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Registered number: 07976515










PEARL CHEMIST LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2023

 
PEARL CHEMIST LIMITED
 
 
COMPANY INFORMATION


Directors
V H Patel 
M H Patel 




Registered number
07976515



Registered office
6th Floor
2 London Wall Place

London

EC2Y 5AU




Independent auditors
MHA
Statutory Auditors

2 London Wall Place

London

EC2Y 5AU





 
PEARL CHEMIST LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 5
Independent Auditors' Report
6 - 9
Statement of Comprehensive Income
10
Balance Sheet
11 - 12
Statement of Changes in Equity
13 - 14
Notes to the Financial Statements
15 - 38


 
PEARL CHEMIST LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

Introduction
 
The directors present the strategic report and the financial statements for the year ended 31 October 2023.The principal activity of the company is the retailing of pharmacies and selling of pharmaceutical products.

Business review
 
Pearl Chemist Ltd is fast growing independent pharmacy chain, with 24 pharmacies owned and managed (at 31 October 2023) across South West London and Surrey borders.
The group was founded in 2012 and remains a family owned entity. Managed by two brothers Vijay Patel and Mayank Patel (Mike).
The English pharmacy sector represents a secure, growing market, underpinned by an increasing need for dispensing of prescription drugs and a government that wants to see community pharmacies expand and improve the range of services they offer to relieve the burden on an overstretched NHS.
The turnover has increased by 3.72% in the year, gross margins has also risen by 2.45% meaning an overall increase in gross profit of 10.12%. The increase in revenue and gross profit can partly be attributed to the continued expansion of the group.  Although the company has made a pre tax loss of £289,584 (2022: £803,309 profit) this is mainly due to the amortisation on goodwill relating to acquisitions on pharmacies and borrowing costs in respect of these acquisitions.  A better measurement of the company's performance is EBITDA and this has decreased to £3,065,696 (2022: £3,398,320).  This shows the company performing very well with the strategic aim of increasing value of the business over a period of time.
Pearl Chemist prides itself on its service led approach putting the patient at the heart of its decisions is a key differentiator for the business to build a large base of loyal, recurring customers, evidenced by repeat prescriptions making up to 70%  of the Group’s dispensing activities. The Group dispensing 2.2m items which is 9.3% increase from the prior year.

Financial key performance indicators
 
The group monitors its own performance through the use of a variety of measurements in order to maintain effective control over the business.
For the group the main financial KPI’s (Key Performance Indicators) are turnover, gross profit, and EBITDA.
                                             2023              2022                      2021                        2020
    
Turnover                             £47,934,975           £46,213,301   £37,740,977          £30,914,377
Turnover growth/(decline)   3.72%            22.45%          22.08%          4.7%
    
Gross Profit                        £11,942,970           £10,841,705   £10,545,632  £8,923,497
Gross profit growth/(decline) 10.12%         2.8%                     18.18%             70%
    
Gross margin                        24.9%           23.46%          27.94%          28.87%
    
EBITDA                             £3,065,696           £3,398,320          £3,912,520        £2,520,740
EBITDA growth/(decline)           (9.79)%           (13.14%)          55.2%                    141.3% 

Principal risks and uncertainties
 
The directors monitor banking facilities and interest rates on a regular basis to make sure that group is not exposed to material levels of interest rate risk. Majority of our loan facilities are fixed at 5 years fixed terms.

Page 1

 
PEARL CHEMIST LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023

Cash flow risk
 
Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.

Engagement with Employees

Maintaining a caring family culture is one of our core values. We actively engage with employees on significant decisions that may impact them. From December 2021, we have introduced Private medical insurance to our staff to ensure their well-being. Colleagues are given the opportunity to reach their full potential. We identify, train and develop the right people in the right role in order to align our people resources to fit our strategic intentions.


This report was approved by the board and signed on its behalf.



V H Patel
Director

Date: 31 July 2024

Page 2

 
PEARL CHEMIST LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The loss for the year, after taxation, amounted to £730,275 (2022 - profit £698,527).

The company paid interim dividends of £100,000 (2022: £Nil).

