Houston Bottling & Co-Pack Limited - Limited company accounts 23.1
Houston Bottling & Co-Pack Limited - Limited company accounts 23.1
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
HOUSTON BOTTLING & CO-PACK LIMITED |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Statement of Comprehensive Income | 11 |
Statement of Financial Position | 12 |
Statement of Changes in Equity | 13 |
Statement of Cash Flows | 14 |
Notes to the Statement of Cash Flows | 15 |
Notes to the Financial Statements | 16 |
HOUSTON BOTTLING & CO-PACK LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
6th Floor |
Gordon Chambers |
90 Mitchell Street |
Glasgow |
Lanarkshire |
G1 3NQ |
SOLICITORS: |
Standard Buildings |
94 Hope Street |
Glasgow G2 6PH |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The directors present their strategic report for the year ended 31 December 2022. |
REVIEW OF BUSINESS |
The results contained in the accompanying financial statements include the results of Houston Bottling & Co-Pack Limited for the year ended 31 December 2022. |
Production at the company's two sites continue with its current services of co-packing, bottling, and warehousing. The directors focus on efficiencies along with production planning helped mitigate impact against the ongoing material supply chain issues and limited availability of temporary labour. The business continues its strategy of delivering a high level of service and continue to build strong relationships with its new and long-standing customers. |
The directors are satisfied with the company's trading performance during the year despite ongoing challenges in the supply chain. Overall turnover has increased and is ahead of financial year 2021 by 14%. This delivered a gross profit of £2.9M (2021: £2.4M). |
The company's cash position remained strong with continued investment being made at both sites to account for the continued growth in bottling and storage. |
Moving forward into the new financial year, the directors are optimistic of the company's prospects. Customer demand is being met through further investment in operational efficiencies and diversifying ancillary services in line with strategy. A key part of the strategy is to grow and develop the customer portfolio with profits being reinvested at both sites. |
Financial Key Performance Indicators |
The directors use the KPIs of Revenue, Working Capital Ratio, and Net Asset position to review the company's performance regularly throughout the year. These are monitored on weekly and monthly intervals against budget and forecasts. |
2022 | 2021 |
Revenue | 14% | 19% |
Working Capital Ratio | 3.4 | 2.8 |
Net Assets | £6,687,978 | £6,005,649 |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Financial Risk Management |
The company's principal financial instruments comprise cash and borrowing. |
The company has various other financial instrument such as trade debtors and creditors that arise directly from its trading operations. |
The main risks arising from the company's financial instruments are with liquidity and credit. The company has clear policies for managing these risks as summaries below. |
Liquidity Risk |
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. Investment levels and cash flows are carefully controlled, with authorisation limits operating at different levels up to company board level. |
Credit Risk |
Risk of financial loss due to a counterparts failure to honour its obligations arises principally in relation to transactions where the group provides goods on deferred credit terms. Company policies are aimed at minimising such losses, and require that deferred credit terms are granted only to customers who demonstrate an appropriate payment history and satisfy creditworthiness procedures. |
Cash Flow Risk |
The company finances on-going activities and capital expenditure through a combination of retained profits and bank borrowings. The company operates a strict regime of working capital management to mitigate cash flow risk. Detailed financial planning and regular monitoring of cash flow are used to manage the facilities and maintain the company's adherence with repayment schedules. |
Competitive Risk Management |
The company operates in a competitive environment; however the directors consider that the company, through its continued investment in people, operating sites, equipment and technology, is well placed to serve new and existing customers. |
Uncertainties and Prospects |
Specific risks to the company include its relationships with key customers and the need to ensure productivity is maintained and enhanced in a competitive market. The company continues to foster strong relationships with its customers through an exceptionally high commitment to customer service and flexibility of operations to meet exacting requirement in both quality and lead times. |
The directors have established controls throughout the business to allow continued operation and will continue to monitor the situation closely. The directors intend to continue to grow the business and are exploring several projects to expand the business's service offering to customers. |
GOING CONCERN |
It is expected that the market for Houston Bottling and Co-Pack Limited's services will remain competitive and challenging, but the directors are satisfied that the business has navigated its way successfully through the pandemic and supply chain challenges. The directors' review of the company's order book and forecasts support their view that Houston Bottling and Co-Pack limited is a going concern and that accounts have been appropriately prepared on this basis. |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FUTURE DEVELOPMENTS |
The directors continue to develop the business by managing its growth through investment in people and less reliance on the temporary labour market. This will be supported by capital expenditure. The directors are committed to delivering a long term, sustainable and ethical business which will deliver growth, prosperity, and security. The directors are satisfied that the business has navigated its way successfully through the pandemic and supply chain challenges and a review of the company's order book and forecasts support their view. |
