47153 AG Barr Annual Report 2025 AW4 SQ WEB - Flipbook - Page 147
Strategic Report
N OTE S TO TH E
ACCO U NT S
Corporate Governance
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 25 January 2025 (prior financial year 52 weeks ended 28 January 2024).
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.
Going concern
The directors have adopted the going concern basis in preparing these accounts after assessing the principal risks.
The most significant potential financial impact would be due to a significant reduction in sales. The revenue and operational leverage impact of such a volume loss would have
a negative impact on Group profitability, however the scenario modelling indicates that the Group would maintain sufficient liquidity headroom without utilising the existing
facilities or breaching the financial covenants of the revolving credit facility over the next 12 months. We would anticipate a recovery in the following years as our experience
through the Covid-19 pandemic has reinforced our confidence that the Group can remain profitable and cash-generative through prolonged disruption and fully recover
after such events.
The Group has £20m of committed and unutilised credit facilities providing the business with a secure funding platform. The facility expires in February 2026 and we currently
have no plans to renew it. The directors believe the Group could access short-term credit facilities if needed.
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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