REGISTERED NUMBER: |
PHARMACY CARE PLUS LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
REGISTERED NUMBER: |
PHARMACY CARE PLUS LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
Page |
Strategic Report | 1 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Statement of Comprehensive Income | 8 |
Balance Sheet | 9 |
Statement of Changes in Equity | 10 |
Cash Flow Statement | 11 |
Notes to the Cash Flow Statement | 12 |
Notes to the Financial Statements | 14 |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
STRATEGIC REPORT |
FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
The directors present their strategic report for the period 1 July 2021 to 31 December 2022. |
REVIEW OF BUSINESS |
This has been another challenging eighteen months for the pharmacy sector, with the ongoing Covid-19 pandemic and the continuation of a flat monetary settlement in NHS years 2021 and 2022 within the Global Pharmacy Budget for England for the five years from April 2019 to the end of March 2024. |
Total funding will stay at £2.592 billion from April 2019 to March 2024, following an earlier reduction in the settlement of £2.800 billion for the NHS year from April 2015 to March 2016 (NHS FY 2015-16), to £2.687 billion for NHS FY 2016-17 and £2.592 billion ever since. As such, the Global Pharmacy Budget for England will not even have received an inflationary settlement for a eight-year period. This announcement is against a backdrop where other healthcare settlements have been large and positive and the National Minimum Wage, a proxy for wage cost inflation in pharmacy dispensaries, has risen by 9.7% from £9.50 per hour in April 2022 to £10.42 per hour in April 2023. Clearly these data imply the need for targets for efficiency improvements in all pharmacies, if they are to survive. The directors will continue to consider measures to mitigate the adverse effects on the company's profit. |
Turnover for the company for the extended period was £20,502,880 (2021: £12,787,534). The increase in run rate turnover came primarily from six Covid vaccination centre which were operated in Halifax, Urmston, Whitefield, Lytham St Annes, Liversedge and Southport. |
Gross profit for the company showed an increase of 3.52% to 35.24%, again primarily influenced by Covid vaccination income. |
The company's total bank borrowing decreased to £1,633,313 from £3,238,795 over the extended period and gearing of the group, measured by total borrowing over total assets, was 28.08% (2021: 31.31%). |
The company has passed all regulatory inspections by regulatory bodies including the General Pharmaceutical Council (GPhC), Medicines Health Regulatory Authority (MHRA), Home Office and National Health Service England (NHSE). |
The company operated ten pharmacies in the reporting period, reducing to nine with the sale of Brook Pharmacy. |
As costs increased during the pandemic, the Government awarded the Community Pharmacy sector £370m as a loan rather than as a grant. This loan was £371,280 to the company, was held on the balance sheet and was repaid during the year. The costs borne because of the pandemic are included in these results. |
FUTURE DEVELOPMENTS |
The company operated ten pharmacies, reducing to nine, in the reporting period and will continue to optimise the group by working on gross margin and efficiency improvements. |
The directors continue to investigate potential acquisitions and relocations across the estate. |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
STRATEGIC REPORT |
FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
PRINCIPAL RISKS AND UNCERTAINTIES |
In the opinion of the directors, the chief risks to the company are that: |
- | The regulatory regime relating to pharmacies may change to the detriment of the company. |
- | The framework and details of the Government's funding of pharmaceutical services in the UK, upon which the company is largely reliant, may be subjected to changes. |
- | The NHS overall and the pharmacy sector within it are undergoing a multi-year period of turbulent change and, therefore, moves and initiatives by the company's pharmacy competitors are a continual feature for consideration in nearly all pharmacy neighbourhoods. Surgery moves and reorganisations, which may occur within the bigger NHS GP services framework or as individually driven projects, are also frequent and pose both opportunity and threat to the company's financial performance. The NHS is the primary source of income for the Pharmacy sector. |
- | The impact of Brexit on the pharmaceutical sector, which relies on considerable import/export trade, is still uncertain. |
- | By way of illustration of a threat, Distance Selling Pharmacy (Internet) applications constitute an exempt category and are currently still numerous nationally. The directors wish to assure investors that the company will continue to attempt vigorously to take advantage of opportunities that present in this fashion whatever their precise nature. Equally, it will defend businesses to the best of its ability in order to minimise adverse effects of competitive threats, but investors should note that the emergence of such activity is highly likely at various locations during the lifetime of the company. |
- | All the company's EIS investments were made over 3 years ago. An outcome that is strategically beneficial for the company as a whole may not necessarily be optimal for individual EIS investors. |
- | The company's plan depends in part on the availability of (and hence its ability to open) new sites. The availability of suitable new sites depends on many factors beyond the directors' control. |
