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REGISTERED NUMBER: 08126719 (England and Wales)















Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2022

for

Central Pharma Contract Holdings Limited

Central Pharma Contract Holdings Limited (Registered number: 08126719)






Contents of the Consolidated Financial Statements
for the Year Ended 31 December 2022




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Consolidated Income Statement 8

Consolidated Other Comprehensive Income 9

Consolidated Balance Sheet 10

Company Balance Sheet 12

Consolidated Statement of Changes in Equity 14

Company Statement of Changes in Equity 15

Consolidated Cash Flow Statement 16

Notes to the Consolidated Cash Flow Statement 17

Notes to the Consolidated Financial Statements 18


Central Pharma Contract Holdings Limited

Company Information
for the Year Ended 31 December 2022







DIRECTORS: Mr A J Smit
Mr J E Derry-Evans
Mrs K Y Nichol
Mr M J Blood





REGISTERED OFFICE: Caxton Road
Elm Farm Industrial Estate
Bedford
Bedfordshire
MK41 0XZ





REGISTERED NUMBER: 08126719 (England and Wales)





AUDITORS: WP Audit Limited
Statutory Auditors
TOR
Saint-Cloud Way
Maidenhead
Berkshire
SL6 8BN

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Group Strategic Report
for the Year Ended 31 December 2022

The directors present their strategic report of the company and the group for the year ended 31 December 2022.

REVIEW OF BUSINESS
The group's key financial performance indicators during the period were as follows:

2022
£'000s

Group turnover 19,608
Gross profit margin 33.7%
Operating profit / (loss) (2,562 )
EBITDA (1,525 )
Net cash from operating activities 134
Shareholders' funds (671 )

The group's investments made in expanding its service offering has allowed the business to grow its revenue during the year. Pressures on costs as well as activity designed to streamline the business and facilitate additional service offerings have led to a decline in the gross margin and operating result for the year with continued investment made in ensuring that the group's operations meet the needs of its customers across a range of supply chain offerings. This has created challenging conditions for the group but the directors consider that the group remains a going concern and is well placed to move forward. The group continues to be recognised as a leader in its field with the the group being awarded the Best Pharmaceutical Supply Chain Services & Manufacturing Company 2022 at the Global Health & Pharma Global Excellence Awards.

The group's key profit measure is EBITDA, which is calculated as operating profit excluding depreciation,amortisation and intra-group charges. In 2022 the EBITDA loss was £1,524,742. The group's operating loss reported on a statutory basis was £2,562,172 which includes depreciation and amortisation of £1,037,430. The loss incurred for the year has affected the balance sheet position compared with last year with net liabilities at the year end of £671,368.

Following a challenging year from the perspective of reduced profitability, the group is better placed now to capitalise on operational improvement implemented during 2022. Capital expenditure was £284,090 in the year which was reduced compared with the prior year as the group benefits from the investment made previously. In addition, the group agreed a further equity investment from existing investors to reduce the level of debt and strengthen the balance sheet. The group works closely with its lenders to help fund its investment and this continued support should enable the group to realise the growth opportunities which the investment is designed to capitalise on.

PRINCIPAL RISKS AND UNCERTAINTIES
The market in which the group operates continues to provide opportunities for expansion and our focus on service and quality will allow us to continue to meet the needs of our customers and adapt to any changes in the regulatory environment. However, with substantial fixed costs within the business the primary risk to the business would be a substantial loss of volume. The directors will continue to look to grow the customer base as a way of managing the risk that the loss of a significant customer could present.

ON BEHALF OF THE BOARD:





Mr A J Smit - Director


29 September 2023

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Report of the Directors
for the Year Ended 31 December 2022

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2022.

PRINCIPAL ACTIVITY
The principal activity of the group in the year under review was that of contract packing for the pharmaceutical and health supplement industries.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2022.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

Mr A J Smit
Mr J E Derry-Evans
Mrs K Y Nichol
Mr M J Blood

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 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 affairs of the company and the group and of the profit or loss of the group 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;
- 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:





Mr A J Smit - Director


29 September 2023

Report of the Independent Auditors to the Members of
Central Pharma Contract Holdings Limited

Opinion
We have audited the financial statements of Central Pharma Contract Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2022 and of the group's loss 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 group 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
Conclusions relating to going concern In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made within the notes to the financial statements concerning the company's ability to continue as a going concern.

