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REGISTERED NUMBER: 06844351 (England and Wales)















Neon Healthcare Ltd

Strategic Report, Directors' Report and

Audited Financial Statements

for the Year Ended 31 March 2023






Neon Healthcare Ltd (Registered number: 06844351)

Contents of the Financial Statements
for the year ended 31 March 2023










Page

Company Information 1

Strategic Report 2

Directors' Report 5

Independent Auditors' Report 7

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Financial Statements 15


Neon Healthcare Ltd

Company Information
for the year ended 31 March 2023







Directors: N M Foster
A J W Jenkins
S P Knightley





Registered office: 8 The Chase John Tate Road
Foxholes Business Park
Hertford
Hertfordshire
SG13 7NN





Registered number: 06844351 (England and Wales)





Auditors: Haines Watts Essex LLP
Juniper House
Warley Hill Business Park
The Drive
Brentwood
Essex
CM13 3BE

Neon Healthcare Ltd (Registered number: 06844351)

Strategic Report
for the year ended 31 March 2023


The directors present their strategic report for the year ended 31 March 2023.

Review of business
The results of the company show a profit for the financial year before tax of £1,901,383 (2022: £2,178,770) and turnover of £51,171,530 (2022: £52,519,690). The total shareholders' funds were £4,100,430 (2022: £2,402,881).

Although Turnover decreased by 3% during 2023, Gross Profit increased by 15% as the company began transitioning to higher margin products. The company continued to build capability for future growth and invest in its development programme which resulted in an increase in administrative expenses.

The company's vision is to deliver positive change for at risk products, for the benefit of patients. The company's technical capability is a key driver for growth, and encompasses activities related to remediating well-established products, that require technical expertise, to ensure long term supply for patients. The company plans to continue to invest in its development programme as well as the acquisition of legacy products that require remediation to make them sustainable and ensure that patient needs are met.

During the year the company successfully re-developed and launched a branded sole supplier medicine. The development included a re-formulation and technology transfer to a new manufacturing facility.

Principal risks and uncertainties
Regulation and Product Development

The company operates in a highly regulated industry. Failure to comply with laws and regulations may negatively impact the company. The company places significant focus on a robust Quality management system to address this risk. The company is also reliant on the regulatory review timelines of the regulatory authority that assesses and approves a new development or manufacturing process. The company has and continues to invest in its technical capabilities to ensure that the technical package presented to the regulatory authorities is contemporised and meets current regulatory standards.

Third Party Warehousing and Distribution

The company is reliant on its distribution partner to warehouse products and supply customers. Since the move to its current storage and distribution partner in 2021, the company has developed a close working relationship. The current service provider has demonstrated that it has the capacity and experience to service the growth of the company and ensure the safe storage of products and the efficient supply to customers to mitigate this risk.

Customer Credit

The company's principal customers are wholesalers of pharmaceutical products. Credit risk is therefore reduced due to the profile of its customers.

Key Performance Indicators

Management monitors the progress of the Company by reference to a number of KPI's including:

KPI 2023 2022
Increase/(Decrease) in Turnover (%) (3%) 242%
Increase/(Decrease) in Gross Profit (%) 15% 163%
Increase/(Decrease) in Operating Profit (%) (12%) 272%


Neon Healthcare Ltd (Registered number: 06844351)

Strategic Report
for the year ended 31 March 2023

Section 172(1) statement
The company recognises its obligations under Section 172(1) of the Companies Act 2006, which requires directors to act in a way that promotes the success of the company for the benefit of its members as a whole, and in doing so have regard for:

a. the likely consequence of any decision in the long term
b. the interests of the company's employees
c. the need to foster business relationships with customers, suppliers, and others
d. the impact of the company's operations on the community and the environment
e. the desirability of the company maintaining a reputation for high standards of business conduct
f. the need to act fairly to all shareholders of the company

In fulfilling their duties during the year, the directors have considered the matters set out in a. to f. above and followed the following principles when making decisions:

Customers

We understand that our customers are at the heart of our business, and we are dedicated to acting in their best interests. We aim to build trust and long-lasting relationships with our customers, ensuring that their needs are met while upholding the highest standards of product safety, efficacy, and customer service.

