Radnor Hills Mineral Water Company Ltd - Limited company accounts 22.3
Radnor Hills Mineral Water Company Ltd - Limited company accounts 22.3
| REGISTERED NUMBER: |
| Strategic Report, Report of the Directors and |
| Audited Financial Statements |
| for the Year Ended 31 May 2022 |
| for |
| Radnor Hills Mineral Water Company Ltd |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Contents of the Financial Statements |
| for the year ended 31 May 2022 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 6 |
| Statement of Comprehensive Income | 10 |
| Statement of Financial Position | 11 |
| Statement of Changes in Equity | 12 |
| Statement of Cash Flows | 13 |
| Notes to the Statement of Cash Flows | 14 |
| Notes to the Financial Statements | 16 |
| Radnor Hills Mineral Water Company Ltd |
| Company Information |
| for the year ended 31 May 2022 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants and Statutory Auditor |
| Emstrey House |
| Shrewsbury Business Park |
| Shrewsbury |
| Shropshire |
| SY2 6LG |
| BANKERS: |
| 44-46 Castle Street |
| Shrewsbury |
| Shropshire |
| SY1 2BU |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Strategic Report |
| for the year ended 31 May 2022 |
| The directors present their strategic report for the year ended 31 May 2022. |
| REVIEW OF BUSINESS |
| The company's principal activity is the manufacture and wholesaling of mineral water and soft drink products together with hotel management. |
| The directors report on a successful year driven by growth of Radnor branded products reaching new channels in retail, led largely by our popular Radnor Splash range. Sales to foodservice, always a leading sector for our brands, have continued to be strong with pleasing growth throughout the sector. This has partly been due to the bounce back of the economy post-Covid, as well as the development of good supply relationships with multiple retailers. At the year end we were pleased to announce sales of £58.27 million and a resultant growth in net profit of £4.76 million from the previous financial year. |
| This year the company resumed planned capital projects which were put on hold during Covid including the installation of a new glass filling line and pasteurizer increasing filling speeds and capacity for our glass products, alongside other investments designed to improve capacity and profitability. The company's environmental plant continues to be expanded to reduce the effect we have on our environment. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| Risks which may affect the longer term performance of the Company continue to be assessed by the Directors and mitigated where necessary, enabling Directors to minimise the threat of movements in the economy due to uncontrollable outside forces. |
| Constantly rising costs in packaging and ingredients have forced the business to further develop their automation plans, continue to drive efficiencies, and where possible to reformulate in order to mitigate cost increases. |
| Staff support, training and development remain key to the business as does careful focused recruitment and the appointment of a Senior Leadership Team continue to strengthen the future of the business and protect the jobs of a loyal and valuable workforce. |
| The Company continues to prepare for the Deposit Return Scheme implementation in Scotland due to come into effect from April 2023. |
| SECTION 172(1) STATEMENT |
| The directors believe they have effectively implemented their duties under section 172 (1) of the Companies Act 2006. Long term strategy is continuously assessed and amended to deliver long term success to the business and its stakeholders. |
| The company continues to demonstrate commitment to maintenance of excellent reputation and high standards. Selection of contractors to deliver best value, reduced carbon footprint and awareness of environmental impact of all work undertaken, continues to be a priority for the business. |
| The importance of all the Companies stakeholders, employees, suppliers and customers in delivering the company strategy, maintaining sustainability is recognised by the Directors and they are involved in every decision process. The directors believe that all members of the company are treated fairly. |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Strategic Report |
| for the year ended 31 May 2022 |
| ENGAGEMENT WITH EMPLOYEES |