Directors

The directors who served during the year were:

V H Patel 
M H Patel 

Page 3

 
PEARL CHEMIST LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023

Streamlined Energy and Carbon Reporting (SECR)

The Company meets the qualifying conditions to report their carbon emissions and energy usage. The GHG Protocol Corporate Standard classifies a company's GHG emissions into three scopes:
*Scope 1 emissions are direct emissions from owned or controlled sources
*Scope 2 emissions are indirect emissions from the generation of purchased energy
*Scope 3 emissions includes all other indirect emissions that occur at sources which the Company do not own or control.
SECR requires that all scope 1 and 2 emissions are reported.
The Company has used the UK Government's environmental reporting guidance and has used the 2023 conversion factor of 0.20496 for electricity consumption (scope 2 emissions), the results for the year to 31 October 2023 are as follows:
UK energy consumption used to calculate emissions per scope 2 (kWh): 381,470 (2022: 367,272)
Greenhouse gas emissions (metric tonnes CO2e): 78,186 (2022: 72,763)
Intensity ratio (Metric tonnes CO2e based on head count): 0.41 (2022: 0.37)
An intensity ratio is used to determine the carbon emissions relative to a single common business metric and allows the Company's carbon footprint to be compared over time or allow comparison with similar organisations.
No scope 1 emissions were identified. 
The following steps have been taken to become more energy efficient:
Switch to electric vehicles
Electric vehicles are responsible for considerably lower emissions over their lifetime than conventional internal combustion engine vehicles. In the past two years the company has replaced 5 vehicles to electric vehicles.
Reduce waste
Traditionally, businesses made, consume and throw away. To reduce carbon emissions, the Company has made a consious effort to reduce waste from every part of their business, from managing packaging and office supplies to building a sustainable supply chain.
Switch to renewable forms of energy
The company plans to switch to renewable energy upon the expiration of our existing utility contract from next year.
Travel less or use alternative forms of transport
Employees walk to deliver nearby patients' medication.

Future developments

A Pharmacy refit at Cobham branch aimed at increasing foot flow can significantly enhance the efficiency and customer experience of the establishment. Cobham refit project is aimed to finish in May’24 and management is forecasting 70% growth in turnover for the Cobham branch. The group continues to achieve growth by seeking and acquiring more pharmacies.  

Page 4

 
PEARL CHEMIST LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

Since 31 October 2023 a total of 3 more pharmacies have been purchased, bringing the total number of pharmacies to 27.  A total consideration of £3,245,000 was for these three pharmacies.

Auditors

Under section 487(2) of the Companies Act 2006MHA will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





V H Patel
Director

Date: 31 July 2024

Page 5

 
PEARL CHEMIST LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEARL CHEMIST LIMITED
 

Opinion


We have audited the financial statements of Pearl Chemist Limited (the 'Company') for the year ended 31 October 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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:


give a true and fair view of the state of the Company's affairs as at 31 October 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.


Page 6

 
PEARL CHEMIST LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEARL CHEMIST LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.


Page 7

 
PEARL CHEMIST LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEARL CHEMIST LIMITED (CONTINUED)


Auditors' 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 Auditors' 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
 
Enquiry of management and those charged with governance around actual and potential litigation and claims;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
Reviewing minutes of meetings of those charged with governance;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 2006Our 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 Auditors' 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.


Page 8

 
PEARL CHEMIST LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PEARL CHEMIST LIMITED (CONTINUED)





Yogan Patel FCA (Senior Statutory Auditor)
for and on behalf of
MHA
Statutory Auditors
London

31 July 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
Page 9

 
PEARL CHEMIST LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
47,934,975
46,213,301

Cost of sales
  
(35,992,005)
(35,371,597)

Gross profit
  
11,942,970
10,841,704

Administrative expenses
  
(11,577,750)
(10,652,896)

Operating profit
 5 
365,220
188,808

Income from fixed assets investments
 9 
-
895,139

Interest receivable and similar income
 10 
-
1,043

Interest payable and similar expenses
 11 
(654,804)
(281,681)

(Loss)/profit before tax
  
(289,584)
803,309

Tax on (loss)/profit
 12 
(440,691)
(104,782)

(Loss)/profit for the financial year
  
(730,275)
698,527

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 15 to 38 form part of these financial statements.