Employees

We recognise the vital role that our dedicated employees play in the company's success. We are committed to acting in a way that promotes the well-being and interests of our employees. This includes fostering a safe and inclusive work environment, providing opportunities for personal and professional development, and offering fair and competitive compensation packages. We understand that the engagement, motivation, and satisfaction of our employees are essential drivers of our long-term success.

Suppliers

We recognise the significance of our relationships with suppliers. We value the contributions of our suppliers in providing essential products and services that enable us to operate efficiently and deliver products to our customers. We are committed to fostering fair, transparent, and mutually beneficial relationships with our suppliers.

Compliance with Legal and Regulatory Requirements

The company operates in a highly regulated environment. We consider compliance with legal and regulatory requirements to be of paramount importance. We are dedicated to conducting our business activities in strict adherence to all applicable laws, regulations, and industry standards. Our commitment to compliance extends to every aspect of our operations. We invest in ongoing training and monitoring to ensure that our employees and directors are well-informed and capable of upholding the highest standards of legal and regulatory compliance. By prioritising compliance, we not only mitigate risks and protect the interests of our stakeholders but also contribute to the overall integrity and trustworthiness of the business environment in which we operate.

Risk Management

We recognise the critical importance of proactive risk management in safeguarding the interests of our stakeholders and promoting the long-term success of our business. We are committed to identifying, assessing, and effectively managing risks that could impact our operations, financial stability, or reputation. Our approach to risk management is comprehensive, and it encompasses financial, operational, compliance, and strategic risks. We continually review and update our risk mitigation strategies to adapt to changing business environments and emerging threats.

Ethical Conduct

The company is dedicated to conducting its business in an ethical and responsible manner. We will ensure that our actions align with the highest standards of integrity, accountability, and corporate governance.

Social and Environmental Responsibility

We recognise the importance of corporate social responsibility and environmental sustainability. We will seek to minimise our environmental impact and contribute positively to the communities in which we operate.

Neon Healthcare Ltd (Registered number: 06844351)

Strategic Report
for the year ended 31 March 2023


Long-term Success

We will act in a manner that seeks to promote the long-term success of the company. This involves making strategic decisions that are sustainable and considers the interests of all stakeholders.

On behalf of the board:





S P Knightley - Director


30 October 2023

Neon Healthcare Ltd (Registered number: 06844351)

Directors' Report
for the year ended 31 March 2023


The directors present their report with the financial statements of the company for the year ended 31 March 2023.

Principal activity
The principal activity of the company in the year under review was that of the registration, marketing and distribution of branded and generic pharmaceutical products in the United Kingdom.

Dividends
No interim or final dividends were declared for the year ended 31 March 2023.

Future developments
In 2024 the company will continue to drive sales through launches from its development programme. The company has started to evaluate international markets, to identify where existing products and products that are currently in development could also be licensed to generate additional growth outside of the United Kingdom. Since the year end the company has established subsidiaries in Australia and New Zealand as part of its geographic expansion.

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

N M Foster
A J W Jenkins
S P Knightley

Engagement with suppliers, customers and others in a business relationship
The company has continued to enhance its engagement with suppliers, customers, and other stakeholders. We recognise that these relationships are fundamental to our success, enabling us to deliver high-quality products and services while ensuring sustainability and responsible business practices. We remain dedicated to maintaining transparency, trust, and collaboration in all our business interactions.

Streamlined energy and carbon reporting
The company is exempt from reporting under SECR requirements as its own purchased energy consumption was lower than 40,000 kWh during the period.

Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable 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.

Neon Healthcare Ltd (Registered number: 06844351)

Directors' Report
for the year ended 31 March 2023


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:





S P Knightley - Director


30 October 2023

Independent Auditors' Report to the Members of
Neon Healthcare Ltd


Opinion
We have audited the financial statements of Neon Healthcare Ltd (the 'company') for the year ended 31 March 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and 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 March 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 Directors' Report, but does not include the financial statements and our Auditors' Report 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Independent Auditors' Report to the Members of
Neon Healthcare Ltd


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 Directors' Report.

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, 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 an Auditors' Report 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:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We discussed with the Directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance.

During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, UK tax legislation and MHRA (Medicines and Healthcare Product Regulatory Agency). Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.

Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Auditors' Report.

Independent Auditors' Report to the Members of
Neon Healthcare Ltd


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 an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Jane Wills (Senior Statutory Auditor)
for and on behalf of Haines Watts Essex LLP
Juniper House
Warley Hill Business Park
The Drive
Brentwood
Essex
CM13 3BE

30 October 2023

Neon Healthcare Ltd (Registered number: 06844351)

Income Statement
for the year ended 31 March 2023

2023 2022
Notes £ £

Turnover 3 51,171,530 52,519,690

Cost of sales (45,028,334 ) (47,168,497 )
Gross profit 6,143,196 5,351,193

Administrative expenses (4,196,753 ) (3,143,319 )
1,946,443 2,207,874

Other operating income 750 291
Operating profit 1,947,193 2,208,165


Interest payable and similar expenses 6 (45,810 ) (29,395 )
Profit before taxation 7 1,901,383 2,178,770

Tax on profit 9 (203,834 ) (223,786 )
Profit for the financial year 1,697,549 1,954,984

Neon Healthcare Ltd (Registered number: 06844351)

Other Comprehensive Income
for the year ended 31 March 2023

2023 2022
Notes £ £

Profit for the year 1,697,549 1,954,984


Other comprehensive income - -
Total comprehensive income for the year 1,697,549 1,954,984

Neon Healthcare Ltd (Registered number: 06844351)

Balance Sheet
31 March 2023

2023 2022
Notes £ £ £ £
Fixed assets
Tangible assets 11 246,464 142,551

Current assets
Stocks 12 22,528,907 27,336,236
Debtors 13 14,587,132 14,841,882
Cash at bank 6,309,215 2,297,138
43,425,254 44,475,256
Creditors
Amounts falling due within one year 14 39,011,668 41,683,918
Net current assets 4,413,586 2,791,338
Total assets less current liabilities 4,660,050 2,933,889

Creditors
Amounts falling due after more than one
year

15

(500,000

)

(500,000

)

Provisions for liabilities 17 (59,620 ) (31,008 )
Net assets 4,100,430 2,402,881

Capital and reserves
Called up share capital 18 1,000 1,000
Retained earnings 19 4,099,430 2,401,881
Shareholders' funds 4,100,430 2,402,881

The financial statements were approved by the Board of Directors and authorised for issue on 30 October 2023 and were signed on its behalf by:





S P Knightley - Director


Neon Healthcare Ltd (Registered number: 06844351)

Statement of Changes in Equity
for the year ended 31 March 2023

Called up
share Retained Total
capital earnings equity
£ £ £

Balance at 1 April 2021 1,000 1,146,897 1,147,897

Changes in equity
Dividends - (700,000 ) (700,000 )
Total comprehensive income - 1,954,984 1,954,984
Balance at 31 March 2022 1,000 2,401,881 2,402,881

Changes in equity
Total comprehensive income - 1,697,549 1,697,549
Balance at 31 March 2023 1,000 4,099,430 4,100,430

Neon Healthcare Ltd (Registered number: 06844351)

Cash Flow Statement
for the year ended 31 March 2023

2023 2022
Notes £ £
Cash flows from operating activities
Cash generated from operations 22 4,441,146 2,008,988
Interest paid (45,810 ) (29,395 )
Tax paid (199,101 ) -
Net cash from operating activities 4,196,235 1,979,593

Cash flows from investing activities
Purchase of tangible fixed assets (184,158 ) (36,477 )
Net cash from investing activities (184,158 ) (36,477 )

Cash flows from financing activities
Equity dividends paid - (700,000 )
Net cash from financing activities - (700,000 )

Increase in cash and cash equivalents 4,012,077 1,243,116
Cash and cash equivalents at beginning
of year

23

2,297,138

1,054,022

Cash and cash equivalents at end of year 23 6,309,215 2,297,138

Neon Healthcare Ltd (Registered number: 06844351)

Notes to the Financial Statements
for the year ended 31 March 2023


1. Statutory information

Neon Healthcare Ltd 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 Company Information page.

