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REGISTERED NUMBER: SC309261 (Scotland)















H & K WILLIS LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023






H & K WILLIS LIMITED (REGISTERED NUMBER: SC309261)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023




Page

Company Information 1

Strategic Report 2

Report of the Director 3

Report of the Independent Auditors 4 to 7

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13 to 14

Notes to the Financial Statements 15 to 24


H & K WILLIS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 JANUARY 2023







DIRECTOR: Keith David Willis



SECRETARY: Heather Sarah Willis



REGISTERED OFFICE: 1566 Dumbarton Road
Glasgow
Lanarkshire
G14 9DB



REGISTERED NUMBER: SC309261 (Scotland)



AUDITORS: Milne Craig
Chartered accountants
Statutory auditor
Abercorn House
79 Renfrew Road
Paisley
Renfrewshire
PA3 4DA



BANKERS: Santander UK plc
301 St. Vincent Steet
Glasgow
G2 5NT



SOLICITORS: Blackadders
53 Bothwell Street
Glasgow
G2 6TS

H & K WILLIS LIMITED (REGISTERED NUMBER: SC309261)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

The director presents his strategic report for the year ended 31 January 2023.

REVIEW OF BUSINESS
The key financial highlights are as follows:

2023 2022 2021
£ £ £

Turnover 10,786,223 8,747,584 8,141,496
Turnover growth/(decrease) 23.3% 7.4% 40.5%
Profit/(loss) before tax 221,002 542,004 1,412,262

The net assets of the group have decreased from £1,932,239 at 31 January 2022 to £1,871,930 at 31 January 2023.

PRINCIPAL RISKS AND UNCERTAINTIES
The directors seek to control overhead costs in order to maintain the profitability of the company.

The directors have also assessed the potential impact of coronavirus and are not expecting that the long term trading or financial position of the company will be significantly impacted.

FINANCIAL INSTRUMENTS
The company's principal financial instruments comprise bank balances, trade debtors, trade creditors and bank loans. The main purpose of these instruments is to finance the company's operations.

Bank borrowings are secured by standard security, floating charge and unlimited cross guarantees.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

ON BEHALF OF THE BOARD:





Heather Sarah Willis - Secretary


11 October 2023

H & K WILLIS LIMITED (REGISTERED NUMBER: SC309261)

REPORT OF THE DIRECTOR
FOR THE YEAR ENDED 31 JANUARY 2023

The director presents his report with the financial statements of the company for the year ended 31 January 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of pharmacists.

DIVIDENDS
The total distribution of dividends in the year to 31 January 2023 is £171,000 (2022 - £195,000).

DIRECTOR
Keith David Willis held office during the whole of the period from 1 February 2022 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 director is required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Milne Craig, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Heather Sarah Willis - Secretary


11 October 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
H & K WILLIS LIMITED

Opinion
We have audited the financial statements of H & K Willis Limited (the 'company') for the year ended 31 January 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 January 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 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 under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
H & K WILLIS LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, 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 director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for 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 the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
H & K WILLIS LIMITED


Auditors' responsibilities for the audit of the financial statements
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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, and determined that the most significant are those that relate to the form and content of the financial statements such as the accounting policies and the UK Companies Act 2006.

We assessed how the company is complying with these frameworks by observing the oversight of those charged with governance, the culture of honesty and ethical behaviours and a strong emphasis placed on fraud prevention, which may reduce opportunities for fraud to take place, and fraud deterrence, which could persuade individuals not to commit fraud because of the likelihood of detection and punishment.

We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by making an assessment of the key fraud risks to the company, and the manner in which such risks may occur in practice, based on our previous knowledge of the company, as well as an assessment of the current business environment.

Based on this understanding, we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered higher, we performed audit procedures to address each identified fraud risk, including management override of controls. These procedures included testing manual journals and were designed to provide reasonable assurance that the financial statements were free from fraud or error. We evaluated the design and operational effectiveness of controls put in place to address the risks identified, or that otherwise prevent, deter and detect fraud.

In addition, our audit procedures included enquiring of management concerning actual and potential litigation and claims, and performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. We addressed the fraud risk in relation to revenue recognition by testing completeness and cut off of income.