Page 10

 
PEARL CHEMIST LIMITED
REGISTERED NUMBER: 07976515

BALANCE SHEET
AS AT 31 OCTOBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
10,296,643
9,807,579

Tangible assets
 15 
7,141,044
7,124,671

Investments
 16 
5,381,311
200

  
22,818,998
16,932,450

Current assets
  

Stocks
 17 
1,920,522
2,153,154

Debtors: amounts falling due after more than one year
 18 
24,076
20,938

Debtors: amounts falling due within one year
 18 
7,434,565
8,646,206

Cash at bank and in hand
 19 
42,973
75,490

  
9,422,136
10,895,788

Creditors: amounts falling due within one year
 20 
(15,625,097)
(17,029,316)

Net current liabilities
  
 
 
(6,202,961)
 
 
(6,133,528)

Total assets less current liabilities
  
16,616,037
10,798,922

Creditors: amounts falling due after more than one year
 21 
(14,279,451)
(8,121,198)

Provisions for liabilities
  

Deferred tax
 25 
(613,494)
(383,493)

Other provisions
 26 
(743,662)
(484,526)

  
 
 
(1,357,156)
 
 
(868,019)

Net assets
  
979,430
1,809,705


Capital and reserves
  

Called up share capital 
 27 
4
4

Profit and loss account
 28 
979,426
1,809,701

  
979,430
1,809,705


Page 11

 
PEARL CHEMIST LIMITED
REGISTERED NUMBER: 07976515
    
BALANCE SHEET (CONTINUED)
AS AT 31 OCTOBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


V H Patel
Director

Date: 31 July 2024

The notes on pages 15 to 38 form part of these financial statements.

Page 12

 
PEARL CHEMIST LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 November 2022
4
1,809,701
1,809,705


Comprehensive income for the year

Loss for the year
-
(730,275)
(730,275)
Total comprehensive income for the year
-
(730,275)
(730,275)

Dividends
-
(100,000)
(100,000)


At 31 October 2023
4
979,426
979,430


The notes on pages 15 to 38 form part of these financial statements.

Page 13

 
PEARL CHEMIST LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 November 2021
4
1,111,174
1,111,178


Comprehensive income for the year

Profit for the year
-
698,527
698,527
Total comprehensive income for the year
-
698,527
698,527


At 31 October 2022
4
1,809,701
1,809,705


The notes on pages 15 to 38 form part of these financial statements.

Page 14

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

1.


General information

Pearl Chemist Limited is a company limited by shares incorporated in England & Wales. The address of the registered office is 2 London Wall Place, London, EC2Y 5AU. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The functional and presentational currency of the Company is GBP and all values are rounded to the nearest £1.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Pearl Chemist Group Limited as at 31 October 2023 and these financial statements may be obtained from Companies House.

 
2.3

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

Page 15

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

 
2.4

Going concern

The company has net current liabilities at 31 October 2023 of £6,202,961 (2022: £6,133,528). The company's earnings before interest, tax, depreciation and amortisation is £3,065,696 (2022: £3,165,419. The accounts have been prepared on a going concern basis as the directors, who are the ultimate shareholders, have confirmed their willingness to support the company on a continuing basis for the foreseeable future. 

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 16

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

 
2.6

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.7

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.11

Pensions

Defined contribution pension plan

The Company operates a defined contribution pension plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 17

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

 
2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.13

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 18

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

 
2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Freehold properties
-
2%
straight line
Long-term leasehold property improvements
-
Lower of lease period and 10-15 years straight line
Motor vehicles
-
25%
reducing balance
Fixtures and fittings
-
25%
reducing balance
Office and pharmacy equipment
-
25%
reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.16

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to sell. The impairment loss is recognised immediately in profit or loss.

 
2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 19

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

 
2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.20

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 20

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

 
2.21

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.

Financial assets and liabilities are offset, with 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Page 21

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)


2.21
Financial instruments (continued)

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

 
2.22

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 22

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

3.