ON BEHALF OF THE BOARD: |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The directors present their report with the financial statements of the company for the year ended 31 December 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of bonded co-packing, bottling and warehousing. The company provides these services to its customers, mainly in the Scotch Whisky industry from its sites in Renfrew and Dumbarton in Scotland. |
DIVIDENDS |
Dividends of £97,192 were paid during the year (2021: £98,728). |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
The director E T Graham resigned from the company on the 19th May 2023. |
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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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; |
- | 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
AUDITORS |
The auditors, Cornerstone Accountants, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HOUSTON BOTTLING & CO-PACK LIMITED |
Opinion |
We have audited the financial statements of Houston Bottling & Co-Pack Limited (the 'company') for the year ended 31 December 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 December 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. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HOUSTON BOTTLING & CO-PACK LIMITED |
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 |
HOUSTON BOTTLING & CO-PACK LIMITED |
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 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 the financial statements. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. |
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures to respond 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 consider the following: |
- The nature of the industry, control environment and business performance of the company |
- The requests of our enquires with management and Directors about their own identification and assessment of |
risks of irregularities. |
- The matters discussed among the audit engagement team regarding how and where fraud might occur in the |
financial statements and any potential indicators of fraud. |
As a result of these procedures, we consider the opportunities and incentives that may exist within the company for fraud. In common with all audits under ISAs (UK), we perform specific procedures to respond to the risk of management override. |
We also obtain an understanding of the legal and regulatory environment in which the company operates, focusing on those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements and those which may be fundamental to the company's ability to operate. |
The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to The Health and Safety at Work Act, compliance with regulations set out by the HMRC in relation to handling spirits and compliance with the FRS 102 and the Companies Act 2006 |
The audit engagement team identified the risk of management override of controls, revenue recognition and stock valuation and compliance as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures for management override of controls performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business. For revenue recognition procedures included but were not limited to testing revenue substantively, cut-off testing and testing of credit notes. For stock valuation and compliance procedures included but were not limited to stock take attendance, cost testing and review of legal fees and enquiring with management about any non compliance. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: |
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HOUSTON BOTTLING & CO-PACK LIMITED |
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. |
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern. |
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
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 |
6th Floor |
Gordon Chambers |
90 Mitchell Street |
Glasgow |
Lanarkshire |
G1 3NQ |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,056,958 | 949,505 |
Other operating income |
OPERATING PROFIT | 5 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
Revaluation of property |
Income tax relating to other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium |
Revaluation reserve |
Capital redemption reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 January 2021 |
Changes in equity |
Dividends | - | ( |
) | - |
Total comprehensive income | - | - |
Balance at 31 December 2021 |
Changes in equity |
Dividends | - | ( |
) | - |
Total comprehensive income | - | - |
Balance at 31 December 2022 |
Capital |
Revaluation | redemption | Total |
reserve | reserve | equity |
£ | £ | £ |
Balance at 1 January 2021 |
Changes in equity |
Dividends | - | - | ( |
) |
Total comprehensive income |
Balance at 31 December 2021 |
Changes in equity |
Dividends | - | - | ( |
) |
Total comprehensive income |
Balance at 31 December 2022 |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Government grants |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
1,916,530 |
Cash and cash equivalents at end of year | 2 | 1,743,936 | 1,560,449 |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Government grants | ( |
) |
Finance costs | 27,380 | 19,367 |
1,436,432 | 1,261,391 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Decrease 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 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 1,743,936 | 1,560,449 |
Year ended 31 December 2021 |
31/12/21 | 1/1/21 |
£ | £ |
Cash and cash equivalents | 1,560,449 | 1,916,530 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/1/22 | Cash flow | At 31/12/22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,560,449 | 183,487 | 1,743,936 |
1,560,449 | 1,743,936 |
Debt |
Debts falling due within 1 year | (246,527 | ) | 9,166 | (237,361 | ) |
Debts falling due after 1 year | (552,270 | ) | 237,362 | (314,908 | ) |
(798,797 | ) | 246,528 | (552,269 | ) |
Total | 761,652 | 430,015 | 1,191,667 |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | STATUTORY INFORMATION |
Houston Bottling & Co-Pack Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006. |