2. Accounting policies

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

The financial statements are prepared in sterling which is the functional currency of the company and rounded to the nearest pound.

Going concern
The financial statements have been prepared on a going concern basis. The directors have reviewed and considered relevant information, including the annual budget and future cash flows in making this assessment.

Critical accounting judgements and key sources of estimation uncertainty
The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.

Stock provisions are reviewed on an annual basis and all short-dated stock is fully provided for. Products become short-dated six months before the corresponding batch expiry date, except sterile products which become short-dated three months before the corresponding batch expiry date. In exceptional circumstances, due to patient needs and if there is not an alternate medicine available, a product may be sold past the six-month short date period, but before the corresponding batch expiry date. Such exceptional circumstances are documented and approved by the Quality Assurance team. Whilst every attempt is made to ensure that the stock provisions are as accurate as possible, there remains a risk that the provisions do not match the ultimate unrealised value of stock held.

Rebate accrual estimates are calculated on a monthly basis from historical wholesaler data and reviewed on a regular basis.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover is recognised on delivery of goods by the wholesaler.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - Straight line over the life of the lease
Fixtures and fittings - 25% on cost
Computer equipment - 25% on cost

Tangible fixed assets are stated at cost less depreciation.

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

Neon Healthcare Ltd (Registered number: 06844351)

Notes to the Financial Statements - continued
for the year ended 31 March 2023


2. Accounting policies - continued

Financial instruments
Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the company's cash management.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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. The company is a beneficiary of Research & Development (R&D) tax relief from the UK Government in the form of reductions in its annual tax liability, as well as repayable tax credits. Current tax assets or reductions in tax liabilities for R&D claims are only recognised when the amount can be reliable determprobability probabiility of HM Revenue & Customers accepting the claim is considered high.

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.

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

Leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

3. Turnover

The turnover and profit before taxation are attributed to the principal activity of the company.

Neon Healthcare Ltd (Registered number: 06844351)

Notes to the Financial Statements - continued
for the year ended 31 March 2023


4. Employees and directors
2023 2022
£ £
Wages and salaries 1,632,880 1,066,032
Social security costs 217,039 107,481
Other pension costs 81,182 52,635
1,931,101 1,226,148

The average number of employees during the year was as follows:
2023 2022

Management 4 2
Finance 3 2
Regulatory Affairs, QA, PV and Med Info 7 5
Commercial 4 2
Supply Chain 3 3
21 14

5. Directors' emoluments
2023 2022
£ £
Directors' remuneration 248,819 313,000
Directors' pension contributions to money purchase schemes 30,038 32,800

Information regarding the highest paid director is as follows:
2023 2022
£ £
Emoluments etc 162,827 187,500
Pension contributions to money purchase schemes 12,958 12,000

6. Interest payable and similar expenses
2023 2022
£ £
Other interest 36,500 28,499
Interest payable 9,310 896
45,810 29,395

7. Profit before taxation

The profit is stated after charging/(crediting):

2023 2022
£ £
Depreciation - owned assets 80,245 35,875
Loss on disposal of fixed assets - 815
Foreign exchange differences 12,302 (3,826 )

Neon Healthcare Ltd (Registered number: 06844351)

Notes to the Financial Statements - continued
for the year ended 31 March 2023


8. Auditors' remuneration
2023 2022
£ £
Fees payable to the company's auditors and their associates for the audit
of the company's financial statements

26,500

24,000
Other non- audit services 30,480 24,300

9. Taxation

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£ £
Current tax:
UK corporation tax 175,222 216,110

Deferred tax 28,612 7,676
Tax on profit 203,834 223,786

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

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

2023 2022
£ £
Profit before tax 1,901,383 2,178,770
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

361,263

413,966

Effects of:
Expenses not deductible for tax purposes 1,309 663
Capital allowances in excess of depreciation (20,405 ) (2,079 )
Research and development (168,867 ) (196,341 )
Deferred tax 28,612 7,676
Other timing differences 1,922 (99 )
Total tax charge 203,834 223,786

10. Dividends
2023 2022
£ £
Ordinary shares of £0.01 each
Final - 245,000
Interim - 98,000
A shares of £0.01 each
Final - 255,000
Interim - 102,000
- 700,000

