C.S.T. Pharma Group Holdings Limited
Annual report and Financial Statements
For the year ended 30 April 2023
C.S.T. Pharma Group Holdings Limited
Company information
Directors
Mr C R Falzon
Mrs C Poynter
Mr J D Yates
Mr I Pritchard
Company number
11435398
Registered office
Unit 5-7 Tintagel Way
Aldridge
Walsall
WS9 8ER
Auditor
DJH Mitten Clarke Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
C.S.T. Pharma Group Holdings Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
6 - 9
Income statement
10
Group statement of comprehensive income
11
Group statement of financial position
12
Company statement of financial position
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 35
C.S.T. Pharma Group Holdings Limited
Strategic report
For the year ended 30 April 2023
- 1 -

The directors present the strategic report for the year ended 30 April 2023.

Principal activities

The principal activity of the group is the wholesale of pharmaceutical goods to customers operating in the pharmaceutical and healthcare sectors.

Review of the business

The year saw a 9% increase in turnover which is due to both sourcing new products and the prior year being adversely impacted by covid restrictions. Gross margin was relatively stable, falling 0.8% to 9.9%, which is predominantly due to exchange rate movements. Operating profit of £3.7m was £0.5m below prior year due to inflationary increases in overheads. The group continued to invest in its operations, spending £566k on fixed asset additions which will help to improve future performance.

 

Overall, the directors are satisfied with the results given the global geopolitical situation, challenging economic environment and weakness of sterling.

 

Principal risks and uncertainties

The key business risks affecting the group at present are:

 

Exchange rate variances

One of the main risks facing the group is exchange rate fluctuation. The group is mitigating the risk through exposures being constantly reviewed by management.

 

Competitive risks

The group is reliant on certain customers for contracts which are subject to periodic review. Renewal of these contracts is uncertain and based on financial and performance criteria.

 

Legislative risks

In order to operate in its chosen market, the group must comply with various legislations and laws. Compliance imposes costs and failure to comply with the standards could materially affect the group's ability to operate.

 

Interest rates

During the year, and since the year end, interest rates have increased from historic lows, and could increase further. The group is aware of the risk and has factored in potential rises into all forecasts for the coming year.

 

Future Developments

Since the year end the group, in common with many sectors, has experienced difficult trading conditions including exchange rate variances and rising costs but continues to investigate its ongoing trade with the EU following the UK's departure and to develop the import and export business. Despite these conditions management accounts for the period to date indicate continued profitable trading.

 

However, we remain aware that all plans and projections are subject to unforeseen national and international events outside of our control but we are confident that we have the management team in place with the expertise to adapt to the prevailing conditions.

 

C.S.T. Pharma Group Holdings Limited
Strategic report (continued)
For the year ended 30 April 2023
- 2 -
Key performance indicators

The directors monitor the progress of the group and the implementation of its strategy by reference to key performance indicators. The indicators employed include EBITDA, gross profit and net profit.

 

The directors are satisfied with the trading results to 30 April 2023. Despite the competitive nature of the business, the group achieved an EBITDA before exceptional items of £4,871k (2022:£5,305k), a gross profit of 9.9% (2022: 10.7%), and a net profit of 2.57% (2022: 3.43%).

 

Promoting the success of the group

Each director of the group has taken steps to act in a way they consider, in good faith, would be most likely to promote the success of the group for the benefit of members as a whole, and in doing so we have regard (amongst other matters) to the below factors:

 

a. The likely consequences of any decision in the long term. The board has made principal decisions impacting the future of the group in line with the long term strategic objectives of the group. Headcount has stabilised following previous rationalisation.

 

b. The interests of employees. The group continues to trade with the appropriate level of staff and overhead which safeguards the employment of our staff in the long term. Employee engagement is achieved using regular meetings and feedback undertaken by the HR department.

 

c. The need to foster the group's business relationships with suppliers, customers and others. Strategic relationships with key suppliers and customers have been built up over many years of trading. Communication with regard to trading during the year has been very positive and mutually beneficial, with an increased level of face to face contact.