| The Company consults with employees on matters which may affect their interests, this is done through one-to-one meetings, group briefings, multi-departmental cascade briefs and employee forums as well as newsletters and reports. Group buy-in of the Company's vision, mission, values, economic factors and performance are vital to the success of the Company. |
| ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
| The company considers it good practice to nurture close communication with major customers and suppliers at all times forging better working relationships, understanding and collaboration and this has resulted in excellent pay back during the early months of the Covid Pandemic. The directors and company pride themselves on customer service levels above and beyond our competitors and believe this is a reason for the continuing strength, longevity and loyalty of customer and supplier relationships. |
| Supplier agreement terms are set prior to orders being placed, suppliers are vetted and audited and chosen for their ethics, quality and sustainability. Supplier payments are made in accordance with agreed terms, promptly and on time. |
| ON BEHALF OF THE BOARD: |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Report of the Directors |
| for the year ended 31 May 2022 |
| The directors present their report with the financial statements of the company for the year ended 31 May 2022. |
| PRINCIPAL ACTIVITY |
| The principal activity of the company in the year under review was that of the manufacture and wholesaling of mineral water and soft drink products together with hotel management. |
| DIVIDENDS |
| The total distribution of dividends for the year ended 31st May 2022 will be £Nil (2021 £9,853,847). |
| FUTURE DEVELOPMENTS |
| The company has continued to invest extensively after the year end in both plant and site facilities. This ensures the company is able to continue to meet demand. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 June 2021 to the date of this report. |
| FINANCIAL INSTRUMENTS |
| The exposure to financial risk is not material for the assessment of the assets, liabilities, financial position and profit or loss of the company. |
| DONATIONS |
| During the year the company made non political donations of £4,350. |
| STREAMLINED ENERGY AND CARBON REPORTING |
| In accordance with SECR requirements, this provides a summary of GHG emissions and energy data for Radnor Hills Mineral Water Company Limited during the reporting year 1st June 2021 to 31st May 2022. |
| Element | 2021/22 (tCO2e) | 2020/21 (tCO2e) |
| Direct emissions (Scope 1) - LPG, refrigerant gases and company car fuel |
2,562 |
1,895 |
| Indirect emissions (Scope 2) - from purcased electricity |
2,054 |
2,167 |
| Total (tCO2e ) Scope 1 & 2 |
| Gross total emissions | 4,616 | 4,062 |
| Carbon offsetting purchased | - | 660 |
| Net total emissions | 4,616 | 3,402 |
| Intensity Metric |
| Intensity Metric (Gross Emissions) Kg of CO2e per 1000 litres produced |
31 |
35 |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Report of the Directors |
| for the year ended 31 May 2022 |
| DISCLOSURE IN THE STRATEGIC REPORT |
| The directors have chosen, in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013, to set out in the company's strategic report, information required by schedule 7 of the Large and Medium-sized Companies and Group (Accounts and Reports) Regulations 2008. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| Radnor Hills Mineral Water Company Ltd |
| Opinion |
| We have audited the financial statements of Radnor Hills Mineral Water Company Ltd (the 'company') for the year ended 31 May 2022 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of 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 May 2022 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| 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. |
| In connection with our audit of the financial statements, 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 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. |
| Report of the Independent Auditors to the Members of |
| Radnor Hills Mineral Water Company Ltd |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Matters on which we are required to report by exception |
| 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 Report of the Directors. |
| We have nothing to report in respect of the following matters where 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. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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. |