- | The company cannot be certain of its future financing needs or that suitable financing will be available in amounts or on terms acceptable to the directors. |
- | Increases in long term interest rates and levels of amortisation imposed by the company's bankers may also have an adverse effect on the company's profitability. |
STRATEGIC MATTERS OF IMPORTANCE |
The company is continuing to embrace the national roll out of the Electronic Prescription System, which allows patients to nominate the company's branches as their automatic pharmacy of choice for the dispensing of their prescriptions. Currently nearly three quarters of prescription items dispensed by the group are on electronic prescriptions. The directors are also placing emphasis on training employees and ensuring delivery of excellent service to patients and the good presentation of pharmacy premises, in order to satisfy the inspection standards for pharmacy operations set by the General Pharmaceutical Council. |
Supplier relationships and negotiations, which allow good purchasing opportunities for the company, are also vital and are a continued area of exploration and focus for the directors. Increasingly efficient operation of the company's pharmaceutical buying system is also seen as a key driver of financial success in the year ahead. |
ON BEHALF OF THE BOARD: |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
The directors present their report with the financial statements of the company for the period 1 July 2021 to 31 December 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the period under review was that of operating various pharmacy outlets. |
DIVIDENDS |
No dividends will be distributed for the period ended 31 December 2022. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2021 to the date of this report. |
FINANCIAL INSTRUMENTS |
The company has adopted the disclosure and presentational requirements of FRS 102. When a financial asset or liability is disclosed initially it is measured at its fair value plus or minus transaction costs and subsequently at the undiscounted cash or other consideration expected to be paid or received. The company regularly monitors its exposure to risks including pricing, credit, liquidity and cash flow. |
CHANGE IN ACCOUNTING REFERENCE DATE |
During the period, the accounting reference date was extended from 30 June 2022 to 31 December 2022. |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen in accordance with Section 414C(11) Companies Act 2006 to set out in the company's Strategic Report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the Directors' Report. It has done so in respect of future developments. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Report of the Directors, the Strategic Report and the financial statements in accordance with applicable laws and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the company and of the profit and 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 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They 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.The directors are also responsible for the maintenance and integrity of the corporate and financial information included on the company's website. |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are 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 each director 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. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PHARMACY CARE PLUS LIMITED |
Opinion |
We have audited the financial statements of Pharmacy Care Plus Limited (the 'company') for the period ended 31 December 2022 which comprise the Statement of 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 December 2022 and of its profit for the period 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 directors' 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 directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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 Directors 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 Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PHARMACY CARE PLUS 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 Directors. |
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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are 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 directors determine 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 directors are 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- | we identified the laws and regulations applicable to the company through discussions with directors and other management; |
- | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company; |
- | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PHARMACY CARE PLUS LIMITED |
Auditors' responsibilities for the audit of the financial statements - continued |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 2 were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | reading the minutes of meetings of those charged with governance; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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. |
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. |
for and on behalf of |
Statutory Auditor |
Chartered Accountants |
Caledonia House |
89 Seaward Street |
Glasgow |
G41 1HJ |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
PERIOD |
1/7/21 |
TO | YEAR ENDED |
31/12/22 | 30/6/21 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
473,995 | 75,501 |
Other operating income | 4 |
OPERATING PROFIT | 6 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL PERIOD |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