 

d. The impact of the group on the community and the environment. We continue to be an employer of choice providing jobs in our local community and pharmaceutical products for the nation. Our commitment to the environment is demonstrated by the move towards an all-electric fleet and the installation of solar panels fitted in October 2023.

 

e. The desirability of the group maintaining a reputation for high standards of business conduct. The strengthening of the board and increased resource in the quality department demonstrates our commitment to all of our stakeholders including staff, regulatory bodies, customers, suppliers and bankers.

 

f. The need to act fairly between members of the group.

On behalf of the board

Mr I Pritchard
Director
19 February 2024
C.S.T. Pharma Group Holdings Limited
Directors' report
For the year ended 30 April 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 April 2023.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £229,095 (2022: £224,332). The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr C R Falzon
Dr M Grenan
(Resigned 30 January 2023)
Mrs C Poynter
Mr J D Yates
Mr I Pritchard
Energy and carbon report

We fulfil the statutory requirements for Streamlined Energy and Carbon Reporting which includes disclosure of the group's carbon emissions. Under the Companies Act 2006 / SECR Regulations, 'Large' companies' are required to report their annual emissions in their Directors' report.

 

CST Pharma Group Holdings Limited Group Streamlined Energy and Carbon Reporting statement covers the reporting period 1st May 2022 - 30th April 2023 and has been prepared in line with the requirements of the Streamlined Energy and Carbon Reporting regulations and the relevant areas of the Greenhouse Gas ('GHG') Protocol Corporate Accounting and Reporting Standard.

2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Electricity purchased
519,379
362,699
519,379
362,699
C.S.T. Pharma Group Holdings Limited
Directors' report (continued)
For the year ended 30 April 2023
- 4 -
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
-
-
- Fuel consumed for owned transport
6.00
7.00
6.00
7.00
Scope 2 - indirect emissions
- Electricity purchased
488.00
347.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
-
-
Total gross emissions
494.00
354.00
Intensity ratio
Tonnes CO2e per employee
3.6
2.3
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.

 

Invoices and estimates have been used to calculate the information above.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per staff member, the recommended ratio for the sector.

Measures taken to improve energy efficiency

The group is continually monitoring the impact of its trading activity upon the environment and wherever possible will lower its overall emissions by the introduction of electric vehicles, LED lighting and more efficient equipment. In October 2023 solar panels were installed at the main warehouse site which will significantly reduce the future carbon emissions.

C.S.T. Pharma Group Holdings Limited
Directors' report (continued)
For the year ended 30 April 2023
- 5 -
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr I Pritchard
Director
19 February 2024
C.S.T. Pharma Group Holdings Limited
Independent auditor's report
To the members of C.S.T. Pharma Group Holdings Limited
- 6 -
Opinion

We have audited the financial statements of C.S.T. Pharma Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2023 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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.

C.S.T. Pharma Group Holdings Limited
Independent auditor's report (continued)
To the members of C.S.T. Pharma Group Holdings Limited
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor's report 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.

C.S.T. Pharma Group Holdings Limited
Independent auditor's report (continued)
To the members of C.S.T. Pharma Group Holdings Limited
- 8 -

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

 

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

C.S.T. Pharma Group Holdings Limited
Independent auditor's report (continued)
To the members of C.S.T. Pharma Group Holdings Limited
- 9 -

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 an auditor's report 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.

