REGISTERED NUMBER: 00797583 (England and Wales) |
H.J. EVERETT (CHEMIST) LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
REGISTERED NUMBER: 00797583 (England and Wales) |
H.J. EVERETT (CHEMIST) LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
H.J. EVERETT (CHEMIST) LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditors |
Station House |
North Street |
Havant |
Hampshire |
PO9 1QU |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their strategic report of the company and the group for the year ended 31 March 2023. |
REVIEW OF BUSINESS |
Everetts Pharmacy is a longstanding independent community pharmacy multiple, and the principal activity of the Company remains that of operating registered community pharmacies, conducting prescription dispensing, retail sales and professional healthcare services, across eleven sites in Hampshire. |
Company performance, despite consolidation and efficiencies during the year, has resulted in a Group net profit of £55K. This significant decline in profitability is attributed to several factors: the government has flatlined NHS funding on core dispensing activity, with the only area for growth being clinical services, which is increasing gradually despite sector disruption causing widespread bricks and mortar pharmacy closures. |
Everetts Pharmacy has continued to modernise branches, and to invest in centralised prescription dispensing and distribution and in our loyal staff. Drug price increases, not matched by funding in the NHS drug tariff, combined with a lack of import regulation, is being countered at Everetts Pharmacy by the adoption of alternative purchasing software.The funding shortfall continues to reduce gross margin, resulting in pharmacy closures locally and nationally, encouraged by government policy towards online and hub-based mass dispensing and remote distribution. |
We look to expand our services with targeted recruitment and applying for commissioned NHS services, supplemented by private services, where possible. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The continued DHSC policy of encouraging online pharmacy activity, makes the move from retail high street to online difficult for a traditional community orientated pharmacy structure but, for Everetts Pharmacy, both approaches are increasingly necessary to survive. At Everetts Pharmacy, we will continue to increase our online presence focusing on our local customer base, and improve the efficiency of our purchasing, centralised dispensing, and home delivery service. More efficient massive work hubs and online attraction of pharmacy business remain the biggest threat to the traditional high street pharmacy. 'Face to face' trading is preferred but markedly the least efficient method, leaving an ever-increasing proportion of pharmacy business online. |
The biggest costs remain drug purchase costs and staffing, and both can continue to be improved, primarily through technology. The government is no closer to regulating 'B to B' stock price manipulation, with a knock-on effect for pharmacies, and staffing costs are hard to control through increased cost of living caused by inflation. The CPE (Community Pharmacy England, previously PSNC) has changed structure but continues to negotiate strongly with the DHSC for the new 5-year NHS Pharmacy contract but this is not expected to be finalised until after the next General election. In the meantime, funding remains flatlined, although reduced in real terms, and a shrinking community pharmacy must continue to perform strongly to keep the expanding sector in good standing for this crucially anticipated NHS contract. |
The Company continues to deliver remote services by telephone and has started providing private services where the NHS leaves gaps and there is demand. The close proximity of branches and small group strong mentality has helped the company retain much of its core business. We are pleased with the community pharmacy service that we provide to our localities, despite a challenging market and little central financial support. This year, as with last, Everetts Pharmacy will continue to advance healthcare services by blending our strong traditional structure and set up with further modernisation. |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
FINANCIAL KEY PERFORMANCE INDICATORS |
The following KPls are continually reviewed by the Company: |
a) Company turnover has increased to £16.1M from £14.8M in the previous period. |
b) The Company's gross profit margin is reduced to 25.4% for the year, from 28.2% in 2022. The decrease is due to market pressure on drug prices with NHS government-controlled funding remaining static. |
c) Operating profit decreased from the previous period with a Company profit before tax of £55K compared to the prior year profit of £741K. |
ON BEHALF OF THE BOARD: |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Morris Crocker Limited, 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 |
H.J. EVERETT (CHEMIST) LIMITED |
Opinion |
We have audited the financial statements of H.J. Everett (Chemist) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2023 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
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 group's and the parent 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 Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
H.J. EVERETT (CHEMIST) LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
