Jeroboams Group Limited - Limited company accounts 23.2

REGISTERED NUMBER: 02887007 (England and Wales)

JEROBOAMS GROUP LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

Page

Company Information

1

Group Strategic Report

2

to

3

Report of the Directors

4

Report of the Independent Auditors

5

to

7

Consolidated Statement of Comprehensive Income

8

Consolidated Statement of Financial Position

9

Company Statement of Financial Position

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Statement of Cash Flows

13

Notes to the Consolidated Statement of Cash Flows

14

Notes to the Consolidated Financial Statements

15

to

25

DIRECTORS:

Peter C Rich

Hugh F D Sturges

Edward I Rich

Matthew F Tipping

Peter J B Mitchell

Stephen J Cornwell

SECRETARY:

Caroline A Hall

REGISTERED OFFICE:

43 Portland Road

London

W11 4LJ

REGISTERED NUMBER:

02887007 (England and Wales)

SENIOR STATUTORY AUDITOR:

Theo Banos BA FCA

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

3 Castlegate

Grantham

Lincolnshire

NG31 6SF

BANKERS:

HSBC Bank Plc

69 Pall Mall,

St James',

London

SW1Y 5EY

The directors present their strategic report of the company and the group for the year ended 31 March 2023.

REVIEW OF BUSINESS

As detailed in the group's statement of comprehensive income on page 8, the group made a profit before tax of £658,711 (2022: £796,588.

The directors are satisfied with the performance for 2023. The year was unaffected by Covid restrictions, with the hospitality sector benefiting from a strong demand.

Business revenue increased to £35.5m. Gross profit of £8.7m has increased compared to last year (£7.6m). Within these figures performance varied considerably across the group’s trading channels. Sales to trade customers (hospitality etc) were significantly up on the prior year as these customers were able to reopen following Covid 19 restrictions. Retail shops continued to perform well with social distancing rules being relaxed.

The group continues to reinvest free cashflow back into the business to build for the future. The group will not be paying a dividend.

Business net assets remain healthy and have improved to just over £2m.

DEVELOPMENT AND PERFORMANCE

The group continually reviews the marketplaces it operates within and is committed to future investment as the economy returns to a more normal situation. The group will invest in areas with the most potential, and where it can see suitable returns. It expects to see a longer-term improvement in returns as the impact of this investment pays off.

Competition in both the retail and the wholesale markets remain intense; however, the business’s extensive knowledge and experience of the UK wine market will allow the business to continue growing organically. The directors believe there are business opportunities post Covid 19 for well run and financed business such as Jeroboams.

The directors are pleased with the current balance sheet position which shows both strong net current assets and cash positions. This will allow the company to build on its current business whilst looking out for opportunities for growth as they arise.

KEY PERFORMANCE INDICATORS

2023

2022

% inc/(dec)

£'000

£'000

Revenue

35,473

31,018

14.4

Gross profit

8,706

7,644

13.9

Gross profit %

24.5

24.6

Net profit before taxation

659

769

(14.4

)

Earnings before exceptional items, interest, tax, depreciation and amortisation

1,283

1,409

(16.6

)

PRINCIPAL RISKS AND UNCERTAINTIES

Financial instruments

The group's operations expose it to a variety of financial risks including the effect of changes interest rates on debts, foreign exchange rates, credit risk and liquidity risks.

The group's principal financial instruments comprise sterling cash and bank deposits, together with trade debtors and trade creditors that arise directly from its operations

The main risk arising from the group's financial instruments can be analysed as follows:

Foreign currency risk

The group is exposed in its trading operations to the risk of changes in foreign currency exchange rates. The group buys a significant amount of its goods from Europe and these purchases are transacted in Euros. The group enters forward exchange contracts with its bankers in order to protect the business against adverse currency movements in £/Euro.

Liquidity risk

The group's policy has been to ensure continuity of funding through arranging funding for operations via medium-term loans and additional revolving credit facilities to aid short-term flexibility.

Credit risk

The group's principal financial assets are bank balances and cash which represent the group's maximum exposure to credit risk in relation to financial assets.

The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The group has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Brexit and transition

The continuing Brexit process is not expected to have a significant impact on the group. Whilst all the outcomes are not yet clear, the group expects that any medium to long term implications will remain manageable as it is well funded and has realistic growth plans.

Covid-19

The impact of Covid 19 was still being felt during the financial year. Whilst normality is returning to the group’s markets, the longer-term implications are not certain with a potential change in consumer behaviours, working patterns, and long-term impacts. However, the business with a multi-channel approach, whilst being impacted, is well placed to ride out any future issues. Exceptional costs relating to prudent additional stock provision and movements in bad debts resulting from CV19 have been provided for.

ON BEHALF OF THE BOARD:

Matthew F Tipping - Director

25 September 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023.

CHANGE OF NAME

The group passed a special resolution on 24 November 2022 changing its name from Jeroboams Limited to Jeroboams Group Limited.