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.

As with any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance, and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
H & K WILLIS LIMITED


Use of our report
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 a Report of the Auditors 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.




Alex Webb BAcc FCCA (Senior Statutory Auditor)
for and on behalf of Milne Craig
Chartered accountants
Statutory auditor
Abercorn House
79 Renfrew Road
Paisley
Renfrewshire
PA3 4DA

11 October 2023

H & K WILLIS LIMITED (REGISTERED NUMBER: SC309261)

INCOME STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2023

31/1/23 31/1/22
Notes £    £   

TURNOVER 10,786,223 8,747,584

Cost of sales (7,337,667 ) (5,644,515 )
GROSS PROFIT 3,448,556 3,103,069

Administrative expenses (2,936,976 ) (3,212,626 )
511,580 (109,557 )

Other operating income - 53,108
OPERATING PROFIT/(LOSS) 511,580 (56,449 )

Intercompany loan write off 4 20,000 -
531,580 (56,449 )

Income from shares in group undertakings - 729,033
Interest receivable and similar income 4,218 3,640
535,798 676,224

Interest payable and similar expenses 5 (314,796 ) (134,220 )
PROFIT BEFORE TAXATION 6 221,002 542,004

Tax on profit 7 (110,311 ) (119,814 )
PROFIT FOR THE FINANCIAL YEAR 110,691 422,190

H & K WILLIS LIMITED (REGISTERED NUMBER: SC309261)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2023

31/1/23 31/1/22
Notes £    £   

PROFIT FOR THE YEAR 110,691 422,190


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

110,691

422,190

H & K WILLIS LIMITED (REGISTERED NUMBER: SC309261)

BALANCE SHEET
31 JANUARY 2023

31/1/23 31/1/22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 8,169,422 8,607,507
Tangible assets 10 993,469 928,963
9,162,891 9,536,470

CURRENT ASSETS
Stocks 11 414,929 370,900
Debtors 12 1,417,985 1,238,297
Cash at bank and in hand 1,159,731 1,826,280
2,992,645 3,435,477
CREDITORS
Amounts falling due within one year 13 2,854,540 3,159,812
NET CURRENT ASSETS 138,105 275,665
TOTAL ASSETS LESS CURRENT
LIABILITIES

9,300,996

9,812,135

CREDITORS
Amounts falling due after more than one
year

14

(7,300,731

)

(7,771,139

)

PROVISIONS FOR LIABILITIES 19 (128,335 ) (108,757 )
NET ASSETS 1,871,930 1,932,239

CAPITAL AND RESERVES
Called up share capital 20 100 100
Retained earnings 21 1,871,830 1,932,139
SHAREHOLDERS' FUNDS 1,871,930 1,932,239

The financial statements were approved by the director and authorised for issue on 11 October 2023 and were signed by:





Keith David Willis - Director


H & K WILLIS LIMITED (REGISTERED NUMBER: SC309261)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2023

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 February 2021 110 1,704,949 1,705,059

Changes in equity
Issue of share capital (10 ) - (10 )
Dividends - (195,000 ) (195,000 )
Total comprehensive income - 422,190 422,190
Balance at 31 January 2022 100 1,932,139 1,932,239

Changes in equity
Dividends - (171,000 ) (171,000 )
Total comprehensive income - 110,691 110,691
Balance at 31 January 2023 100 1,871,830 1,871,930

H & K WILLIS LIMITED (REGISTERED NUMBER: SC309261)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2023

31/1/23 31/1/22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 596,177 1,462,452
Interest paid (297,768 ) (115,786 )
Interest element of hire purchase payments
paid

(17,028

)

(18,434

)
Tax paid (77,998 ) (27,858 )
Net cash from operating activities 203,383 1,300,374

Cash flows from investing activities
Purchase of intangible fixed assets - (4,060,856 )
Purchase of tangible fixed assets (247,671 ) (397,921 )
Sale of tangible fixed assets 1,250 -
Deferred tax movement - 913
Government grants - 53,108
Interest received 4,218 3,640
Dividends received - 729,033
Net cash from investing activities (242,203 ) (3,672,083 )