H.J. EVERETT (CHEMIST) 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: |
From discussion with management and those charged with governance information about the entity is documented to assess the activity within the organisation. We discuss management's assessment of risk in respect of irregularities, fraud and going concern. |
Based on these discussions and our own assessments we determined that the key risk areas were income recognition in respect of cut off issues, management override concerning the size of the organisation and payroll procedures. |
We set financial statement materiality level based on the level of profit. As a trading company, profit is its primary focus which is why profit was used to determine the level of materiality. Our overall assessment of risk was used to determine performance materiality at an appropriate level. |
Substantive audit tests were designed after assessing and testing systems and controls. The systems and controls which have been designed to act as a preventative measure against fraud and error were operating as documented. Substantive testing tested a sample of the population, representative of the population, to identify errors. The testing did not identify any material misstatements in areas tested. |
Audit substantive tests concluded no material errors over the key risk areas of income recognition and management override. |
The audit considers the organisation is not exposed to material risk of error as a result of assessing laws and regulations that are appropriate to the organisation. |
Management assessed there is no going concern risk. The audit undertook a review of budgets and management accounts and came to the same conclusion as management. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
H.J. EVERETT (CHEMIST) LIMITED |
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 |
Chartered Accountants |
Statutory Auditors |
Station House |
North Street |
Havant |
Hampshire |
PO9 1QU |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 16,161,944 | 14,840,786 |
Cost of sales | 12,053,436 | 10,649,954 |
GROSS PROFIT | 4,108,508 | 4,190,832 |
Administrative expenses | 4,050,584 | 3,616,972 |
57,924 | 573,860 |
Other operating income | 34,493 | 196,038 |
OPERATING PROFIT | 4 | 92,417 | 769,898 |
Interest receivable and similar income | 5 | 9,345 | 89 |
101,762 | 769,987 |
Interest payable and similar expenses | 6 | 46,577 | 28,201 |
PROFIT BEFORE TAXATION | 55,185 | 741,786 |
Tax on profit | 7 | 18,126 | 170,140 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 37,059 | 571,646 |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 37,059 | 571,646 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
37,059 |
571,646 |
Total comprehensive income attributable to: |
Owners of the parent | 37,059 | 571,646 |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
CONSOLIDATED BALANCE SHEET |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | - | - |
Tangible assets | 11 | 2,666,674 | 2,664,716 |
Investments | 12 | - | - |
2,666,674 | 2,664,716 |
CURRENT ASSETS |
Stocks | 13 | 792,230 | 721,262 |
Debtors | 14 | 1,804,684 | 1,562,354 |
Cash at bank and in hand | 1,616,552 | 2,388,481 |
4,213,466 | 4,672,097 |
CREDITORS |
Amounts falling due within one year | 15 | 3,414,108 | 3,622,869 |
NET CURRENT ASSETS | 799,358 | 1,049,228 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
3,466,032 |
3,713,944 |
CREDITORS |
Amounts falling due after more than one year |
16 |
- |
(299,334 |
) |
PROVISIONS FOR LIABILITIES | 19 | (129,682 | ) | (115,319 | ) |
NET ASSETS | 3,336,350 | 3,299,291 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 3,870 | 3,870 |
Share premium | 21 | 2,670 | 2,670 |
Capital redemption reserve | 21 | 75 | 75 |
Retained earnings | 21 | 3,329,735 | 3,292,676 |
SHAREHOLDERS' FUNDS | 3,336,350 | 3,299,291 |
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: |
T Baker - Director |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
COMPANY BALANCE SHEET |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Share premium | 21 |
Capital redemption reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 57,771 | 583,312 |
The financial statements were approved by the Board of Directors and authorised for issue on |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2023 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 April 2021 | 3,870 | 3,316,030 | 2,670 | 75 | 3,322,645 |
Changes in equity |
Dividends | - | (595,000 | ) | - | - | (595,000 | ) |
Total comprehensive income | - | 571,646 | - | - | 571,646 |
Balance at 31 March 2022 | 3,870 | 3,292,676 | 2,670 | 75 | 3,299,291 |
Changes in equity |
Total comprehensive income | - | 37,059 | - | - | 37,059 |
Balance at 31 March 2023 | 3,870 | 3,329,735 | 2,670 | 75 | 3,336,350 |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2023 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 March 2022 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 March 2023 |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (143,276 | ) | 1,667,611 |
Interest paid | (46,577 | ) | (28,201 | ) |
Tax paid | (125,608 | ) | (170,717 | ) |
Net cash from operating activities | (315,461 | ) | 1,468,693 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (143,635 | ) | (185,591 | ) |
Sale of tangible fixed assets | 2,624 | - |
Government grants received | - | 10,228 |
Interest received | 9,345 | 89 |
Net cash from investing activities | (131,666 | ) | (175,274 | ) |
Cash flows from financing activities |
Loan repayments in year | (105,802 | ) | (74,815 | ) |
