Drinks firm in good cheer as sales top £100m
DRINKS distributor Licensed Wholesale Company grew profits by 40% to £3.1m in 2011 as sales climbed by 10% to £108.5m.
The Openshaw-based company is owned by directors Robin Gray and Ebrahim Mukadam, who said in directors’ notes accompanying the accounts that they were “satisfied” with its trading performance and with its year-end balance sheet position, which showed that net assets had increased from £6.4m at the start of the year to £8.6m by its September 30 year end.
The company is an independent drinks distributor which serves restaurants, pubs and hotels with drinks including its own-brand ranges such as Moonshine Vodka, VHF alcopops and Indian-style beer Lal Toofan.
It is also planning a home delivery service. The company employs more than 330 people and has over 90 delivery vehicles.
Since its year end, all of the business’s assets have been transferred to another company, LWC Drinks Ltd, “for consideration equivalent to the net book value of the assets and liabilities transferred”. Employees have also been transferred over to the newco under TUPE regulations.
A note in the accounts states that “legal provision has been made for LWC Drinks to meet any future liabilities or claims that may be made on the company”.
The business is facing a claim with a value of up to £1.4m plus interest from HMRC for PAYE and National Insurance contributions. The claim relates to “transactions undertaken during previous periods”.
“Although the directors do not believe that any further liability should arise from the transactions, the taxation authorities are challenging the treatment of these,” it states.
