 each
3,983.29
3,983.29
10
Average number of employees
During the year the average number of employees was 33 (2025: 33).