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Registration number: 07997148

Mepharm Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 May 2023

 

Mepharm Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 7

 

Mepharm Limited

Company Information

Directors

Mr B Patel

Mrs M Patel

Registered office

10 The Woodfines
Hornchurch
Essex
RM11 3HR

Accountants

Affinity Associates (Flemmings) Limited
(Trading as Flemmings)
Chartered Accountants
76 Canterbury Road
Croydon
Surrey
CR0 3HA

 

Mepharm Limited

(Registration number: 07997148)
Balance Sheet as at 31 May 2023

Note

2023
£

2022
£

           

Fixed assets

   

 

Investments

4

 

942,256

 

942,256

Current assets

   

 

Debtors

5

315

 

1,454

 

Cash at bank and in hand

 

19,763

 

15,142

 

 

20,078

 

16,596

 

Creditors: Amounts falling due within one year

6

(889,339)

 

(544,606)

 

Net current liabilities

   

(869,261)

 

(528,010)

Total assets less current liabilities

   

72,995

 

414,246

Creditors: Amounts falling due after more than one year

6

 

-

 

(344,280)

Net assets

   

72,995

 

69,966

Capital and reserves

   

 

Called up share capital

100

 

100

 

Profit and loss account

72,895

 

69,866

 

Total equity

   

72,995

 

69,966

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

Directors' responsibilities:

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

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

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

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 19 January 2024 and signed on its behalf by:
 

.........................................
Mr B Patel
Director

 

Mepharm Limited

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

1

General information

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

The address of its registered office is:
10 The Woodfines
Hornchurch
Essex
RM11 3HR
United Kingdom

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

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

The financial statements are presented in Pound Sterling, which is the functional currency of the company.

Summary of disclosure exemptions

The Company is part of a small group. The company has taken advantage of the exemption provided by Section 398 of the Companies Act 2006 and has not prepared group accounts.

Investments

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

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

Borrowings

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

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

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

 

Mepharm Limited

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

Financial instruments

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

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2022 - 2).

4

Investments

2023
£

2022
£

Investments in subsidiaries

942,256

942,256

Subsidiaries

£

Cost or valuation

At 1 June 2022

942,256

Carrying amount

At 31 May 2023

942,256

At 31 May 2022

942,256

 

Mepharm Limited

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

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Audley Mills Limited

55 Eastwood Road
Rayleigh
Essex
SS 7JF

United Kingdom

Ordinary Shares

100%

100%

Subsidiary undertakings

Audley Mills Limited

The principal activity of Audley Mills Limited is retail pharmacy. The profit for the financial period of Audley Mills Limited was £117,562 and the aggregate amount of Capital and reserves at the end of the period was £1,287,259.

5

Debtors

2023
£

2022
£

Prepayments and accrued income

315

1,454

 

315

1,454

 

Mepharm Limited

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

6

Creditors

Note

2023
£

2022
£

Due within one year

 

Bank loans and overdrafts

7

121,942

47,908

Trade creditors

 

-

648

Amounts owed to/(from) group undertakings

 

765,269

490,778

Directors' current account

 

2,128

5,272

 

889,339

544,606

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

7

-

344,280

The bank loans are secured as follows :

1. A debenture from the company over all of the company's assets and undertaking.
2. A debenture from its subsidiary company over all its assets and undertaking.
3. Two legal charges over the leasehold properties occupied by its subsidiary company.
4. A cross guarantee from its company and subsidiary.
5. The loan is secured by a guarantee provided by Mr B Patel and Mrs M Patel. The amount guaranteed is limited to £75,000.
6. A subordination deed on the loan between the directors and the company.
7. Assignment over life policy on the director Mr B Patel for the amount of £650,000 and for a period of at least 5 years.
 

 

Mepharm Limited

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

7

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank loan

-

344,280

2023
£

2022
£

Current loans and borrowings

Bank Loan

121,942

47,908

8

Related party transactions

Mr B Patel and Mrs M Patel
(Directors and Shareholders)

During the year a dividend of £115,000 was paid to Mr B Patel.

During the year a dividend of £115,000 was paid to Mrs M Patel.

The directors have provided the following securities towards Mepharm Limited bank loan:

1) A personal guarantee limited to £75,000.
2) A subordination deed with the bank over any monies owed by Mepharm Limited to its directors.
3) Assignment over life policy on the director Mr B Patel for the amount of £650,000 and for a period of at least 5 years.

At balance sheet date the amount due (from)/to Mr B Patel and Mrs M Patel was (£2,128) (2022 - £5,272).

Summary of transactions with subsidiaries


Audley Mills Limited
(100% Subsidiary of Mepharm Ltd)

During the year, dividends amounting to £250,000 were received from Audley Mills Limited.

At the balance sheet date the amount due to Audley Mills Limited was £765,269 (2022: £490,778). This amount is interest - free and payable on demand.

Audley Mills Limited has also provided the following securities towards Mepharm Limited bank loan:

1) a debenture over its assets and undertakings.
2) two legal charges over the leasehold properties it occupies.
3) a cross guarantee in respect of its obligation on the loan.