Nicola Johnson (Senior Statutory Auditor)
For and on behalf of DJH Mitten Clarke Audit Limited
19 February 2024
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
C.S.T. Pharma Group Holdings Limited
Group income statement
For the year ended 30 April 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
118,551,574
108,782,504
Cost of sales
(106,817,852)
(97,099,300)
Gross profit
11,733,722
11,683,204
Administrative expenses
(8,028,974)
(7,501,506)
Other operating income
-
8,030
Operating profit
4
3,704,748
4,189,728
Share of profits of associates
610,704
690,099
Interest payable and similar expenses
8
(809,044)
(548,378)
Profit before taxation
3,506,408
4,331,449
Tax on profit
9
(464,945)
(604,518)
Profit for the financial year
3,041,463
3,726,931
Profit for the financial year is all attributable to the owners of the parent company.
C.S.T. Pharma Group Holdings Limited
Group statement of comprehensive income
For the year ended 30 April 2023
- 11 -
2023
2022
£
£
Profit for the year
3,041,463
3,726,931
Other comprehensive income
-
-
Total comprehensive income for the year
3,041,463
3,726,931
Total comprehensive income for the year is all attributable to the owners of the parent company.
C.S.T. Pharma Group Holdings Limited
Group statement of financial position
As at 30 April 2023
30 April 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
480,434
559,407
Other intangible assets
11
490,095
485,093
Total intangible assets
970,529
1,044,500
Tangible assets
12
1,625,542
1,355,067
Investments
13
897,765
898,569
3,493,836
3,298,136
Current assets
Stocks
16
13,517,107
16,970,407
Debtors
17
14,279,504
11,016,243
Cash at bank and in hand
227,266
730,362
28,023,877
28,717,012
Creditors: amounts falling due within one year
18
(19,493,118)
(22,749,387)
Net current assets
8,530,759
5,967,625
Total assets less current liabilities
12,024,595
9,265,761
Creditors: amounts falling due after more than one year
19
(116,756)
(125,402)
Provisions for liabilities
Deferred tax liability
22
-
0
44,888
-
(44,888)
Net assets
11,907,839
9,095,471
Capital and reserves
Called up share capital
24
200
200
Profit and loss reserves
11,907,639
9,095,271
Total equity
11,907,839
9,095,471
The financial statements were approved by the board of directors and authorised for issue on 19 February 2024 and are signed on its behalf by:
19 February 2024
Mr I Pritchard
Director
Company registration number 11435398 (England and Wales)
C.S.T. Pharma Group Holdings Limited
Company statement of financial position
As at 30 April 2023
30 April 2023
- 13 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
4,148,469
4,148,469
Current assets
Debtors
17
50,333
764,702
Cash at bank and in hand
-
0
187,048
50,333
951,750
Creditors: amounts falling due within one year
18
(1,062,103)
(2,425,114)
Net current liabilities
(1,011,770)
(1,473,364)
Net assets
3,136,699
2,675,105
Capital and reserves
Called up share capital
24
200
200
Profit and loss reserves
3,136,499
2,674,905
Total equity
3,136,699
2,675,105

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £690,689 (2022 - £1,134,916 profit).

