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Registered number: 01904504









DAY LEWIS MEDICAL LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022


 
DAY LEWIS MEDICAL LIMITED
 
 
COMPANY INFORMATION


Directors
Mr T Mohamedbhai 
Miss H Patel 
Mr J C Patel Snr 




Company secretary
Miss H Patel



Registered number
01904504



Registered office
2 Peterwood Way

Croydon

Surrey

CR0 4UQ




Independent auditor
KPMG LLP
Statutory Auditor & Chartered Accountants

1 Forest Gate

Brighton Road

Crawley

RH11 9PT






 
DAY LEWIS MEDICAL LIMITED
 

CONTENTS



Page
Strategic Report
1 - 7
Directors' Report
8 - 9
Independent Auditor's Report to the Members of Day Lewis Medical Limited
10 - 13
Profit and Loss Account
14
Balance Sheet
15
Statement of Changes in Equity
16
Notes to the Financial Statements
17 - 29


 
DAY LEWIS MEDICAL LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2022

Business review
 
Day Lewis is the UK’s second largest independent pharmacy chain, with 266 pharmacies owned or managed (at 31 March 2022) across England.
The Group was founded in 1975 and the business remains a family owned entity, now managed in the second generation by Kirit Patel Jnr (Jay), Rupa Patel and Jayanti Patel Jnr (Sam). Day Lewis has developed strong relationships across the market and has unique insight and influence on factors affecting the pharmacy sector.

Day Lewis has developed two distinct, sustainable sides to its business; retail and distribution. Day Lewis Medical Limited's focus is on distribution. 

Distribution
Day Lewis’s distribution business is a core part of the Group, delivering an alternative income stream to supplement the retail pharmacies.
The Group maximises margin by focussing heavily on its pharmaceutical distribution operations. Day Lewis holds all relevant MHRA Wholesaler Dealer Authorisations in order to distribute both ethical and over the counter medicines. The Group purchases from multiple pharmaceutical manufacturers and self distributes to its pharmacies in order to minimise cost and maximise margin wherever possible. In addition, Day Lewis distributes medicines in a number of further external channels including the supply of generics to associated pharmacy retail groups and the global supply of medicines to offshore energy businesses, maritime, cruise and ambulance services.
In addition to the significant buying benefits delivered, the distribution business brings other significant benefits to the wider Group including:
 Security of drug supply
 Flexibility – the direct channel to end users allows Day Lewis to quickly move stock and react to market change        Share of profit further up the supply chain
 Access to overseas markets
Due to its position in the marketplace, long trading history and strength of relationships, Day Lewis has unique access to a wide range of drugs across Europe that it purchases for redistribution.
The Day Lewis Procurement and Distribution teams are highly experienced and knowledgeable providing the Group with an in depth understanding of market dynamics.
The Group's long term objectives are:
Driving growth
  To be the pharmacy destination of choice locally for prescriptions and services
  To maintain a high-quality estate of community pharmacies
  To grow the business in international markets
  To diversify investment into other pharmacy related sectors
 
Page 1


 
DAY LEWIS MEDICAL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022

Enhancing margins
  To improve purchasing mix of medicines between generic and branded products
  To maintain efficient stock control and overall cost control
  To increase professional services income

