Company Registration No. 03929804 (England and Wales)
IBSA PHARMA LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
IBSA PHARMA LIMITED
COMPANY INFORMATION
Directors
L Grassi
A Licenziati
A Melli
E Racca
(Appointed 30 June 2023)
Company number
03929804
Registered office
4-6 Colonial Business Park
Colonial Way
Watford
Hertfordshire
United Kingdom
WD24 4PR
Auditor
Myers Clark
Egale 1
80 St Albans Road
Watford
Hertfordshire
WD17 1DL
Business address
4-6 Colonial Business Park
Colonial Way
Watford
Hertfordshire
United Kingdom
WD24 4PR
Bankers
National Westminster Bank
13 Stonehills
Welwyn Garden City
Hertfordshire
AL8 6ND
IBSA PHARMA LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 21
IBSA PHARMA LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of business

During 2023, the business has performed well in the year achieving sales of £17.7m and a profit before tax of £0.7m, compared with sales of £11.5m and a profit before tax of £4m for the 10-month period ended 31st December 2022.

 

In 2023, an increase in expenditure was required as IBSA Pharma continues to adopt the IBSA Group strategy to have a direct presence in markets across different therapeutic areas leading to a decrease in profit before tax.

Principal risks and uncertainties

IBSA Pharma Ltd is in a competitive marketplace and principal risks continue to be from competitor pharmaceutical companies. The Fertility market in the UK is very well established and continues to grow, supported by developing social trends such as egg-banking.

 

The company operates in the highly regulated pharmaceutical industry. Costs related to regulatory and compliance activities are at risk of increasing. This is connected to BREXIT and increased requirements and increased time, for MHRA review.

Financial position

At the end of the financial year, the balance sheet showed net assets of £7.2m (December 22: £12.7m), including cash of £6.9m (December 22: £10.7m).

 

There has been a reduction in year-end cash and net assets as a result of paying a £6m interim dividend to IBSA Group.

Financial risk management

The company is exposed to a number of financial risks through its financial assets and liabilities.

 

The key business risks that affect the company are set out below:

 

- Currency risk: the risk has been minimised as the majority of the company's suppliers are invoiced in the company's home currency, in addition the company invoices in its home currency.

 

- Interest rate risk: this is negligible as the company has no borrowings.

 

- Credit risk: the company has in place credit checks on potential customers and credit control procedures which it deems sufficient to recover trade debtors owed from customers.

 

- Liquidity risk: the risk has been minimised as surplus funds are kept to sufficiently meet commitments as they fall due.

On behalf of the board

L Grassi
Director
8 March 2024
IBSA PHARMA LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Principal activities

IBSA Pharma Ltd is a private, UK-based pharmaceutical company that specialises in reproductive medicine. It is the exclusive UK distributor of the IBSA range of specialised medicines, used in fertility treatment. Staff work with doctors and clinicians from the UK’s top NHS and private clinics, supplying medicines to those clinics and providing medicines directly to many clinic’s patients through its pharmacy and home delivery service.

Results and dividends

The results for the year are set out on page 16.

Ordinary dividends were paid amounting to £6,000,000. 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:

L Grassi
A Licenziati
A Melli
E Racca
(Appointed 30 June 2023)
Future developments

The review of the current year’s performance is covered in the Strategic Report on page 1. In terms of future developments, the company will continue to seek new products by leveraging the broader portfolio produced by the IBSA group.

Auditor

Myers Clark were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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 company’s auditor 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 company’s auditor is aware of that information.

Change of Company name

In January 2023, the company changed it's name from Pharmasure Ltd to IBSA Pharma Ltd.

On behalf of the board
L Grassi
Director
8 March 2024
IBSA PHARMA LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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 company and of the profit or loss of the company 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 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.

IBSA PHARMA LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF IBSA PHARMA LIMITED
- 4 -
Opinion

We have audited the financial statements of IBSA Pharma Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet, 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 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 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:

IBSA PHARMA LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF IBSA PHARMA LIMITED
- 5 -
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 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 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.

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:

IBSA PHARMA LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF IBSA PHARMA LIMITED
- 6 -

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:

 

 

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.

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.