PRINCIPAL ACTIVITY

The principal activities of the group are that of wine and spirit merchants and the retailing of cheese and fine foods.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2023.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

Peter C Rich

Hugh F D Sturges

Edward I Rich

Matthew F Tipping

Peter J B Mitchell

Stephen J Cornwell

Other changes in directors holding office are as follows:

Nigel J Wright - resigned 10 September 2022

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Matthew F Tipping - Director

25 September 2023

Opinion

We have audited the financial statements of Jeroboams Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 March 2023 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 four, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

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:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with directors and other management obtained as part of the work required by auditing standards. We have also discussed with the directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit. The potential impact of different laws and regulations varies considerably.

Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included the identification and testing of unusual material journal entries and challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Alcohol Licensing, Employment laws and Health and Safety regulations.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection. This inspection included a review of legal and professional fees for evidence of non-compliance, review of up-to-date alcohol licencing documentation and an assessment of the company’s employment and health and safety controls. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Theo Banos BA FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

3 Castlegate

Grantham

Lincolnshire

NG31 6SF

25 September 2023

TURNOVER

35,472,630

31,017,763

Cost of sales

26,767,118

23,373,847

GROSS PROFIT

8,705,512

7,643,916

Distribution costs

1,799,205

1,358,238

Administrative expenses

6,237,878

5,651,226

8,037,083

7,009,464

668,429

634,452

Other operating income

254,253

240,555

OPERATING PROFIT

4

922,682

875,007

Exceptional bad debts

5

(209,971

)

(7,627

)

Exceptional stock provision

5

65,339

(123,780

)

778,050

743,600

Loss/(profit) on derivative

forward contracts

6

12,830

(108,907

)

765,220

852,507

Interest payable and similar expenses

7

106,509

55,919

PROFIT BEFORE TAXATION

658,711

796,588

Tax on profit

8

90,952

232,511

PROFIT FOR THE FINANCIAL YEAR

567,759

564,077

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

567,759

564,077

Profit attributable to:

Owners of the parent

567,759

564,077

Total comprehensive income attributable to:

Owners of the parent

567,759

564,077

FIXED ASSETS

Intangible assets

10

55,046

129,286

Tangible assets

11

966,298

655,054

Investments

12

-

-

1,021,344

784,340

CURRENT ASSETS

Stocks

13

6,635,708

6,879,058

Debtors

14

4,413,114

2,538,904

Cash at bank

1,752,120

2,241,889

12,800,942

11,659,851

CREDITORS

Amounts falling due within one year

15

9,304,637

8,406,243

NET CURRENT ASSETS

3,496,305

3,253,608

TOTAL ASSETS LESS CURRENT LIABILITIES

4,517,649

4,037,948

CREDITORS

Amounts falling due after more than one year

16

(2,300,000

)

(2,400,000

)

PROVISIONS FOR LIABILITIES

20

(96,375

)

(84,433

)

NET ASSETS

2,121,274

1,553,515

CAPITAL AND RESERVES

Called up share capital

21

3,750,000

3,750,000

Share premium

340,000

340,000

Retained earnings

(1,968,726

)

(2,536,485

)

SHAREHOLDERS' FUNDS

2,121,274

1,553,515

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2023 and were signed on its behalf by:

Matthew F Tipping - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

2,599,999

2,599,999

2,599,999

2,599,999

CURRENT ASSETS

Debtors

14

2,468,360

2,360,990

Cash at bank

404,819

587,189

2,873,179

2,948,179

CREDITORS

Amounts falling due within one year

15

109,217

84,217

NET CURRENT ASSETS

2,763,962

2,863,962

TOTAL ASSETS LESS CURRENT LIABILITIES

5,363,961

5,463,961

CREDITORS

Amounts falling due after more than one year

16

2,300,000

2,400,000

NET ASSETS

3,063,961

3,063,961

CAPITAL AND RESERVES

Called up share capital

21

3,750,000

3,750,000

Share premium

340,000

340,000

Retained earnings

(1,026,039

)

(1,026,039

)

SHAREHOLDERS' FUNDS

3,063,961

3,063,961

Company's profit for the financial year

-

-

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2023 and were signed on its behalf by:

Matthew F Tipping - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 April 2021

3,750,000

(3,100,562

)

340,000

989,438

Changes in equity

Total comprehensive income

-

564,077

-

564,077

Balance at 31 March 2022

3,750,000

(2,536,485

)

340,000

1,553,515

Changes in equity

Total comprehensive income

-

567,759

-

567,759

Balance at 31 March 2023

3,750,000

(1,968,726

)

340,000

2,121,274

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 April 2021

3,750,000

(1,026,039

)

340,000

3,063,961

Changes in equity

Balance at 31 March 2022

3,750,000

(1,026,039

)

340,000

3,063,961

Changes in equity

Balance at 31 March 2023

3,750,000

(1,026,039

)

340,000

3,063,961

Cash flows from operating activities

Cash generated from operations

1

595,500

(1,081,857

)

Interest paid

(106,509

)

(55,919

)

Tax paid

(187,441

)