Principal risks and uncertainties
 
Principal risks and uncertainties and risk management objectives and policies are managed by the Group.
Price risk
The Company, through its investments, is exposed to the inherent risks of economic and financial market developments, including recession, inflation, availability of affordable credit and currency fluctuations that could lower revenues. The current system of correcting generic reimbursement prices through the mechanism of "Category M" has continued through the current financial year. Category M was introduced with the new pharmacy contract in 2005 and allows the retail pharmacy industry to retain an amount of £800m of generic procurement profit annually. The system is therefore used retrospectively by the Department of Health to claw back surplus procurement profits or reimburse any shortfall. Through a continual business review process and monitoring of the business environment, the Directors of the Company and the wider Group seek to mitigate these potential risks.
Liquidity risk
The Company had cash of £7.1m (2021- £6.2m) at the year end.
In September 2020, the Group entered into a new long-term financing agreement with its banks. A RCF facility of £125m being agreed until at least 2023, with options to extend to 2025 (being agreed until September 2024). The Directors believe the Company has sufficient current and future cash reserves and facilities available to meet its liabilities including financing obligations for at least twelve months from the signing of these financial statements. The confidence in the Group’s funding position was indicated with a reduction of the Revolving Credit Facility to £110m in September 2021.
There is significant headroom in the Group's banking covenants at 31 March 2022. At the year end £75m 
(2021- £75m) of the Group's £110m facility was drawn down and additionally there were cash balances in the business of £4.6m (2021- £12.8m).
The Directors' assessment of the Group's and the Company's ability to adopt the going concern basis of accounting is set out in note 2.
Interest rate risk
The interest rate risk is significantly mitigated by an interest rate swap arrangement that was entered into by the Group in September 2020. Under this agreement, interest is fixed at a rate of 0.088% for £50m of debt (reducing to £40m in March 2023). The swap instrument is in place until September 2025. 
Macroeconomic and political risk
The Group could be adversely affected by the impact of the current macroeconomic and political environment on key suppliers and customer groups.
The Group views the 5-year pharmacy funding deal agreed in 2019 to have had a positive impact for the industry with security of funding for community pharmacies in the coming years. The COVID-19 pandemic has seen fluctuations in raw drug prices which has required pharmacy funding to keep pace. With additional revenue received by the pharmacy industry during the COVID-19 pandemic the expected clawback was seen in the
Page 2


 
DAY LEWIS MEDICAL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022

financial year to 31 March 2022.
The long-term impacts of the COVID-19 pandemic remain to be seen. GPs interactions with patients have changed with less face-to-face consultations and this will especially impact Day Lewis pharmacies based in GP surgeries. Prescribing dynamics and customer circumstances have also changed during the pandemic and Day Lewis expect these changes to continue to drive customer requirements in the future.
Cash Flow Risk 
The Group's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The Group uses interest rate swap contracts to hedge interest rate exposures. Foreign currency rates risk is mitigated by buying currency at spot and one month forward rate. 
Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows. 
Credit risk
The Group's principal financial assets are bank balances and cash, trade and other receivables. The credit risk on trade and other receivables is limited as the majority of the Group's retail exposure is with the Department of Health. Exposure to credit risk on wholesale customers is mitigated through credit insurance taken out on the wholesales debtors book. The amounts presented in the Balance Sheet are net of allowances for doubtful receivables. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.

Financial key performance indicators
 
Turnover in the year decreased by £4.0m to £241m (2021- £245m) with Gross Profit decreasing by £5.7m to £19.4m (2021- £25.1m). The gross margin decreased by 2.1% to 8.1%. This downturn was driven by the reduction in Generic medicines trading opportunities through the COVID pandemic.
 
Administrative costs have decreased by £0.4m to £14.3m (2021- £14.7m) as a direct result of this reduced trading.” 

Page 3


 
DAY LEWIS MEDICAL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022

Directors' statement of compliance with their duty to promote the success of the Company
 
Section 172 of the Companies Act 2006 requires the Directors of the Company to act in the way that they consider, in good faith, would most likely promote the success of the Company for the benefit of its owners and stakeholders.
In doing so, section 172 requires a Director to have regard (amongst other matters) to:
a) The likely consequences of any decisions in the long-term.
b)  The interests of the Company’s employees.
c)  The need to foster the Company’s business relationships with suppliers, customers and others.
d)  The impact of the Company’s operations on the community and the environment.
e)  The desirability of the Company maintaining a reputation for high standards of business conduct.
f)  The need to act fairly as between members of the Company.
Since the sudden passing of Kirit Patel MBE in 2016, the business is led by Jay, Rupa, & Sam as joint Executive Directors. JC Patel Snr is still involved in an advisory role. Day Lewis remains a family owned entity with no plans to change this structure in the short or longer terms.
As any other large organisation, the Executive Directors of Day Lewis delegate authority for the day to day management of the Group to the Senior Management Team and then engage management in setting, approving and overseeing execution of the business strategy and related policies.
The Executive Directors are also supported by a group of senior non-executive advisors with expertise in Finance, Banking, Commercial, HR, IT and Legal giving a wide range of insight experience. Day Lewis employs one non-executive Director.
The Wates Principles provides a framework for the Group to demonstrate how the Directors make decisions for the long-term success of the business and also how the Group comply with the requirements of Section 172 of the Companies Act.
The Executive Directors and the Senior Management Team provide supervision and guidance to the wider teams, making decisions concerning operational planning, evaluating performance, workforce planning, remuneration, and assessing Pharmacy and Business acquisitions and international expansion plans.
The Day Lewis Group runs monthly board meetings on all separate areas of the business, and also runs four sub-board committees specifically looking at People, Finance, IT and Risk Management Oversight.
Examples of actions taken in these board meetings are reviewing and making decisions on Pharmacy and Business acquisitions, reviewing historical investment plans, oversight on workplace H&S, patient safety, remuneration and bonus plans for operational staff, and carbon emission.
The Core Purpose of the Company is ‘to help people in the community stay healthy and feel better’. This is driven by the core values:
•  To keep our caring family culture
•  To look after our customers
•  To be disciplined and professional
•  To be different through innovation
•  To reward, recognise and empower
•  To have fun