As at 31 December 2022 the company is managing cash to ensure they can continue to trade. Additional funding in the form of cash injections may be required to ensure that the group can remain as a going concern.

Should the company not achieve its financial plan it may require additional funding. In this event, there is a possibility that the group may not be able to continue as a going concern. The financial statements do not include the adjustments that would result if the company were unable to continue as a going concern. Our opinion is not modified in respect of this matter.

Other information
The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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.

Report of the Independent Auditors to the Members of
Central Pharma Contract Holdings Limited


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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Central Pharma Contract Holdings 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlines 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud.

-The engagement partners ensured that the engagement team collectively had the appropriate competence, capabilities and skill 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, and from our commercial knowledge and experience of the recruitment sector;

-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, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

-we assessed the extent of compliance with 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 instance 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;

-considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

-understanding the design of the company's remuneration policies.

To address the risk of fraud through management bias and override of controls, we;

-performed analytical procedures to identify unusual or unexpected relationships;

-tested journal entries to identify unusual transactions;

-assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

-investigated the rationale behind significant or unusual transactions.

Audit response to risks identified
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;
-enquiring of management as to actual and potential litigation and claims; and
-reviewing correspondence with HMRC, relevant regulators and 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.


Report of the Independent Auditors to the Members of
Central Pharma Contract Holdings Limited

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment of 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.




Philippa Duckworth BSc FCCA (Senior Statutory Auditor)
for and on behalf of WP Audit Limited
Statutory Auditors
TOR
Saint-Cloud Way
Maidenhead
Berkshire
SL6 8BN

26 October 2023

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Consolidated Income Statement
for the Year Ended 31 December 2022

31.12.22 31.12.21
as restated
Notes £    £   

TURNOVER 3 19,607,866 17,520,550

Cost of sales (13,009,088 ) (10,787,599 )
GROSS PROFIT 6,598,778 6,732,951

Administrative expenses (9,160,946 ) (7,794,308 )
(2,562,168 ) (1,061,357 )

Other operating income - 35,523
OPERATING LOSS 5 (2,562,168 ) (1,025,834 )


Interest payable and similar expenses 6 (274,647 ) 659,345
LOSS BEFORE TAXATION (2,836,815 ) (366,489 )

Tax on loss 7 128,930 (224,795 )
LOSS FOR THE FINANCIAL YEAR (2,707,885 ) (591,284 )
Loss attributable to:
Owners of the parent (2,707,885 ) (591,284 )

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Consolidated Other Comprehensive Income
for the Year Ended 31 December 2022

31.12.22 31.12.21
as restated
Notes £    £   

LOSS FOR THE YEAR (2,707,885 ) (591,284 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR (591,284 )
Note
Prior year adjustment 9 (180,000 )
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL
REPORT

(2,887,885

)

Total comprehensive income attributable to:
Owners of the parent (2,887,885 ) (591,284 )

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Consolidated Balance Sheet
31 December 2022

31.12.22 31.12.21
as restated
Notes £    £   
FIXED ASSETS
Intangible assets 10 1,520,902 1,679,604
Tangible assets 11 4,065,429 4,722,074
Investments 12 - -
5,586,331 6,401,678

CURRENT ASSETS
Stocks 13 1,361,868 1,653,341
Debtors 14 3,451,397 4,012,067
Cash in hand 720 720
4,813,985 5,666,128
CREDITORS
Amounts falling due within one year 15 (9,119,430 ) (8,479,750 )
NET CURRENT LIABILITIES (4,305,445 ) (2,813,622 )
TOTAL ASSETS LESS CURRENT LIABILITIES 1,280,886 3,588,056

CREDITORS
Amounts falling due after more than one year 16 (1,601,888 ) (2,711,261 )

PROVISIONS FOR LIABILITIES 20 (350,366 ) (469,908 )
NET (LIABILITIES)/ASSETS (671,368 ) 406,887

CAPITAL AND RESERVES
Called up share capital 21 272,740 140,755
Share premium 22 1,939,935 442,290
Retained earnings 22 (2,884,043 ) (176,158 )
SHAREHOLDERS' FUNDS (671,368 ) 406,887

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Consolidated Balance Sheet - continued
31 December 2022



The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2023 and were signed on its behalf by:





