Company Registration No. 09006526 (England and Wales)
FLAMINGO PHARMA (UK) LTD
ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
John Cumming Ross Limited
Chartered Certified Accountants
1st Floor, Kirkland House
11-15 Peterborough Road
Harrow
Middlesex
HA1 2AX
FLAMINGO PHARMA (UK) LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
FLAMINGO PHARMA (UK) LTD
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
457,870
438,045
Tangible assets
4
8,724
6,727
466,594
444,772
Current assets
Stocks
7,048,647
3,535,113
Debtors
5
3,305,357
1,638,507
Cash at bank and in hand
93,564
16,180
10,447,568
5,189,800
Creditors: amounts falling due within one year
6
(7,614,404)
(2,865,464)
Net current assets
2,833,164
2,324,336
Total assets less current liabilities
3,299,758
2,769,108
Creditors: amounts falling due after more than one year
7
(824,196)
(845,796)
Provisions for liabilities
9
(2,181)
Net assets
2,473,381
1,923,312
Capital and reserves
Called up share capital
10
100
100
Profit and loss reserves
11
2,473,281
1,923,212
Total equity
2,473,381
1,923,312
The directors of the company have elected not to include a copy of the directors' report and profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 31 August 2023 and are signed on its behalf by:
Mr A J Thacker
Director
Company Registration No. 09006526
FLAMINGO PHARMA (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information
Flamingo Pharma (UK) Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 1st Floor, Kirkland House, 11-15 Peterborough Road, Harrow, Middlesex, HA1 2AX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies' regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the wholesale of prescription and non-prescription pharmaceutical products licenced by the MHRA is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Development expenditure in respect of gaining new technical knowledge of an enduring nature or a project involving acquisition is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated and such expenditure is expected to bring in future economic benefits and are amortized over the useful life of the project, but not exceeding 10 years from the date it becomes commercially exploitable or the project is completed.
1.5
Intangible fixed assets other than goodwill
Patents acquired are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost of patents less their residual values over their useful lives on the following bases:
Patents
10% per annum on straight line basis
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
FLAMINGO PHARMA (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment
25% per annum on straight line basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including trade and other creditors, loans from third parties and loans from parent undertaking, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instruments are measured at the present value of the future payments discounted at market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
FLAMINGO PHARMA (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
Current tax
The tax currently payable is based on taxable profit or loss for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
9
6
FLAMINGO PHARMA (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
3
Intangible fixed assets
Other
£
Cost
At 1 April 2022
666,820
Additions
88,894
At 31 March 2023
755,714
Amortisation and impairment
At 1 April 2022
228,775
Amortisation charged for the year
69,069
At 31 March 2023
297,844
Carrying amount
At 31 March 2023
457,870
At 31 March 2022
438,045
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2022
10,474
Additions
5,224
At 31 March 2023
15,698
Depreciation and impairment
At 1 April 2022
3,747
Depreciation charged in the year
3,227
At 31 March 2023
6,974
Carrying amount
At 31 March 2023
8,724
At 31 March 2022
6,727
FLAMINGO PHARMA (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,284,700
1,621,047
Other debtors
20,657
17,460
3,305,357
1,638,507
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
2,537,229
1,712,015
Trade creditors
562,109
320,719
Amounts owed to group undertakings
2,855,733
279,113
Corporation tax
127,903
54,969
Other taxation and social security
980,001
369,881
Other creditors
551,429
128,767
7,614,404
2,865,464
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
187,500
209,100
Amounts owed to group undertakings
636,696
636,696
824,196
845,796
8
Loans and overdrafts
2023
2022
£
£
Bank loans
187,500
637,500
Bank factoring
2,537,229
1,283,615
2,724,729
1,921,115
Payable within one year
2,537,229
1,712,015
Payable after one year
187,500
209,100
FLAMINGO PHARMA (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
8
Loans and overdrafts
(Continued)
- 7 -
The bank holds fixed and floating charges over the assets of the company to secure the factoring facilities provided by the bank. The amount outstanding as at 31 March 2023 for the factoring facilities was £2,537,229 (2022: £1,283,615).
The unsecured long-term loan relates to amount due to Flamingo Pharmaceuticals Limited, the parent undertaking. Interest of 8% per annum is charged on the loan outstanding.
9
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
2,181
-
2023
Movements in the year:
£
Liability at 1 April 2022
-
Charge to profit or loss
2,181
Liability at 31 March 2023
2,181
10
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
11
Profit and loss reserves
The only movement in reserves for the years ended 31 March 2023 and 31 March 2022 is profit for the year.
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Dilip Popatlal Unarket and the auditor was John Cumming Ross Limited.
FLAMINGO PHARMA (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
13
Operating lease commitments
Lessee
At the reporting end date, the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Total lease payments
39,745
14
Parent company
The parent undertaking of Flamingo Pharma (UK) Limited is Flamingo Pharmaceuticals Limited, a company incorporated in India and its registered office is at 7/G&1, Corporate Park, Sion Trombay Road, Chembur (East), Mumbai, Maharashtra 400071, India