The financial statements are presented 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 except for freehold property which is carried at its fair value. The principal accounting policies are set out below. |
Preparation of consolidated financial statements |
The financial statements present information about the company as an individual undertaking and not about its group. The company has not prepared group financial statements as it is exempt from the requirement to do so by section 402 of the Companies Act 2006 on the basis that its subsidiary undertaking is dormant and so is not material for the purpose of giving a true and fair view. |
Turnover |
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Rendering of Services |
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: |
- the amount of revenue can be measured reliably; |
- it is probable that the company will receive the consideration due under the contract; |
- the stage of completion of the contract at the end of the reporting period can be measured reliably, and; |
- the costs incurred and the costs to complete the contract can be measured reliably. |
Sale of goods |
Turnover from the sale of goods is recognised on despatch from the company's warehouse facility. |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses |
Freehold land and buildings are subsequently carried at fair value, based on periodic valuations by a professionally qualified valuer. These revaluations are made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value. Changes in fair value are recognised in other comprehensive income and accumulated in the revaluation reserve except to the extent that any decrease in value in excess of the credit balance on the revaluation reserve, or reversal of such transaction, is recognised in profit or loss. |
Freehold land is not depreciated. Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates: |
Freehold property | - 2% - 10% on a straight line basis |
Plant and machinery | - 10% - 20% on a straight line basis |
Fixtures and fittings | - 10% - 33% on a straight line basis |
Motor vehicles | - 25% on a straight line basis |
Impairment of fixed assets |
At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. |
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. |
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
The tax expense represents the sum of the tax currently payable and deferred tax. |
Current 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 |
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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. |
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority. |
Hire purchase and operating leases |
Assets held under finance leases or hire purchase contracts are capitalised under tangible fixed assets in the balance sheet and depreciated over their useful economic lives. The capital element of the future payments is treated as a liability and the interest element charged to the profit and loss account. |
Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the term of the agreement. |
Rentals received under the operating leases are credited to the profit and loss account on a straight line basis over the term of the agreement. |
Pension costs and other post-retirement benefits |
The company contributes to a defined contribution pension scheme on behalf of its staff and directors. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Investments |
Fixed asset investments are stated at cost less amounts written off for permanent diminution in value. The company's subsidiary has not been consolidated. Group accounts have not been prepared and these financial statements present information about the company as an individual undertaking. Group accounts are not required because the subsidiary was dormant throughout the entire accounting period. |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
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 statement of financial position 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 |
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
Impairment of financial assets |
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
Classification of financial liabilities |
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 |
Basic financial liabilities, including creditors and bank loans 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
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 amortised cost using the effective interest method. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled. |
Employee benefits |
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. |
Equity instruments |
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
Cash and cash equivalents |
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short term liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
Share-based payments |
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted by using the Black-Scholes option-pricing-model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate shares that eventually vest. A corresponding adjustment is made to equity. |
No expense is recognised for awards that do not ultimately vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Ultimately, the actual expense recognised over the vesting period will be based on only those shares that vest. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2022 | 2021 |
£ | £ |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
4. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
Wages and salaries | 3,423,404 | 2,841,718 |
Social security costs | 362,878 | 306,901 |
Other pension costs | 104,196 | 89,010 |
3,890,478 | 3,237,629 |
The average number of employees during the year was as follows: |
2022 | 2022 |
Production | 80 | 66 |
Admin | 34 | 33 |
114 | 99 |
2022 | 2021 |
Directors' remuneration | 100,132 | 93,385 |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2022 | 2021 |
£ | £ |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Bank loan interest |
7. | 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 |
Deferred tax |
Tax on profit |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher 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 (2021 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Deferred tax movement (Note 18) | 86,489 | 36,578 |