Mr A J Smit - Director


Central Pharma Contract Holdings Limited (Registered number: 08126719)

Company Balance Sheet
31 December 2022

31.12.22 31.12.21
as restated
Notes £    £   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 - -
Investments 12 4,500,004 4,500,004
4,500,004 4,500,004

CURRENT ASSETS
Debtors 14 - 476,718
Cash at bank 204 11,275
204 487,993
CREDITORS
Amounts falling due within one year 15 (1,069,947 ) (1,549,923 )
NET CURRENT LIABILITIES (1,069,743 ) (1,061,930 )
TOTAL ASSETS LESS CURRENT LIABILITIES 3,430,261 3,438,074

CREDITORS
Amounts falling due after more than one year 16 (135,700 ) (1,765,330 )
NET ASSETS 3,294,561 1,672,744

CAPITAL AND RESERVES
Called up share capital 21 272,739 140,754
Share premium 22 1,939,935 442,290
Retained earnings 22 1,081,887 1,089,700
SHAREHOLDERS' FUNDS 3,294,561 1,672,744

Company's (loss)/profit for the financial year (7,813 ) 634,767

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Company Balance Sheet - continued
31 December 2022



The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2023 and were signed on its behalf by:





Mr A J Smit - Director


Central Pharma Contract Holdings Limited (Registered number: 08126719)

Consolidated Statement of Changes in Equity
for the Year Ended 31 December 2022

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   

Balance at 1 January 2021 140,754 415,126 442,290 998,170

Changes in equity
Issue of share capital 1 - - 1
Total comprehensive income - (411,284 ) - (411,284 )
Balance at 31 December 2021 140,755 3,842 442,290 586,887
Prior year adjustment - (180,000 ) - (180,000 )
As restated 140,755 (176,158 ) 442,290 406,887

Changes in equity
Issue of share capital 131,985 - 1,497,645 1,629,630
Total comprehensive income - (2,707,885 ) - (2,707,885 )
Balance at 31 December 2022 272,740 (2,884,043 ) 1,939,935 (671,368 )

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Company Statement of Changes in Equity
for the Year Ended 31 December 2022

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   

Balance at 1 January 2021 140,754 454,933 442,290 1,037,977

Changes in equity
Total comprehensive income - 634,767 - 634,767
Balance at 31 December 2021 140,754 1,089,700 442,290 1,672,744

Changes in equity
Issue of share capital 131,985 - 1,497,645 1,629,630
Total comprehensive income - (7,813 ) - (7,813 )
Balance at 31 December 2022 272,739 1,081,887 1,939,935 3,294,561

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Consolidated Cash Flow Statement
for the Year Ended 31 December 2022

31.12.22 31.12.21
as restated
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 126,451 (913,882 )
Interest paid (211,542 ) (54,483 )
Interest element of hire purchase payments paid (63,105 ) (26,659 )
Finance costs paid - 740,487
Tax paid (4,589 ) 82,113
Net cash from operating activities (152,785 ) (172,424 )

Cash flows from investing activities
Purchase of intangible fixed assets - (5 )
Purchase of tangible fixed assets (188,471 ) (1,676,199 )
Sale of tangible fixed assets 62,008 47,697
Net cash from investing activities (126,463 ) (1,628,507 )

Cash flows from financing activities
Loan repayments in year (111,186 ) (146,656 )
Invoice financing drawdown / (repayment) 1,159,449 -
Loan notes redeemed in year (1,629,630 ) -
Capital repayments in year 503,913 (383,462 )
Amount withdrawn by directors - 180,000
Share issue 1,629,630 1
Net cash from financing activities 1,552,176 (350,117 )

Increase/(decrease) in cash and cash equivalents 1,272,928 (2,151,048 )
Cash and cash equivalents at beginning of year 2 (1,729,555 ) 421,493

Cash and cash equivalents at end of year 2 (456,627 ) (1,729,555 )

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 31 December 2022

1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
31.12.22 31.12.21
as restated
£    £   
Loss before taxation (2,836,815 ) (366,489 )
Depreciation charges 1,037,426 724,756
Finance costs 274,647 (659,345 )
(1,524,742 ) (301,078 )
Decrease/(increase) in stocks 291,473 (818,354 )
Decrease/(increase) in trade and other debtors 560,670 (369,517 )
Increase in trade and other creditors 799,050 575,067
Cash generated from operations 126,451 (913,882 )