| Report of the Independent Auditors to the Members of |
| Radnor Hills Mineral Water Company Ltd |
| Auditors' responsibilities for the audit of the financial statements |
| 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 a Report of the Auditors 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. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| The extent to which the audit was considered capable of detecting irregularities including fraud. |
| Our approach to identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
| - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities, and skills to identify or recognize non-compliance with applicable laws and regulations; and |
| - we identified the laws and regulations applicable to the company through discussion with directors and other senior management, and from our commercial knowledge and experience of the manufacturing and wholesale sector; and |
| - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection and employment; and |
| - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
| - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
| We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
| - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected, and alleged fraud; and |
| - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
| To address the risk of fraud through management bias and override of controls, we: |
| - performed analytical procedures to identify any unusual or unexpected relationships. |
| - tested journal entries to identify unusual transactions. |
| - assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and |
| - investigated the rationale behind significant or unusual transactions. |
| In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
| - agreeing financial statement disclosures to underlying supporting documentation. |
| - enquiring of management as to actual and potential litigation and claims; and |
| - reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. |
| Report of the Independent Auditors to the Members of |
| Radnor Hills Mineral Water Company Ltd |
| There are inherent limitations in our audit procedures described above. The more removed that 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. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| Use of our 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 a Report of the Auditors 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. |
| for and on behalf of |
| Chartered Accountants and Statutory Auditor |
| Emstrey House |
| Shrewsbury Business Park |
| Shrewsbury |
| Shropshire |
| SY2 6LG |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Statement of Comprehensive |
| Income |
| for the year ended 31 May 2022 |
| 2022 | 2021 |
| Notes | £ | £ |
| REVENUE | 3 |
| Cost of sales |
| GROSS PROFIT |
| Administrative expenses |
| 9,087,392 | 3,074,375 |
| Other operating income | 4 |
| OPERATING PROFIT | 6 |
| Interest receivable and similar income |
| 9,131,675 | 3,676,140 |
| Interest payable and similar expenses | 8 |
| PROFIT BEFORE TAXATION |
| Tax on profit | 9 |
| PROFIT FOR THE FINANCIAL YEAR |
| OTHER COMPREHENSIVE INCOME |
| ( |
) |
| Income tax relating to other comprehensive income |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
( |
) |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Statement of Financial Position |
| 31 May 2022 |
| 2022 | 2021 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 11 |
| Property, plant and equipment | 12 |
| Investments | 13 |
| CURRENT ASSETS |
| Inventories | 14 |
| Debtors | 15 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 16 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
17 |
( |
) |
| PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 20 |
| Retained earnings | 21 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Statement of Changes in Equity |
| for the year ended 31 May 2022 |
| Called up |
| share | Retained | Revaluation | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1 June 2020 |
| Changes in equity |
| Dividends | - | ( |
) | - | ( |
) |
| Total comprehensive income | - | ( |
) |
| Balance at 31 May 2021 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31 May 2022 |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Statement of Cash Flows |
| for the year ended 31 May 2022 |
| 2022 | 2021 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 |
