Berkmann Family Holdings Limited - Period Ending 2023-03-31

Berkmann Family Holdings Limited

Contents

Berkmann Family Holdings Limited

Company Information

Berkmann Family Holdings Limited

Strategic Report

Year Ended 31 March 2023

The directors present their Strategic Report for the year ended 31 March 2023.

Introduction

The group has deep roots in the hospitality industry, it has been selling fine wine to the country’s leading restaurants and hotels since 1964. The wineries Berkmann represent are of world-wide renown, offering wines of character, a true sense of place, and the perfect accompaniment to food.

From its origins in the restaurant business, its scale and reach now extends across all trade channels, bringing renowned Berkmann brands, service, and on-trade flair into broader channels.

More than a wine importer, Berkmann is a brand builder, continually striving to develop its sales and marketing capability to deliver an unparalleled offer and unbeatable wine experience for all its customers. A consistent and service focused approach to both the customers it supplies and the producers it represents foster proactive, long-term partnerships and create mutual sustainable success.

As a leading player in such a diverse and complicated marketplace, Berkmann remains dedicated to building the culture of wine, a rare specialism that avoids the distraction of a composite business model, with a consistent and unwavering focus on building brands, which it sees as the key to its long-term future.

Business review

These consolidated financial statements of Berkmann Family Holdings Limited include the results and financial position of both Berkmann Wine Cellars Limited ('BWC') and Berkmann Wine Cellars Do Brasil Ltda (‘BWC Brasil’), its 45% owned subsidiary which is also 52.5% owned by Berkmann Wine Cellars Limited, headquartered in Rio de Janeiro, Brazil, which operates as a wine supplier for major restaurants and retailers in Brazil.

This year the consolidation also include the results of Berkmann Ltd, a newly incorporated property rental company, which was set up to hold the trading property for Berkmann Wine Cellars Limited. Therefore, this company receives rental income from BWC and incurs expenditure to maintain the property.

The group has continued to build upon the exceptional performance of 2022. The group’s net turnover for the year ending 31st March 2023 was £100.9m (2022: £98.1m). This positive result is despite a wider contraction in wine consumption and mounting inflationary pressures, precipitating a once-in-a-generation ‘cost of living crisis’.

Berkmann Family Holdings Limited

Strategic Report

Year Ended 31 March 2023

Included in the group turnover is £3.3m (2022: £2.6m) relating to the BWC Brasil. This growth represented the continued expansion of the business in Brazil through organic growth and winning exclusive distribution of globally prestigious wineries.

Gross profit remained flat at £19.8m (2022: £19.2m). The organisation continued to invest, improving its quality of service despite the challenging market conditions. The opening of a wholly owned and company-run York depot offered our northern customer base the engaging customer experience for which Berkmann is renowned.

Consolidated profit before tax for the year was £2.5m (2022: £9.0m), including a £0.3m loss for BWC Brasil, an adverse swing due to an increase in headcount, returning the organisation to full operational strength after employee numbers contracted during the pandemic, as well as a difference in exceptional items such as the sale of a London property in 2021/22. That said, the net performance was still ahead of recent pre-pandemic profitability.

In line with the result for the year the balance sheet has continued to strengthen its net assets (£20.5m; 2022 - £18.7m).

Revenue was influenced by opposing factors: the on-trade thrived at the expense of the off-trade, in part driven by post-pandemic changes in consumer behaviour. UK On-trade revenue improved by 12% underpinned by a compelling offer as well as investment in commercial capability; customers, in particular within London, benefited from a return of international visitors and consumers enjoying the hospitality sector long denied them during lockdown. ‘Staycations’ and fine weather underpinned the buoyancy across the South/Southwest.

UK Multiple off-trade revenue contracted by 31% as the comedown from grocery’s pandemic peak combined with the loss of a key supplier.

Spirit Cartel, the standalone spirit division of Berkmann, recorded a 22% growth in revenue; this specialist venture is ideally positioned to satisfy consumer demand for luxury spirits and the thirst for cocktails when dining out.