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 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 720 720
Bank overdrafts (457,347 ) (1,730,275 )
(456,627 ) (1,729,555 )
Year ended 31 December 2021
31.12.21 1.1.21
as restated
£    £   
Cash and cash equivalents 720 421,493
Bank overdrafts (1,730,275 ) -
(1,729,555 ) 421,493


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.22 Cash flow At 31.12.22
£    £    £   
Net cash
Cash at bank and in hand 720 - 720
Bank overdrafts (1,730,275 ) 1,272,928 (457,347 )
(1,729,555 ) 1,272,928 (456,627 )
Debt
Finance leases (993,305 ) (591,662 ) (1,584,967 )
Debts falling due within 1 year (594,711 ) (1,159,449 ) (1,754,160 )
Debts falling due after 1 year (1,994,081 ) 1,550,645 (443,436 )
(3,582,097 ) (200,466 ) (3,782,563 )
Total (5,311,652 ) 1,072,462 (4,239,190 )

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2022

1. STATUTORY INFORMATION

Central Pharma Contract Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
The accounts are prepared on a going concern basis as the directors consider that the group has sufficient funding to meet its obligations as they fall due. The group has invested heavily in machinery to grow the business and capitalise on new opportunities which has increased the funding requirement from lenders. The directors are of the opinion that this investment, together with cost efficiencies being realised through property rationalisation, will enhance operating profit and cash flow available to service debt and manage working capital requirements. The directors have prepared forecasts for the foreseeable future, that is at least 12 months from the date of approval of these accounts, to support the going concern conclusion.

The historical cost convention is modified by the use of fair values for certain financial instruments in accordance with the accounting policies set out below.

Basis of consolidation
The group financial statements consolidate the financial statements of Central Pharma Contract Holdings Limited and all its subsidiary undertakings drawn up to 31 December each year. Subsidiary undertakings are included in the group financial statements using the acquisition method of accounting.

In the parent company financial statements, investments in subsidiaries, joint ventures and associates are accounted for at the lower of cost and net realisable value.

Central Pharma Biotechnica Limited (Registered No. 13182798) and Central Pharma Cell and Gene Therapy Limited (Registered No. 12769240), incorporated in England and Wales have taken exemption in section 479A of the Companies Act (the "Act") from the requirement in the Act for their individual accounts to be audited.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates
In the application of the company's accounting policies 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.

Tangible fixed assets
Tangible fixed 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.

Stock provision
On an annual basis the company make an assessment of the stock held and review its aging profile Base on this a provision will be included within the financial statements to reflect what is unlikely to be used. This varies on an annual basis with the directors required to make an estimation on their potential use.

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2022

2. ACCOUNTING POLICIES - continued

Turnover
Turnover arises from the group's principal activity of contract packing. Turnover is recognised at the fair value of the consideration received or receivable for the provision of packing services which occurs when the product has been packed. Turnover is shown net of Value Added Tax.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2012, is being amortised evenly over its estimated useful life of twenty years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Short leasehold - Over the lease term
Plant and machinery - 20% on cost, 15% on cost, 10% on cost and at varying rates on cost
Fixtures and fittings - 33% on cost and 20% on cost
Motor vehicles - 33% on cost, 25% on cost and 20% on cost
Computer equipment - 33% on cost and 20% on cost

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment.

Stocks
Stocks, which primarily relate to raw materials used in packing, are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost is the purchase cost of the materials. Provision is made for obsolete, slow-moving or defective items where appropriate.

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2022

2. ACCOUNTING POLICIES - continued

Financial instruments
Financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the instrument. 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.

(i) Financial assets and liabilities
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:
(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.
(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.
(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).
(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.
(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.
(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).

Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment. With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss. Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.

Financial assets are derecognised when and only when (a) the contractual rights to the cash flows from the financial asset expire or are settled, (b) the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or (c) the company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party. Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

(ii) Investments
Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.
In the company balance sheet, investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.

(iii) Equity instruments
Equity instruments issued by the company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs.