BALANCE SHEET |
31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 15 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium | 20 |
Share option reserve | 20 |
Retained earnings | 20 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
Called up | Share |
share | Retained | Share | option | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 July 2020 | ( |
) |
Changes in equity |
Total comprehensive income | - | - |
Balance at 30 June 2021 | ( |
) |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 December 2022 | ( |
) |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
CASH FLOW STATEMENT |
FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
PERIOD |
1/7/21 |
TO | YEAR ENDED |
31/12/22 | 30/6/21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of property plant and equipment | ( |
) | ( |
) |
Sale of intangible fixed assets |
Sale of property plant and equipment |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of period |
2 |
1,157,604 |
Cash and cash equivalents at end of period | 2 | 773,320 | 1,588,979 |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
PERIOD |
1/7/21 |
TO | YEAR ENDED |
31/12/22 | 30/6/21 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Amortisation charges | 769,640 | 535,415 |
Finance costs | 251,036 | 82,390 |
773,115 | 796,695 |
(Increase)/decrease in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
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: |
Period ended 31 December 2022 |
31/12/22 | 1/7/21 |
£ | £ |
Cash and cash equivalents | 773,320 | 1,588,979 |
Year ended 30 June 2021 |
30/6/21 | 1/7/20 |
£ | £ |
Cash and cash equivalents | 1,588,979 | 1,157,604 |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/7/21 | Cash flow | At 31/12/22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,588,979 | (815,659 | ) | 773,320 |
1,588,979 | ( |
) | 773,320 |
Debt |
Finance leases | (107,040 | ) | 58,440 | (48,600 | ) |
Debts falling due within 1 year | (379,525 | ) | (688,236 | ) | (1,067,761 | ) |
Debts falling due after 1 year | (2,859,270 | ) | 1,605,482 | (1,253,788 | ) |
(3,345,835 | ) | 975,686 | (2,370,149 | ) |
Total | (1,756,856 | ) | 160,027 | (1,596,829 | ) |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
1. | STATUTORY INFORMATION |
Pharmacy Care Plus Limited is a private company, limited by shares, incorporated in England. The company's registered number is 06521783 and the registered office is No 2 The Courtyard, Suite M, Earl Road, Stanley Green, Cheadle Hulme, Cheshire, SK8 6GN. |
The financial statements are presented in Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The 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. There were no material departures from that standard. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. |
Going concern |
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors therefore continue to adopt the going concern basis in preparing the financial statements of the company. |
Preparation of consolidated financial statements |
The financial statements contain information about Pharmacy Care Plus Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company has taken the option under section 405 of the Companies Act 2006 not to prepare consolidated financial statements. |
Critical accounting judgements |
The company considers on an annual basis the judgements that are made by management when applying its significant accounting policies that would have the most significant effect on amounts that are recognised in the financial statements. The directors consider there to be no such judgements. |
Provisions |
Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date. |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Key sources of estimation uncertainty |
In the application of the company's accounting policies, the directors are required to make 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. |
The directors consider the key sources of estimation uncertainty to be as follows: - |
- Tangible fixed assets are depreciated over their estimated useful lives. The actual lives of the assets are assessed annually and may vary depending on several factors. In re-assessing asset lives, factors such as usage and maintenance programmes are taken into account. The directors assessed that no changes were required to the estimated useful lives of the tangible fixed assets and therefore, determined that the stated depreciation policies applied in prior years remain appropriate. |
- At the balance sheet date, the directors consider whether there are any indicators that the trade debtor balances relating to goods supplied and services rendered will not be recoverable, to ensure an adequate provision is made for any potentially irrecoverable amounts. Based on their knowledge of the customers concerned, the directors consider that no provision is required against these balances. |
- Determination of the value of the NHS payments due at the balance sheet date in advance of receipt. In making this judgement, management apply an average price per item, by reference to issued CATM prices, together with an estimated number of items dispensed. |
Turnover |
Turnover comprises the net invoiced cost of goods and services, excluding value added tax. |
Turnover generated from the provision of goods and all services is recognised when the amounts are fixed and determinable and collectability is reasonably assured. |
Turnover generated from the provision of goods is recognised when substantively all the risks and rewards in connection with the goods have been passed to the buyer. |
Goodwill |