Page 4


 
DAY LEWIS MEDICAL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022

Directors' statement of compliance with their duty to promote the success of the Company (continued)
Day Lewis is regularly recognised as a good place to work and during the year our pharmacy colleagues were recognised for many national awards. In recent years the Executive Directors have been presented with an Entrepreneurship Award at the European Pharmacists Forum, the Day Lewis Group was ranked 49th on the Sunday Times and Grant Thornton Top Track 250 List and individuals have been recognised within the industry for Team Innovation, Healthy Living Advice and a Public Health Pharmacist Award.
Relationships with universities have also developed further with the appointment of Teacher Practitioners at Bath, Reading, UCL, UEA and Sussex. Day Lewis clearly recognise the importance of education for the next generation of pharmacists and healthcare leaders.
As part of Day Lewis' commitment to the community, pharmacies are encouraged to support local charities and sponsor local events and causes. Every year to mark the first day of Kirit & JC buying their first pharmacy, the support office, warehouses, and pharmacies across the country take part in the annual charity fun day, in which all teams are invited to participate. All teams participate in raising money for a local registered charity of their choice, to ensure that the company as a whole is able to support as many charities as possible. Pharmacy teams and the support office raise money through fund-raising activities such as cake sales, raffles and recently throwing pies at directors. Over the last 5 years Day Lewis has donated over £500,000 to various charities.
The KCJC Foundation was set up by the Patel family in memory of the late Kirit Patel MBE. The foundation matches funds raised across the business, pound for pound.
In 2019 Day Lewis became founder patrons of OnSide Legacy Croyden, a 21st century youth club in Croydon. Legacy will provide a safe environment where young people can come and enjoy themselves and will enable young people to raise their aspirations and confidence to create a happier and healthier generation. During the current financial year many events have taken place in order to support this charity such as a Golf Day and sponsored abseil down the Legacy building.
Page 5


 
DAY LEWIS MEDICAL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022

Greenhouse gas emissions, energy consumption and energy efficiency action

The Company's greenhouse gas emissions and energy consumption are as follows:

2022
2021
Emissions resulting from activities for which the Company is responsible involving the combustion of gas and consumption of fuel for the purposes of transport (in tonnes of CO2 equivalent)

23

26
 
Emissions resulting from the purchase of electricity by the Company for its own use, including the purposes of transport (in tonnes of CO2 equivalent)

291

301
 
Energy consumed for which the Company is responsible involving the combustion of gas, and the consumption of fuel for the purposes of transport, and the annual quantity of energy consumed resulting from the purchase of electricity by the Company for its own use, including the purposes of transport, in kWh