Central Pharma Contract Holdings Limited (Registered number: 08126719)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2022

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Confidential invoice discounting
The subsidiary of the group, Central Pharma Contract Packing, has a confidential invoice discounting facility in place. The accounting policy is to include the returnable element of the proceeds within current liabilities and present trade debtors within one year as gross. Service charges and interest are charged to the profit and loss account when paid. Bad debts are borne by the company and are charged to the profit and loss account when incurred.

Investment in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Holiday pay accrual
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance Sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Balance Sheet date.

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2022

3. TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the group.

An analysis of turnover by geographical market is given below:

31.12.22 31.12.21
as restated
£    £   
United Kingdom 17,671,108 14,962,363
Markets outside the UK 1,936,758 2,558,187
19,607,866 17,520,550

4. EMPLOYEES AND DIRECTORS
31.12.22 31.12.21
as restated
£    £   
Wages and salaries 6,829,026 6,425,229
Social security costs 711,082 620,948
Other pension costs 116,640 111,761
7,656,748 7,157,938

The average number of employees during the year was as follows:
31.12.22 31.12.21
as restated

Operations and production 192 186
Administration 39 42
Sales 2 2
233 230

31.12.22 31.12.21
as restated
£    £   
Directors' remuneration 445,285 295,018
Directors' pension contributions to money purchase schemes 26,467 19,113

Information regarding the highest paid director is as follows:
31.12.22 31.12.21
as restated
£    £   
Emoluments etc 152,148 153,669
Pension contributions to money purchase schemes 10,650 10,757

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2022

5. OPERATING LOSS

The operating loss is stated after charging:

31.12.22 31.12.21
as restated
£    £   
Hire of plant and machinery 38,374 42,167
Other operating leases 1,741,974 978,216
Depreciation - owned assets 542,862 386,965
Depreciation - assets on hire purchase contracts 335,865 179,090
Goodwill amortisation 158,702 158,703
Auditors' remuneration 15,000 20,890
Foreign exchange differences 18,901 43,522

Pension contributions totalling £31,585 (2021: £48,556) were payable to the pension fund at the year end and are included in creditors due less than 1 year.

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.22 31.12.21
as restated
£    £   
Bank interest 64,814 32,068
Other interest 146,728 22,415
Hire purchase 63,105 26,659
Loan write-off - (740,487 )
274,647 (659,345 )

7. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
31.12.22 31.12.21
as restated
£    £   
Current tax:
UK corporation tax (9,388 ) 13,977

Deferred tax (119,542 ) 210,818
Tax on loss (128,930 ) 224,795

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2022

7. TAXATION - continued

Reconciliation of total tax (credit)/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:

31.12.22 31.12.21
as restated
£    £   
Loss before tax (2,836,815 ) (366,489 )
Loss multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) (538,995 ) (69,633 )

Effects of:
Expenses not deductible for tax purposes 30,980 146,954

carried forward
Losses carried forward not recognised in deferred tax 361,248 124,870
Deferred tax provided for at a higher rate 17,837 22,604
Total tax (credit)/charge (128,930 ) 224,795

8. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


9. PRIOR YEAR ADJUSTMENT

A prior year adjustment has been made in relation to SDLT on a lease paid for personally by a director which was not recognised within the financial statements for 31 December 2021. The impact has been an increase in administrative expenses of £180,000 and an increase in the amount owed to the director by £180,000. There was no tax impact arising from the prior year adjustment.

10. INTANGIBLE FIXED ASSETS

Group
Patents
and
Goodwill licences Totals
£    £    £   
COST
At 1 January 2022
and 31 December 2022 3,174,047 4 3,174,051
AMORTISATION
At 1 January 2022 1,494,447 - 1,494,447
Amortisation for year 158,702 - 158,702
At 31 December 2022 1,653,149 - 1,653,149
NET BOOK VALUE
At 31 December 2022 1,520,898 4 1,520,902
At 31 December 2021 1,679,600 4 1,679,604

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2022

11. TANGIBLE FIXED ASSETS

Group
Fixtures
Short Plant and and
leasehold machinery fittings
£    £    £   
COST
At 1 January 2022 61,373 7,256,286 869,577
Additions - 149,796 11,598
Disposals - (250 ) (31,518 )
Reclassification/transfer - 7,866 -
At 31 December 2022 61,373 7,413,698 849,657
DEPRECIATION
At 1 January 2022 50,588 3,448,558 278,597
Charge for year 2,415 673,205 86,024
Transfer to ownership - 365,867 -
Reclassification/transfer - (365,867 ) -
At 31 December 2022 53,003 4,121,763 364,621
NET BOOK VALUE
At 31 December 2022 8,370 3,291,935 485,036
At 31 December 2021 10,785 3,807,728 590,980