Judgments in applying accounting policies 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 amounts of assets and liabilties that are not readily apparent from other sources. Although these estimates are based on management's knowledge of the amount, events or actions, actual results may differ from those 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. 
Fixed assets
Management apply judgement to the estimated useful economic life of each class of fixed asset and their useful lives. This affects the rate at which assets are depreciated.
Impairment of goodwill
Management establishes a reliable estimate of the useful economic life of goodwill and intangible assets arising from business combinations. They base their estimates on a variety of factors, such as the expected use of the acquired business, the expected useful life of cash generating units to which goodwill is attributed, any legal, regulatory or contractual provisions that can limit the useful economic life of the acquired business and assumptions that market participants would consider relevant in respect of their economic decisions of similar businesses.
Provisions for dilapidations
Management assess dilapidations on leased properties when the lease is two years from expiry. Dilapidations will be determined with consideration to the terms of the lease and the condition of the property at the balance sheet date.


4.


Turnover

All sales were generated in the United Kingdom. A split of sales generated by class has not been provided as it would be prejudicial to the business.


5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Other operating lease rentals
665,573
647,287

Depreciation on tangible fixed assets
732,945
753,765

Amortisation on intangible fixed assets
1,967,531
1,765,867

Page 23

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
40,000
32,000

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
851,572
662,319

Social security costs
75,485
56,110

Cost of defined contribution scheme
50,215
46,704

977,272
765,133


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Administrative
30
25



Directors
2
2

32
27


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
25,000
25,314

25,000
25,314


Page 24

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

9.


Income from investments

2023
2022
£
£





Dividends received from subsidiary company
-
895,139

-
895,139



10.


Interest receivable

2023
2022
£
£


Other interest receivable
-
1,043

-
1,043


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
642,491
276,102

Other interest payable
12,313
5,579

654,804
281,681

Page 25

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
387,616
336,386

Adjustments in respect of previous periods
(176,926)
(185,350)


210,690
151,036


Total current tax
210,690
151,036

Deferred tax


Origination and reversal of timing differences
230,001
(46,254)

Total deferred tax
230,001
(46,254)


Tax on (loss)/profit
440,691
104,782
Page 26

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(240,172)
803,309


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 22.52% (2022 - 19%)
(54,087)
152,629

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
21,050
6,711

Capital allowances for year in excess of depreciation
363,141
275,852

Adjustments to tax charge in respect of prior periods
(176,926)
(185,350)

Adjustments to tax charge in respect of previous periods - deferred tax
295,932
-

Adjustment in respect of timing differences
-
(46,254)

Income not taxable for tax purposes
-
(83,212)

Other differences leading to an increase (decrease) in the tax charge
(1,872)
(15,594)

Remeasurement of deferred tax for changes in tax rates
(6,547)
-

Total tax charge for the year
440,691
104,782


13.


Dividends

2023
2022
£
£


Interim dividends paid
100,000
-

100,000
-

Page 27

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

14.


Intangible assets




Computer software
Goodwill
Total

£
£
£



Cost


At 1 November 2022
1,227,000
19,673,609
20,900,609


Additions
295,473
231,412
526,885


Transfer to investments (Note 16)
-
1,929,710
1,929,710



At 31 October 2023

1,522,473
21,834,731
23,357,204



Amortisation


At 1 November 2022
140,913
10,952,117
11,093,030


Charge for the year on owned assets
145,098
1,822,433
1,967,531



At 31 October 2023

286,011
12,774,550
13,060,561



Net book value



At 31 October 2023
1,236,462
9,060,181
10,296,643



At 31 October 2022
1,086,087
8,721,492
9,807,579



Page 28

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

15.


Tangible fixed assets





Freehold properties
Leasehold property improvements
Motor vehicles
Fixtures and fittings
Office and pharmacy equipment
Total

£
£
£
£
£
£



Cost


At 1 November 2022
4,512,439
1,206,904
543,020
3,479,798
496,469
10,238,630


Additions
77,381
10,962
102,215
535,294
23,466
749,318



At 31 October 2023

4,589,820
1,217,866
645,235
4,015,092
519,935
10,987,948



Depreciation


At 1 November 2022
140,961
707,057
132,424
1,826,415
307,102
3,113,959


Charge for the year on owned assets
36,300
90,642
118,822
436,695
50,486
732,945



At 31 October 2023

177,261
797,699
251,246
2,263,110
357,588
3,846,904



Net book value



At 31 October 2023
4,412,559
420,167
393,989
1,751,982
162,347
7,141,044



At 31 October 2022
4,371,478
499,847
410,596
1,653,383
189,367
7,124,671

Page 29

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

           15.Tangible fixed assets (continued)