Investment in marketing was evident. The business worked hard on customer engagement, initiating many exciting face-to-face initiatives, notably the Annual Portfolio Tastings held in London and Leeds in September 2022, and the series of five regional showcases in February 2023; both attracted significant quantities of prospective customers.

Trading into 2023 has continued both in the UK and Brazil in line with our expectations, with regards to both profitability and headroom, and the directors remain very positive about the future prospects of the business.

With a dogged focus on quality, service levels and added value, Berkmann has continued to differentiate from its competitor set. This differential has been further enhanced by ongoing investments in training, marketing and fine wine, to inspire new customers and to attract like-minded talent and exclusive producers to the business.

By continuing to invest in its commercial capability and brand building, Berkmann continues to grow its reputation and footprint within the UK trade and to further develop, through BWC Brasil and the work of a local management team in Brazil, the Latin American hospitality and premium retail markets.

The group is set to meet future challenges with confidence.
 

Berkmann Family Holdings Limited

Strategic Report

Year Ended 31 March 2023

Key performance indicators

Given the straightforward nature of the business, the directors are of the opinion that analysis using KPIs, other than those disclosed in the financial statements is not necessary for an understanding of the development, performance or position of the business.

Principle risks and uncertainties

Economy - economic and political uncertainty continue to test the hospitality sector in both the UK and Latin America. Berkmann has a robust balance sheet, strong financial stewardship aligned to proactive cost management, and longstanding partnerships with its customers and suppliers, placing it in a strong position to weather the challenges ahead.

Foreign exchange - a significant proportion of Berkmann’s trading is undertaken in foreign currencies. To avoid adverse fluctuations the company enters into forward exchange contracts.

Talent attraction & retention - the company continues to enhance its benefits package and remuneration to complement its focus on training and succession planning, in order to attract and retain talent while developing the wider group culture.

Competition - UK hospitality is a competitive marketplace. Therefore brand marketing and corporate differentiation are paramount to attracting new and retaining existing customers to drive growth. Berkmann is increasingly reliant on IT solutions to improve customer interaction and ease of conducting business. The group remains flexible and agile, able quickly to respond to any changes within competitor set. The Latin American hospitality market is similarly competitive and as a relatively new entrant to that marketplace BWC Brasil also recognises that differentiation is paramount.

Section 172 Statement - Directors' statement of compliance with duty to promote the success of the company

As the largest family-run wine importer in the UK, we have the benefit of being able make decisions with a long-term view, thereby promoting success in a sustainable and ongoing manner. We recognise, though, that our current and future success is dependent upon building and maintaining relationships with all our stakeholders, who include:

Employees

Our greatest asset; successfully maintaining this relationship is the foundation upon which our success is built. We ensure employees understand our values and corporate strategy by ensuring full business-wide inductions for new starters and running an annual company conference for 360º feedback. Increasing investment in training and education, which is a repeat agenda item at board meetings, ensures that our ‘People’ are at the forefront of the board’s decision making. We also have a flat corporate structure allowing excellent communication through all levels of management.

Customers

We work hard to foster proactive, long-term partnerships and create sustainable mutual success with our customers. Our origins are in the restaurant business, so we understand our customers’ needs and how best to fulfil them. We have many customers with whom we have worked successfully for more than two decades.

Berkmann Family Holdings Limited

Strategic Report

Year Ended 31 March 2023

Suppliers

The wineries we represent are just like us: progressive and fiercely independent. Most are family-run and share our core values. We regularly meet and speak with our suppliers to inform them of our progress as well as to listen to their feedback and advice. As with our customers, we have strong and mutually beneficial relationships with our suppliers, many dating back to the 1990s or earlier.

Community and the Environment

As a distributor, a large part of our environmental impact is the importing and subsequent delivery of wine. We have worked to optimise our supply chain to minimise the number of shipments we make, and to ensure our delivery vehicles meet exacting EU emissions standards. We have also begun to transition to an electric car fleet, where possible, for our remote sales team.

We have appointed an internal Environmental Social Governance (ESG) Project Team, with responsibility for implementing the ESG strategy as approved by the Board. The primary objective of the strategy is to reach carbon neutrality by reducing emissions as far as possible.