These financial statements have been prepared 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 19 February 2024 and are signed on its behalf by:
19 February 2024
Mr I Pritchard
Director
Company registration number 11435398 (England and Wales)
C.S.T. Pharma Group Holdings Limited
Group statement of changes in equity
For the year ended 30 April 2023
- 14 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 May 2021
200
5,592,672
5,592,872
250,105
5,842,977
Year ended 30 April 2022:
Profit and total comprehensive income
-
3,726,931
3,726,931
(250,105)
3,476,826
Dividends
10
-
(224,332)
(224,332)
-
(224,332)
Balance at 30 April 2022
200
9,095,271
9,095,471
-
0
9,095,471
Year ended 30 April 2023:
Profit and total comprehensive income
-
3,041,463
3,041,463
-
3,041,463
Dividends
10
-
(229,095)
(229,095)
-
(229,095)
Balance at 30 April 2023
200
11,907,639
11,907,839
-
0
11,907,839
C.S.T. Pharma Group Holdings Limited
Company statement of changes in equity
For the year ended 30 April 2023
- 15 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2021
200
1,763,321
1,763,521
Year ended 30 April 2022:
Profit and total comprehensive income for the year
-
1,134,916
1,134,916
Dividends
10
-
(223,332)
(223,332)
Balance at 30 April 2022
200
2,674,905
2,675,105
Year ended 30 April 2023:
Profit and total comprehensive income
-
690,689
690,689
Dividends
10
-
(229,095)
(229,095)
Balance at 30 April 2023
200
3,136,499
3,136,699
C.S.T. Pharma Group Holdings Limited
Group statement of cash flows
For the year ended 30 April 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
3,622,837
4,926,564
Interest paid
(809,044)
(547,632)
Income taxes paid
(816,321)
(561,395)
Net cash inflow from operating activities
1,997,472
3,817,537
Investing activities
Purchase of intangible assets
(186,429)
(642,778)
Purchase of tangible fixed assets
(563,751)
(596,008)
Proceeds from disposal of tangible fixed assets
-
23,719
Purchase of fixed asset investments
-
(90,000)
Net cash used in investing activities
(750,180)
(1,305,067)
Financing activities
Amounts drawn by directors
(1,521,349)
-
Amounts introduced by directors
-
204,000
Change in invoice finance balance
65,545
(1,415,262)
Repayment of bank loans
(8,853)
(523,363)
Repayment of HP
(56,641)
(59,567)
Dividends paid
(229,095)
(224,332)
Net cash used in financing activities
(1,750,393)
(2,018,524)
Net (decrease)/increase in cash and cash equivalents
(503,101)
493,946
Cash and cash equivalents at beginning of year
730,362
236,416
Cash and cash equivalents at end of year
227,266
730,362
C.S.T. Pharma Group Holdings Limited
Notes to the group financial statements
For the year ended 30 April 2023
- 17 -
1
Accounting policies
Company information

C.S.T. Pharma Group Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 5-7, Tintagel Way, Aldridge, Walsall, WS9 8ER.

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.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

C.S.T. Pharma Group Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
- 18 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company C.S.T. Pharma Group Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in associates.

 

All financial statements are made up to 30 April 2023 with the exception of Saima Farma Global SL. The transactions included within the consolidation for Saima Farma Global SL are consistent with the consolidated financial statements reporting period. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Investments in associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in associates include acquired goodwill.

 

If the group’s share of losses in an associate equals or exceeds its investment in associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the associate.

 

Unrealised gains arising from transactions with associates are eliminated to the extent of the group’s interest in the entity.

 

An associate is an entity, being neither a subsidiary nor a joint venture, in which the Group holds a long-term Interest and where the Group has significant influence. The Group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate. The results of associates are accounted for using the equity method of accounting. As such, goodwill is included in interest in associates along with the corresponding goodwill amortisation. Goodwill amortisation in the Consolidated Income Statement is netted off the Share of operating profit in Associates.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods 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 sale of goods 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.

C.S.T. Pharma Group Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
- 19 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Patents & licences
20% on cost
1.8
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.

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:

Leasehold land and buildings
20% on cost
Plant and equipment
25% on cost
Computers
33.33% on cost
Motor vehicles
25% on cost

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 recognised in the income statement.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries and associates are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

C.S.T. Pharma Group Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
- 20 -

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

1.10
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

C.S.T. Pharma Group Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
- 21 -
1.11
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.

Finished goods and goods for resale are measured at cost on a first in, first out basis.

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.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

C.S.T. Pharma Group Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
- 22 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 group’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 income statement, 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 if, and only if, there is 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.

C.S.T. Pharma Group Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
- 23 -
1.16
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.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

1.19
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.20
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

 

Foreign subsidiary transactions in currencies other than pounds sterling are translated at the yearly average rate of exchange for transactions recorded in the profit and loss. Transactions recorded in the statement of financial position are translated at the rates prevailing on the reporting end date. Reserves balances at the reporting start date are translated at the rates prevailing on the reporting start date. Gains and losses arising on translation of foreign subsidiary transactions in the period are included in other comprehensive income.

C.S.T. Pharma Group Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
- 24 -
1.21

Invoice finance

 

The group's debts are subject to invoice finance with the group retaining the benefits and the risks of the debts. Separate presentation has been included with the debts disclosed in current assets and the liability to the finance company shown within bank overdrafts.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

The directors believe that there are no significant judgements or key sources of estimation uncertainty.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
118,551,574
108,782,504
2023
2022
£
£
Other revenue
Dividends received
(40,925)
(350,780)
Grants received
-
8,030
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(8,030)
Depreciation of tangible fixed assets
295,272
228,999
Profit on disposal of tangible fixed assets
-
(11,925)
Amortisation of intangible assets
260,400
207,760
Operating lease charges
294,576
323,630
C.S.T. Pharma Group Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
- 25 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
13,655
5,000
Audit of the financial statements of the company's subsidiaries
25,240
33,000
38,895
38,000
For other services
All other non-audit services
10,676
2,000
10,676
2,000
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Warehouse
75
87
-
-
Administration
50
53
-
-
Management
14
15
4
4
Total
139
155
4
4

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,457,449
4,576,280
-
0
-
0
Pension costs
128,141
201,369
-
0
-
0
4,585,590
4,777,649
-
0
-
0
C.S.T. Pharma Group Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
- 26 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
457,589
381,148
Company pension contributions to defined contribution schemes
46,704
122,824
504,293
503,972
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
216,071
150,432
Company pension contributions to defined contribution schemes
991
110

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2022 - 4).

8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
5,544
(1,823)
Interest on loans
747,854
492,746
Other interest on financial liabilities
54,664
54,016
808,062
544,939
Other finance costs:
Other interest
982
3,439
Total finance costs
809,044
548,378
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
524,817
621,340
Adjustments in respect of prior periods
(14,984)
(16,822)
Total current tax
509,833
604,518
C.S.T. Pharma Group Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
9
Taxation
2023
2022
£
£
(Continued)
- 27 -
Deferred tax
Origination and reversal of timing differences
(44,888)
-
0
Total tax charge
464,945
604,518

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
3,506,408
4,331,449
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
666,218
822,975
Tax effect of expenses that are not deductible in determining taxable profit
(7,367)
(36,482)
Tax effect of utilisation of tax losses not previously recognised
(29,191)
-
0
Adjustments in respect of prior years
(14,984)
(16,346)
Effect of change in corporation tax rate
13,007
-
Research and development tax credit
-
0
(13,031)
Deferred tax adjustments in respect of prior years
(44,888)
36,482
Dividend income
(105,648)
(189,080)
Super deduction
(12,202)
-
0
Taxation charge
464,945
604,518
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
229,095
224,332
C.S.T. Pharma Group Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
- 28 -
11
Intangible fixed assets
Group
Goodwill
Patents & licences
Total
£
£
£
Cost
At 1 May 2022
779,695
813,646
1,593,341
Additions
-
0
186,429
186,429
At 30 April 2023
779,695
1,000,075
1,779,770
Amortisation and impairment
At 1 May 2022
220,288
328,553
548,841
Amortisation charged for the year
78,973
181,427
260,400
At 30 April 2023
299,261
509,980
809,241
Carrying amount
At 30 April 2023
480,434
490,095
970,529
At 30 April 2022
559,407
485,093
1,044,500
The company had no intangible fixed assets at 30 April 2023 or 30 April 2022.
12
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2022
672,033
1,150,471
624,838
259,572
2,706,914
Additions
250,678
23,276
220,393
71,400
565,747
At 30 April 2023
922,711
1,173,747
845,231
330,972
3,272,661
Depreciation and impairment
At 1 May 2022
210,924
779,432
213,545
147,946
1,351,847
Depreciation charged in the year
81,884
97,321
100,249
15,818
295,272
At 30 April 2023
292,808
876,753
313,794
163,764
1,647,119
Carrying amount
At 30 April 2023
629,903
296,994
531,437
167,208
1,625,542
At 30 April 2022
461,109
371,039
411,293
111,626
1,355,067
The company had no tangible fixed assets at 30 April 2023 or 30 April 2022.
C.S.T. Pharma Group Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
12
Tangible fixed assets
(Continued)
- 29 -

Net book value of hire purchase assets £118,115 (2022: £352,000). These assets are included in Motor Vehicles.