(118,938

)

Net cash from operating activities

301,550

(1,256,714

)

Cash flows from investing activities

Purchase of intangible fixed assets

-

(9,810

)

Purchase of tangible fixed assets

(609,810

)

(245,159

)

Net cash from investing activities

(609,810

)

(254,969

)

Cash flows from financing activities

Loan repayments in year

(75,000

)

(75,000

)

Interest paid

(106,509

)

(55,918

)

Net cash from financing activities

(181,509

)

(130,918

)

Decrease in cash and cash equivalents

(489,769

)

(1,642,601

)

Cash and cash equivalents at beginning of year

2

2,241,889

3,884,490

Cash and cash equivalents at end of year

2

1,752,120

2,241,889

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2023

2022

£

£

Profit before taxation

658,711

796,588

Depreciation charges

373,076

423,809

Movement in other provisions

106,239

56,693

Finance costs

106,509

55,919

1,244,535

1,333,009

Decrease/(increase) in stocks

243,350

(1,631,968

)

Increase in trade and other debtors

(1,874,227

)

(1,075,465

)

Increase in trade and other creditors

981,842

292,567

Cash generated from operations

595,500

(1,081,857

)

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 March 2023

31.3.23

1.4.22

£

£

Cash and cash equivalents

1,752,120

2,241,889

Year ended 31 March 2022

31.3.22

1.4.21

£

£

Cash and cash equivalents

2,241,889

3,884,490

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.22

Cash flow

At 31.3.23

£

£

£

Net cash

Cash at bank

2,241,889

(489,769

)

1,752,120

2,241,889

(489,769

)

1,752,120

Total

2,241,889

(489,769

)

1,752,120

1.	STATUTORY INFORMATION

Jeroboams Group Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - "The financial reporting standard applicable in the United Kingdom and Republic of Ireland ("FRS 102"), and with the Companies Act 2006. The financial statements have been prepared on the historical cost basis except for the modification to a fair value basis for certain assets and financial instruments as specified in the accounting policies below.

The financial statements are presented in Sterling (£).

The group financial statements consolidate the financial statements of Jeroboams Group Limited and its subsidiary undertakings drawn up to 31 March each year. The parent company has taken advantage of section 408 of the Companies House Act 2006 and has not included its own Profit and Loss Account in these financial statements. The parent company's loss for the year was £nil (2022: £nil).

Business Combinations

Acquisitions of subsidiaries and businesses are accounted for using the purchase method. The cost of the business combination is measured at the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquiree plus costs directly attributable to the business combination.

Any excess between the cost of the business combination and the acquirer's interest in the net fair value of the identifiable assets and liabilities is recognised as goodwill. If the net fair value of the identifiable assets and liabilities exceeds the cost of the business combination the excess is recognised separately on the face of the consolidated statement of financial position immediately below goodwill.

Financial Reporting Standard 102 - reduced disclosure exemptions

The parent company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK":

-

the requirements of Section 7 Statement of Cash Flows;

-

the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

-

the requirements of Section 12 Other Financial Instruments paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A

The disclosures above are incorporated within these consolidated financial statements.

Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include net realisable value of stock and slow moving stock provisions.

Investment in subsidiary undertakings

The consolidated financial statements incorporate the financial statements of the group and entities (including special purpose entities) controlled by the group (its subsidiaries). Control is achieved where the group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the total comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate using accounting policies consistent with those of the parent. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover represents revenue earned from the sale of goods.

Turnover from the sale of goods is recognised when the goods are confirmed as available by the supplier and the customer order is confirmed.

Revenue in respect of En Primeur sales is recognised when invoiced and the amount is payable by the customer. The cost of the goods to be delivered is included in cost of sales and creditors. Payment has usually been made to the supplier before delivery of the goods. Payment on account have been recorded as a reduction in the related creditor. The commercial risk of the goods passes from the company to the customer once ordered and therefore the directors believe it is applicable to recognise En Primeur revenue on invoicing.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2019, is being amortised evenly over its estimated useful life of five years.

Intangible assets

Intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses.

Website development costs are recognised as an intangible asset when all of the following criteria are demonstrated:

-

How the website will generate probable future economic benefit.

-

The ability to use the website.

-

The ability to measure reliably the expenditure attributable to the website during its development.

-

The availability of adequate technical, financial and other resources to complete the development and use the website

Amortisation is charged so as to allocate the cost of intangibles less their residual values over their estimated useful lives using the straight-line method.

Website development

5 years

If there is an indication that there has been a significant change in amortisation rate or residual value of an asset, the amortisation of that asset is revised prospectively to reflect the new expectations.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

3 - 15 years

Short leasehold property

Over the length of the lease

Stocks

Stocks are valued at the lower of cost, including customs duty, if any, and net realisable value. Included within stocks are goods held by overseas third parties which the company has contracted to purchase.

Stocks are accounted for on a weighted average cost basis.

Taxation

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

Deferred tax assets are only recognised to the extent that is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profit.

If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed.