Company registration number 08899223 (England and Wales)
KRKA UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
KRKA UK LIMITED
COMPANY INFORMATION
Directors
Ms M Vidmar Berus
Mr J Arh
Mr V Kozjan
Company number
08899223
Registered office
Thames House
Waterside Drive
Langley
Berkshire
SL3 6EZ
Auditor
Gravita Audit II Limited
66 Prescot Street
London
E1 8NN
Business address
Thames House
Waterside Drive
Langley
Berkshire
SL3 6EZ
KRKA UK LIMITED
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Income statement
6
Statement of financial position
7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10 - 19
KRKA UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company was that of the sale and distribution of both human and veterinary pharmaceuticals.

 

Results and dividends

The results for the year are set out on page 6.

 

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Ms M Vidmar Berus
Mr J Arh
Mr V Kozjan
Supplier payment policy

It is the policy of the company that it should agree appropriate terms and conditions for its transactions with suppliers and that payment should be made in accordance with those terms and conditions. The average credit period taken for trade purchases is 30 days.

Auditor

In accordance with the company's articles, a resolution proposing that Gravita Audit II Limited be reappointed as auditor of the company will be put at a General Meeting.

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

KRKA UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
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 International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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 company and of the profit or loss of the company for that period. In preparing these financial statements, International Accounting Standard 1 requires that directors:

 

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

Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

On behalf of the board
Ms M Vidmar Berus
Director
16 February 2024
2024-02-16
KRKA UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF KRKA UK LIMITED
- 3 -
Opinion

We have audited the financial statements of KRKA UK Limited (the 'company') for the year ended 31 December 2023 which comprise the income statement, the statement of financial position, the statement of changes in equity, the 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 UK adopted international accounting standards.

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 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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

KRKA UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF KRKA UK LIMITED
- 4 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.

 

We have nothing to report in respect of the following matters where 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 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 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.

 

We assessed the susceptibility of the company’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: 

 

KRKA UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF KRKA UK LIMITED
- 5 -

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. 

 

We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. The laws and regulations applicable to the company were identified through discussions with directors and other management, and from our commercial knowledge and experience of sale and distribution of veterinary pharmaceuticals. Of these laws and regulations, we focused on those that we considered may have a direct material effect on the financial statements or the operations of the company, including the National Office for Animal Health Code of Practice, the Medicines and Healthcare products Regulatory Agency (MHRA), Veterinary Medicines Regulations 2013, Human Medicines Regulations 2012, the Good Distribution Practice guidelines for pharmaceutical products, Contracts (Rights of Third Parties) Act 1999, competition law, Companies Act 2006, taxation legislation, data protection, anti-bribery, anti-money-laundering, employment, environmental and health and safety legislation. The extent of compliance with these laws and regulations identified above was assessed through making enquiries of management and inspecting legal correspondence. The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. 

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 member 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 member, those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Paul Woosey (Senior Statutory Auditor)
For and on behalf of Gravita Audit II Limited
20 February 2024
Chartered Accountants
Statutory Auditor
66 Prescot Street
London
E1 8NN
KRKA UK LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
2023
2022
Notes
£
£
Revenue
3
16,029,557
12,843,954
Cost of sales
(14,003,870)
(11,198,741)
Gross profit
2,025,687
1,645,213
Other operating income
689,481
655,169
Administrative expenses
(2,123,174)
(1,817,624)
Operating profit
4
591,994
482,758
Investment revenues
6
10,441
-
0
Finance costs
7
(1,113)
(1,814)
Profit before taxation
601,322
480,944
Income tax expense
8
(153,748)
(88,114)
Profit and total comprehensive income for the year
447,574
392,830

The income statement has been prepared on the basis that all operations are continuing operations.

KRKA UK LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 7 -
2023
2022
Notes
£
£
Non-current assets
Property, plant and equipment
9
91,775
100,381
Current assets
Inventories
10
5,630,195
3,617,057
Trade and other receivables
11
8,275,680
2,862,836
Cash and cash equivalents
1,468,740
565,745
15,374,615
7,045,638
Current liabilities
Trade and other payables
13
14,139,993
6,298,721
Current tax liabilities
109,691
88,114
Lease liabilities
14
20,091
20,496
14,269,775
6,407,331
Net current assets
1,104,840
638,307
Non-current liabilities
Lease liabilities
14
24,479
14,126
Net assets
1,172,136
724,562
Equity
Called up share capital
16
1,000
1,000
Retained earnings
1,171,136
723,562
Total equity
1,172,136
724,562
The financial statements were approved by the board of directors and authorised for issue on 16 February 2024 and are signed on its behalf by:
Ms M  Vidmar Berus
Director
Company registration number 08899223 (England and Wales)
KRKA UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2022
1,000
330,732
331,732
Year ended 31 December 2022:
Profit and total comprehensive income
-
392,830
392,830
Balance at 31 December 2022
1,000
723,562
724,562
Year ended 31 December 2023:
Profit and total comprehensive income
-
447,574
447,574
Balance at 31 December 2023
1,000
1,171,136
1,172,136
KRKA UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
1,049,315
202,191
Tax paid
(132,170)
(9,328)
Net cash inflow from operating activities
917,145
192,863
Investing activities
Purchase of property, plant and equipment
(3,239)
(9,481)
Proceeds on disposal of property, plant and equipment
156
36,682
Interest received
10,441
-
0
Net cash generated from investing activities
7,358
27,201
Financing activities
Payment of lease liabilities
(21,508)
(21,508)
Net cash used in financing activities
(21,508)
(21,508)
Net increase in cash and cash equivalents
902,995
198,556
Cash and cash equivalents at beginning of year
565,745
367,189
Cash and cash equivalents at end of year
1,468,740
565,745
KRKA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information

KRKA UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Thames House, Waterside Drive, Langley, Berkshire, SL3 6EZ. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the European Union and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, (except as otherwise stated).

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 on the historical cost basis. The principal accounting policies adopted are set out below.

 

Functional and presentational currency

 

The financial statements are presented in GB pounds (£), which is the company's functional currency and all values are rounded to the nearest GB pound (£) except where otherwise indicated.

1.2
Going concern

The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate financial support from the parent company to continue in operational existence for the foreseeable future. It is expected that over the next couple of years the company will remain consistently profit making and, combined with the continued support of the parent company, they believe it appropriate to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

1.4
Property, plant and equipment

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:

Right of use assets
Straight-line over the length of the lease
Fixtures, fittings & equipment
20% on cost
Computer equipment
20-25% 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.

KRKA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.5
Impairment of tangible and intangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible 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.

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.

 

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.

1.6
Inventories

Inventories are stated at the lower of cost and net realisable value.

1.7
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets held at amortised cost

Trade Receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

KRKA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
Impairment of financial assets

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

 

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.9
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.10
Equity instruments

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

1.11
Taxation

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

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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

1.12
Retirement benefits

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

KRKA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.13
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property. IFRS 16 was adopted on 1 January 2019 without restatement of comparative figures on the cumulative effect basis; the following policies apply subsequent to the date of initial application, 1 January 2019.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.14
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.

KRKA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2
Critical accounting estimates and judgements

In the application of the company’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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The areas for which estimation has been applied are considered to be in calculating depreciation and the useful economic life of assets and inventory provisions.

 

Although each of these areas are subject to judgement, they are not considered to be subject to significant estimation.

3
Revenue

An analysis of the company's revenue is as follows:

2023
2022
£
£
Revenue analysed by class of business
Veterinary Products
8,718,450
8,540,761
Human Products (Rx)
7,311,107
4,303,193
16,029,557
12,843,954
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
75
93
Market Research costs
20,814
20,673
Fees payable to the company's auditor for the audit of the company's financial statements
18,150
16,500
Depreciation of property, plant and equipment
42,167
41,852
Profit on disposal of property, plant and equipment
(136)
(32,675)
Cost of inventories recognised as an expense
14,003,870
11,198,741
5
Employees

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

2023
2022
Number
Number
16
14
KRKA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 15 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
981,153
925,213
Social security costs
125,397
119,393
Pension costs
68,412
62,579
1,174,962
1,107,185
6
Investment income
2023
2022
£
£
Interest income
Financial instruments measured at amortised cost:
Bank deposits
10,441
-
0
Income above relates to assets held at amortised cost, unless stated otherwise.
7
Finance costs
2023
2022
£
£
Other interest payable
1,113
1,814
8
Income tax expense
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
153,748
88,114

The charge for the year can be reconciled to the profit per the income statement as follows:

2023
2022
£
£
Profit before taxation
601,322
480,944
Expected tax charge based on a corporation tax rate of 23.50% (2022: 19.00%)
141,311
91,379
Effect of expenses not deductible in determining taxable profit
15,694
9,092
Capital allowances
(3,257)
(12,357)
Taxation charge for the year
153,748
88,114
KRKA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Income tax expense
(Continued)
- 16 -

Factors that may affect future tax charges

 

At 31 December 2023 there was an unprovided for deferred tax liability of £12,022 (2022: £16,746). This relates to accelerated capital allowances. It has not been provided for because it is deemed to be trivial.

9
Property, plant and equipment
Right of use assets
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2022
70,137
45,391
89,819
121,930
327,277
Additions
-
0
55
9,426
-
0
9,481
Disposals
-
0
(1,209)
(4,416)
(121,930)
(127,555)
At 31 December 2022
70,137
44,237
94,829
-
0
209,203
Additions
30,342
55
3,184
-
0
33,581
Disposals
-
0
(864)
(8,741)
-
0
(9,605)
At 31 December 2023
100,479
43,428
89,272
-
0
233,179
Accumulated depreciation and impairment
At 1 January 2022
16,700
12,130
43,957
117,731
190,518
Charge for the year
20,040
11,197
10,368
247
41,852
Eliminated on disposal
-
0
(1,154)
(4,416)
(117,978)
(123,548)
At 31 December 2022
36,740
22,173
49,909
-
0
108,822
Charge for the year
20,050
10,843
11,274
-
0
42,167
Eliminated on disposal
-
0
(844)
(8,741)
-
0
(9,585)
At 31 December 2023
56,790
32,172
52,442
-
0
141,404
Carrying amount
At 31 December 2023
43,689
11,256
36,830
-
91,775
At 31 December 2022
33,397
22,064
44,920
-
100,381

KRKA UK Limited adopted IFRS 16 on 1 January 2019. In 2021 the company moved premises, and entered into a new lease contract. This lease was immediately capitalised as a right of use asset at the present value of future cash flows. An interest charge of £1,113 on the lease is included within the income statement. The depreciation charged on the right of use asset was £20,050 and is included in both the income statement and statement of financial position. The amount in respect of the lease presented in the statement of cash flows is £21,508 being the capital repayment.

10
Inventories
2023
2022
£
£
Finished goods
5,630,195
3,617,057
KRKA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
11
Trade and other receivables
2023
2022
£
£
Trade receivables
8,114,671
2,535,648
Amounts owed by fellow group undertakings
83,978
84,503
Other receivables
6,877
6,877
Prepayments
70,154
235,808
8,275,680
2,862,836

Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.

12
Trade receivables - credit risk
Fair value of trade receivables

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

No significant receivable balances are impaired at the reporting end date.

13
Trade and other payables
2023
2022
£
£
Trade payables
1,194,643
172,517
Amounts owed to fellow group undertakings
9,267,376
3,819,591
Accruals
2,784,944
1,768,889
Social security and other taxation
859,204
508,441
Other payables
33,826
29,283
14,139,993
6,298,721

Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit period taken for trade purchases is 30 days. The company has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

 

The directors consider that the carrying amount of trade payables approximates to their fair value.

KRKA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
14
Lease liabilities
2023
2022
Maturity analysis
£
£
Within one year
21,508
21,508
In two to five years
25,093
14,339
Total undiscounted liabilities
46,601
35,847
Future finance charges and other adjustments
(2,031)
(1,225)
Lease liabilities in the financial statements
44,570
34,622

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2023
2022
£
£
Current liabilities
20,091
20,496
Non-current liabilities
24,479
14,126
44,570
34,622
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
68,412
62,579

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
1,000
1,000
1,000
1,000
17
Related party transactions

During the year the company entered into the following transactions with related parties:

Purchase of goods
2023
2022
£
£
Parent company
12,926,534
10,454,009
KRKA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
17
Related party transactions
(Continued)
- 19 -
Income from marketing services
Income from regulatory services
2023
2022
2023
2022
£
£
£
£
Parent company
616,647
581,935
71,178
71,916

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Parent company
9,267,376
3,819,591

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Parent company
83,978
84,503
18
Capital risk management

The company is not subject to any externally imposed capital requirements.

19
Controlling party

The parent company of KRKA UK Limited is KRKA, d.d, a company listed on the Ljubljana Stock Exchange (LJSE) and resident in Slovenia. There is no ultimate controlling party.

20
Cash generated from operations
2023
2022
£
£
Profit for the year before income tax
601,322
480,944
Adjustments for:
Finance costs
1,113
1,814
Investment income
(10,441)
-
0
Gain on disposal of property, plant and equipment
(136)
(32,675)
Depreciation and impairment of property, plant and equipment
42,167
41,852
Movements in working capital:
Increase in inventories
(2,013,138)
(2,542,362)
Increase in trade and other receivables
(5,412,844)
(691,557)
Increase in trade and other payables
7,841,272
2,944,175
Cash generated from operations
1,049,315
202,191
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2023.200Ms M Vidmar BerusMr J ArhMr V Kozjan447,574088992232023-01-012023-12-3108899223bus:Director12023-01-012023-12-3108899223bus:Director22023-01-012023-12-3108899223bus:Director32023-01-012023-12-3108899223bus:RegisteredOffice2023-01-012023-12-31088992232023-12-3108899223core:ContinuingOperations2023-01-012023-12-31088992232022-01-012022-12-3108899223core:ContinuingOperations2022-01-012022-12-3108899223core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3108899223core:RetainedEarningsAccumulatedLosses2022-01-012022-12-31088992232022-12-3108899223core:CurrentFinancialInstruments2023-12-3108899223core:CurrentFinancialInstruments2022-12-31088992232022-12-31088992232021-12-3108899223core:Non-currentFinancialInstruments2023-12-3108899223core:Non-currentFinancialInstruments2022-12-3108899223core:ShareCapital2023-12-3108899223core:ShareCapital2022-12-3108899223core:RetainedEarningsAccumulatedLosses2023-12-3108899223core:RetainedEarningsAccumulatedLosses2022-12-3108899223core:OtherMiscellaneousReserve2021-12-3108899223core:LoansReceivables2023-01-012023-12-310889922312023-01-012023-12-310889922312022-01-012022-12-3108899223core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-12-3108899223core:FurnitureFittings2021-12-3108899223core:ComputerEquipment2021-12-3108899223core:MotorVehicles2021-12-3108899223core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3108899223core:FurnitureFittings2022-12-3108899223core:ComputerEquipment2022-12-3108899223core:MotorVehicles2022-12-3108899223core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3108899223core:FurnitureFittings2023-12-3108899223core:ComputerEquipment2023-12-3108899223core:MotorVehicles2023-12-3108899223core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-01-012022-12-3108899223core:FurnitureFittings2022-01-012022-12-3108899223core:ComputerEquipment2022-01-012022-12-3108899223core:MotorVehicles2022-01-012022-12-3108899223core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3108899223core:FurnitureFittings2023-01-012023-12-3108899223core:ComputerEquipment2023-01-012023-12-3108899223core:MotorVehicles2023-01-012023-12-3108899223core:FurnitureFittings2022-12-3108899223core:FurnitureFittingscore:ContinuingOperations2022-12-3108899223core:ParentEntitiescore:SaleOrPurchaseGoods2023-12-3108899223core:ParentEntitiescore:SaleOrPurchaseGoods2022-12-3108899223core:ParentEntities2023-12-3108899223core:ParentEntities2022-12-3108899223bus:PrivateLimitedCompanyLtd2023-01-012023-12-3108899223bus:Audited2023-01-012023-12-3108899223bus:FullIFRS2023-01-012023-12-3108899223bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP