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REGISTERED NUMBER: SC441171 (Scotland)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 28 February 2023

for

Aver Generics Limited

Aver Generics Limited (Registered number: SC441171)






Contents of the Financial Statements
for the Year Ended 28 February 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 7

Report of the Independent Auditors 9

Income Statement 13

Other Comprehensive Income 14

Balance Sheet 15

Statement of Changes in Equity 16

Cash Flow Statement 17

Notes to the Cash Flow Statement 18

Notes to the Financial Statements 20


Aver Generics Limited

Company Information
for the Year Ended 28 February 2023







DIRECTORS: G McDowall
C McDowall





REGISTERED OFFICE: 20 Singer Road
East Kilbride
Glasgow
G75 0XS





REGISTERED NUMBER: SC441171 (Scotland)





AUDITORS: Accountants Plus (Hamilton) Ltd
T/A Accountants Plus, Statutory Auditor
Unit 1 Cadzow Park
82 Muir Street
Hamilton
ML3 6BJ

Aver Generics Limited (Registered number: SC441171)

Strategic Report
for the Year Ended 28 February 2023

The directors present their strategic report for the year ended 28 February 2023.


Aver Generics Limited (Registered number: SC441171)

Strategic Report
for the Year Ended 28 February 2023

REVIEW OF BUSINESS
The past year has been a landmark one for Aver Generics. A suite of significant milestones exemplifies our commitment to growth and excellence. The company proudly achieved accreditation to the Scottish real living wage, fortifying our resolve to foster a workplace that champions the well-being of its employees. Our 10th-anniversary celebration in June 2023 garnered recognition from Parliament through an Early Day Motion. Furthermore, we welcomed a new Chief Operating Officer to the executive team, bolstering our strategic capabilities. Beyond this appointment, we have taken proactive steps to bolster the structure of the executive team as a whole. Enhanced continuity planning and more structured executive meetings have been implemented to ensure that we are well-prepared for any challenges and opportunities that may come our way. These changes at the executive level signify our commitment to not only day-to-day operations but also to the long-term resilience and growth of Aver Generics.

Regulatory compliance continues to be a focal point, especially as the Medicines and Healthcare Regulatory Agency (MHRA) maintains stringent industry guidelines. We remain proactive in ensuring that all facets of our operations align with these requirements.

As a family-run business, the ethos of being 'local and reliable' permeates every layer of our operations. Our distinct focus on fostering long-term relationships with independent community pharmacies sets us apart in an increasingly competitive market. Our forward-looking approach will ensure that Aver Generics remains a frontrunner in the sector.

We are optimistic about the future and committed to adapting to the changing landscape of wholesale pharmaceutical distribution, relying on both the experience of our seasoned staff and the emerging technologies that will improve the efficiencies in independent pharmacies.

Business Operations
Our operational capacities saw marked improvements, starting with the expansion of our fully-owned, temperature-controlled fleet of vans. The upgrades also spanned to a new server installation, fortifying our IT security framework. In a step to refine our internal control environment, we engaged in a comprehensive Health and Safety and Risk Assessment process, which has strengthened our internal protocols.

Competition and Consumer Trends
The recent sale of Lloyds pharmacies in Scotland to independent community pharmacies has provided Aver Generics with new avenues for growth. We are actively exploring diversification opportunities to broaden our service offerings and further understand our customers' needs. Customer feedback continues to serve as a crucial KPI for us, helping to inform improvements in our operational efficiencies as well as those of our clients. To further modernise our operations, we have increased our focus on electronic ordering systems.

Health and Safety
Our processes for Health and Safety and Risk Assessment has proven to be a valuable asset, particularly in an industry as tightly regulated as pharmaceuticals. An ongoing review of first-aid personnel ensures that we are adequately staffed in this critical function. Additionally, the appointment of a mental health first aider underlines our commitment to the holistic well-being of our team.

Environmental Matters
In a drive to become more ecologically responsible, we have set in motion plans to transition to electric company vehicles for a number of company cars. Our warehouse operations have also been audited to identify opportunities for sustainable packaging solutions, thereby reducing our environmental footprint.