Positive purchased goodwill arising on acquisitions is capitalised, classified as an asset on the balance sheet and amortised over its estimated useful life up to a maximum of 20 years. This length of time is presumed to be the maximum useful life of purchased goodwill because it is difficult to make projections beyond this period. Goodwill is reviewed for impairment at the end of the first full financial year following each acquisition and subsequently as and when necessary if circumstances emerge that indicate that the carrying value may not be recoverable. |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Fixtures and fittings | - |
Motor vehicles | - |
Fixed assets are included in the financial statements at cost less accumulated depreciation and impairment. |
Impairment of non-financial assets |
At each reporting date non-financial assets not carried at fair value, like goodwill and plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount which is the higher of value in use and the fair value less cost to sell, is estimated and compared with the carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit and loss. |
Government grants |
Government grants relating to revenue expenditure are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. Grants that become receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in the income in the period in which it becomes receivable |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less any provision for impairment. |
Stocks |
Stocks are valued at the lower of cost and estimated selling price less costs to sell. |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to and from related parties. |
Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and trade creditors, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received. |
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for evidence of impairment and if found, an impairment loss is recognised in profit or loss. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities. |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation represents the sum of tax currently payable and deferred tax. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. |
The charge for taxation takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. However, deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred taxation is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which the timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date. |
With the exception of changes arising on the initial recognition of a business combination, the tax expense is presented either in profit or loss, other comprehensive income or statement of changes in equity depending on the transaction that resulted in the tax expense. |
Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. |
Operating lease commitments |
Rentals paid and received under operating leases are charged/credited to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme and also makes contributions to individual arrangements which are of a money purchase nature. Contributions payable to the company's pension scheme and the individual arrangements are charged to the profit and loss account in the period to which they relate. |
Share-based payments |
Share based payments include share options granted to employees. The fair value of equity-settled share options is initially measured at grant date by reference to the fair value of the equity instrument granted. For cash-settled share based payments, the fair value of the liability incurred is measured at each reporting date and at the date of settlement, with any changes in fair value recognised in profit and loss for the period. Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the profit or loss over the vesting period. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
PERIOD |
1/7/21 |
TO | YEAR ENDED |
31/12/22 | 30/6/21 |
£ | £ |
United Kingdom |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
4. | OTHER OPERATING INCOME |
PERIOD |
1/7/21 |
TO | YEAR ENDED |
31/12/22 | 30/6/21 |
£ | £ |
Rents received |
Management fee |
Grant income |
46,977 | 78,619 |
5. | EMPLOYEES AND DIRECTORS |
PERIOD |
1/7/21 |
TO | YEAR ENDED |
31/12/22 | 30/6/21 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the period was as follows: |
PERIOD |
1/7/21 |
TO | YEAR ENDED |
31/12/22 | 30/6/21 |
Directors | 3 | 3 |
Administration | 2 | 2 |
Pharmacy staff | 83 | 94 |
Pharmacists | 4 | 3 |
Managers | 11 | 12 |
Warehouse | 1 | 2 |
PERIOD |
1/7/21 |
TO | YEAR ENDED |
31/12/22 | 30/6/21 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
5. | EMPLOYEES AND DIRECTORS - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
PERIOD |
1/7/21 |
TO | YEAR ENDED |
31/12/22 | 30/6/21 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
Remuneration paid to key management personnel in the period was £400,233 (2021: £244,185). |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
PERIOD |
1/7/21 |
TO | YEAR ENDED |
31/12/22 | 30/6/21 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Goodwill amortisation |
Auditors' remuneration |
Auditors' remuneration for non audit work |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
PERIOD |
1/7/21 |
TO | YEAR ENDED |
31/12/22 | 30/6/21 |
£ | £ |
Bank loan interest |
Other interest |
Hire purchase |
8. | TAXATION |
Analysis of the tax charge |
No liability to UK corporation tax arose for the period ended 31 December 2022 nor for the year ended 30 June 2021. |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
PERIOD |
1/7/21 |
TO | YEAR ENDED |
31/12/22 | 30/6/21 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2021 - |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Utilisation of tax losses | ( |
) | ( |
) |
Gain on sale of assets | (126,431 | ) | - |
Gross chargeable gains | 111,001 | - |
Total tax charge | - | - |
At the period end, tax losses on trading activities carried forward were £1,873,169 (2021: £2,224,951). |
9. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 July 2021 |
Disposals | ( |
) |
At 31 December 2022 |
AMORTISATION |
At 1 July 2021 |
Amortisation for period |
Eliminated on disposal | ( |
) |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 30 June 2021 |
Goodwill arose on acquisitions of businesses in 2009, 2010, 2012 and 2015 and is being amortised over a period of 20 years. The goodwill figure arises as the amount paid for the businesses exceeds the separable value of assets acquired. |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
10. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
Freehold | to | and | Motor |
property | property | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 July 2021 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2022 |
DEPRECIATION |
At 1 July 2021 |
Charge for period |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 30 June 2021 |
Included in cost of freehold property is freehold land of £200,000 (2021: £200,000) which is not depreciated. |
At the balance sheet date, assets held under hire purchase contracts had a net book value of £51,947 (2021: £110,387). |
11. | FIXED ASSET INVESTMENTS |
The shares in St Annes Pharmacy Limited, a dormant subsidiary company, have not been written off and are disclosed at their nominal value of £100. |
The shares in Triangle Health Care Limited, a dormant subsidiary company, have not been written off and are disclosed at their nominal value of £110. |
The shares in Birchill & Watson Company Limited, a dormant subsidiary company, have not been written off and are disclosed at their nominal value of £100. |
The shares in Healthcare Wholesale Ltd, a dormant subsidiary company, have not been written off and are disclosed at their nominal value of £100. |
The above companies are registered at No 2 The Courtyard Suite M, Earl Road Cheadle Hulme, Cheadle, Cheshire, SK8 6GN. |
12. | STOCKS |
2022 | 2021 |
£ | £ |
Goods for re-sale |
Stock recognised in cost of sales during the period as an expense was £13,306,519 (2021: £8,700,737). |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade debtors |
Other debtors |
NHS debtor | 903,972 | 893,995 |
VAT |
Prepayments |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Other loans (see note 16) |
Hire purchase contracts (see note 17) |
Trade creditors |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans (see note 16) |
Hire purchase contracts (see note 17) |
16. | LOANS |
An analysis of the maturity of loans is given below: |
2022 | 2021 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Invoice factoring | 688,236 | - |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
16. | LOANS - continued |
2022 | 2021 |
£ | £ |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans >5 years | - | 1,250,820 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2022 | 2021 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2022 | 2021 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
2022 | 2021 |
£ | £ |
Bank loans |
Hire purchase contracts | 48,600 | 107,040 |
HSBC holds a fixed and floating charge over the whole assets of the company in respect of a bank term loan provided to the company. |
Hire purchase liabilities are secured over the assets to which they relate. |
PHARMACY CARE PLUS LIMITED (REGISTERED NUMBER: 06521783) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JULY 2021 TO 31 DECEMBER 2022 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary 'A' | £1 | 100 | 100 |
Ordinary 'B' | £1 | 4,973,902 | 4,973,902 |
4,974,002 | 4,974,002 |
The rights attached to the Ordinary shares shall be determined from time to time in meetings by the directors. |
20. | RESERVES |
Share |
Retained | Share | option |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 July 2021 | ( |
) | (1,473,156 | ) |
Profit for the period |
At 31 December 2022 | ( |
) | (1,203,220 | ) |
21. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme on behalf of the employees of the company. The assets of the scheme are held separately from those of the company in independently administered funds. Contributions are also made to individual arrangements which are of a money purchase nature. |
A total of £143,720 (2021: £107,733) has been charged to the profit and loss account on the basis of contributions paid in the period. A balance of £12,279 (2021: £4,830) was due by the company at the balance sheet date. |
22. | RELATED PARTY DISCLOSURES |
The company is jointly controlled by the directors, R G Andrew and D Shah, who also control the subsidiaries listed in note 11. |
At the period end, included within trade debtors is £2,151 due from D Shah (2021: £2,262) and £301 due from R G Andrew (2021: £nil). |
During the period, the company leased properties from Pharma Properties LLP at an arms length rent of £150,217 (2021: £111,963) of which £35,647 (2021: £36,463) was outstanding and included in creditors. This amount is considered interest free on normal commercial repayment terms. |
During the period, a management fee was charged of £7,500 (2021: £5,000) to Pharma Properties LLP. At the period end, a balance of £6,000 (2021: £6,000) was due by the LLP and is included in debtors. |
R G Andrew and D Shah are designated members of Pharma Properties LLP. Bank loan facilities of Pharmacy Care Plus Limited were secured against properties owned by Pharma Properties LLP. |