SEVEN BROTHERS BREWERY LIMITED
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Notes to the Accounts |
for the year ended 31 December 2021
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
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Intangible fixed assets |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
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Plant and machinery |
15% reducing balance method |
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Motor vehicles |
15% reducing balance method |
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Leasehold improvements |
10% straight line method |
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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate.
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2 |
Employees |
2021 |
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2020 |
Number |
Number |
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Average number of persons employed by the company |
27 |
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21 |
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3 |
Intangible fixed assets |
£ |
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Goodwill: |
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Cost |
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At 1 January 2021 |
70,000 |
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At 31 December 2021 |
70,000 |
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Amortisation |
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At 31 December 2021 |
- |
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Net book value |
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At 31 December 2021 |
70,000 |
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At 31 December 2020 |
70,000 |
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4 |
Tangible fixed assets |
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Leasehold improvements |
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Plant and machinery etc |
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Motor vehicles |
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Total |
£ |
£ |
£ |
£ |
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Cost |
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At 1 January 2021 |
118,368 |
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289,227 |
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4,700 |
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412,295 |
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Additions |
31,160 |
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63,387 |
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16,950 |
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111,497 |
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At 31 December 2021 |
149,528 |
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352,614 |
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21,650 |
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523,792 |
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Depreciation |
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At 1 January 2021 |
14,736 |
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96,588 |
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1,432 |
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112,756 |
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Charge for the year |
14,956 |
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38,405 |
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3,033 |
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56,394 |
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At 31 December 2021 |
29,692 |
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134,993 |
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4,465 |
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169,150 |
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Net book value |
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At 31 December 2021 |
119,836 |
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217,621 |
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17,185 |
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354,642 |
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At 31 December 2020 |
103,632 |
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192,639 |
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3,268 |
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299,539 |
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5 |
Investments |
Investments in |
subsidiary |
undertakings |
£ |
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Cost |
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At 1 January 2021 |
70,100 |
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Additions |
200 |
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At 31 December 2021 |
70,300 |
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6 |
Debtors |
2021 |
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2020 |
£ |
£ |
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Trade debtors |
134,588 |
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100,195 |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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175,861 |
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198,814 |
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Other debtors |
56,664 |
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32,948 |
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367,113 |
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331,957 |
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7 |
Creditors: amounts falling due within one year |
2021 |
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2020 |
£ |
£ |
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Bank loans and overdrafts |
22,119 |
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11,664 |
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Obligations under finance lease and hire purchase contracts |
50,231 |
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40,621 |
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Trade creditors |
183,074 |
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74,568 |
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Taxation and social security costs |
202,697 |
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116,532 |
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Other creditors |
22,580 |
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24,668 |
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480,701 |
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268,053 |
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8 |
Creditors: amounts falling due after one year |
2021 |
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2020 |
£ |
£ |
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Bank loans |
68,114 |
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69,921 |
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Obligations under finance lease and hire purchase contracts |
44,805 |
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59,741 |
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Other creditors |
83,109 |
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62,222 |
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196,028 |
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191,884 |
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9 |
Other financial commitments |
2021 |
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2020 |
£ |
£ |
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Total future minimum payments under non-cancellable operating leases |
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11,705 |
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8,160 |
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10 |
Other information |
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SEVEN BROTHERS BREWERY LIMITED is a private company limited by shares and incorporated in England. Its registered office is: |
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Unit 63 Waybridge Industrial Estate |
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Daniel Adamson Road |
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Salford |
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Greater Manchester |
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M50 1DS |
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10 |
Related party balances |
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Included within other creditors amounts due after more than one year are amounts owed to |
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directors totalling £83,109 (2020: £62,200). |
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Included within 'amounts owed by group undertakings in which the company has a participating |
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interest' are the following debtors: |
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Seven Brothers Ancoats Ltd |
£68,610 (2020: £111,929) |
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Seven Brothers Middlewood Ltd |
£85,626 (2020: £86,885) |
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Seven Brothers Media City Ltd |
£9,917 (2020: £0) |
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Seven Brothers Liverpool Ltd |
£11,708 (2020: £0) |
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All of the above are fully owned subsidiaries of Seven Brothers Brewery Ltd, as well as having |
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common directors with Seven Brothers Brewery Ltd. |
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There are no fixed repayment terms on any of the above loans and no interest is charged on |
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the outstanding balances. |
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The company received £22,000 of dividends from wholly owned subsidiaries in the year ended |
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31st December 2021. |
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Within the accounting period, the company allowed Seven Brothers Ancoats Ltd, a wholly |
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owned subsidiary, to utilise £57,742 of tax losses as group relief. |
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Included within leasehold improvements are amounts in Seven Brothers Brewery Ltd name, but |
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relating to work undertaken at subsidiary company locations The net book value of these |
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leasehold improvements are: |
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Seven Brothers Middlewood Ltd |
£ 55,733 |
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Seven brothers Liverpool Ltd |
£ 18,845 |
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Included within trade debtors are amounts owed by related party companies as follows: |
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Seven Brothers Ancoats Ltd |
£ 7,645 |
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Seven Brothers Media City Ltd |
£ 4,569 |
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Seven Brothers Middlewood Ltd |
£ 32,187 |
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These amounts are due under standard trading terms. |
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Included within trade creditors are amounts owed to related party companies as follows: |
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Seven Brothers Ancoats Ltd |
£ 168 |
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These amounts are due under standard trading terms. |