13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
3,855,710
3,855,710
Investments in associates
15
897,765
898,569
292,759
292,759
897,765
898,569
4,148,469
4,148,469
Movements in fixed asset investments
Group
Shares in associates
£
Cost or valuation
At 1 May 2022
898,569
Share of net profit
610,704
Dividends received
(611,508)
At 30 April 2023
897,765
Carrying amount
At 30 April 2023
897,765
At 30 April 2022
898,569
Movements in fixed asset investments
Company
Shares in subsidiaries and associates
£
Cost or valuation
At 1 May 2022 and 30 April 2023
4,148,469
Carrying amount
At 30 April 2023
4,148,469
At 30 April 2022
4,148,469
14
Subsidiaries

Details of the company's subsidiaries at 30 April 2023 are as follows:

C.S.T. Pharma Group Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
14
Subsidiaries
(Continued)
- 30 -
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
MPT Pharma Limited
1
Dormant
Ordinary
0
100.00
C.S.T. Pharma Limited
1
Wholesale of Pharmaceuticals
Ordinary
0
100.00
CST International Holdings Limited
1
Holding company
Ordinary
0
100.00
CST Holdings (UK) Limited
1
Holding company
Ordinary
100.00
-
SAIMA Global Farma SL
2
Wholesale of Pharmaceuticals
Ordinary
0
100.00

Registered office addresses:

1
Unit 5-7 Tintagel Way, Westgate Park Industrial Estate, Aldridge, Walsall, WS9 8ER
2
Carrer de Ginestar, 7 Polig. Ind, 17007 Domeny, Girona, Spain
15
Associates

Details of associates at 30 April 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Acre Pharma Limited
1
Pharmaceuticals
Ordinary
50
-
Acre Medical Limited
1
Pharmaceuticals
Ordinary
40
-
UTH Aesthetics Limited
1
Pharmaceuticals
Ordinary
40
-
Acre Aesthetics Limited
1
Pharmaceuticals
Ordinary
40
-
Mendoo Limited
1
Dormant
Ordinary
40
-
DMG Wholesale Limited
1
Pharmaceuticals
Ordinary
25
-
Synertech Limited
1
Dormant
Ordinary
25
-
Cosmedic Pharmacy Limited
1
Pharmaceuticals
Ordinary
0
40
Wicklow Enterprises LLC
2
Pharmaceuticals
Ordinary
0
20

Registered office addresses:

 

1 Unit 5-7 Tintagel Way, Westgate Park Industrial Estate, Aldridge, Walsall, WS9 8ER.

2. 2650 Holcomb Bridge Road, Suite 640, Alpharetta, 30022, GA, United States.

 

Investments in associates are accounted for in accordance with the equity method.

16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
13,517,107
16,970,407
-
0
-
0
C.S.T. Pharma Group Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
- 31 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
12,397,660
10,473,474
-
0
-
0
Amounts owed by group undertakings
-
-
-
763,702
Other debtors
1,107,333
300,750
-
0
-
0
Prepayments and accrued income
774,511
242,019
50,333
1,000
14,279,504
11,016,243
50,333
764,702
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
172,392
181,245
-
0
-
0
Obligations under finance leases
21
72,374
120,369
-
0
-
0
Trade creditors
3,484,737
3,866,197
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
282,721
-
0
Corporation tax payable
164,817
471,305
-
0
-
0
Other taxation and social security
1,650,842
1,683,428
-
-
Other creditors
13,618,685
15,798,674
726,300
2,247,300
Accruals and deferred income
329,271
628,169
53,082
177,814
19,493,118
22,749,387
1,062,103
2,425,114

The following secured debts are included within creditors:

 

2023        2022

£         £

Stock finance                     4,439,660     6,220,965

Invoice finance                     7,599,802     5,752,952

Hire purchase contracts                 189,130      245,770

 

 

The stock finance and invoice finance indebtedness are secured by fixed and floating charges over the assets of the company. The hire purchase debts are secured over the asset to which they relate.