Cash flows from financing activities
New loans in year - 3,220,000
Loan repayments in year (512,757 ) (498,758 )
Hire purchase advance 127,230 -
Capital repayments in year (54,155 ) 18,019
Amount introduced by directors - 22,570
Amount withdrawn by directors (72,603 ) -
Share issue - (10 )
Equity dividends paid (171,000 ) (195,000 )
Net cash from financing activities (683,285 ) 2,566,821

(Decrease)/increase in cash and cash equivalents (722,105 ) 195,112
Cash and cash equivalents at beginning of
year

2

1,724,112

1,529,000

Cash and cash equivalents at end of year 2 1,002,007 1,724,112

H & K WILLIS LIMITED (REGISTERED NUMBER: SC309261)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31/1/23 31/1/22
£    £   
Profit before taxation 221,002 542,004
Depreciation charges 621,250 1,263,950
Profit on disposal of fixed assets (1,250 ) -
Government grants - (53,108 )
Finance costs 314,796 134,220
Finance income (4,218 ) (732,673 )
1,151,580 1,154,393
Increase in stocks (44,029 ) (47,048 )
Increase in trade and other debtors (107,085 ) (216,972 )
(Decrease)/increase in trade and other creditors (404,289 ) 572,079
Cash generated from operations 596,177 1,462,452

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 January 2023
31/1/23 1/2/22
£    £   
Cash and cash equivalents 1,159,731 1,826,280
Bank overdrafts (157,724 ) (102,168 )
1,002,007 1,724,112
Year ended 31 January 2022
31/1/22 1/2/21
£    £   
Cash and cash equivalents 1,826,280 1,529,000
Bank overdrafts (102,168 ) -
1,724,112 1,529,000


H & K WILLIS LIMITED (REGISTERED NUMBER: SC309261)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2023

3. ANALYSIS OF CHANGES IN NET DEBT

At 1/2/22 Cash flow At 31/1/23
£    £    £   
Net cash
Cash at bank and in hand 1,826,280 (666,549 ) 1,159,731
Bank overdrafts (102,168 ) (55,556 ) (157,724 )
1,724,112 (722,105 ) 1,002,007
Debt
Finance leases (126,596 ) (73,075 ) (199,671 )
Debts falling due within 1 year (576,037 ) (5,961 ) (581,998 )
Debts falling due after 1 year (7,677,642 ) 518,718 (7,158,924 )
(8,380,275 ) 439,682 (7,940,593 )
Total (6,656,163 ) (282,423 ) (6,938,586 )

H & K WILLIS LIMITED (REGISTERED NUMBER: SC309261)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

1. STATUTORY INFORMATION

H & K Willis Limited is a private company, limited by shares, registered in Scotland. The Company's registered number is SC309261 and registered office address is 1566 Dumbarton Road, Glasgow, G14 9DB.

The nature of the Company's operations and its principal activities for the year under review was that of pharmacists.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in sterling, which is the functional currency of the Company. Monetary amounts in these financial statements are rounded to the nearest £.

Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In preparing these financial statements, the directors have made the following judgements:

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Assets are considered for indications of impairment. If required an impairment review will be carried out and a decision made on possible impairment. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Bad debts are provided for where objective evidence of the need for a provision exists.

Inventories are assessed for evidence of obsolescence and a provision is made against any inventory unlikely to be sold, or where stock is sold post year end at a loss.

Turnover
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Consideration is given to the point at which the Company is entitled to receive the income, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Revenue from the provision of services is recognised in the period in which the services are provided when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;
- it is probable that the Company will receive the consideration due;
- the costs incurred can be measured reliably.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of businesses in 2007, 2010, 2015 and 2021, is being amortised evenly over its estimated useful life of twenty five years with a full year's charge in the first period of acquisition.

H & K WILLIS LIMITED (REGISTERED NUMBER: SC309261)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023

2. ACCOUNTING POLICIES - continued

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 2% on cost
Plant and machinery - 25% on cost
Fixtures and fittings - 15% on cost
Motor vehicles - 25% on cost

Government grants
Government grants received in respect of expenditure charged to the income statement during the year have been included in the income statement in the period to which they relate.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments
The Company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 ' Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's balance sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transactions costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.


H & K WILLIS LIMITED (REGISTERED NUMBER: SC309261)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023

2. ACCOUNTING POLICIES - continued
Taxation
Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

Deferred tax assets are only recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed.

Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

With the exception of changes arising on the initial recognition of a business combination, the tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income).

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

Deferred tax assets and deferred tax liabilities are offset only if the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously.

Leases
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the profit and loss account over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

H & K WILLIS LIMITED (REGISTERED NUMBER: SC309261)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023

2. ACCOUNTING POLICIES - continued

Impairment of assets
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

Non-financial assets
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Financial assets
For financial assets carried at amortised cost, the amount of impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal.

An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

3. EMPLOYEES AND DIRECTORS
31/1/23 31/1/22
£    £   
Wages and salaries 1,582,653 1,373,030
Social security costs 219,458 95,376
Other pension costs 27,895 24,265
1,830,006 1,492,671

The average number of employees during the year was as follows:
31/1/23 31/1/22

Pharmacy staff 66 59

31/1/23 31/1/22
£    £   
Director's remuneration 14,973 15,715

H & K WILLIS LIMITED (REGISTERED NUMBER: SC309261)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023

4. EXCEPTIONAL ITEMS
31/1/23 31/1/22
£    £   
Intercompany loan write off 20,000 -

5. INTEREST PAYABLE AND SIMILAR EXPENSES
31/1/23 31/1/22
£    £   
Bank loan interest 296,295 115,118
Other interest 1,473 668
Hire purchase 17,028 18,434
314,796 134,220

6. PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

31/1/23 31/1/22
£    £   
Other operating leases 13,681 32,749
Depreciation - owned assets 136,855 109,192
Depreciation - assets on hire purchase contracts 46,310 59,548
Profit on disposal of fixed assets (1,250 ) -
Goodwill amortisation 438,085 1,095,210
Auditors' remuneration 12,500 12,000

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31/1/23 31/1/22
£    £   
Current tax:
UK corporation tax 90,661 75,390
Underprovision in previous year 72 -
Overprovision in prior year - (2,605 )
Total current tax 90,733 72,785

Deferred tax 19,578 47,029
Tax on profit 110,311 119,814

UK corporation tax has been charged at 19% (2022 - 19%).

H & K WILLIS LIMITED (REGISTERED NUMBER: SC309261)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023

7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31/1/23 31/1/22
£    £   
Profit before tax 221,002 542,004
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

41,990

102,981

Effects of:
Expenses not deductible for tax purposes 68,045 (6,445 )
Prior year adjustment - UK tax 72 (2,605 )
Prior year adjustment - Deferred tax (913 ) -
Deferred tax rate changes 4,917 25,883
Indexation allowances and rebasing (3,800 ) -
Total tax charge 110,311 119,814

The main rate of corporation tax is 19%. The main rate of corporation tax will rise to 25% from 1 April 2023.

8. DIVIDENDS
31/1/23 31/1/22
£    £   
Ordinary "A" shares shares of £1 each
Interim 85,500 97,500
Ordinary "B" shares shares of £1 each
Interim 85,500 97,500
171,000 195,000

9. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 February 2022
and 31 January 2023 13,188,886
AMORTISATION
At 1 February 2022 4,581,379
Amortisation for year 438,085
At 31 January 2023 5,019,464
NET BOOK VALUE
At 31 January 2023 8,169,422
At 31 January 2022 8,607,507

H & K WILLIS LIMITED (REGISTERED NUMBER: SC309261)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023

10. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 February 2022 574,384 236,374 817,989 131,237 1,759,984
Additions - 140,765 106,906 - 247,671
Disposals - - - (20,319 ) (20,319 )
At 31 January 2023 574,384 377,139 924,895 110,918 1,987,336
DEPRECIATION
At 1 February 2022 84,208 194,825 471,436 80,552 831,021
Charge for year 11,488 49,040 103,164 19,473 183,165
Eliminated on disposal - - - (20,319 ) (20,319 )
At 31 January 2023 95,696 243,865 574,600 79,706 993,867
NET BOOK VALUE
At 31 January 2023 478,688 133,274 350,295 31,212 993,469
At 31 January 2022 490,176 41,549 346,553 50,685 928,963

The net book value of tangible fixed assets includes £ 124,419 (2022 - £ 46,259 ) in respect of assets held under hire purchase contracts.