Key decisions

The key decision made by the board during the year was the acquisition by the group of the Rosebery House and Kinloch House properties with a total cost of additions of £6,339,000. The acquisitions were, in part, funded by long term loan facilities of £4,235,000 secured against those properties. These strategic acquisitions were made in order to enhance the operational effectiveness of the business and working environment for our employees for the benefit of each of the key stakeholder groups.

Berkmann Family Holdings Limited

Strategic Report

Year Ended 31 March 2023

Carbon Energy reporting

In this section of the report:

The consumption figures were calculated as follows:

During the period, the company continued to pursue measures to improve the group’s energy efficiency, including continuing detailed monitoring of meter usage and further refining our transport planning to increase the efficiency of deliveries.

We continue to invest in a new fuel-efficient fleet which uses Selective Catalytic Reduction to reduce emissions and improve fuel efficiency, as well as beginning the transition of employees to electric cars.

Approved and authorised by the Board on 22 December 2023 and signed on its behalf by:
 

Berkmann Family Holdings Limited

Directors' Report

Year Ended 31 March 2023

The directors present their report and the for the year ended 31 March 2023.

Results for the year and dividends

The group's profit for the year, after taxation, amounted to £1,864,581 (2022 - £7,949,622).

No dividends were paid during the year (2022 - £Nil).

Directors of the group

The directors who held office during the year were as follows:

C E Berkmann

E S Berkmann

J K Berkmann

R A Berkmann

P Haidacher

W P Lowe

B J-L Ricard

The following directors were appointed after the year end:

N R Vimala-Raj (appointed 22 August 2023)

C E Marshall (appointed 22 August 2023)

Financial instruments

Objectives and policies

The group's principal financial instruments comprise bank balances, trade and group debtors and creditors, and forward exchange rate contracts. The group’s operations expose it to a variety of financial risks that include currency risk, credit risk and liquidity risk. The group has in place a risk management programme that seeks to limit adverse effects on its financial performance.

Berkmann Family Holdings Limited

Directors' Report

Year Ended 31 March 2023

Price risk, credit risk, liquidity risk and cash flow risk

Currency risk
The group is exposed to currency risk when it has binding commercial or financial obligations in a currency other than its functional currency and the related cash inflows and outflows are not equal in amounts and timing.

The group operates a number of currency accounts and enters into forward exchange contracts, where considered necessary, to mitigate against adverse currency fluctuations.

Credit risk
The group’s credit risk is primarily attributable to its trade debtors. The group has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any individual counterparty is subject to a limit, which is regularly reassessed by the management of the group.

Liquidity risk
Liquidity risk is regularly assessed through a regular cash forecasting process, designed to ensure the group is well positioned to support the business strategy and growth plans, and to ensure that the group and company have sufficient available funds for its operations.

Berkmann Family Holdings Limited

Directors' Report

Year Ended 31 March 2023

Future developments

The company has taken advantage of Section 414C (11) of the Companies Act 2006 and has included details of future developments in the Strategic Report.

Disclosure of information to the auditor

Auditors

The auditors, PKF Francis Clark, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Approved and authorised by the Board on 22 December 2023 and signed on its behalf by:
 

Berkmann Family Holdings Limited

Statement of Directors' Responsibilities

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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Berkmann Family Holdings Limited

Independent Auditor's Report to the Members of Berkmann Family Holdings Limited

Opinion

We have audited the financial statements of Berkmann Family Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Consolidated Statement of Cash Flows, and 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:

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 auditor 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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.

Berkmann Family Holdings Limited

Independent Auditor's Report to the Members of Berkmann Family Holdings Limited

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

Berkmann Family Holdings Limited

Independent Auditor's Report to the Members of Berkmann Family Holdings Limited

Auditor’s 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 an auditor’s report 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.

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:

As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the group. We gained an understanding of the industry in which the group operates as part of this assessment to identify the key laws and regulations affecting the group. As part of this, we reviewed the group’s website for indication of any regulations and certification in place and discussed these with the relevant individuals responsible for compliance. The key regulations we identified were employment law and tax regulations (including VAT and Customs Duties). We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the group and company’s ability to continue operating and the risk of material misstatement to the accounts. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:

As part of our enquiries, we discussed with management whether there had been any instances of known or alleged fraud, of which management confirmed there were none.