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Freehold
4,412,559
4,371,478

Long leasehold
420,167
499,847

4,832,726
4,871,325


The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Motor vehicles
152,036
171,626

152,036
171,626


16.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 November 2022
200


Additions
7,310,821


Transferred to goodwill on hive up (Note 14)
(1,929,710)



At 31 October 2023
5,381,311




Page 30

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Jotoshourne Limited
Ordinary
100%
Chelmack Limited
Ordinary
100%
Aarogya Limited
Ordinary
100%
Haria Property Limited
Ordinary
100%
Haria Property Holdings Limited
Ordinary
100%

During the year the Company acquired the shares of Markrise Limited and subsequently hive up the business.
The shares of Aarogya Limited were acquired during the year and part of the business was hived up.


17.


Stocks

2023
2022
£
£

Goods for resale
1,920,522
2,153,154

1,920,522
2,153,154


Page 31

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

18.


Debtors

2023
2022
£
£

Due after more than one year

Other debtors
24,076
20,938

24,076
20,938


2023
2022
£
£

Due within one year

Trade debtors
5,061,811
6,592,996

Amounts owed by group undertakings
180,146
52,985

Other debtors
2,069,882
1,855,313

Prepayments and accrued income
122,726
144,912

7,434,565
8,646,206



19.


Cash at bank and in hand

2023
2022
£
£

Cash at bank and in hand
42,973
75,490

Less: bank overdrafts
(96,253)
(212,560)

(53,280)
(137,070)


Page 32

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

20.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
96,253
212,560

Bank loans
1,835,931
1,017,448

Trade creditors
8,735,421
10,396,462

Amounts owed to group undertakings
1,096,820
612,758

Corporation tax
537,308
608,957

Other taxation and social security
20,212
15,175

Obligations under finance lease and hire purchase contracts
69,127
98,035

Other creditors
3,204,025
4,042,870

Accruals and deferred income
30,000
25,051

15,625,097
17,029,316


Bank loans are secured by an unlimited debenture incorporating a fixed and floating charge and a charge over the Company's leasehold properties. In addition, there is a personal guarantee of £1,450,000 from the directors.
Within other creditors is a non bank loan where a personal guarantee has been provided by one of the directors.  There are no repayment terms.
Hire purchase liabilities are secured over the assets to which they relate.


21.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
13,205,917
7,381,812

Net obligations under finance leases and hire purchase contracts
54,619
92,775

Other creditors
1,018,915
646,611

14,279,451
8,121,198


Bank loans are secured by an unlimited debenture incorporating a fixed and floating charge and a charge over the Company's leasehold properties. In addition, there is a personal guarantee of £1,450,000 from the directors.
Within other creditors is a non bank loan where a personal guarantee has been provided by one of the directors.  There are no repayment terms.
Hire purchase liabilities are secured over the assets to which they relate.

Page 33

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

22.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
1,835,931
1,017,448


1,835,931
1,017,448


Amounts falling due 2-5 years

Bank loans
10,164,285
3,885,559


10,164,285
3,885,559

Amounts falling due after more than 5 years

Bank loans
3,041,632
3,496,253

3,041,632
3,496,253

15,041,848
8,399,260


Bank loans are secured by an unlimited debenture incorporating a fixed and floating charge and a charge over the Company's leasehold properties. In addition, there is a personal guarantee of £1,450,000 from the directors.
Included within loans due in more than 5 years are six loans with terms as follows:
Loan 1: interest calculated at 1.95% per annum, repayable in equal installments up to 2026
Loan 2: interest calculated at 2.10% per annum, repayable in equal installments up to 2033
Loan 3: interest calculated at 1.95% per annum, repayable in equal installments up to 2029
Loan 4: interest calculated at base rate plus 2.66% per annum, repayable in equal installments up to 2030
Loan 5: interest calculated at 2.53% per annum, repayable in equal installments up to 2027
Loan 6: interest calculated at 2.53% per annum, repayable in equal installments up to 2027
Loan 7: interest calculated at 2.16% per annum, repayable in equal installments up to 2027 
Loan 8: interest calculated at 6.81% per annum, repayable in equal installments up to 2028
Loan 9: interest calculated at 2.59% per annum, repayable in equal installments up to 2028
Loan 10: interest calculated at 15.60% per annum, repayable in equal installments up to 2028
Loan 11: interest calculated at 2.68% per annum with no fixed duration.
Loan 12: interest calculated at 7.22% per annum, with no fixed duration.
The aggregate amount of liabilities repayable wholly or in part more than five years after the balance sheet date is £3,041,632 (2022: £3,496,253).