Neon Healthcare Ltd (Registered number: 06844351)

Notes to the Financial Statements - continued
for the year ended 31 March 2023


11. Tangible fixed assets
Fixtures
Improvements and Computer
to property fittings equipment Totals
£ £ £ £
Cost
At 1 April 2022 121,013 5,532 61,790 188,335
Additions 138,614 9,379 36,165 184,158
At 31 March 2023 259,627 14,911 97,955 372,493
Depreciation
At 1 April 2022 24,203 3,990 17,591 45,784
Charge for year 58,462 2,345 19,438 80,245
At 31 March 2023 82,665 6,335 37,029 126,029
Net book value
At 31 March 2023 176,962 8,576 60,926 246,464
At 31 March 2022 96,810 1,542 44,199 142,551

12. Stocks
2023 2022
£ £
Goods for resale 22,528,907 27,336,236

13. Debtors: amounts falling due within one year
2023 2022
£ £
Trade debtors 14,038,093 12,020,632
Other debtors 118,944 1,847,554
Prepayments and accrued income 430,095 973,696
14,587,132 14,841,882

14. Creditors: amounts falling due within one year
2023 2022
£ £
Trade creditors 28,833,458 18,687,663
Tax 175,317 199,196
Social security and other taxes 1,942,190 2,412,957
Other creditors 5,914,015 18,916,839
Amounts owed to directors 1,699 526,630
Accrued expenses 2,144,989 940,633
39,011,668 41,683,918

15. Creditors: amounts falling due after more than one year
2023 2022
£ £
Amounts owed to directors 500,000 500,000

The loan from the director is secured over the assets of the company and interest is being charged at 4% per annum.

Neon Healthcare Ltd (Registered number: 06844351)

Notes to the Financial Statements - continued
for the year ended 31 March 2023


16. Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£ £
Within one year 89,400 81,310
Between one and five years 179,400 268,800
268,800 350,110

17. Provisions for liabilities
2023 2022
£ £
Deferred tax 59,620 31,008

Deferred tax
£
Balance at 1 April 2022 31,008
Charge to Income Statement during year 28,612
Balance at 31 March 2023 59,620

18. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £ £
49,000 Ordinary £0.01 490 490
51,000 A £0.01 510 510
1,000 1,000

The shares rank pari passu.

19. Reserves
Retained
earnings
£

At 1 April 2022 2,401,881
Profit for the year 1,697,549
At 31 March 2023 4,099,430

20. Related party disclosures

The balance due from the company to the directors at year end was £501,699 (2022: £1,026,630).

Included in other debtors is an amount of £261 (2022: £248) owed by SNP Pharma as at the year end.

During the year the company paid dividends of £nil (2022: £700,000) to the directors.

During the year, a total of key management compensation of £892,798 (2022: £725,845) was paid.

21. Ultimate controlling party

The ultimate controlling party is considered to be A Jenkins by virtue of his majority shareholding.

Neon Healthcare Ltd (Registered number: 06844351)

Notes to the Financial Statements - continued
for the year ended 31 March 2023


22. Reconciliation of profit before taxation to cash generated from operations
2023 2022
£ £
Profit before taxation 1,901,383 2,178,770
Depreciation charges 80,245 35,874
Loss on disposal of fixed assets - 815
Finance costs 45,810 29,395
2,027,438 2,244,854
Decrease/(increase) in stocks 4,807,329 (17,027,065 )
Decrease/(increase) in trade and other debtors 254,750 (7,468,914 )
(Decrease)/increase in trade and other creditors (2,648,371 ) 24,260,113
Cash generated from operations 4,441,146 2,008,988

23. 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 March 2023
31/3/23 1/4/22
£ £
Cash and cash equivalents 6,309,215 2,297,138
Year ended 31 March 2022
31/3/22 1/4/21
£ £
Cash and cash equivalents 2,297,138 1,054,022


24. Analysis of changes in net funds

At 1/4/22 Cash flow At 31/3/23
£ £ £
Net cash
Cash at bank 2,297,138 4,012,077 6,309,215
2,297,138 4,012,077 6,309,215
Total 2,297,138 4,012,077 6,309,215