1,480,507

1,421,894
 

Business metric used
The business metric used for this document is number of sites. The number of sites in 2021/22 was 6. The number of sites in 2020/21 was 6. 
Statement
Day Lewis have a long-standing commitment to reducing carbon emissions from our operations and have been improving energy efficiency and minimising fuel use.
The usage of motor vehicles has been reduced by encouraging staff to travel by train and other public transport modes where possible. In addition, we continue to have a rolling program to install LED lights throughout the retail pharmacies. This has coincided with a switch off memo to all staff both in the field and at head office to switch off lights and computers/office equipment when not in use and at the end of the day. Photocopiers and printers are using the ‘energy saver’ or ‘standby’ mode when not in use.
Due to the pandemic the business has encouraged staff to work from home where possible which has reduced travel throughout the business. Furthermore, there has been a conscious effort to ensure all heating/cooling systems were set correctly (timeclocks and temperatures) and to ensure no systems were left on overnight or when not required. Day Lewis has also put in place measures for all doors and windows to be closed when the heating/cooling systems are on. All standalone portable heaters are turned off when the ceiling units were cooling. 
Intensity ratio
The intensity ratio for Day Lewis is the total carbon used (using Scopes 1 and 2 data only), 313,634 Kg CO2e divided by the business metric of 6 sites, giving an Intensity Ratio of 52,272 Kg CO2e / site (2021- 54,509 Kg CO2e). Transport carbon usage has increased slightly but gas and electricity have reduced year on year. The major reduction is gas which has reduced by 22%. The number of sites in the Company has remained the same from 2021 to 2022.

Page 6


 
DAY LEWIS MEDICAL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022


This report was approved by the board and signed on its behalf.





Mr J C Patel Snr
Director

Date: 12 September 2022
Page 7


 
DAY LEWIS MEDICAL LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022

The Directors present their report and the financial statements for the year ended 31 March 2022.

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the Directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. 

Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.  In preparing these financial statements, the Directors are required to:


select suitable accounting policies and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the Company in the year under review continued to be that of distribution of pharmaceutical supplies.

Results and dividends

The profit for the year, after taxation, amounted to £4,193k (2021 - £8,509k).

The Directors approved dividends of £nil (2021- £nil).

Directors

The Directors who served during the year were:

Mr T Mohamedbhai 
Miss H Patel 
Mr J C Patel Snr 

Page 8


 
DAY LEWIS MEDICAL LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022

Disclosure of information to auditor

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Auditor

The auditor, KPMG LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





Mr J C Patel Snr
Director

Date: 12 September 2022

2 Peterwood Way
Croydon
Surrey
CR0 4UQ
Page 9

 
DAY LEWIS MEDICAL LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DAY LEWIS MEDICAL LIMITED

Opinion 

We have audited the financial statements of DAY LEWIS MEDICAL LIMITED (“the Company”) for the year ended 31 March 2022 which comprise the Profit and Loss Account, Balance Sheet, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and related notes, including the accounting policies in note 1.  

In our opinion the financial statements: 

give a true and fair view of the state of the Company’s affairs as at 31 March 2022 and of its profit for the year then ended; 

have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland; and 

have been prepared in accordance with the requirements of the Companies Act 2006.  

Basis for opinion 

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law.  Our responsibilities are described below.  We have fulfilled our ethical responsibilities under, and are independent of the Company in accordance with, UK ethical requirements including the FRC Ethical Standard.  We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.  

Going concern 

The Directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Company or to cease its operations, and as they have concluded that the Company’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”). 

In our evaluation of the Directors’ conclusions, we considered the inherent risks to the Company’s business model and analysed how those risks might affect the Company’s financial resources or ability to continue operations over the going concern period.

Our conclusions based on this work:

we consider that the Directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate;

we have not identified, and concur with the Directors’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for the going concern period.

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Company will continue in operation.

Page 10

 
DAY LEWIS MEDICAL LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DAY LEWIS MEDICAL LIMITED

Fraud and breaches of laws and regulations – ability to detect

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

Enquiring of Directors and management as to the Company’s high-level policies and procedures to prevent and detect fraud, and the Company’s channel for “whistleblowing”, as well as whether they have knowledge of any actual, suspected or alleged fraud.

Reading Board minutes.

Considering remuneration incentive schemes and performance targets for management, and Directors

Using analytical procedures to identify any unusual or unexpected relationships.

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

As required by auditing standards, we perform procedures to address the risk of management override of controls, in particular:
•    The risk that Company management may be in a position to make inappropriate accounting entries, and
•    The risk of bias in accounting estimates and judgements such as the value of pharmacy licenses.
On this audit we do not believe there is a fraud risk related to revenue recognition because: 
•     Revenue is made up of high volume, low value transactions, and
•     There is minimal judgement for revenue recognition.

We did not identify any additional fraud risks.

In determining the audit procedures we took into account the results of our evaluation and testing of the operating effectiveness of some of the Company-wide fraud risk management controls.

