THE_MAIN_RUM_COMPANY_LIMI - Accounts

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

These financial statements 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 FRS102 Section 1A - small entities.

The Main Rum Company Limited is a private company limited by shares incorporated in England and Wales under the Companies Act 2006. The registered office is 46 Hamilton Square, Birkenhead, Wirral, Merseyside, CH41 5AR.

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.

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.

Subsequent to the balance sheet date, the World Health Organization declared the outbreak of Covid-19, a novel strain of Coronavirus, a pandemic. The coronavirus outbreak is disrupting supply chains and affecting production and sales across a range of industries. The extent of the impact of the outbreak on the operational and financial performance of the Group in which the Company is a part will depend on certain developments, including the duration and spread of the outbreak, impact on suppliers and employees, and governmental, regulatory and private sector responses. true

The Company is mitigating the effects, which include allowing office-based employees to work from home to reduce the risk of becoming infected, and to ensure that relationships with customers are being managed to ensure the Company is in the most appropriate position once market demand returns from the low levels experienced in the period immediately following the government imposed lockdown.

The Directors acknowledge that there may be delays in revenue over the coming months due to the prevailing conditions in the UK and Europe, however trade in 2020 to date has been strong compared to prior years and the Directors continue with confidence into 2021. Stress testing has been conducted and considered, taking into account the potential business disruptions and reductions to revenue over the coming months. There will remain a level of uncertainty in the short term as we have no experience of a similar crisis or predicting the extent that the effect of Covid-19 will have on the business. It is not yet clear how widespread the virus will be at any one time, how long the pandemic will last and what the effect of this pandemic will be on our customers. It is also unknown as to whether any legislative changes will occur in this period.

Through the stress testing performed and matters identified above the Directors are satisfied that the company has sufficient available cashflows to navigate at least the forthcoming 12 months. Therefore, the directors consider it appropriate to prepare the financial statements on a going concern basis. The financial statements do not reflect any adjustments as a result of the increase in economic uncertainty resulting from Covid-19.

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.

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 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 the statement of comprehensive income.

Tangible fixed assets costing more than £1,000 are capitalised and included at cost less accumulated depreciation and accumulated impairment losses.

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.

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.

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 and cash and bank balances, are measured at transaction price including transaction costs less any impairment. Financial assets classified as receivable within one year are not discounted.

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 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at undiscounted amounts payable.

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.

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.

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.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The company establishes a provision for debtors that are estimated not to be recoverable. When assessing recoverability the directors consider factors such as aging of the debt, past experience of recoverability and the credit profile of the customer.

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

Amounts owed to group undertakings are interest free and due on demand.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

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

Since the reporting date the worldwide coronavirus pandemic has affected companies and countries across the globe. The impact on the company and the mitigation strategies employed by the directors is discussed in the going concern assessment in the accounting policies. This is a non-adjusting post balance sheet event for the company.

The company is a wholly owned subsidiary of E&A Scheer B.V., the consolidated accounts of which are publicly available. The company has taken advantage of exemption, under the terms of Section 1A "Small Entities" Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with the parent company.

E&A Scheer B.V is regarded by the directors as being the company's parent company and is the parent company of the smallest and largest group in which the company is consolidated. It's registered office and principle base is Herengracht 316, 1016 CD Amsterdam Netherlands.

On the 14th February 2019 The Riverside Company, a global private equity firm, made a significant investment in E&A Scheer of Amsterdam who own 100% of The Main Rum Company Limited. The Riverside Company recognise the importance of E&A Scheer in the global rum market and their investment demonstrates a commitment to enhancing their presence in the Food and Beverage industry. The MD of E&A Scheer and one of the Huysser family will still have a substantial shareholding and will continue to manage the company along with the new owners.

In previous periods a provision had been made against the cost price of the stock to allow for evaporation of the rum over the period of time it was held in stock. The Directors have changed the accounting policy in the current year to remove this provision, as the provision was not consistent with the increasing value of rum during the maturation cycle. The removal of the provision has resulted in the following prior period adjustments.