Aver Generics Limited (Registered number: SC441171)

Strategic Report
for the Year Ended 28 February 2023


PRINCIPAL RISKS AND UNCERTAINTIES
Competitive Landscape

Aver Generics operates in a competitive pharmaceutical wholesale market, particularly in the Generics sector. We mitigate this risk by offering competitive prices across a broad portfolio of products, emphasising quality and maintaining a robust supply chain. We continuously refine our pricing strategy to remain competitive, and we also focus on the value-added services that set us apart in the market.

Financial Risks

Credit, liquidity, and cash flow risks are kept to a minimal level at Aver Generics. The company is primarily financed through retained earnings, and close monitoring and forecasting of cash flows are performed to manage these risks effectively.


Technology and Data Security

With the addition of a Chief Operating Officer and our increased focus on data and IT, the company is now more attuned to risks associated with technological changes and data security. We are investing in our IT infrastructure and adopting best practices to mitigate these risks.


Supply Chain and Regulatory Compliance

Being in the pharmaceutical sector, compliance with regulations from the Medicines and Healthcare Regulatory Agency (MHRA) is critical. We continue to enhance our quality management systems and work closely with regulatory bodies to ensure we meet all industry standards.


Environmental and Social Responsibility

We are moving towards using electric vehicles within the company fleet and focusing on waste reduction in our warehouse, emphasising our commitment to environmental responsibility.


Employee Wellbeing and Growth

As a family-run business, the well-being of our staff is a key focus area. We have engaged in partnerships to ensure Health and Safety protocols are at their highest standards. Our accreditation to the Scottish Real Living Wage and our commitment to improving the standard of living for our employees underline our core values of being local and reliable.


By proactively managing these risks and uncertainties, Aver Generics aims to remain resilient and agile in a rapidly evolving market. We are committed to long-term success by investing in our people, processes, and technology while maintaining strong relationships with our customers and stakeholders.


Aver Generics Limited (Registered number: SC441171)

Strategic Report
for the Year Ended 28 February 2023

SECTION 172(1) STATEMENT
We affirm that the company's activities over the period have been executed in good faith, considering the views of employees, customers, and suppliers. Our adherence to the Scottish real living wage, colleague remuneration, and support for local charities and foundations bear testimony to this commitment.


Aver Generics Limited (Registered number: SC441171)

Strategic Report
for the Year Ended 28 February 2023

FINANCIAL INSTRUMENTS
The principal financial instruments utilised by Aver Generics include bank balances, trade debtors, and trade creditors. These instruments are managed meticulously through our internal control mechanisms and are discussed regularly in management meetings to ensure optimal performance.


Bank Balances
We maintain sufficient bank balances to meet our operational and strategic needs. Our liquidity is closely monitored to ensure we can meet our financial commitments and capitalise on growth opportunities as they arise.


Trade Debtors
Our approach to managing trade debtors involves a multifaceted strategy, grounded in strict policy guidelines that define the credit terms offered to each of our customers, customised according to each customer's unique risk profile and undergoing periodic reviews. In addition to this, we have strengthened our financial due diligence through a strategic partnership with a reputable credit control facility, which supports us in various ways, including the provision of financial due diligence and the setting of appropriate credit limits to mitigate the risk of bad debt.

Moreover, we utilise credit references that provide us with additional layers of security by recommending credit limits based on comprehensive financial background insight. These partnerships, along with our own stringent regulatory compliance checks, not only safeguard our cash flow but also help us in fostering strong, secure relationships with our clients.

To seamlessly integrate these enhanced credit management features, we are investing in bolstering our IT systems. This will enable us to automate certain aspects of credit management, ensuring we operate within the established credit limits, thereby achieving a balance between risk mitigation and business growth.


Trade Creditors
Aver Generics ensures that there are enough funds available to meet our obligations toward trade creditors. This is achieved by keeping a close control on our working capital and negotiating favorable payment terms whenever possible. In some instances, advanced payments may be made in accordance with specific contract requirements.

By adopting these comprehensive financial management practices, Aver Generics is not only fulfilling its current financial obligations but is also positioning itself for sustainable growth. The management is in regular communication with key personnel involved in finance and operations to remain informed and make data-driven decisions for the company's financial well-being.

ON BEHALF OF THE BOARD:





C McDowall - Director


31 October 2023

Aver Generics Limited (Registered number: SC441171)

Report of the Directors
for the Year Ended 28 February 2023

The directors present their report with the financial statements of the company for the year ended 28 February 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of wholesale of pharmaceutical goods.

DIVIDENDS
No interim dividend was paid during the year. The directors recommend a final dividend of £1.44 per share.

The total distribution of dividends for the year ended 28 February 2023 will be £ 432,138 .

FUTURE DEVELOPMENTS
The company has ongoing plans for growth, diversification and continued improvement in our approach to environmental responsibility

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

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

G McDowall
C McDowall

POLITICAL DONATIONS AND EXPENDITURE
Donations made in the year were to charities.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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 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;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.


Aver Generics Limited (Registered number: SC441171)

Report of the Directors
for the Year Ended 28 February 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued
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.

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.

AUDITORS
The auditors, Accountants Plus (Hamilton) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





C McDowall - Director


31 October 2023

Report of the Independent Auditors to the Members of
Aver Generics Limited

Opinion
We have audited the financial statements of Aver Generics Limited (the 'company') for the year ended 28 February 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 28 February 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.

Report of the Independent Auditors to the Members of
Aver Generics Limited


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

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

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

The comparative figures were unaudited.

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

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

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on pages seven and eight, 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.

Report of the Independent Auditors to the Members of
Aver Generics 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:

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks.


The key factors impacting the detection of irregularities are the inherent difficulty in detecting irregularities, the effectiveness of the company's controls and the nature, timing and extent of the audit procedures performed.

We note that it can be harder to detect irregularities arising due to fraud as they may involve deliberate concealment or collusion. We focused on laws and regulations that could give rise to a material misstatement in the financial statements Including, but not limited to, the Companies Act 2006 and significant regulations relating to the sector in which the company operates.
Our procedures in relation to fraud and irregularities included but were not limited to:
-Inquiries of management whether they have knowledge of any actual, suspected or alleged fraud.
- Gaining an understanding of the legal and regulatory framework through discussion with management and identifying how the entity ensures compliance through a review of systems. Assessing the collective ability of the audit team to identify or recognize non-compliance with laws and regulations. We identified the following as significant laws and regulations for this company - MHRA wholesale dealer license.

-Gaining an understanding of the internal controls established to mitigate risk related to fraud.
- Making an assessment of the susceptibility of the company's financial statements to material misstatement.

- Carrying out a review of accounting systems and procedure and making an assessment on the effectiveness of its control environment.

-Identifying the principal risks where fraud could take place eg posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates and significant one-off or unusual transaction. Discussion of these matters by the audit team.
-Addressing the risk of fraud through management override of controls by performing journal entry testing.
- Review of board minutes and relevant correspondence with regulators and legal advisors.
- Agreement of the financial statement disclosures to underlying supporting documentation

The primary responsibility for the prevention and detection of irregularities including fraud rests with both those charged with governance and management.

Report of the Independent Auditors to the Members of
Aver Generics Limited

Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK)
In particular, the more removed from the financial transactions, the less likely it is that we would become aware of non-compliance with laws and regulations.
As a result of our procedures, we did not identify any key audit matters relating to irregularities.

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.




Fiona Struthers C.A. (Senior Statutory Auditor)
for and on behalf of Accountants Plus (Hamilton) Ltd
T/A Accountants Plus, Statutory Auditor
Unit 1 Cadzow Park
82 Muir Street
Hamilton
ML3 6BJ

31 October 2023

Aver Generics Limited (Registered number: SC441171)

Income Statement
for the Year Ended 28 February 2023

28.2.23 28.2.22
(Unaudited)
Notes £    £    £    £   

TURNOVER 21,113,199 19,277,463

Cost of sales 16,204,925 16,344,517
GROSS PROFIT 4,908,274 2,932,946

Distribution costs 122,475 221,082
Administrative expenses 2,986,275 2,076,568
3,108,750 2,297,650
1,799,524 635,296

Other operating income 2,246 2,146
OPERATING PROFIT 4 1,801,770 637,442


Interest payable and similar
expenses

5

3,113

-
PROFIT BEFORE TAXATION 1,798,657 637,442

Tax on profit 6 381,849 122,389
PROFIT FOR THE FINANCIAL YEAR 1,416,808 515,053

Aver Generics Limited (Registered number: SC441171)

Other Comprehensive Income
for the Year Ended 28 February 2023

28.2.23 28.2.22
(Unaudited)
Notes £    £   

PROFIT FOR THE YEAR 1,416,808 515,053


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,416,808

515,053

Aver Generics Limited (Registered number: SC441171)

Balance Sheet
28 February 2023

28.2.23 28.2.22
(Unaudited)
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 471,802 33,079

CURRENT ASSETS
Stocks 9 2,220,539 1,130,302
Debtors 10 4,116,007 2,631,542
Cash at bank and in hand 47,496 82,107
6,384,042 3,843,951
CREDITORS
Amounts falling due within one year 11 4,909,809 3,115,964
NET CURRENT ASSETS 1,474,233 727,987
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,946,035

761,066

CREDITORS
Amounts falling due after more than
one year

12

(57,559

)

-

PROVISIONS FOR LIABILITIES 16 (149,430 ) (6,690 )
NET ASSETS 1,739,046 754,376

CAPITAL AND RESERVES
Called up share capital 17 300,000 300,000
Retained earnings 18 1,439,046 454,376
SHAREHOLDERS' FUNDS 1,739,046 754,376

The financial statements were approved by the Board of Directors and authorised for issue on 31 October 2023 and were signed on its behalf by:





C McDowall - Director


Aver Generics Limited (Registered number: SC441171)

Statement of Changes in Equity
for the Year Ended 28 February 2023

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 March 2021 300,000 265,509 565,509

Changes in equity
Dividends - (326,186 ) (326,186 )
Total comprehensive income - 515,053 515,053
Balance at 28 February 2022 300,000 454,376 754,376

Changes in equity
Dividends - (432,138 ) (432,138 )
Total comprehensive income - 1,416,808 1,416,808
Balance at 28 February 2023 300,000 1,439,046 1,739,046

Aver Generics Limited (Registered number: SC441171)

Cash Flow Statement
for the Year Ended 28 February 2023

28.2.23 28.2.22
(Unaudited)
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (87,688 ) 883,231
Interest element of hire purchase
payments paid

(3,113

)

-
Tax paid (124,249 ) (224,661 )
Net cash from operating activities (215,050 ) 658,570

Cash flows from investing activities
Purchase of tangible fixed assets (604,923 ) (2,404 )
Sale of tangible fixed assets 4,500 -
Net cash from investing activities (600,423 ) (2,404 )

Cash flows from financing activities
Capital repayments in year 97,825 -
Amount introduced by directors 637 -
Amount withdrawn by directors (101 ) -
Equity dividends paid (432,138 ) (326,186 )
Net cash from financing activities (333,777 ) (326,186 )

(Decrease)/increase in cash and cash equivalents (1,149,250 ) 329,980
Cash and cash equivalents at
beginning of year

2

(718,550

)

(1,048,530

)

Cash and cash equivalents at end
of year

2

(1,867,800

)

(718,550

)

Aver Generics Limited (Registered number: SC441171)

Notes to the Cash Flow Statement
for the Year Ended 28 February 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
28.2.23 28.2.22
(Unaudited)
£    £   
Profit before taxation 1,798,657 637,442
Depreciation charges 162,266 12,193
Profit on disposal of fixed assets (565 ) -
Finance costs 3,113 -
1,963,471 649,635
(Increase)/decrease in stocks (1,090,238 ) 10,694
(Increase)/decrease in trade and other debtors (1,484,465 ) 630,145
Increase/(decrease) in trade and other creditors 523,544 (407,243 )
Cash generated from operations (87,688 ) 883,231