We performed procedures including: 

Identifying journal entries to test based on risk criteria and comparing the identified entries to supporting         documentation. These included those posted to cash but via an unexpected pairing, or those which posted from one EBITDA account to another such that the value of EBITDA was impacted.

Assessing whether the judgements made in making accounting estimates are indicative of a potential bias.


Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the Directors and other management (as required by auditing standards), and discussed with the Directors and other management the policies and procedures regarding compliance with laws and regulations.  

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. 

The potential effect of these laws and regulations on the financial statements varies considerably.

Page 11

 
DAY LEWIS MEDICAL LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DAY LEWIS MEDICAL LIMITED

 Firstly, the Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies’ legislation), distributable profits legislation, and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.  

Secondly, the Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the Company’s license to operate We identified the following areas as those most likely to have such an effect: Medicines and Healthcare Products Regulatory Agency (MHRA) legislation, General Pharmaceutical Council (GPhC) legislation, health and safety, data protection laws, anti-bribery, employment law, and certain aspects of company legislation recognising the financial and regulated nature of the Company’s activities.  Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.  

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

Strategic Report and Directors’ Report  

The Directors are responsible for the Strategic Report and the Directors’ Report.  Our opinion on the financial statements does not cover those reports and we do not express an audit opinion thereon.   

Our responsibility is to read the Strategic Report and the Directors’ Report and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge.  Based solely on that work:   

we have not identified material misstatements in the Strategic Report and the Directors’ Report;  

in our opinion the information given in that report for the financial year is consistent with the financial statements; and  

in our opinion those reports have been prepared in accordance with the Companies Act 2006.  

Matters on which we are required to report by exception 

Under the Companies Act 2006, we are required to report to you if, in our opinion: 

adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or 

the financial statements are not in agreement with the accounting records and returns; or  

certain disclosures of Directors’ remuneration specified by law are not made; or   

we have not received all the information and explanations we require for our audit.

We have nothing to report in these respects.  

Page 12

 
DAY LEWIS MEDICAL LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DAY LEWIS MEDICAL LIMITED

Directors' responsibilities

As explained more fully in their statement set out on page 8, the Directors are responsible for: the preparation of the financial statements and for being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. 

Auditors' responsibilities

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report.  Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.  Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. 

A fuller description of our responsibilities is provided on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities

The purpose of our audit work and to whom we owe our responsibilities  

This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.  Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose.  To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.


 

Timothy Rush (Senior statutory auditor) 

for and on behalf of
KPMG LLP
Statutory Auditor and Chartered Accountants


1 Forest Gate
Brighton Road
Crawley
RH11 9PT

12 September 2022
Page 13


 
DAY LEWIS MEDICAL LIMITED
 
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2022

2022
2021
Note
£000
£000

  

Turnover
 4 
240,770
244,621

Cost of sales
  
(221,330)
(219,524)

Gross profit
  
19,440
25,097

Distribution costs
  
(14)
(19)

Administrative expenses
  
(14,265)
(14,732)

Other operating income
 5 
35
43

Operating profit
 6 
5,196
10,389

Interest payable and similar expenses
 9 
-
(23)

Profit before tax
  
5,196
10,366

Tax on profit
 10 
(1,003)
(1,857)

Profit for the financial year
  
4,193
8,509

Page 14

 
DAY LEWIS MEDICAL LIMITED
REGISTERED NUMBER:01904504

BALANCE SHEET
AS AT 31 MARCH 2022

2022
2021
Note
£000
£000

Fixed assets
  

Tangible assets
 11 
1,244
1,180

  
1,244
1,180

Current assets
  

Stocks
 12 
26,311
25,774

Debtors: amounts falling due within one year
 13 
35,232
37,724

Cash at bank and in hand
 14 
7,109
6,184

  
68,652
69,682

Creditors: amounts falling due within one year
 15 
(35,486)
(40,697)

Net current assets
  
 
 
33,166
 
 
28,985

Total assets less current liabilities
  
34,410
30,165

Provisions for liabilities
  

Deferred tax
 17 
(70)
(18)

Net assets
  
34,340
30,147


Capital and reserves
  

Called up share capital 
 18 
50
50

Profit and loss account
 19 
34,290
30,097

Shareholder's funds
  
34,340
30,147


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Mr J C Patel Snr
Director

Date: 12 September 2022

The notes on pages 17 to 29 form part of these financial statements.
Page 15


 
DAY LEWIS MEDICAL LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022


Called up share capital
Profit and loss account
Total equity

£000
£000
£000

At 1 April 2021
50
30,097
30,147


Comprehensive income for the year

Profit for the year
-
4,193
4,193
Total comprehensive income for the year
-
4,193
4,193


At 31 March 2022
50
34,290
34,340



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2021


Called up share capital
Profit and loss account
Total equity

£000
£000
£000

At 1 April 2020
50
21,588
21,638


Comprehensive income for the year

Profit for the year
-
8,509
8,509
Total comprehensive income for the year
-
8,509
8,509


At 31 March 2021
50
30,097
30,147


The notes on pages 17 to 29 form part of these financial statements.
Page 16


 
DAY LEWIS MEDICAL LIMITED
 
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022

1.


General information

Day Lewis Medical Limited (the “Company”) is a private Company limited by shares and incorporated, domiciled and registered in England in the United Kingdom. The address of the registered office is given on the Company Information page. The nature of the Company's operations and its principal activities are set out in the Strategic Report.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland, and the Companies Act 2006.

The functional currency of the Company is considered to be pounds sterling because that is the currency of the primary economic environment in which the Company operates. The financial statements are also presented in pounds sterling and rounded to the nearest £'000.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102:
 
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23; and
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Day Lewis Plc, the parent company, as at 31 March 2022 and these financial statements may be obtained from 2 Peterwood Way, Croydon, Surrey, CR0 4UQ.


Page 17


 
DAY LEWIS MEDICAL LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022

2.Accounting policies (continued)

 
2.3

Going concern

In assessing the validity of the going concern basis, and taking account of reasonably plausible downsides, covering a period of at least 12 months from the date of approval of theses financial statements, the Directors have considered the cash flow forecasts they have prepared for the period until 31 March 2024. In doing so they have considered the level of bank facilities available to the parent company and the Group, and its compliance with bank covenant tests both during the period and for the period ahead. In September 2020, the parent company refinanced its finance facility with 4 banks and now has in place an RCF facility of £125m (reduced to £110m) until at least September 2023 (being agreed until September 2024). The Company is a party as an obligor to the cross guarantees with respect of the Group facilities.
Those forecasts are dependent on the Company’s parent company, Day Lewis Plc, not seeking repayment of the amounts currently due to it, which at 31 March 2022 amounted to £5,111,049. Day Lewis Plc has indicated that it does not intend to seek repayment of these amounts for the period covered by the forecasts. As with any company placing reliance on other group entities for financial support, the Directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.
Having considered the Company’s financial forecasts and investment and financing commitments, the Directors believe the Company has sufficient current and future cash reserves and facilities available for it to meet its liabilities, including financing obligations, for at least twelve months from the date of signing of these financial statements.
Having considered the above, the Directors conclude that it is appropriate to adopt the going concern basis of accounting because there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the Company to continue as a going concern. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

  
2.4
Turnover

Turnover comprises revenue recognised by the Company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.

Sales to third parties are recognised as turnover when goods are dispatched, exclusive of Value Added Tax.

 
2.5

Operating leases: the Company as lessor

Rental income from operating leases is credited to the Profit and Loss Account on a straight-line basis over the lease term.
Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

Page 18


 
DAY LEWIS MEDICAL LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022

2.Accounting policies (continued)

 
2.6

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Profit and Loss Account on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Finance costs

Finance costs are charged to the Profit and Loss Account over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except:

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date in the countries where the Company operates and generates income.
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Company can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date.
 
 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 19


 
DAY LEWIS MEDICAL LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022

2.Accounting policies (continued)


2.9
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Leasehold property
-
Over the period of the lease
Motor vehicles
-
25%
per annum on reducing balance
Fixtures, fittings and equipment
-
15%
per annum on reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed and adjusted prospectively, if appropriate, if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Profit and Loss Account.

 
2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.
At each Balance Sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Profit and Loss Account.

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 20


 
DAY LEWIS MEDICAL LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022

2.Accounting policies (continued)

 
2.14

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Profit and Loss Account in the year that the Company becomes aware of the obligation and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

 
2.15

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a Director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and Loss Account.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the Balance Sheet date.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Page 21


 
DAY LEWIS MEDICAL LIMITED
 
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 2, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
There are no critical judgements and estimations that the Directors have made in the process of applying the Company's accounting policies that have had a significant effect on the amounts recognised in the financial statements.