Paul Windmill
Senior Statutory Auditor
For and on behalf of Myers Clark
8 March 2024
2024-03-08
Chartered Accountants
Statutory Auditor
Egale 1
80 St Albans Road
Watford
Hertfordshire
WD17 1DL
IBSA PHARMA LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
Year
Period
ended
ended
31 December
31 December
2023
2022
Notes
£
£
Turnover
3
17,658,498
11,540,769
Cost of sales
(12,374,526)
(5,539,564)
Gross profit
5,283,972
6,001,205
Distribution costs
(328,789)
(217,237)
Administrative expenses
(4,527,202)
(1,934,076)
Other operating income
204,574
190,728
Operating profit
4
632,555
4,040,620
Interest receivable and similar income
8
76,894
22,081
Gain on revaluation of investments
9
32,747
(12,900)
Profit before taxation
742,196
4,049,801
Tax on profit
10
(174,617)
(732,260)
Profit for the financial year
567,579
3,317,541
Retained earnings brought forward
12,676,974
9,359,433
Dividends
11
(6,000,000)
-
0
Retained earnings carried forward
7,244,553
12,676,974
IBSA PHARMA LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
124,011
136,089
Investments
13
368,653
335,906
492,664
471,995
Current assets
Stocks
15
2,858,149
3,346,125
Debtors
16
2,022,389
1,827,651
Cash at bank and in hand
6,905,780
10,659,916
11,786,318
15,833,692
Creditors: amounts falling due within one year
17
(4,987,710)
(3,588,170)
Net current assets
6,798,608
12,245,522
Total assets less current liabilities
7,291,272
12,717,517
Provisions for liabilities
18
(46,619)
(40,443)
Net assets
7,244,653
12,677,074
Capital and reserves
Called up share capital
21
100
100
Profit and loss reserves
7,244,553
12,676,974
Total equity
7,244,653
12,677,074
The financial statements were approved by the board of directors and authorised for issue on 8 March 2024 and are signed on its behalf by:
L Grassi
Director
Company Registration No. 03929804
IBSA PHARMA 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
24
2,773,853
1,886,086
Income taxes paid
(570,000)
(1,068,022)
Net cash inflow from operating activities
2,203,853
818,064
Investing activities
Purchase of tangible fixed assets
(56,574)
(91,572)
Proceeds on disposal of tangible fixed assets
21,691
2,010,283
Receipts arising from loans made
-
0
85
Interest received
76,894
22,081
Net cash generated from investing activities
42,011
1,940,877
Financing activities
Dividends paid
(6,000,000)
-
0
Net cash used in financing activities
(6,000,000)
-
Net (decrease)/increase in cash and cash equivalents
(3,754,136)
2,758,941
Cash and cash equivalents at beginning of year
10,659,916
7,900,975
Cash and cash equivalents at end of year
6,905,780
10,659,916
IBSA PHARMA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information

IBSA Pharma Limited is a private company limited by shares incorporated in England and Wales. The registered office is 4-6 Colonial Business Park, Colonial Way, Watford, Hertfordshire, United Kingdom, WD24 4PR.

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.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for:

 

 

 

The fair value of consideration takes into account trade discounts and volume rebates.

1.4
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:

Fixtures, fittings & equipment
25% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Fixed asset investments

Fixed asset investments are initially measured at cost and subsequently measured at fair value through the profit and loss account.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell, based on a first expiry date - first out method. 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.

IBSA PHARMA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.7
Cash at bank and in hand

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

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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 company 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.

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 company after deducting all of its liabilities.

IBSA PHARMA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company 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 company.

1.10
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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.11
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.

 

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.

IBSA PHARMA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.12
Retirement benefits

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

1.13
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 balance sheet 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 leases asset are consumed.

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.

2
Judgements and key sources of estimation uncertainty

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 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.

Critical judgements

The following judgement (apart from those involving estimates) has had the most significant effect on amounts recognised in the financial statements.

Current and deferred taxation

The complex nature of the tax legislation under which the Company operates necessitates the use of estimates and assumptions in assessing the tax amounts provided in the financial statements. Actual tax payable may differ from the amounts provided.

3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Fertility sales
17,658,498
11,540,769
IBSA PHARMA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 14 -
2023
2022
£
£
Other significant revenue
Interest income
76,894
22,081
Sale of services and other expenses recharged
204,574
190,380
Turnover analysed by geographical market
United Kingdom
17,658,498
11,540,769
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
6,531
22,570
Fees payable to the company's auditor for the audit of the company's financial statements
12,750
11,750
Depreciation of owned tangible fixed assets
46,960
40,949
Profit on disposal of tangible fixed assets
-
(930,791)
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 company
12,750
11,750
For other services
Audit-related assurance services
3,700
3,250
6
Employees