We assessed the susceptibility of the financial statements to material misstatement through management override or fraud, including in relation to income and expenditure, and obtained an understanding of the controls in place to mitigate the risk of fraud. We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements. The key risks we identified were the reduction of tax liabilities and the overstatement of the financial position of the group for commercial purposes. Based upon our understanding we designed and conducted audit procedures including:

Berkmann Family Holdings Limited

Independent Auditor's Report to the Members of Berkmann Family Holdings Limited

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. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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 an auditor’s report 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.

......................................
Nicholas Farrant BA MSc FCA (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Ground Floor
90 Victoria Street
Bristol
BS1 6DP

29 December 2023

Berkmann Family Holdings Limited

Consolidated Profit and Loss Account

Year Ended 31 March 2023

Berkmann Family Holdings Limited

Consolidated Statement of Comprehensive Income

Year Ended 31 March 2023

Berkmann Family Holdings Limited

Consolidated Balance Sheet

31 March 2023

Approved and authorised by the Board on 22 December 2023 and signed on its behalf by:
 

Company Registration Number: 00790103

Berkmann Family Holdings Limited

Balance Sheet

31 March 2023

The company made a profit after tax for the financial year of £- (2022 - profit of £-).

Approved and authorised by the Board on 22 December 2023 and signed on its behalf by:
 

Company Registration Number: 00790103

Berkmann Family Holdings Limited

Consolidated Statement of Cash Flows

Year Ended 31 March 2023

Berkmann Family Holdings Limited

Consolidated Statement of Cash Flows

Year Ended 31 March 2023

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Rosebery House
70 Rosebery Avenue
London
EC1R 4RR

These financial statements were authorised for issue by the Board on 22 December 2023.

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

Basis of preparation

Summary of disclosure exemptions

The company meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure expemtions available to it in respect of its individual financial statements. Exemptions have been taken in relation to financial instruments, presentation of a cash flow statement and remuneration of key management personnel. Equivalent information is presented in relation to these group accounts.

Basis of consolidation

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

Going concern

The financial statements have been prepared on a going concern basis.

In making their going concern assessment, the directors have considered the group amd company's financial position and resources and are satisfied that the group and company will continue to meet its liabilities as they fall due, and that the group and company will continue to operate with sufficient cash headroom for a period of at least 12 months from the date of approval of these financial statements.

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

Key judgements and sources of estimation uncertainty

In the application of the company’s accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key accounting judgement that has a significant impact on these financial statements is that of going concern, as described above.

The treatment on ‘En Primeur’ stock also requires judgement on the part of the directors. It is the directors opinion that whilst the relevant wine in the maturation process has not been physically received by the group from the suppliers, and in the absence of related consignment stock or bill and hold documentation, the payments made are appropriately accounted for as stock in order to give a true and fair view of the financial position of the company to the reader of the accounts. In forming their opinion the directors have made reference to The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 and concluded that En Primeur stocks fall under the definition of payments on account as part of stocks. The carrying amount is £1,518,973 (2022 - £791,363).

The key estimates that have a significant effect on the amounts recognised in the financial statements are as follows.

The carrying value of goods for resale held at year end requires estimation as to the recoverable value of stock held. Provision is made against amounts which are considered irrecoverable on a line-by-line basis. The carrying amount is £20,243,086 (2022 - £15,849,099).

Trade debtors. Provision is made against amounts which are considered doubtful on a specific customer by customer basis. The carrying amount is £15,396,680 (2022 - £18,264,997).

Revenue recognition

Government grants

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

Tangible assets

Depreciation

Goodwill

Negative goodwill

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

Intangible assets

Investments

Stocks

Leases

Defined contribution pension obligation

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

Forward exchange rate contracts are classified as other financial instruments. They are initially recognised at fair value at the date the contract is entered into and are subsequently remeasured to fair value at each reporting date. The resulting gain or loss is recognised in profit or loss immediately. Contracts with a positive fair value are recognised as a financial asset, whereas contracts with a negative fair value are recognised as a financial liability.

