Belfast Telegraph

Company Report

Drinks Inc

By John Simpson

Drinks Inc. is a locally-owned, Belfast-registered company, which is in business wholesaling and distributing liquor and soft drinks.

The trading results for the last three years reflect a continuing and profitable business.

The operating profit has been stable. In the most recent year, operating profit was increased by a credit of £1,284,000 from the sale of an investment property.

Pre-tax profits have been lower than operating profits after deducting net interest payments, usually of over £105,000 each year.

Pre-tax profits have also been affected by exceptional costs which, in 2015-16 included the write-off of a loan to a related business for £1.5m.

Each year the company has made dividend payments to shareholders which cost £1,116,000 in 2015-16 and £1,076,000, in 2016-17. The value of shareholders' funds remaining in the business has varied with the retention of post-tax profits and the cost of the allocation of dividend payments.

Each year, Drinks Inc. declares transactions with related parties which, through common directorships, includes Roaring Water Bay Wines & Spirits, Uisce Ard, JAR(IRE) and the Original Liqueur Co. These related parties each paid management charges to Drinks Inc.

During 2016-17 the business made a net repayment on its borrowed funds of £1.8m.

Belfast Telegraph

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