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

2023
2022
Number
Number
Admin
19
13
Distribution
3
3
Marketing
2
1
Pharmacy
3
2
Sales
7
6
Senior Management
6
4
Total
40
29
IBSA PHARMA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 15 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,934,324
1,325,705
Social security costs
223,400
168,802
Pension costs
285,255
125,566
2,442,979
1,620,073
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
-
0
24,029
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
76,894
21,664
Other interest income
-
0
417
Total income
76,894
22,081
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
76,894
21,664
9
Gains/(losses) on finacial instruments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Change in value of financial assets held at fair value through profit or loss
32,747
(12,900)
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
168,441
720,301
IBSA PHARMA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
2023
2022
£
£
(Continued)
- 16 -
Deferred tax
Origination and reversal of timing differences
6,176
2,824
Changes in tax rates
-
0
9,135
Total deferred tax
6,176
11,959
Total tax charge
174,617
732,260

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
742,196
4,049,801
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
185,549
769,462
Tax effect of expenses that are not deductible in determining taxable profit
4,582
1,528
Depreciation on assets not qualifying for tax allowances
-
0
767
Other differences
(15,514)
(48,812)
Effect of change in tax rate on deferred tax
-
0
9,315
Taxation charge for the year
174,617
732,260
11
Dividends
2023
2022
£
£
Interim paid
6,000,000
-
0
IBSA PHARMA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
12
Tangible fixed assets
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
Cost
At 1 January 2023
173,224
142,230
315,454
Additions
56,574
-
0
56,574
Disposals
-
0
(90,230)
(90,230)
At 31 December 2023
229,798
52,000
281,798
Depreciation and impairment
At 1 January 2023
122,677
56,688
179,365
Depreciation charged in the year
17,088
29,872
46,960
Eliminated in respect of disposals
-
0
(68,538)
(68,538)
At 31 December 2023
139,765
18,022
157,787
Carrying amount
At 31 December 2023
90,033
33,978
124,011
At 31 December 2022
50,547
85,542
136,089
13
Fixed asset investments
2023
2022
£
£
Listed investments
368,653
335,906

Listed investments included above:

Listed investments carrying amount
368,653
335,906
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 January 2023
335,906
Valuation changes
32,747
At 31 December 2023
368,653
Carrying amount
At 31 December 2023
368,653
At 31 December 2022
335,906
IBSA PHARMA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
14
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,365,546
1,471,305
Instruments measured at fair value through profit or loss
368,653
335,906
Carrying amount of financial liabilities
Measured at amortised cost
4,919,376
3,368,129
15
Stocks
2023
2022
£
£
Finished goods and goods for resale
2,858,149
3,346,125
16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,354,914
1,371,438
Corporation tax recoverable
219,329
-
0
Other debtors
105,958
296,481
Prepayments and accrued income
342,188
159,732
2,022,389
1,827,651
17
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
4,356,313
2,905,579
Corporation tax
-
0
78,912
Other taxation and social security
68,334
141,129
Other creditors
670
1,905
Accruals and deferred income
562,393
460,645
4,987,710
3,588,170

The company's credit card facilities are secured with a fixed and floating charge over the company's assets.

18
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
19
46,619
40,443
IBSA PHARMA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
19
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
28,271
30,281
Revaluations
18,348
10,162
46,619
40,443
2023
Movements in the year:
£
Liability at 1 January 2023
40,443
Charge to profit or loss
6,176
Liability at 31 December 2023
46,619

Included in the deferred liability set out above is £28,271 relating to accelerated capital allowances. Of this figure it is expected that £10,095 will reverse in the next 12 months. The remaining deferred tax liability relates to the value of listed investments, the tax on which will not crystalize until the investments are sold.

20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
285,255
125,566

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.

21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
IBSA PHARMA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
22
Operating lease commitments

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

2023
2022
£
£
Within one year
209,322
207,717
Between two and five years
468,997
809,710
678,319
1,017,427
23
Ultimate controlling party

The immediate parent company and smallest group to consolidate the company results of IBSA Pharma Limited is IBSA Institut Biochimique SA, a company registered in Switzerland. Its registered office is Via al Ponte 13, 6900 Massagno, Switzerland.

The ultimate controlling parent company and largest group to consolidate the company's results is IBSA Holding SA, a company registered in Switzerland. Its registered office is Via Pian Scairolo 49, CH-6912 Lugano, Switzerland.

 

The ultimate controlling party is Dr Arturo Licenziati.

 

24
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
567,579
3,317,541
Adjustments for:
Taxation charged
174,617
732,260
Investment income
(76,894)
(22,081)
Gain on disposal of tangible fixed assets
-
(930,791)
Depreciation and impairment of tangible fixed assets
46,960
40,949
Other gains and losses
(32,747)
12,900
Movements in working capital:
Decrease/(increase) in stocks
487,976
(1,991,265)
Decrease/(increase) in debtors
24,591
(603,589)
Increase in creditors
1,581,771
1,330,161
Cash generated from operations
2,773,853
1,886,085
IBSA PHARMA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
25
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
10,659,916
(3,754,136)
6,905,780
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