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

The analysis of the group's Turnover for the year from continuing operations is as follows:

An analysis of the company's turnover for the year by market has not been provided as, in the opinion of the directors, disclosure of such analysis would be prejudicial to the company's interests.

The analysis of the group's other operating income for the year is as follows:

Government grant income in the previous year relates wholly to amounts received under the Coronavirus Job Retention Scheme (CJRS).

Arrived at after charging/(crediting)

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

The aggregate payroll costs (including directors' remuneration) were as follows:

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

The directors' remuneration for the year was as follows:

During the year the number of directors who were receiving benefits and share incentives was as follows:

In respect of the highest paid director:

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

Tax charged/(credited) in the profit and loss account

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 19% (2022 - 19%).

The differences are reconciled below:

Deferred tax

Group

Deferred tax assets and liabilities

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

Group

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

Group

Included within the net book value of land and buildings above is £6,339,000 (2022 - £Nil) in respect of freehold land and buildings and £Nil (2022 - £Nil) in respect of long leasehold land and buildings.
 

Company

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

Group

Investment in associates

Berkmann Family Holdings holds 20% share capital in Cantinetta London Limited and therefore this has been included as an associate with the share of losses included in the profit and loss statement.

Unlisted investments

Company

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

The group was party to 23 (2022 - 27) forward exchange rate contracts at the year end. The fair value of these contracts at 31 March 2023 has been determined by the bank using a Monte Carlo valuation model. The derivative asset at 31 March 2023 totalled £38,148 (2022 - asset of £161,757) and is reflected in accruals (2022 - other debtors).

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

The first bank loan is denominated in Sterling with a nominal interest rate of 1.92% per annum over the Bank of England base rate. The final instalment was paid in October 2022. The carrying value at year end is £Nil (2022 - £3,421,739).

The second bank loan is denominated in Brazilian Real with a nominal interest rate of 10.51% per annum. The final instalment is due in July 2023. The carrying value at year end is £90,611 (2022 - £88,241).

The Rosebery House property term loan facility is denominated in Sterling with a nominal interest rate of 1.75% over base rate, and the final instalment is due on 27 October 2027. The carrying amount at period end is £3,088,837.

The Kinloch House property term loan facility is denominated in Sterling with a nominal interest rate of 1.75% over base rate, and the final instalment is due on 11 August 2027. The carrying amount at period end is £1,004,185.

Bank loans and overdrafts are secrued by fixed and floating charges over all assets of the group.

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

Group

Finance leases

The total of future minimum lease payments is as follows:

Operating leases

The total of future minimum lease payments is as follows:

The amount of non-cancellable operating lease payments recognised as an expense during the year was £551,059 (2022 - £416,663).

Group

Group

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

Allotted, called up and fully paid shares

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £436,286 (2022 - £306,841).

Contributions totalling £70,000 (2022 - £53,352) were payable to the scheme at the end of the year and are included in creditors.

Group

At 31 March 2023, £Nil (2022 - £506,691) was due from Latin American Rum Traders SA, the ultimate parent company, in respect of a loan advanced. Interest of £6,385 (2022 - £14,965) was charged on this loan during the year.

At 31 March 2023, £Nil (2022 - £104,197) was due from the directors of the Holding Company in respect of short term loans and expenses incurred by this company on the directors' behalf.

Company

During the year ended 31 March 2023, £580,300 was advanced to the company from Berkmann Wine Cellars Limited. At 31 March 2023, the company owed £1,640,944 (2022 - £1,060,644) to this subsidiary.

At 31 March 2023, £240,000 (2022 - £Nil) was due from an accociate undertaking in respect of a start up loan, and is repayable on demand.

Berkmann Family Holdings Limited

Notes to the Financial Statements

Year Ended 31 March 2023

The ultimate parent is Latin American Rum Traders SA, incorporated in Panama.

The ultimate controlling party is Rupert Berkmann.