4.


Turnover

The whole of the turnover is attributable to distribution of pharmaceutical supplies.

Analysis of turnover by country of destination:

2022
2021
£000
£000

United Kingdom
240,746
236,553

Overseas
24
8,069

240,770
244,622



5.


Other operating income

2022
2021
£000
£000

Other operating income
8
5

Net rents receivable
27
38

35
43


Page 22


 
DAY LEWIS MEDICAL LIMITED
 
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022

6.


Operating profit

The operating profit is stated after charging:

2022
2021
£000
£000

Depreciation of tangible fixed assets
186
177

Other operating lease rentals
1,423
1,297

Defined contribution pension cost
92
92


7.


Auditor's remuneration




The audit fee was borne by the parent company,  Day Lewis Plc, for the year ended 31 March 2022 and the prior year.


8.


Employees

Staff costs were as follows:


2022
2021
£000
£000

Wages and salaries
4,299
4,238

Social security costs
352
343

Cost of defined contribution scheme
92
92

4,743
4,673


The Company does not have any of its own employees by virtue of the fact that contracts of employment for employees within the Group are in the name of the parent company, Day Lewis Plc. Day Lewis Plc makes a recharge to the Company for the proportion of staff costs relating to time spent by Day Lewis Plc staff on the Company’s affairs. These staff costs are disclosed above.
Furthermore, all pension arrangements are operated by Day Lewis Plc, hence the company itself does not have any pension commitments.


9.


Interest payable and similar expenses

2022
2021
£000
£000


Other loan interest payable
-
23

-
23

Page 23


 
DAY LEWIS MEDICAL LIMITED
 
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022

10.


Taxation


2022
2021
£000
£000

Corporation tax


Current tax on profits for the year
929
1,852

Adjustments in respect of previous periods
23
3


Total current tax
952
1,855

Deferred tax


Origination and reversal of timing differences
64
11

Changes to tax rates
17
-

Prior year adjustment
(30)
(9)

Total deferred tax
51
2


Taxation on profit
1,003
1,857

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2021 - lower than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£000
£000


Profit before tax
5,196
10,366


Profit multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
987
1,970

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
9
8

Super deduction capital allowances
(3)
-

Adjustments to tax charge in respect of prior periods
23
3

Tax rate changes
17
-

Other tax adjustments
-
(9)

Group relief claimed
-
(115)

Deferred tax prior year credit
(30)
-

Total tax charge for the year
1,003
1,857

Page 24


 
DAY LEWIS MEDICAL LIMITED
 
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
 
10.Taxation (continued)


Factors that may affect future tax charges

A reduction in the UK corporation tax rate from 19% to 17% (effective 1 April 2020) was substantively enacted on 6 September 2016. The March 2020 Budget announced that a rate of 19% would continue to apply with effect from 1 April 2020, and this change was substantively enacted on 17 March 2020. An increase in the UK corporation rate from 19% to 25% (effective 1 April 2023) was substantively enacted on 24 May 2021.
The UK deferred tax asset/(liability) as at 31 March 2022 was calculated at 25% 
(2021- 19%).


11.


Tangible fixed assets





Leasehold property
Motor vehicles
Fixtures and fittings
Total

£000
£000
£000
£000



Cost or valuation


At 1 April 2021
1,561
189
3,812
5,562


Additions
-
-
250
250



At 31 March 2022

1,561
189
4,062
5,812



Depreciation


At 1 April 2021
1,533
133
2,716
4,382


Charge for the year on owned assets
1
14
171
186



At 31 March 2022

1,534
147
2,887
4,568



Net book value



At 31 March 2022
27
42
1,175
1,244



At 31 March 2021
28
56
1,096
1,180
Page 25


 
DAY LEWIS MEDICAL LIMITED
 
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022

12.


Stocks

2022
2021
£000
£000

Finished goods and goods for resale
26,311
25,774

26,311
25,774


Stock recognised as an expense in cost of sales during the year as an expense was £220,575k (2021 - £219,524k).
An impairment loss of £nil (
2021- £nil) was recognised in cost of sales against stock during the year due to slow-moving and obsolete stock.

