REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 28 February 2023 |
for |
Aver Generics Limited |
REGISTERED NUMBER: |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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 £ |
The total distribution of dividends for the year ended 28 February 2023 will be £ |
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. |
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: |
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. |
for and on behalf of |
T/A Accountants Plus, Statutory Auditor |
Unit 1 Cadzow Park |
82 Muir Street |
Hamilton |
ML3 6BJ |
Aver Generics Limited (Registered number: SC441171) |
Income Statement |
for the Year Ended 28 February 2023 |
28.2.23 | 28.2.22 |
(Unaudited) |
Notes | £ | £ | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
3,108,750 | 2,297,650 |
1,799,524 | 635,296 |
Other operating income |
OPERATING PROFIT | 4 |
Interest payable and similar expenses |
5 |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
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 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Aver Generics Limited (Registered number: SC441171) |
Balance Sheet |
28 February 2023 |
28.2.23 | 28.2.22 |
(Unaudited) |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
CURRENT ASSETS |
Stocks | 9 |
Debtors | 10 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
12 |
( |
) |
PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 28 February 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 28 February 2023 |
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 | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments in year |
Amount introduced by directors | 637 | - |
Amount withdrawn by directors | (101 | ) | - |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
(718,550 |
) |
(1,048,530 |
) |
Cash and cash equivalents at end of year |
2 |
( |
) |
( |
) |
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 |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Finance costs | 3,113 | - |
1,963,471 | 649,635 |
(Increase)/decrease in stocks | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 28 February 2023 |
28.2.23 | 1.3.22 |
£ | £ |
Cash and cash equivalents | 47,496 | 82,107 |
Bank overdrafts | ( |
) | ( |
) |
(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 | ( |
) | ( |
) |
(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 | ) | ( |
) | (1,867,800 | ) |
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 |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
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 |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
28.2.23 | 28.2.22 |
(Unaudited) |
Warehouse and operational |
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 |
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 |
Other operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
28.2.23 | 28.2.22 |
(Unaudited) |
£ | £ |
Hire purchase |
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 |
Deferred tax | ( |
) |
Tax on profit |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
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 |
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 |
Additions |
Disposals | ( |
) | ( |
) |
At 28 February 2023 |
DEPRECIATION |
At 1 March 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 28 February 2023 |
NET BOOK VALUE |
At 28 February 2023 |
At 28 February 2022 |
9. | STOCKS |
28.2.23 | 28.2.22 |
(Unaudited) |
£ | £ |
Finished goods |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
28.2.23 | 28.2.22 |
(Unaudited) |
£ | £ |
Trade debtors |
Prepayments |
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) |
Hire purchase contracts (see note 14) |
Trade creditors |
Tax |
Social security and other taxes |
Wages payable | (3,954 | ) | (1,835 | ) |
Pensions payable | 4,302 | 3,065 |
VAT | 264,697 | 145,314 |
Other creditors |
Directors' current accounts | 962 | 426 |
Accrued expenses |
12. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
28.2.23 | 28.2.22 |
(Unaudited) |
£ | £ |
Hire purchase contracts (see note 14) |
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 |
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 |
Between one and five years |
Non-cancellable | operating leases |
28.2.23 | 28.2.22 |
(Unaudited) |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
15. | SECURED DEBTS |
The following secured debts are included within creditors: |
28.2.23 | 28.2.22 |
(Unaudited) |
£ | £ |
Bank overdraft |
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 |
Provided during year |
Balance at 28 February 2023 |
** | 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: | £ | £ |
Ordinary | £1 | 300,000 | 300,000 |
18. | RESERVES |
Retained |
earnings |
£ |
At 1 March 2022 |
Profit for the year |
Dividends | ( |
) |
At 28 February 2023 |
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. |