19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
21
116,756
125,402
-
0
-
0
C.S.T. Pharma Group Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
- 32 -
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
172,392
181,245
-
0
-
0
Payable within one year
172,392
181,245
-
0
-
0
21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
72,374
120,368
-
0
-
0
In two to five years
116,756
125,403
-
0
-
0
189,130
245,771
-
-

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
-
44,888
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 May 2022
44,888
-
Credit to profit or loss
(44,888)
-
Asset at 30 April 2023
-
-
C.S.T. Pharma Group Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
22
Deferred taxation
(Continued)
- 33 -
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
128,141
201,369

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary of £1 each
191
191
191
191
B Ordinary of £1 each
2
2
2
2
C Ordinary of £1 each
3
3
3
3
D Ordinary of £1 each
4
4
4
4
200
200
200
200
All classes of share carry identical rights save for the ability to declare different dividends on each class of share.
25
Financial commitments, guarantees and contingent liabilities

HSBC UK hold a Composite Company Unlimited Multilateral Guarantee dated 30 July 2021 given by

C.S.T. Pharma Limited, ACER Pharma Limited, Acre Pharmaceuticals Limited, Acre Aesthetics Limited, Acre Pharma Ltd, C.S.T. Pharma Group Holdings Limited, CST International Holdings Ltd, CST Holdings (Uk) Limited, DMG Wholesale Limited, MPT Pharma Limited, Mendoo Limited, Synertech Limited, UTH Aesthetics Ltd. There is a Debenture including Fixed Charge over all present freehold and leasehold property; First Fixed Charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and First Floating Charge over all assets and undertaking both present and future dated 30 July 2021.

 

As at 30 April 2023 these group borrowings amounted to £13,682,868. As at the date of approval of these financial statements, the directors do not anticipate that the guarantees will be called upon.

C.S.T. Pharma Group Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
- 34 -
26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
379,364
457,944
-
-
Between two and five years
755,887
939,453
-
-
In over five years
578,958
766,728
-
-
1,714,209
2,164,125
-
-
27
Related party transactions

Other related parties

2023        2022

Sales                     247,664         495,220

Purchases                 421,651        666,382

Recharges                 921,161        525,172

Amount due from related party         958,501        301,847

Amount due to related party         1,157,380         632,195

Dividends received             516,258        961,161

 

Other related parties are entities which are associates of the group and/or under common control.

 

Remuneration paid to key management personnel totalled £561,211(2022: £504,147)

 

Remuneration paid to close family members of key management personnel totalled £80,305 (2022: £69,500).

 

Transactions between related parties are made at normal market rates. Outstanding balances are interest free, repayable on demand and unsecured.

 

At 30 April 2023 the group owed £641,260 (2022: £2,162,609) to directors of the group. Interest payable to directors was £53,082.

C.S.T. Pharma Group Holdings Limited
Notes to the group financial statements (continued)
For the year ended 30 April 2023
- 35 -
28
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
3,041,464
3,726,931
Adjustments for:
Share of results of associates and joint ventures
(94,445)
271,062
Taxation charged
464,945
604,518
Finance costs
809,044
548,378
Gain on disposal of tangible fixed assets
-
(11,925)
Amortisation and impairment of intangible assets
260,400
207,760
Depreciation and impairment of tangible fixed assets
295,272
228,999
Movements in working capital:
Decrease/(increase) in stocks
3,453,300
(2,552,532)
(Increase)/decrease in debtors
(3,170,009)
1,309,702
(Decrease)/increase in creditors
(1,437,134)
593,671
Cash generated from operations
3,622,837
4,926,564
29
Analysis of changes in net debt - group
1 May 2022
Cash flows
30 April 2023
£
£
£
Cash at bank and in hand
730,362
(503,096)
227,266
Borrowings excluding overdrafts
(12,155,245)
(56,609)
(12,211,854)
Obligations under finance leases
(245,771)
56,641
(189,130)
(11,670,654)
(503,064)
(12,173,718)
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