Annual report and accounts 2023 - Flipbook - Page 146
A.G. BARR p.l.c. Annual Report and Accounts 2023
Notes to the Accounts
1.
Accounting Policies
General information
A.G. BARR p.l.c. (the “Company”) and its subsidiaries (together the “Group”) manufacture, distribute and sell a range of beverages. The Group has manufacturing sites in the
UK and sells mainly to customers in the UK with some international sales.
The Company is a public limited company, which is listed on the London Stock Exchange and incorporated and domiciled in Scotland. The address of its registered office
is Westfield House, 4 Mollins Road, Cumbernauld, G68 9HD.
The financial year represents the 52 weeks ended 29 January 2023 (prior financial year 53 weeks ended 30 January 2022).
Summary of significant accounting policies
The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all
the years presented, unless otherwise stated.
Basis of preparation
The consolidated and parent Company financial statements of A.G. BARR p.l.c. have been prepared in accordance with International Financial Reporting Standards (IFRS) as
adopted by the UK. They have been prepared under the historical cost accounting rules except for the derivative financial instruments and the assets of the Group pension
scheme which are stated at fair value and the liabilities of the Group pension scheme which are valued using the projected unit credit method.
The directors have adopted the going concern basis in preparing these accounts after assessing the principal risks. This assessment was undertaken through the use of
a number of reasonably possible downside scenarios that could impact the business (both individually and cumulatively).
These scenarios include adverse brand damage to the Group’s largest brand (IRN-BRU), reimposition of restrictions associated with the Covid-19 pandemic, significant
disruption to supply chain (including the closure of a factory), a cyber attack, and significant energy cost inflation.
The director’s experience of the Covid-19 pandemic provides confidence over the resilience of our brands, and that the business can react appropriately to significant
downside scenarios. Material cash preservation measures are available, including reducing discretionary spend on overheads, non-essential capital, marketing investment,
and the suspension of dividends.
As at 29 January 2023, the consolidated balance sheet reflects a net asset position of £268.8m, including net cash at bank of £52.6m. The Group has £20m of committed and
unutilised debt facilities, consisting of one revolving credit facility with one bank, providing the business with a secure funding platform. Throughout these severe but plausible
downside scenarios, and with no cost mitigation, the Group’s liquidity requirements would be satisfied within existing credit facilities, and headroom is maintained on
associated covenants.
The directors believe that the Group is well placed to manage its financing and other business risks satisfactorily, and have a reasonable expectation that the Group and parent
Company will have adequate resources to continue in operation for at least 12 months from the signing date of these consolidated financial statements. They therefore
consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement
in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are
significant to the consolidated financial statements are disclosed on page 154.
The directors have taken advantage of the exemption available under s408 of the Companies Act 2006 and have not presented a separate income statement or statement of
comprehensive income for the Company.
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