| Interest paid | ( |
) |
| Interest element of hire purchase payments paid |
( |
) |
| Government grants |
| Reversal of depreciation | ( |
) |
| Tax paid | ( |
) | ( |
) |
| Net cash from operating activities |
| Cash flows from investing activities |
| Purchase of intangible fixed assets | ( |
) |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Purchase of fixed asset investments | - | (250 | ) |
| Sale of tangible fixed assets |
| Interest received |
| Net cash from investing activities | ( |
) |
| Cash flows from financing activities |
| Loan repayments in year | ( |
) |
| Government grants | (47,526 | ) | - |
| Loans to related parties | (1,206,828 | ) | (17,739 | ) |
| Capital repayments in year | ( |
) |
| Amount introduced by directors | 712,956 | 804,266 |
| Amount withdrawn by directors | (910,391 | ) | (611,780 | ) |
| Equity dividends paid | ( |
) |
| Net cash from financing activities | ( |
) | ( |
) |
| Increase/(decrease) in cash and cash equivalents | ( |
) |
| Cash and cash equivalents at beginning of year |
2 |
10,277,558 |
| Cash and cash equivalents at end of year | 2 | 12,135,534 | 9,664,369 |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Statement of Cash Flows |
| for the year ended 31 May 2022 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2022 | 2021 |
| £ | £ |
| Profit before taxation |
| Depreciation charges |
| Government grants | ( |
) | ( |
) |
| Finance costs | - | 44,372 |
| Finance income | (17,687 | ) | (6,139 | ) |
| 11,162,827 | 5,071,553 |
| (Increase)/decrease in inventories | ( |
) |
| Increase in trade and other debtors | ( |
) | ( |
) |
| Increase in trade and other creditors |
| Cash generated from operations |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
| Year ended 31 May 2022 |
| 31.5.22 | 1.6.21 |
| £ | £ |
| Cash and cash equivalents | 12,135,534 | 9,664,369 |
| Year ended 31 May 2021 |
| 31.5.21 | 1.6.20 |
| £ | £ |
| Cash and cash equivalents | 9,664,369 | 10,277,558 |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Statement of Cash Flows |
| for the year ended 31 May 2022 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1.6.21 | Cash flow | At 31.5.22 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 9,664,369 | 2,471,165 | 12,135,534 |
| 9,664,369 | 12,135,534 |
| Debt |
| Finance leases | (8,055 | ) | (54,824 | ) | (62,879 | ) |
| (8,055 | ) | (54,824 | ) | (62,879 | ) |
| Total | 9,656,314 | 2,416,341 | 12,072,655 |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements |
| for the year ended 31 May 2022 |
| 1. | STATUTORY INFORMATION |
| Radnor Hills Mineral Water Company Ltd is a |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Turnover |
| Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Intangible assets |
| Amortisation is calculated to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows: |
| Debenture | - | written off in equal annual instalments over its estimated useful economic life |
| Computer software | - | written off in equal annual instalments over its estimated useful economic life |
| If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates. |
| Tangible fixed assets |
| Long leasehold | - |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| The Lion fixtures and fittings | - |
| Stocks |
| Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Foreign currencies |
| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
| Hire purchase and leasing commitments |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
| Government grants |
| A grant receivable as compensation for costs already incurred or for immediate financial support, with no future related costs are recognised as income in the period in which it is receivable. |
| Grants receivable towards the cost of an asset are recognised as income over the course of the asset life. |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2022 |
| 3. | REVENUE |
| The revenue and profit before taxation are attributable to the one principal activity of the company. |
| An analysis of revenue by class of business is given below: |
| 2022 | 2021 |
| £ | £ |
| An analysis of revenue by geographical market is given below: |
| 2022 | 2021 |
| £ | £ |
| United Kingdom |
| Europe |
| 4. | OTHER OPERATING INCOME |
| 2022 | 2021 |
| £ | £ |
| Rents received |
| Insurance claim receivable |
| Tetra marketing support |
| Government grants |
| 26,596 | 595,626 |
| 5. | EMPLOYEES AND DIRECTORS |
| 2022 | 2021 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2022 |