Page 34

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

23.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
69,202
59,112

Between 1-5 years
57,926
92,775

127,128
151,887

Hire purchase liabilities are secured over the assets to which they relate.


24.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
42,973
75,490




25.


Deferred taxation




2023


£






At beginning of year
383,493


Charged to profit or loss
230,001



At end of year
613,494

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
613,494
383,493

613,494
383,493

Page 35

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

26.


Provisions




Dilapidation
Clawback
Total

£
£
£





At 1 November 2022
125,000
359,526
484,526


Charged to profit or loss
-
259,136
259,136



At 31 October 2023
125,000
618,662
743,662


27.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



4 (2022 - 4) Ordinary shares of £1.00 each
4
4



28.


Reserves

Profit and loss account

Represents the accumulation of profits and losses from past and current financial periods, less dividends paid.


29.


Capital commitments


At 31 October 2023 the Company had capital commitments as follows:

2023
2022
£
£


Contracted for but not provided in these financial statements
371,703
522,913

371,703
522,913


30.


Pension commitments

During the year, the Company had pension costs of £50,215 (2022: £46,704). Contributions totalling £3,416 (2022: £2,407) were payable to the fund at the balance sheet date are included in creditors. 

Page 36

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

31.


Commitments under operating leases

At 31 October 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
486,770
528,352

Later than 1 year and not later than 5 years
1,764,128
1,711,315

Later than 5 years
1,550,953
1,601,492

3,801,851
3,841,159


32.


Related party transactions

As the Company is a wholly owned subsidiary of Pearl Chemist Group Limited, the Company is exempt from disclosing transactions or balances with wholly owned subsidiaries of the group headed by Pearl Chemist Group Limited. 
VH Patel and MH Patel are shareholders of Southpark Residential Home Limited, Varm Properties Limited and shareholders and directors of Southpark Properties (UK) Limited.
VH Patel is a director of Pearl Estates (Tooting) Limited and Broadberry International Limited.
MH Patel is a director and shareholder of Provide Health Limited and AMMP Properties Limited.
VH Patel and MH Patel, shareholders and directors of this company, were owed £327,558 (2022: £2,295,314). No interest is payable on the amounts due.
Related party transactions were as follows:
At the balance sheet date, an amount of £85,000 (2022: £nil) was due to AMMP Properties Limited.
At the balance sheet date, an amount of £230,000 (2022: £nil) was due to Varm Properties Limited.
At the balance sheet date, an amount of £nil (2022: £344,438) was due from Southpark Residential Home Limited.
During the year, further net advances of £nil (2022: £352,250) were made to Southpark Residential Home Limited. At the balance sheet date an amount of £nil (2022: £1,044,600) was due from the company.
At the balance sheet date, an amount of £20,000 (2022: £nil) was due to Pearl Estates (Tooting) Limited. 
At the balance sheet date, a loan of £249,000 (2022: £249,000) was due to, and £60,121 (2022: £nil) was due from Provide Health Limited.
At the balance sheet date, an amount of £60,000 (2022: £96,000) was due to Broadberry International Limited, an offshore company owned by the trust and this is included in trade creditors. 

Page 37

 
PEARL CHEMIST LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

33.


Post balance sheet events

Since 31 October 2023 a total of 3 more pharmacies have been acquired for a total consideration of £3,245,000.


34.


Controlling party

The parent undertaking is Pearl Chemist Group Limited, a company registered in England and Wales, whose registered office is 2 London Wall Place, London, EC2Y 5AU.
There is no ultimate controlling party.

 
Page 38