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 January 2022 95,243 664,076 8,946,555
Additions 79,887 34,943 276,224
Disposals - (30,240 ) (62,008 )
Reclassification/transfer - - 7,866
At 31 December 2022 175,130 668,779 9,168,637
DEPRECIATION
At 1 January 2022 95,243 351,495 4,224,481
Charge for year 14,646 102,437 878,727
Transfer to ownership - - 365,867
Reclassification/transfer - - (365,867 )
At 31 December 2022 109,889 453,932 5,103,208
NET BOOK VALUE
At 31 December 2022 65,241 214,847 4,065,429
At 31 December 2021 - 312,581 4,722,074

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2022

11. TANGIBLE FIXED ASSETS - continued

Group

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 January 2022 1,676,057 65,421 1,741,478
Additions - 79,887 79,887
Transfer to ownership - (65,421 ) (65,421 )
Reclassification/transfer 908,508 - 908,508
At 31 December 2022 2,584,565 79,887 2,664,452
DEPRECIATION
At 1 January 2022 319,335 65,421 384,756
Charge for year 321,219 14,646 335,865
Transfer to ownership - (14,646 ) (14,646 )
Reclassification/transfer 343,832 - 343,832
At 31 December 2022 984,386 65,421 1,049,807
NET BOOK VALUE
At 31 December 2022 1,600,179 14,466 1,614,645
At 31 December 2021 1,356,722 - 1,356,722

12. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2022
and 31 December 2022 4,500,004
NET BOOK VALUE
At 31 December 2022 4,500,004
At 31 December 2021 4,500,004

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2022

12. FIXED ASSET INVESTMENTS - continued

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Central Pharma Contract Packing Limited
Registered office: Caxton Road, Elm Farm Industrial Estate, Bedford, Bedfordshire, MK41 0XZ
Nature of business: Contract packing
%
Class of shares: holding
Ordinary 100.00
31.12.22 31.12.21
£    £   
Aggregate capital and reserves 2,674,521 3,258,409
(Loss)/profit for the year (583,888 ) 248,876

Central Pharma Cell and Gene Therapy Ltd
Registered office: Caxton Road, Elm Farm Industrial Estate, Bedford, Bedfordshire, MK41 0HT
Nature of business: Contract packing
%
Class of shares: holding
Ordinary 100.00
31.12.22 31.12.21
£    £   
Aggregate capital and reserves (1,876,164 ) (1,142,758 )
Loss for the year (733,407 ) (1,142,757 )

The company is entitled to exemption from audit under Section 479A of the Companies Act 2006 relating to subsidiary companies for the period ended 31 December 2022. The ownership stated above includes direct and indirect holdings in the shares of the company.

Central Pharma Europe Limited
Registered office: 2 Park Place, City Gate, Mahon, Cork, T12D H0F
Nature of business: Contract packing
%
Class of shares: holding
Ordinary 100.00
31.12.22 31.12.21
£    £   
Aggregate capital and reserves (1,077,380 ) (674,151 )
Loss for the year (406,228 ) (389,682 )

Central Pharma Manufacturing Ltd
Registered office: Central Pharma Caxton Road, Elm Farm Industrial Estate, Bedford, United Kingdom, MK41 0HT
Nature of business: Manufacture of basic pharmaceutical products
%
Class of shares: holding
Ordinary 100.00
31.12.22 31.12.21
£    £   
Aggregate capital and reserves 1 1

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2022

12. FIXED ASSET INVESTMENTS - continued

Central Pharma Biotechnica Limited
Registered office: Central Pharma Caxton Road, Elm Farm Industrial Estate, Bedford, United Kingdom, MK41 0HT
Nature of business: Contract packing
%
Class of shares: holding
Ordinary 100.00
31.12.22 31.12.21
£    £   
Aggregate capital and reserves (663,377 ) 101,648
(Loss)/profit for the year (765,025 ) 101,647

The company is entitled to exemption from audit under Section 479A of the Companies Act 2006 relating to subsidiary companies for the period ended 31 December 2022. The ownership stated above includes direct and indirect holdings in the shares of the company.