| 5. | EMPLOYEES AND DIRECTORS - continued |
| The average number of employees during the year was as follows: |
| 2022 | 2021 |
| Administration | 42 | 41 |
| Production | 156 | 126 |
| Hotel administration | 49 | 27 |
| 2022 | 2021 |
| £ | £ |
| Directors' remuneration including benefits | 168,117 | 102,503 |
| Directors' pension contributions to money purchase schemes | 71,144 | 54,591 |
| 6. | OPERATING PROFIT |
| The operating profit is stated after charging: |
| 2022 | 2021 |
| £ | £ |
| Hire of plant and machinery |
| Other operating leases |
| Depreciation - owned assets |
| Other amortisation |
| 7. | AUDITORS' REMUNERATION |
| 2022 | 2021 |
| £ | £ |
| Fees payable to the company's auditors and their associates for the audit of the company's financial statements |
21,410 |
18,145 |
| Other services | 12,485 | 8,520 |
| 33,895 | 26,665 |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2022 |
| 8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2022 | 2021 |
| £ | £ |
| Bank loan interest |
| Hire purchase interest |
| 9. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2022 | 2021 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Adjustments in respect of |
| previous periods | (200,181 | ) | (151,422 | ) |
| Total current tax |
| Deferred tax | ( |
) |
| Tax on profit |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2022 | 2021 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of |
| Effects of: |
| Expenses not deductible for tax purposes | ( |
) |
| Capital allowances in excess of depreciation | ( |
) | ( |
) |
| Utilisation of tax losses | ( |
) | ( |
) |
| Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
| Total tax charge | 1,196,528 | 457,318 |
| Tax effects relating to effects of other comprehensive income |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2022 |
| 9. | TAXATION - continued |
| 2021 |
| Gross | Tax | Net |
| £ | £ | £ |
| Reversal of revaluation reserve | ( |
) | - | (125,278 | ) |
| 10. | DIVIDENDS |
| 2022 | 2021 |
| £ | £ |
| Ordinary shares of £1 each |
| Interim |
| 11. | INTANGIBLE FIXED ASSETS |
| Other |
| £ |
| COST |
| At 1 June 2021 |
| Additions |
| At 31 May 2022 |
| AMORTISATION |
| At 1 June 2021 |
| Amortisation for year |
| At 31 May 2022 |
| NET BOOK VALUE |
| At 31 May 2022 |
| At 31 May 2021 |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2022 |
| 12. | PROPERTY, PLANT AND EQUIPMENT |
| Fixtures |
| Long | Plant and | and |
| leasehold | machinery | fittings |
| £ | £ | £ |
| COST OR VALUATION |
| At 1 June 2021 |
| Additions |
| Disposals | ( |
) |
| At 31 May 2022 |
| DEPRECIATION |
| At 1 June 2021 |
| Charge for year |
| Eliminated on disposal | ( |
) |
| At 31 May 2022 |
| NET BOOK VALUE |
| At 31 May 2022 |
| At 31 May 2021 |
| The Lion |
| fixtures |
| Motor | and |
| vehicles | fittings | Totals |
| £ | £ | £ |
| COST OR VALUATION |
| At 1 June 2021 |
| Additions |
| Disposals | ( |
) | ( |
) | ( |
) |
| At 31 May 2022 |
| DEPRECIATION |
| At 1 June 2021 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) | ( |
) |
| At 31 May 2022 |
| NET BOOK VALUE |
| At 31 May 2022 |
| At 31 May 2021 |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2022 |
| 12. | PROPERTY, PLANT AND EQUIPMENT - continued |
| Cost or valuation at 31 May 2022 is represented by: |
| Fixtures |
| Long | Plant and | and |
| leasehold | machinery | fittings |
| £ | £ | £ |
| Valuation in 2018 | 656,241 | 17,791,980 | 298,487 |
| Valuation in 2019 | - | 1,279,126 | 11,452 |
| Valuation in 2020 | 5,920 | 636,882 | 58,532 |
| Valuation in 2021 | 13,312 | 1,758,129 | (970 | ) |
| Valuation in 2022 | - | 2,697,900 | 141,420 |
| 675,473 | 24,164,017 | 508,921 |
| The Lion |
| fixtures |
| Motor | and |
| vehicles | fittings | Totals |
| £ | £ | £ |
| Valuation in 2018 | 132,056 | 228,379 | 19,107,143 |
| Valuation in 2019 | 114,682 | - | 1,405,260 |
| Valuation in 2020 | 98,185 | 13,194 | 812,713 |
| Valuation in 2021 | 30,910 | 1,676 | 1,803,057 |
| Valuation in 2022 | 34,023 | 8,373 | 2,881,716 |
| 409,856 | 251,622 | 26,009,889 |
| Included within the carrying value of tangible assets are the following amounts related to assets held under finance leases or hire purchase agreements: |
| Plant and machinery |
| £ |
| At 31 May 2022 | 99,109 |
| At 31 May 2021 | 39,023 |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2022 |
| 13. | FIXED ASSET INVESTMENTS |
| Unlisted |
| investments |
| £ |
| COST |
