Company No: SC501206 (Scotland)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2023		2022
		£		£
				Restated - note 2
Fixed assets
Intangible assets	4	114,442		125,804
Tangible assets	5	1,311,123		1,319,727
		1,425,565		1,445,531
Current assets
Stocks	6	435,236		331,080
Debtors	7	461,390		186,690
Cash at bank and in hand		38,873		93,231
		935,499		611,001
Creditors: amounts falling due within one year	8	( 1,359,770)		( 942,239)
Net current liabilities		(424,271)		(331,238)
Total assets less current liabilities		1,001,294		1,114,293
Creditors: amounts falling due after more than one year	9	( 243,377)		( 336,157)
Provision for liabilities	10	( 4,600)		( 33,771)
Net assets		753,317		744,365
Capital and reserves
Called-up share capital	11	298		273
Share premium account		1,281,421		899,298
Profit and loss account		( 528,402 )		( 155,206 )
Total shareholders' funds		753,317		744,365

For the financial year ending 30 June 2023 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of Fierce Beer Limited (registered number: SC501206) were approved and authorised for issue by the Board of Directors on 27 March 2024. They were signed on its behalf by:

Mr D Grant Director

Mr D C McHardy Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Fierce Beer Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in Scotland. The address of the Company's registered office is 60 Howe Moss Terrace, Dyce, Aberdeen, AB21 0GR, Scotland, United Kingdom.

The financial statements have been prepared under the historical cost convention and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Prior year error

A prior period adjustment has been included in the accounts for an omitted lease spreading calculation. The adjustment reflects a change to the 2022 financial statements to retained earnings and accruals. The value of the adjustment is £40,083 and this has been corrected as soon as the error came to light.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Balance Sheet date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Profit and Loss Account in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Revenue from the sale of goods is recognised when the significant risk and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probably that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Employee benefits

Short term benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised as an expense when the Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Profit and Loss Account in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.

Finance costs

Finance costs are charged to the Profit and Loss Account over the term of the debt using the effective interest method so the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Intangible assets

Intangible assets are stated at cost or valuation, net of amortisation and any provision for impairment. Amortisation is provided on all intangible assets at rates to write off the cost or valuation of each asset over its expected useful life as follows:

Goodwill	15 years straight line
Other intangible assets	5 - 10 years straight line

Goodwill

Goodwill arises on business combination and represents any excess of consideration given over the fair value of the identifiable assets and liabilities acquired. Goodwill is initially recognised as an intangible asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis over its useful economic life, which is 15 years.

Trademarks, patents and licences

Separately acquired patents and trademarks are included at cost and amortised in equal annual instalments over a period of 5 to 10 years which is their estimated useful economic life. Provision is made for any impairment.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Land and buildings	10 years straight line
Plant and machinery etc.	3 - 12 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Leases

The Company as lessee
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Profit and Loss Account over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.

Financial assets
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

For financial assets carried at amortised cost, the amount of impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity.

Stocks held for distribution at no or normal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

Provision is made for obsolete, slow-moving or defective items where appropriate.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either 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 bank balances, are measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.

Financial assets are derecognised when and only when the contractual rights to the cash flows from the financial asset expire or are settled, or the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, are recognised at transaction price unless the arrangement constitutes a financing transaction. Financial liabilities classified as payable within one year are not amortised.

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 at transaction price.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

Government grants

Government grants are recognised based on the performance model and are measured at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received.

A grant that specifies performance conditions is recognised in income only when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the grant proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

2. Prior year adjustment

The financial statements to 30 June 2022 have been restated to account for the spreading of a lease which was omitted in error and has resulted in the following adjustments:

		As previously reported		Adjustment		As restated
Year ended 30 June 2022		£		£		£
Retained Earnings		(115,123)		(40,083)		(155,206)
Accruals		38,103		40,083		78,186

3. Employees

	2023		2022
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	41		34

4. Intangible assets

	Goodwill		Other intangible assets		Total
	£		£		£
Cost
At 01 July 2022	134,867		20,538		155,405
At 30 June 2023	134,867		20,538		155,405
Accumulated amortisation
At 01 July 2022	17,592		12,009		29,601
Charge for the financial year	9,113		2,249		11,362
At 30 June 2023	26,705		14,258		40,963
Net book value
At 30 June 2023	108,162		6,280		114,442
At 30 June 2022	117,275		8,529		125,804

5. Tangible assets

	Land and buildings		Plant and machinery etc.		Total
	£		£		£
Cost
At 01 July 2022	280,519		1,379,504		1,660,023
Additions	184,506		76,582		261,088
Disposals	( 1,464)		( 14,452)		( 15,916)
Transfers	205,815		( 205,815)		0
At 30 June 2023	669,376		1,235,819		1,905,195
Accumulated depreciation
At 01 July 2022	136,242		204,054		340,296
Charge for the financial year	131,990		128,625		260,615
Disposals	0		( 6,839)		( 6,839)
At 30 June 2023	268,232		325,840		594,072
Net book value
At 30 June 2023	401,144		909,979		1,311,123
At 30 June 2022	144,277		1,175,450		1,319,727

6. Stocks

	2023		2022
	£		£
Stocks	272,368		254,637
Raw materials	156,676		73,775
Finished goods	6,192		2,668
	435,236		331,080

7. Debtors

	2023		2022
	£		£
Trade debtors	372,675		85,272
Corporation tax	0		21,920
Other debtors	88,715		79,498
	461,390		186,690

8. Creditors: amounts falling due within one year

	2023		2022
	£		£
Bank loans	94,675		87,570
Trade creditors	449,165		284,852
Other taxation and social security	199,675		37,912
Obligations under finance leases and hire purchase contracts	5,568		6,868
Other creditors	610,687		525,037
	1,359,770		942,239

The amounts held under hire purchase contracts are secured by the asset to which they relate to.

Included within bank loans (£43,536), is a loan which is secured by a Government guarantee.

In addition, the bank have a floating charge over all assets and undertakings for the loan of £51,139.

Included within other creditors are £5,941 (2022: £5,582) of unpaid pension contributions.

9. Creditors: amounts falling due after more than one year

	2023		2022
	£		£
Bank loans	243,377		336,157

Included within bank loans (£72,988), is a loan which is secured by a Government guarantee. In addition, the bank have a floating charge over all assets and undertakings for the loan of £170,389.

10. Provision for liabilities

	2023		2022
	£		£
Deferred tax	0		33,371
Other provisions	4,600		400
	4,600		33,771

Other

Other provisions 2023: £4,600 (2022: £400), relates to the restoration costs for the brewery.

11. Called-up share capital

	2023		2022
	£		£
Allotted, called-up and fully-paid
2,312,000 Ordinary shares of £ 0.0001 each (2022: 2,264 shares of £ 0.10 each)	231		226
567,000 B Ordinary shares of £ 0.0001 each (2022: 468 shares of £ 0.10 each)	57		47
	288		273

On 13 September 2022, 10 Ordinary Shares with a nominal value of £0.10 per share were reclassified as 10 Ordinary B Shares with the same nominal value of £0.10.

On 22 November 2022, 83 Ordinary Shares were allotted with a nominal value of £0.10, and a share premium included of £2,634.90 per share. On the same date, 64 B Ordinary Shares were allotted with a nominal value of £0.10, and included a share premium of £2,634.90 per share.

On 15 December 2022, 567 B Ordinary Shares with a nominal value of £0.10 per share, were divided into 567,000 with a nominal value of £0.0001 per share. On the same date, 2312 Ordinary Shares with a nominal value of £0.10 per share, were divided into 2,312,000 shares with a nominal value of £0.0001.

At the year end, the company has share capital of 2,312,000 Ordinary Shares and 567,000 B Ordinary Shares. Both share classes hold a nominal value of £0.0001 per share.

12. Financial commitments

Commitments

	2023		2022
	£		£
Total future minimum lease payments under non-cancellable operating lease	3,590,902		1,388,155

13. Related party transactions

Transactions with the entity's directors

	2023		2022
	£		£
Amounts owed to the directors.	363,299		377,999

This is treated as an interest free loan, which has no fixed repayment terms.