Total tax charge | 271,263 | 175,248 |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 31 December 2022. |
2021 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of property | - | 52,566 |
8. | DIVIDENDS |
2022 | 2021 |
£ | £ |
Ordinary shares of £1 each |
Dividends | 97,192 | 98,730 |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2022 |
Additions |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
Cost or valuation at 31 December 2022 is represented by: |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings | Totals |
£ | £ | £ | £ |
Valuation in 2019 | 616,861 | - | - | 616,861 |
Valuation in 2021 | 52,566 | - | - | 52,566 |
Cost | 2,589,525 | 3,390,528 | 660,388 | 6,640,441 |
3,258,952 | 3,390,528 | 660,388 | 7,309,868 |
The Heritable Property was revalued on 8th of December 2021 by Graham + Sibbald LLP, independent valuers, not connected with the company, on the basis of market value. The valuation conforms with the RICS Valuation Global Standards and was based on recent market transactions on arm's length terms for similar properties. The directors are happy that this represents the fair value of the buildings. |
Had the property been held at cost, the cost and accumulated depreciation would have been as follows: |
2022 Cost £2,589,525 Accumulated depreciation £706,544- Net book value £1,882,981 |
2021 Cost £2,530,573 Accumulated depreciation £594,958 - Net book value £1,935,615 |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
10. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Registered office: Country of incorporation: Scotland |
Nature of business: |
% |
Class of shares: | holding |
11. | STOCKS |
2022 | 2021 |
£ | £ |
Stocks |
Work-in-progress |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments and accrued income |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Other loans (see note 15) |
Trade creditors |
Current corporation tax |
Social security and other taxes |
Accruals and deferred income |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans (see note 15) |
Other loans (see note 15) |
15. | LOANS |
An analysis of the maturity of loans is given below: |
2022 | 2021 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Other loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Other loans - 1-2 years | - |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
16. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2022 | 2021 |
£ | £ |
Within one year |
Between one and five years |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
2022 | 2021 |
£ | £ |
Bank loans |
The company has three separate loans with final repayment dates ranging from December 2022 to May 2025. |
The rate of interest charged on these loans ranges from Base Rate plus 4.5% to 5.25%. |
The loans are secured by a floating charge over the company's assets and undertakings and by standard security over the company's heritable property in Renfrew and Dumbarton. |
18. | PROVISIONS FOR LIABILITIES |
2022 | 2021 |
£ | £ |
Deferred tax | 279,041 | 192,552 |
Deferred |
tax |
£ |
Balance at 1 January 2022 |
Provided during year |
Balance at 31 December 2022 |
The deferred tax charge relates to temporary timing differences being accelerated capital allowances. |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
2,844 | Ordinary | £1 | 2,844 | 3,166 |
15,285 | Ordinary C | £1 | 15,285 | 15,109 |
418 | Ordinary F | £1 | 418 | 413 |
12,210 | Ordinary Y | £1 | 12,210 | 12,069 |
30,757 | 30,757 |
All share classes rank equally in all respects. |
20. | CONTINGENT LIABILITIES |
The company has provided HM Revenue & Customs with a guarantee to meet liabilities in respect of Duty Deferment up to a limit of £40,000. |
The company has provided HM Revenue & Customs with a guarantee to meet liabilities in respect of the company's Movement Guarantee. The value of the Movement Guarantee is £193,133. |
HOUSTON BOTTLING & CO-PACK LIMITED (REGISTERED NUMBER: SC174922) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
21. | OTHER FINANCIAL COMMITMENTS |
Other loans represent two interest free loans from The Energy Savings Trust Limited to provide financial assistance with the installation of low energy lighting at the company's premises in Renfrew and Dumbarton. |
The lighting loan was advanced on 14 October 2016 and is repayable in equal instalments until completion in May 2023. In the event of default in repayment the outstanding balance falls due to be repaid immediately with interest payable on the outstanding balance at bank base rate plus 2%. |
22. | RELATED PARTY DISCLOSURES |
Three directors have financial interest in businesses which provided professional services to the company totalling £47,123 (2021: £60,219). The balance outstanding at 31 December 2022 was £Nil (2021: £1,827). |
During the year, dividends of £97,192 were paid, £57,288 to key management and £39,904 to other related parties. In 2021 dividends of £98,730 were paid, £58,194 to key management and £40,536 to other related parties. |
During the year a total of key management personnel compensation of £427,115 was paid (2021: £455,345). |
There was no other key management personnel identified other than those mentioned above. |
23. | POST BALANCE SHEET EVENTS |
On the 19th May 2023, Houston Bottling & Co-Pack Limited entered into a share buyback agreement of 2,844 Ordinary shares, in which the consideration totalled £497,700. |
24. | SHARE-BASED PAYMENT TRANSACTIONS |
Under the terms of the share option scheme (the 2019 Enterprise Management Incentive Scheme) the Board may offer staff options over ordinary shares of the company. No consideration was received and the options may be exercised upon an exit event. |
Number of options |
Weighted average exercise price |
2022 | 2021 | 2022 | 2021 |
Number | Number | £ | £ |
Outstanding at 1 January | - | - | - | - |
Granted | 2,400 | - | 90.48 | - |
Cancelled | - | - | - | - |
Outstanding at 31 December | 2,400 | - | 90.48 | - |
Exercisable at 31 December | - | - | - | - |
During the year 2,400 (2021: nil) share options were issued. |
No charge in respect of the share options has been recognised in the financial statements as, in the opinion of the directors, the amounts involved are not material. |