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Registration number: 12525512

Prepared for the registrar

Honor Healthcare Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2023

 

Honor Healthcare Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 9

 

Honor Healthcare Limited

Company Information

Directors

T J Masamha

A R Mudamburi

Registered office

77 Westbourne Avenue
Hull
HU5 3HW

Accountants

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

Honor Healthcare Limited

(Registration number: 12525512)
Balance Sheet as at 31 March 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

1,162,163

1,227,946

Tangible assets

5

179,166

220,822

 

1,341,329

1,448,768

Current assets

 

Stocks

38,248

36,713

Debtors

6

185,468

235,410

Cash at bank and in hand

 

53,347

75,955

 

277,063

348,078

Creditors: Amounts falling due within one year

7

(583,093)

(622,023)

Net current liabilities

 

(306,030)

(273,945)

Total assets less current liabilities

 

1,035,299

1,174,823

Creditors: Amounts falling due after more than one year

7

(926,098)

(1,036,049)

Deferred tax liabilities

 

(43,632)

(43,718)

Net assets

 

65,569

95,056

Capital and reserves

 

Called up share capital

1,000

1,000

Profit and loss account

64,569

94,056

Shareholders' funds

 

65,569

95,056

For the financial year ending 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 22 November 2023 and signed on its behalf by:
 


A R Mudamburi
Director

 

Honor Healthcare Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
77 Westbourne Avenue
Hull
HU5 3HW
United Kingdom

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

Honor Healthcare Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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 operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Office equipment

25% reducing balance basis

Fixtures & fittings

10% reducing balance basis

Motor Vehicles

25% reducing balance basis

Goodwill

Goodwill is amortised over its useful life, estimated by the directors to be 20 years.

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Honor Healthcare Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Honor Healthcare Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was as follows:

 

Honor Healthcare Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

 

4

Intangible assets

Goodwill
 £

Total
£

Cost

At 1 April 2022

1,315,656

1,315,656

At 31 March 2023

1,315,656

1,315,656

Amortisation

At 1 April 2022

87,710

87,710

Amortisation charge

65,783

65,783

At 31 March 2023

153,493

153,493

Carrying amount

At 31 March 2023

1,162,163

1,162,163

At 31 March 2022

1,227,946

1,227,946

 

5

Tangible assets

Leasehold property improvements
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost

At 1 April 2022

-

174,804

3,500

178,304

Additions

73,937

-

-

73,937

At 31 March 2023

73,937

174,804

3,500

252,241

Depreciation

At 1 April 2022

1,418

28,761

1,240

31,419

Charge for the period

4,835

36,256

565

41,656

At 31 March 2023

6,253

65,017

1,805

73,075

Carrying amount

At 31 March 2023

67,684

109,787

1,695

179,166

At 31 March 2022

72,519

146,043

2,260

220,822

 

6

Debtors

Note

31 March 2023
 £

31 March 2022
 £

Trade debtors

 

160,978

144,370

Amounts owed by related parties

11

-

55,877

Other debtors

 

11,379

20,847

Called up share capital not paid

 

-

1,000

Prepayments

 

13,111

13,316

   

185,468

235,410

 

Honor Healthcare Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

 

7

Creditors

Note

31 March 2023
 £

31 March 2022
 £

Due within one year

 

Loans and borrowings

8

110,449

110,948

Trade creditors

 

174,978

247,064

Amounts due to related parties

11

264,203

260,698

Social security and other taxes

 

2,362

-

Outstanding defined contribution pension costs

 

557

563

Accrued expenses

 

3,000

2,750

Corporation tax liability

27,544

-

 

583,093

622,023

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

8

926,098

1,036,049

2023
£

2022
£

After more than five years by instalments

649,354

709,765

-

-

 

8

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

60,909

61,407

HP and finance lease liabilities

49,540

49,541

110,449

110,948

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

917,841

978,252

HP and finance lease liabilities

8,257

57,797

926,098

1,036,049

The bank loans are secured against the assets of the company.

The HP and finance lease liabilities are secured against the assets to which they relate.

 

Honor Healthcare Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

 

9

Deferred tax

Deferred tax assets and liabilities

2023

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

43,632

43,632

2022

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

43,718

43,718

 

10

Financial commitments, guarantees and contingencies

Operating leases

The total of future minimum lease payments is as follows:

2023
 £

2022
 £

Not later than one year

19,000

19,000

Later than one year and not later than five years

76,000

76,000

Later than five years

144,921

166,250

239,921

261,250

The amount of non-cancellable operating lease payments recognised as an expense during the year was £21,330 (2022 - £26,600).

 

11

Related party transactions

Summary of transactions with key management

Key management personnel are considered to be the directors of the company.

As at the year end, the company owed the director £255,243 (2022 - £55,877 owed to the company). There are no fixed repayment terms and no interest is charged

 

Summary of transactions with other related parties

Meds UK Limited (T J Masamha is also a director of Meds UK Limited)

At the balance sheet date the company owed Meds UK Limited £8,960 (2022 - £260,698). There are no fixed repayment terms and no interest is charged.