Amount introduced by directors | 1,000 | 220,000 |
Amount withdrawn by directors | (220,000 | ) | - |
Equity dividends paid | - | (595,000 | ) |
Net cash from financing activities | (324,802 | ) | (449,815 | ) |
(Decrease)/increase in cash and cash equivalents | (771,929 | ) | 843,604 |
Cash and cash equivalents at beginning of year |
2 |
2,388,481 |
1,544,877 |
Cash and cash equivalents at end of year |
2 |
1,616,552 |
2,388,481 |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 55,185 | 741,786 |
Depreciation charges | 134,650 | 110,628 |
Loss on disposal of fixed assets | 4,403 | 1,552 |
Government grants | - | (10,228 | ) |
Finance costs | 46,577 | 28,201 |
Finance income | (9,345 | ) | (89 | ) |
231,470 | 871,850 |
(Increase)/decrease in stocks | (70,968 | ) | 60,790 |
(Increase)/decrease in trade and other debtors | (242,330 | ) | 963,107 |
Decrease in trade and other creditors | (61,448 | ) | (228,136 | ) |
Cash generated from operations | (143,276 | ) | 1,667,611 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 1,616,552 | 2,388,481 |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 2,388,481 | 1,544,877 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
At 1.4.22 | Cash flow | At 31.3.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,388,481 | (771,929 | ) | 1,616,552 |
2,388,481 | (771,929 | ) | 1,616,552 |
Debt |
Debts falling due within 1 year | (715,096 | ) | (236,909 | ) | (952,005 | ) |
Debts falling due after 1 year | (299,334 | ) | 299,334 | - |
(1,014,430 | ) | 62,425 | (952,005 | ) |
Total | 1,374,051 | (709,504 | ) | 664,547 |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | STATUTORY INFORMATION |
H.J. Everett (Chemist) Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note3). |
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Income Statement in these financial statements. |
The following principal accounting policies have been applied: |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of the financial statements required management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Residual values: |
The directors have reviewed the asset lives and associated residual values of all fixed asset classes and have concluded that asset lives and residual values are appropriate. |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Rvenue is measures as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Sale of goods |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- | The group has transferred the significant risk and rewards of ownership to the buyer; |
- | the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- | the amount of revenue can be measured reliably; |
- | it is probable that the Group will receive the consideration due under the transaction; and |
- | the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Rendering of services |
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: |
- | the amount of revenue can be measured reliably; |
- | it is probable that the Group will receive the consideration due under the contract; |
- | the stage of completion of the contract at the end of the reporting period can be measured reliably; and |
- | the costs incurred and the costs to complete the contract can be measured realiably. |
Intangible assets |
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
All intangible assets considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. |
The estimated useful lives range as follows: |
Goodwill - 7 years |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets under the cost model are stated at historical costs less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives. |
Depreciation is provided on the following basis: |
Freehold property | - 2% straight line |
Long-term leasehold property | - 2-10% straight line |
Short-term leasehold property | - straight line over period of lease |
Motor Vehicles | - 25% reducing balance |
Fixtures and Fittings | - 15-33.3% reducing balance |
Office Equipment | - 15-33.3% reducing balance |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement. |
Stocks |
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads. |
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties and investments in non-puttable ordinary shares. |
Trade and other 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 |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and on hand, deposits with banks and other short-term highly liquid investments and bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities. |
Trade and other creditors |
Short term trade creditors are measured at the transaction price. 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 |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income. |
Deferred tax |
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that: |
- | The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; |
- | Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and |
- | Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future. |
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date. |
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. |
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. |
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset. |
Pension costs and other post-retirement benefits |
The group operated a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. |
The contributions are recognised as an expense in the profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds. |
Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Borrowing costs |
All borrowing costs are recognised in profit or loss in the year in which they are incurred. |
Provisions for liabilities |
Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,826,726 | 2,543,843 |
Social security costs | 187,495 | 155,687 |
Other pension costs | 58,887 | 50,162 |
3,073,108 | 2,749,692 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Administrative staff |
The average number of employees by undertakings that were proportionately consolidated during the year was 4 (2022 - 6 ) . |
2023 | 2022 |
£ | £ |
Directors' remuneration | 138,542 | 158,291 |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 17,674 | 17,282 |
Other operating leases | 89,755 | 86,135 |
Depreciation - owned assets | 134,650 | 110,627 |
Loss on disposal of fixed assets | 4,403 | 1,552 |
Auditors' remuneration | 11,500 | 13,250 |
5. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2023 | 2022 |
£ | £ |
Deposit account interest | 9,345 | 89 |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 46,517 | 28,140 |
Loan interest | 60 | 61 |
46,577 | 28,201 |
7. | 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 | 3,763 | 125,540 |
Deferred tax | 14,363 | 44,600 |
Tax on profit | 18,126 | 170,140 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary A shares of £1 each |
Interim | - | 595,000 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 April 2022 | 884,058 |
Disposals | (52,000 | ) |
At 31 March 2023 | 832,058 |
AMORTISATION |
At 1 April 2022 | 884,058 |
Eliminated on disposal | (52,000 | ) |
At 31 March 2023 | 832,058 |
NET BOOK VALUE |
At 31 March 2023 | - |
At 31 March 2022 | - |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
10. | INTANGIBLE FIXED ASSETS - continued |
Company |
Goodwill |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 |
AMORTISATION |
At 1 April 2022 |
and 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
11. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Short | Long |
property | leasehold | leasehold |
£ | £ | £ |
COST |
At 1 April 2022 | 1,534,019 | 162,753 | 1,479,316 |
Additions | 9,989 | - | 550 |
Disposals | - | (32,108 | ) | - |
At 31 March 2023 | 1,544,008 | 130,645 | 1,479,866 |
DEPRECIATION |
At 1 April 2022 | 463,470 | 161,505 | 334,401 |
Charge for year | 24,551 | 137 | 25,950 |
Eliminated on disposal | - | (31,314 | ) | - |
At 31 March 2023 | 488,021 | 130,328 | 360,351 |
NET BOOK VALUE |
At 31 March 2023 | 1,055,987 | 317 | 1,119,515 |
At 31 March 2022 | 1,070,549 | 1,248 | 1,144,915 |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 1 April 2022 | 1,298,893 | 164,711 | 4,639,692 |
Additions | 126,608 | 6,488 | 143,635 |
Disposals | (34,692 | ) | (9,085 | ) | (75,885 | ) |
At 31 March 2023 | 1,390,809 | 162,114 | 4,707,442 |
DEPRECIATION |
At 1 April 2022 | 868,174 | 147,426 | 1,974,976 |
Charge for year | 77,681 | 6,331 | 134,650 |
Eliminated on disposal | (29,297 | ) | (8,247 | ) | (68,858 | ) |
At 31 March 2023 | 916,558 | 145,510 | 2,040,768 |
NET BOOK VALUE |
At 31 March 2023 | 474,251 | 16,604 | 2,666,674 |
At 31 March 2022 | 430,719 | 17,285 | 2,664,716 |
Company |
Freehold | Short | Long |
property | leasehold | leasehold |
£ | £ | £ |
COST |
At 1 April 2022 |
Additions |
Disposals |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Eliminated on disposal |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 1 April 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
12. | FIXED ASSET INVESTMENTS |
13. | STOCKS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Stocks | 792,230 | 721,262 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 1,485,628 | 1,274,477 |
Other debtors | 20,469 | 12,549 |
VAT | 182,413 | 168,485 |
Prepayments | 116,174 | 106,843 |
1,804,684 | 1,562,354 |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 952,005 | 715,096 |
Trade creditors | 2,225,519 | 2,296,897 |
Corporation tax | 3,695 | 125,540 |
VAT | - | 624 | - | - |
PAYE and NIC | 44,821 | 39,702 | 44,821 | 39,436 |
Other creditors | 18,907 | 17,081 |
Directors' current accounts | 14,000 | 233,000 | - | 220,000 |
Accruals and deferred income | 155,161 | 194,929 |
3,414,108 | 3,622,869 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 17) | - | 299,334 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 952,005 | 681,535 |
Bank loans | - | 33,561 | - | 33,561 |
952,005 | 715,096 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | - | 299,334 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Company |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 129,682 | 115,319 | 129,682 | 115,319 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2022 | 115,319 |
Charge to Income Statement during year | 14,363 |
Balance at 31 March 2023 | 129,682 |
Company |
Deferred |
tax |
£ |
Balance at 1 April 2022 |
Charge to Income Statement during year |
Balance at 31 March 2023 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary A | £1 | 1,290 | 1,290 |
Ordinary B | £1 | 1,290 | 1,290 |
Ordinary C | £1 | 1,290 | 1,290 |
3,870 | 3,870 |
21. | RESERVES |
Group |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 April 2022 | 3,292,676 | 2,670 | 75 | 3,295,421 |
Profit for the year | 37,059 | 37,059 |
At 31 March 2023 | 3,329,735 | 2,670 | 75 | 3,332,480 |
H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
21. | RESERVES - continued |
Company |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 April 2022 | 3,286,475 |
Profit for the year |
At 31 March 2023 | 3,344,246 |