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 28 February 2023
28.2.23 1.3.22
£    £   
Cash and cash equivalents 47,496 82,107
Bank overdrafts (1,915,296 ) (800,657 )
(1,867,800 ) (718,550 )
Year ended 28 February 2022
28.2.22 1.3.21
(Unaudited)
£    £   
Cash and cash equivalents 82,107 20,690
Bank overdrafts (800,657 ) (1,069,220 )
(718,550 ) (1,048,530 )


Aver Generics Limited (Registered number: SC441171)

Notes to the Cash Flow Statement
for the Year Ended 28 February 2023

3. ANALYSIS OF CHANGES IN NET DEBT

At 1.3.22 Cash flow At 28.2.23
£    £    £   
Net cash
Cash at bank and in hand 82,107 (34,611 ) 47,496
Bank overdrafts (800,657 ) (1,114,639 ) (1,915,296 )
(718,550 ) (1,149,250 ) (1,867,800 )
Debt
Finance leases - (97,825 ) (97,825 )
- (97,825 ) (97,825 )
Total (718,550 ) (1,247,075 ) (1,965,625 )

Aver Generics Limited (Registered number: SC441171)

Notes to the Financial Statements
for the Year Ended 28 February 2023

1. STATUTORY INFORMATION

Aver Generics Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

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


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.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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.
Plant and machinery - 20% on reducing balance
Fixtures and fittings - 33% on reducing balance and 25% on reducing balance
Motor vehicles - 25% on reducing balance

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

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

The company uses the average cost method to value stock.

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

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

Cash and bank balances
Cash and bank balances are measured at the transaction price.


Aver Generics Limited (Registered number: SC441171)

Notes to the Financial Statements - continued
for the Year Ended 28 February 2023

2. ACCOUNTING POLICIES - continued
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.

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.

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

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

3. EMPLOYEES AND DIRECTORS
28.2.23 28.2.22
(Unaudited)
£    £   
Wages and salaries 1,754,947 1,235,473
Social security costs 162,461 105,455
Other pension costs 16,420 12,176
1,933,828 1,353,104

The average number of employees during the year was as follows:
28.2.23 28.2.22
(Unaudited)

Warehouse and operational 55 53

Aver Generics Limited (Registered number: SC441171)

Notes to the Financial Statements - continued
for the Year Ended 28 February 2023

3. EMPLOYEES AND DIRECTORS - continued

28.2.23 28.2.22
(Unaudited)
£    £   
Directors' remuneration 99,140 32,828

Key management personnel remuneration in total, excluding directors, was £93,308.

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

28.2.23 28.2.22
(Unaudited)
£    £   
Hire of plant and machinery 88,722 95,921
Other operating leases 55,474 53,765
Depreciation - owned assets 162,265 12,192
Profit on disposal of fixed assets (565 ) -
Auditors' remuneration 9,984 -

5. INTEREST PAYABLE AND SIMILAR EXPENSES
28.2.23 28.2.22
(Unaudited)
£    £   
Hire purchase 3,113 -

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
28.2.23 28.2.22
(Unaudited)
£    £   
Current tax:
UK corporation tax 239,109 124,249

Deferred tax 142,740 (1,860 )
Tax on profit 381,849 122,389

Aver Generics Limited (Registered number: SC441171)

Notes to the Financial Statements - continued
for the Year Ended 28 February 2023

6. TAXATION - continued

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

28.2.23 28.2.22
(Unaudited)
£    £   
Profit before tax 1,798,657 637,442
Profit multiplied by the standard rate of corporation tax in the
UK of 19% (2022 - 19%)

341,745

121,114

Effects of:
Expenses not deductible for tax purposes 11,453 1,564
Income not taxable for tax purposes (107 ) -
Capital allowances in excess of depreciation (113,982 ) -
Depreciation in excess of capital allowances - 1,571
Movement in deferred tax 142,740 (1,860 )
Total tax charge 381,849 122,389

7. DIVIDENDS
28.2.23 28.2.22
(Unaudited)
£    £   
Ordinary shares of £1 each
Final 432,138 326,186

Aver Generics Limited (Registered number: SC441171)

Notes to the Financial Statements - continued
for the Year Ended 28 February 2023

8. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor
machinery fittings vehicles Totals
£    £    £    £   
COST
At 1 March 2022 19,433 126,852 6,995 153,280
Additions 1,574 58,659 544,690 604,923
Disposals - - (6,995 ) (6,995 )
At 28 February 2023 21,007 185,511 544,690 751,208
DEPRECIATION
At 1 March 2022 10,574 106,567 3,060 120,201
Charge for year 2,086 24,006 136,173 162,265
Eliminated on disposal - - (3,060 ) (3,060 )
At 28 February 2023 12,660 130,573 136,173 279,406
NET BOOK VALUE
At 28 February 2023 8,347 54,938 408,517 471,802
At 28 February 2022 8,859 20,285 3,935 33,079

9. STOCKS
28.2.23 28.2.22
(Unaudited)
£    £   
Finished goods 2,220,539 1,130,302

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
28.2.23 28.2.22
(Unaudited)
£    £   
Trade debtors 3,990,251 2,607,799
Prepayments 125,756 23,743
4,116,007 2,631,542

Aver Generics Limited (Registered number: SC441171)

Notes to the Financial Statements - continued
for the Year Ended 28 February 2023

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
28.2.23 28.2.22
(Unaudited)
£    £   
Bank loans and overdrafts (see note 13)
1,915,296

800,657
Hire purchase contracts (see note 14)
40,266

-
Trade creditors 2,325,251 1,961,988
Tax 239,109 124,249
Social security and other taxes 57,262 27,564
Wages payable (3,954 ) (1,835 )
Pensions payable 4,302 3,065
VAT 264,697 145,314
Other creditors - 2,250
Directors' current accounts 962 426
Accrued expenses 66,618 52,286
4,909,809 3,115,964

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR
28.2.23 28.2.22
(Unaudited)
£    £   
Hire purchase contracts (see note 14)
57,559

-

13. LOANS

An analysis of the maturity of loans is given below:

28.2.23 28.2.22
(Unaudited)
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 1,915,296 800,657

Aver Generics Limited (Registered number: SC441171)

Notes to the Financial Statements - continued
for the Year Ended 28 February 2023

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
28.2.23 28.2.22
(Unaudited
£    £   
Net obligations repayable:
Within one year 40,266 -
Between one and five years 57,559 -
97,825 -

Non-cancellable operating leases
28.2.23 28.2.22
(Unaudited)
£    £   
Within one year 40,153 -
Between one and five years 290,994 -
In more than five years 358,344 -
689,491 -

15. SECURED DEBTS

The following secured debts are included within creditors:

28.2.23 28.2.22
(Unaudited)
£    £   
Bank overdraft 1,915,296 -

The invoice financing facility is secured by a bond and floating charge over the assets of the company.

16. PROVISIONS FOR LIABILITIES
28.2.23 28.2.22
(Unaudited)
£    £   
Deferred tax 149,430 6,690

Aver Generics Limited (Registered number: SC441171)

Notes to the Financial Statements - continued
for the Year Ended 28 February 2023

16. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 March 2022 6,690
Provided during year 116,222
Balance at 28 February 2023 122,912

** BALANCE ABOVE AT END OF YEAR RE DEFERRED TAX ON CLIENT
SCREEN OF

122,912
DOES NOT AGREE TO CURRENT YEAR TOTAL OF ACCOUNTS PER TB 149,430

PLEASE CHECK CLIENT SCREEN - NOTES TO FINANCIAL STATEMENTS - BALANCE SHEET ITEMS - PROVISIONS FOR LIABILITIES - MOVEMENT IN PROVISIONS ETC

Please note: a deferred tax asset should be entered as a negative balance (i.e. include a "-" sign)


17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 28.2.23 28.2.22
value: £    £   
300,000 Ordinary £1 300,000 300,000

18. RESERVES
Retained
earnings
£   

At 1 March 2022 454,376
Profit for the year 1,416,808
Dividends (432,138 )
At 28 February 2023 1,439,046

19. POST BALANCE SHEET EVENTS

Subsequent to the end of the financial year, the company purchased the shares of one of the directors. The amount to be paid will total £455,000 and paid from revenue reserves.

In addition, the company diversified its operations through the acquisition of Retail Pharmacies and entered into loan agreements totalling £1,100,000 in relation to a purchase.