13. STOCKS

Group
31.12.22 31.12.21
as restated
£    £   
Stocks 1,361,868 1,653,341

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
31.12.22 31.12.21 31.12.22 31.12.21
as restated as restated
£    £    £    £   
Trade debtors 2,971,597 3,453,795 - -
Amounts owed by group undertakings - - - 476,718
Other debtors 140,469 212,816 - -
Prepayments and accrued income 339,331 345,456 - -
3,451,397 4,012,067 - 476,718

Amounts due from group undertakings in the company balance sheet relates to an amount due from the subsidiary, Central Pharma Europe Limited.

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2022

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
31.12.22 31.12.21 31.12.22 31.12.21
as restated as restated
£    £    £    £   
Bank loans and overdrafts (see note 17) 2,211,507 2,324,986 - -
Hire purchase contracts (see note 18) 426,515 466,296 - -
Trade creditors 3,089,169 2,280,015 - -
Amounts owed to group undertakings - - 1,069,947 1,549,923
Tax - 13,977 - -
Social security and other taxes 260,246 235,073 - -
VAT 942,286 744,114 - -
Other creditors 70,890 352,364 - -
Directors' current accounts 180,000 180,000 - -
Accruals and deferred income 120,691 28,982 - -
Accrued expenses 1,818,126 1,853,943 - -
9,119,430 8,479,750 1,069,947 1,549,923

Amounts due to group undertakings in the company balance sheet relates to an amount due to the subsidiary, Central Pharma Contract Packing Limited.

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group Company
31.12.22 31.12.21 31.12.22 31.12.21
as restated as restated
£    £    £    £   
Bank loans (see note 17) 307,736 418,922 - -
Other loans (see note 17) 135,700 1,575,159 135,700 1,575,159
Hire purchase contracts (see note 18) 1,158,452 527,009 - -
Directors' loan accounts - 190,171 - 190,171
1,601,888 2,711,261 135,700 1,765,330

17. LOANS

An analysis of the maturity of loans is given below:

Group Company
31.12.22 31.12.21 31.12.22 31.12.21
as restated as restated
£    £    £    £   
Amounts falling due within one year or on demand:
Bank overdrafts 457,347 1,730,275 - -
Bank loans 1,754,160 594,711 - -
2,211,507 2,324,986 - -
Amounts falling due between one and two years:
Bank loans - 1-2 years 122,762 111,186 - -
Amounts falling due between two and five years:
Bank loans - 2-5 years 184,974 307,736 - -
Series 2 loan note 135,700 1,575,159 135,700 1,575,159
320,674 1,882,895 135,700 1,575,159

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2022

17. LOANS - continued

Series 2 loan notes held by directors are shown in the notes to the accounts under the heading 'Directors' loan accounts' and are excluded from the above table. If the amounts were included within the Series 2 loan notes then for both the group and the company would increase by £nil (2021: £190,171)

18. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
31.12.22 31.12.21
as restated
£    £   
Net obligations repayable:
Within one year 426,515 466,296
Between one and five years 1,158,452 527,009
1,584,967 993,305

Group
Non-cancellable operating leases
31.12.22 31.12.21
as restated
£    £   
Within one year 536,540 349,862
Between one and five years 4,708,000 4,067,540
In more than five years 5,961,667 7,138,667
11,206,207 11,556,069

19. SECURED DEBTS

The following secured debts are included within creditors:

Group
31.12.22 31.12.21
as restated
£    £   
Bank overdraft 457,347 1,730,275
Hire purchase contracts 1,584,967 993,305
Bank loans 1,642,974 526,133
3,685,288 3,249,713

Bank loans relate to an invoice finance facility of £1,642,974 (2021: £526,133) provided by Clydesdale Bank PLC. The invoice finance facility accrues discount charges at 2.4% of notified receivables. The bank debt and overdraft is secured by fixed and floating charges over the undertaking and all property and assets present and future.

Hire purchase creditors are secured on the tangible asset that has been financed.

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2022

20. PROVISIONS FOR LIABILITIES

Group
31.12.22 31.12.21
as restated
£    £   
Deferred tax 350,366 469,908

Group
Deferred
tax
£   
Balance at 1 January 2022 469,908
Credit to Income Statement during year (119,542 )
Balance at 31 December 2022 350,366

Deferred tax relates to timing differences arising from the amount of depreciation charged on fixed assets compared with capital allowances claimed.