13.


Debtors

2022
2021
£000
£000


Trade debtors
29,876
25,620

Amounts owed by group undertakings
516
4,731

Other debtors
2,666
2,909

Prepayments and accrued income
2,174
4,464

35,232
37,724


Inter-company balance is repayable on demand.


14.


Cash and cash equivalents

2022
2021
£000
£000

Cash at bank and in hand
7,109
6,184

7,109
6,184


Page 26


 
DAY LEWIS MEDICAL LIMITED
 
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022

15.


Creditors: Amounts falling due within one year

2022
2021
£000
£000

Trade creditors
26,052
27,983

Amounts owed to group undertakings
6,947
8,618

Corporation tax
928
1,851

Other taxation and social security
222
-

Other creditors
202
1,347

Accruals and deferred income
1,135
898

35,486
40,697


Inter-company balance is repayable on demand.


16.


Financial instruments

2022
2021
£000
£000

Financial assets


Financial assets measured at fair value
7,109
6,184

Financial assets measured at amortised cost
35,232
37,901

42,341
44,085


Financial liabilities


Financial liabilities measured at amortised cost
(34,337)
(39,023)


17.


Deferred taxation




2022
2021


£000

£000






At beginning of year
18
16


Charged to the Profit and Loss Account
52
2



At end of year
70
18

Page 27


 
DAY LEWIS MEDICAL LIMITED
 
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
 
17.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

2022
2021
£000
£000


Accelerated capital allowances
70
18

70
18


18.


Share capital

2022
2021
£000
£000
Allotted, called up and fully paid



50,000 (2021 - 50,000) Ordinary shares of £1 each
50
50



19.


Reserves

Profit and loss account

The Profit and Loss Account reserve represents cumulative profits or losses, net of dividends paid and other adjustments.


20.


Contingent liabilities

The Company is a party to intra-group cross guarantees in respect of bank borrowing within the group, including providing unlimited inter-company guarantees supported by legal charges over various properties and other respective associated assets.


21.


Commitments under operating leases

At 31 March 2022, the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2022
2021
£000
£000


Ending not later than 1 year
1,137
1,293

Ending later than 1 year and not later than 5 years
3,480
3,673

Ending later than 5 years
948
1,524

5,565
6,490

Page 28


 
DAY LEWIS MEDICAL LIMITED
 
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022

22.


Related party transactions

During the year, the Company purchased goods totalling £200,456 (2021- £167,325) from Quadrant Pharmaceuticals Limited. The executors of the Kirit Patel Estate have a material interest in that company. At the year end the balance outstanding from Quadrant Pharmaceuticals Limited was £12,642 (2021- £17,710).
During the year, the Company sold goods totalling £2,913,120 
(2021- £3,626,387) to Health Counter Limited, a company under common control. The Company recharged expenses of £44,665 (2021- £93,675) paid on behalf of Health Counter Limited. Included in other creditors an amount owed by the Company of £11,550 (2021- £192). Included in the trade debtors as an amount owed to the Company of £192,979 (2021- £92,047).
During the year, the Company purchased goods totalling £229,922 
(2021- £1,689,037) from Maxearn Limited. The executors of the Kirit Patel Estate have a material interest in that company. At the year end the balance outstanding to Maxearn Limited was £47,586 (2021- £30,207).
During the year the Company paid rent totalling £739,669 
(2021- £545,377) to QH Estates Limited, a company in which the executors of the Kirit Patel Estate, K C Patel Jnr and J C Patel Jnr, have an interest. At the year end the Company owed £140,908 (2021- £115,904) to QH Estates Limited.


23.


Controlling party

The Company's immediate parent company is Day Lewis Plc, a company registered in England and Wales. It prepares group accounts which are available at Day Lewis House, 2 Peterwood Way, Croydon, Surrey CR0 4UQ.
The smallest and largest group in which the results of the Company and its Group are consolidated is that headed by Day Lewis Plc, Day Lewis House, 2 Peterwood Way, Croydon, Surrey, CR0 4UQ.
The ultimate parent company is Day Lewis Holdings Limited, a company registered in Cyprus and controlled by the KCTP Will Trust.
Copies of the ultimate parent and of the group financial statements are not publicly available.

Page 29