11. STOCKS
31/1/23 31/1/22
£    £   
Stocks 414,929 370,900

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/1/23 31/1/22
£    £   
Trade debtors 991,108 836,241
Directors' loan accounts 243,065 170,462
Value added tax 129,396 217,812
Prepayments 54,416 13,782
1,417,985 1,238,297

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/1/23 31/1/22
£    £   
Bank loans and overdrafts (see note 15) 739,722 678,205
Hire purchase contracts (see note 16) 57,864 33,099
Trade creditors 1,527,312 1,431,944
Amounts owed to group undertakings - 20,000
Corporation tax 167,523 154,788
Social security and other taxes 33,277 29,916
Other creditors 266,797 756,905
Accrued expenses 62,045 54,955
2,854,540 3,159,812

H & K WILLIS LIMITED (REGISTERED NUMBER: SC309261)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31/1/23 31/1/22
£    £   
Bank loans (see note 15) 7,158,924 7,677,642
Hire purchase contracts (see note 16) 141,807 93,497
7,300,731 7,771,139

15. LOANS

An analysis of the maturity of loans is given below:

31/1/23 31/1/22
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 157,724 102,168
Bank loans 581,998 576,037
739,722 678,205

Amounts falling due between one and two years:
Bank loans - 1-2 years 581,998 581,710

Amounts falling due between two and five years:
Bank loans - 2-5 years 1,680,297 1,726,090

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal 4,896,629 5,369,842

16. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

31/1/23 31/1/22
£    £   
Net obligations repayable:
Within one year 57,864 33,099
Between one and five years 141,807 93,497
199,671 126,596

H & K WILLIS LIMITED (REGISTERED NUMBER: SC309261)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023

17. SECURED DEBTS

The following secured debts are included within creditors:

31/1/23 31/1/22
£    £   
Bank overdrafts 157,724 102,168
Bank loans 7,740,922 8,253,679
Hire purchase contracts 199,671 126,596
8,098,317 8,482,443

The hire purchase creditor is secured over the asset to which it relates.

Bank borrowings are secured by standard security, floating charge and unlimited cross guarantees.

18. FINANCIAL INSTRUMENTS

The carrying amount for each category of financial instrument is as follows:

2023 2022
£ £
Financial assets
Financial assets that are debt instruments measured at amortised cost 2,992,645 3,435,477
Financial liabilities
Financial liabilities measured at amortised cost 10,155,271 10,930,951

19. PROVISIONS FOR LIABILITIES
31/1/23 31/1/22
£    £   
Deferred tax 128,335 108,757

Deferred
tax
£   
Balance at 1 February 2022 108,757
Originating and reversal of
timing differences 45,461
Effect of changes in tax rates (25,883 )
Balance at 31 January 2023 128,335

Details of the provision for deferred taxation are given below:
20232022
££
Accelerated capital allowances128,335108,757
Provision for deferred tax liability128,335108,757

H & K WILLIS LIMITED (REGISTERED NUMBER: SC309261)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JANUARY 2023

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31/1/23 31/1/22
value: £    £   
50 Ordinary "A" shares £1 50 50
50 Ordinary "B" shares £1 50 50
100 100

21. RESERVES

The profit and loss account includes all current and prior year retained profits and losses less dividends.

22. DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

During the year the director benefited from a loan from the company on which interest was charged. The balance outstanding as at the 31st January 2023 amounted to £243,065 (2022 - £170,462).

23. RELATED PARTY DISCLOSURES

All directors and certain senior employees who have authority and responsibility for planning, directing and controlling the activities of the company are considered to be key management personnel. Total remuneration in respect of these individuals is £182,900 (2022 - £160,300).

24. ULTIMATE CONTROLLING PARTY

The company is jointly controlled by the director and a shareholder.