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.22 31.12.21
value: as restated
£    £   
261,540 Ordinary 'A' £1 261,540 129,555
11,107 Ordinary 'B' £1 11,107 11,107
9,289 Ordinary 'C' £0.01 93 93
272,740 140,755

131,985 Ordinary 'A' shares of £1 each were allotted as fully paid at a premium of £11.347085 per share during the year.

The Ordinary A, B and C shares all carry a right to dividend and capital distribution in the event of a return of capital. The Ordinary A and B shares carry voting rights whereas the Ordinary C shares have no voting rights.

22. RESERVES

Group
Retained Share
earnings premium Totals
£    £    £   

At 1 January 2022 3,842 442,290 446,132
Prior year adjustment (180,000 ) (180,000 )
(176,158 ) 266,132
Deficit for the year (2,707,885 ) (2,707,885 )
Cash share issue - 1,497,645 1,497,645
At 31 December 2022 (2,884,043 ) 1,939,935 (944,108 )

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2022

22. RESERVES - continued

Company
Retained Share
earnings premium Totals
£    £    £   

At 1 January 2022 1,089,700 442,290 1,531,990
Deficit for the year (7,813 ) (7,813 )
Cash share issue - 1,497,645 1,497,645
At 31 December 2022 1,081,887 1,939,935 3,021,822


23. CONTINGENT LIABILITIES

Post year end the group has been in discussions with their landlord with regards to a potential dilapidation charge on a property. At this point in time the outcome of the settlement is uncertain both in terms of amount and timing. An initial assessment made by the landlord estimates the liability to be around £330,000 but this is currently in negotiation with the company and as a result is uncertain both in terms of timing and the final negotiated liability.

24. CAPITAL COMMITMENTS
31.12.22 31.12.21
as restated
£    £   
Contracted but not provided for in the
financial statements 127,740 -

25. RELATED PARTY DISCLOSURES

In 2021 the group agreed to vary the terms of its Series 2 loan notes held primarily by directors and shareholders resulting in interest previously accrued being waived and amending the interest rate to 0%. As a result, a credit of £740,487 was released to interest expense in that year. In 2022 the group agreed to issue equity shares to certain holders of Series 2 loan notes with the consideration being the redemption of the Series 2 loan notes. The amount of the consideration was £1,629,631.

Entities with control, joint control or significant influence over the entity
31.12.22 31.12.21
as restated
£    £   
Amount due to related party - 903,093

Amounts due to entities with control over the group relate to the unsecured Series 2 loan notes held by a related entity. The loan notes are unsecured.

Key management personnel of the entity or its parent (in the aggregate)
31.12.22 31.12.21
as restated
£    £   
Amount due to related party - 190,171

Amounts due to key management personnel relate to the unsecured Series 2 loan notes held by certain directors. The loan notes are unsecured.

During the year, a total of key management personnel compensation of £ 442,276 (2021 - £ 451,811 ) was paid.

Key management personnel includes the directors of both Central Pharma Contract Packing Limited as well as Central Pharma Contract Holdings Limited.

Central Pharma Contract Holdings Limited (Registered number: 08126719)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2022

26. ULTIMATE CONTROLLING PARTY

There is no single ultimate controlling party.

27. SHARE-BASED PAYMENT TRANSACTIONS

The company operates an approved Enterprise Management Incentive Share Option Scheme is operated for eligible employees, including directors.

The options vest immediately on grant. If the options remain unexercised after a period of two months from the date of grant, the options expire. Options are forfeited if an employee leaves the company. Obligations under this scheme will be met by the issue of C Ordinary shares of the company.

The estimated fair value of the share options was valued by applying the Black-Scholes option pricing model.



Weighted
average exercise
price (£


)


Number


Weighted
average exercise
price (£


)


Number
2022 2022 2021 2021

Outstanding at the beginning of the year - - - -
Granted during the year - - 0.01 7,650
Exercised during the year - - (0.01 ) (7,650 )
Forfeited during the year - - - -
Outstanding at the end of the year - - - -

The number of options exercisable at 31 December 2022 in relation to employees of the company was nil (2021: nil).