| At 1 June 2021 |
| and 31 May 2022 |
| NET BOOK VALUE |
| At 31 May 2022 |
| At 31 May 2021 |
| 14. | INVENTORIES |
| 2022 | 2021 |
| £ | £ |
| Livestock |
| Raw materials |
| Work-in-progress |
| Stocks |
| 15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2022 | 2021 |
| £ | £ |
| Trade debtors |
| Amounts owed by group undertakings |
| Other debtors |
| Tax |
| Prepayments and accrued income |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2022 |
| 16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2022 | 2021 |
| £ | £ |
| Hire purchase contracts (see note 18) |
| Trade creditors |
| Social security and other taxes |
| VAT | 569,888 | 619,760 |
| Other creditors |
| Directors' loan accounts | 1,565 | 199,000 |
| Accruals and deferred income |
| Deferred government grants |
| 17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2022 | 2021 |
| £ | £ |
| Hire purchase contracts (see note 18) |
| Deferred government grants |
| 18. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Hire purchase contracts |
| 2022 | 2021 |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| Non-cancellable | operating leases |
| 2022 | 2021 |
| £ | £ |
| Within one year |
| Between one and five years |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2022 |
| 19. | PROVISIONS FOR LIABILITIES |
| 2022 | 2021 |
| £ | £ |
| Deferred tax |
| Accelerated capital allowances |
| Deferred |
| tax |
| £ |
| Balance at 1 June 2021 |
| Provided during year |
| Balance at 31 May 2022 |
| 20. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2022 | 2021 |
| value: | £ | £ |
| Ordinary | £1 | 85 | 85 |
| 21. | RESERVES |
| Profit and loss account |
| This reserve records retained earning and accumulated losses. |
| 22. | ULTIMATE PARENT COMPANY |
| Radnor Hills Holdings Limited is regarded by the directors as being the company's ultimate parent company. |
| The registered office of Radnor Hills Holdings Limited is Heartsease, Knighton, Powys, Wales, LD7 1LU. |
| The group accounts of Radnor Hills Holdings Limited are publicly available from Companies House. |
| 23. | OTHER FINANCIAL COMMITMENTS |
| Radnor Hills Mineral Water Company Limited has entered into the following licence agreement for certain of it's offices, land and facilities for the period 1st June 2021 to 31st May 2023. |
| £ |
| Financial commitment | 2023 | 500,000 |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2022 |
| 24. | RELATED PARTY DISCLOSURES |
| Goods and services amounting to £1,080,000 (2021 £956,000) were paid by the company and received by Mr W W Watkins, a director of the company. At the year end there were no balances outstanding (2021 £Nil). |
| During the year goods and services amounting to £143,433 (2021 £277,133) were paid by the company to J Watkins & Son. Mr W W Watkins, a director of Radnor Hills Mineral Water Company Limited, is also a partner in J Watkins & Son. |
| Included in creditors falling due within one year are amounts totalling £1,565 (2021 £199,000) which are due to the directors of the company. During the year no interest was paid on the outstanding balance. |
| During the year ended 31st May 2018 the company loaned £375,000 to J Watkins & Son. This is an interest free loan and at the year end £375,000 remained outstanding. |
| During the year the company advanced £50,000 to Kamiph Investments Limited, a company whose directors are connected by relationship with Mr W W Watkins. This is an interest free loan. During the year an £880,000 loan previously written off was reinstated in the year to 31st May 2022. At the year end the amount due to Radnor Hills Mineral Water Limited amounted to £930,000. |
| During the year the company loaned Radnor Hills Holdings Limited, the parent company, £1,206,828 (2021 £17,739). No interest was paid on this loan and the amount outstanding at 31st May 2022 amounted to £1,224,567 (2021 £17,739). |
| During the year dividends amounting to Nil (2021 £9,494,752) were paid to Radnor Hills Holdings Limited. |
| 25. | ULTIMATE CONTROLLING PARTY |
| The controlling party is W W Watkins. |
| The ultimate controlling party is W W Watkins by virtue of having ownership of 100% of the issued share capital in Radnor Hills Holdings Limited. |
| 26. | GOVERNMENT GRANTS |
| 2021 | 2021 |
| £ | £ |
| At start of period | - | - |
| Grants received or receivable | 56,424 | 591,997 |
| Released to the income statement | (8,898 | ) | (591,997 | ) |
| At end of period | (47,526 | ) | - |