Company registration number 12214173 (England and Wales)
AVALON PHARMA UK HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
AVALON PHARMA UK HOLDINGS LIMITED
CONTENTS
Page
Group balance sheet
4
Company balance sheet
5
Notes to the financial statements
6 - 9
AVALON PHARMA UK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AVALON PHARMA UK HOLDINGS LIMITED
- 1 -
Opinion

We have audited the financial statements of Avalon Pharma UK Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise, the group balance sheet, the company balance sheet 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 director's 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 director 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 director is 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.

Opinions on other matters prescribed by the Companies Act 2006

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

AVALON PHARMA UK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AVALON PHARMA UK HOLDINGS LIMITED
- 2 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the parent company or to cease operations, or has 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 objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

 

the sector in which they operate. We determined that the following were the most significant: the

Companies Act 2006 and UK corporate taxation laws.

 

frameworks by making inquiries to the management of the company. We corroborated our inquiries

through our review of correspondence during our audit work.

AVALON PHARMA UK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AVALON PHARMA UK HOLDINGS LIMITED
- 3 -

 

how fraud might occur. Audit procedures performed included:

 

 

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.

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.

Frank Harling (Senior Statutory Auditor)
For and on behalf of Ward Williams
5 March 2024
Chartered Accountants
Statutory Auditor
Belgrave House
39-43 Monument Hill
Weybridge
Surrey
KT13 8RN
AVALON PHARMA UK HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 4 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
3
-
0
281,397
Current assets
Debtors
5
1,000
-
Creditors: amounts falling due within one year
6
(321,240)
(308,010)
Net current liabilities
(320,240)
(308,010)
Total assets less current liabilities
(320,240)
(26,613)
Capital and reserves
Called up share capital
7
1
1
Profit and loss reserves
(320,241)
(26,614)
Total equity
(320,240)
(26,613)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The group’s loss for the year was £293,627 (2022 - £14,514 loss).

These financial statements have been prepared in accordance with the provisions applicable to groups and companies subject to the small companies regime.

The financial statements were approved and signed by the director and authorised for issue on 3 March 2024
03 March 2024
Mr Mohamed Maher Al Ghannam
Director
AVALON PHARMA UK HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 5 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
3
1
1
Current assets
Debtors
5
-
0
281,396
Creditors: amounts falling due within one year
6
(316,189)
(306,479)
Net current liabilities
(316,189)
(25,083)
Net liabilities
(316,188)
(25,082)
Capital and reserves
Called up share capital
7
1
1
Profit and loss reserves
(316,189)
(25,083)
Total equity
(316,188)
(25,082)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £291,106 (2022 - £12,983 loss).

 

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.

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 and signed by the director and authorised for issue on 3 March 2024
03 March 2024
Mr Mohamed Maher Al Ghannam
Director
Company Registration No. 12214173
AVALON PHARMA UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
1
Accounting policies
Company information

Avalon Pharma UK Holdings Limited (“the company”) is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is 25 Basil Mansions, Basil Street, London, SW3 1AP.

 

The group consists of Avalon Pharma UK Holdings Limited and all of its subsidiaries.

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.

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.

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Avalon Pharma UK Holdings Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 December 2023. 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.

1.3
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The company continues to retain the full support of its ultimate parent company who will ensure the group have adequate resources. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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.

AVALON PHARMA UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 7 -
1.5
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 balance sheet 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.

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, 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.

 

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.

1.6
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.

2
Employees

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

2023
2022
Number
Number
Total
-
0
-
0
AVALON PHARMA UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
3
Fixed asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Shares in group undertakings and participating interests
-
281,397
1
1
Movements in fixed asset investments
Group
Shares in group undertakings and participating interests
£
Cost or valuation
At 1 January 2023
281,397
Disposals
(281,397)
At 31 December 2023
-
Carrying amount
At 31 December 2023
-
At 31 December 2022
281,397
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 31 December 2023 and 31 December 2022
1
Carrying amount
At 31 December 2023
1
At 31 December 2022
1
4
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Avalon Cosmetics Limited
UK
Ordinary
100.00
Avalon Pharma Limited
UK
Ordinary
100.00
Avalon Nutrition Limited
UK
Ordinary
100.00
AVALON PHARMA UK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
5
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Amounts owed by group undertakings
-
-
-
0
281,396
Other debtors
1,000
-
-
0
-
0
1,000
-
-
281,396
6
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Amounts owed to group undertakings
315,740
294,596
310,689
294,596
Other creditors
5,500
13,414
5,500
11,883
321,240
308,010
316,189
306,479
7
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
1 Ordinary share of £1 each
1
1
8
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 Frank Harling
The auditor was Ward Williams.
9
Parent company

The ultimate parent company is Middle East Pharmaceutical Industries Co. Ltd (Avalon Pharma) and their registered office is 8146 King Muhammad V, Sulimaniyah, Riyadh 12223, Kingdom of Saudi Arabia.

2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2023.300No description of principal activityMr Mohamed Maher Al Ghannamfalse12214173bus:Consolidated2023-01-012023-12-31122141732023-01-012023-12-31122141732023-12-3112214173bus:Consolidated2023-12-3112214173bus:Consolidated2022-12-31122141732022-12-3112214173core:ShareCapitalbus:Consolidated2023-12-3112214173core:ShareCapitalbus:Consolidated2022-12-3112214173core:ShareCapital2023-12-3112214173core:ShareCapital2022-12-3112214173core:RetainedEarningsAccumulatedLosses2023-12-3112214173bus:Director12023-01-012023-12-3112214173dpl:Item12022-01-012022-12-31122141732022-01-012022-12-3112214173core:Subsidiary12023-01-012023-12-3112214173core:Subsidiary22023-01-012023-12-3112214173core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-12-3112214173core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-12-3112214173core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3112214173core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3112214173core:CurrentFinancialInstrumentsbus:Consolidated2023-12-3112214173core:CurrentFinancialInstrumentsbus:Consolidated2022-12-3112214173core:CurrentFinancialInstruments2023-12-3112214173core:CurrentFinancialInstruments2022-12-3112214173bus:PrivateLimitedCompanyLtd2023-01-012023-12-3112214173bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3112214173bus:FRS1022023-01-012023-12-3112214173bus:Audited2023-01-012023-12-3112214173bus:ConsolidatedGroupCompanyAccounts2023-01-012023-12-3112214173bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP