Company Registration No. 09006526 (England and Wales)
FLAMINGO PHARMA (UK) LTD
ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
John Cumming Ross Limited
Chartered Certified Accountants
1st Floor, Kirkland House
11-15 Peterborough Road
Harrow
Middlesex
HA1 2AX
FLAMINGO PHARMA (UK) LTD
COMPANY INFORMATION
Directors
Mr A J Thacker
Mr P A Thacker
Miss M M Virani
Company number
09006526
Registered office
1st Floor, Kirkland House
11-15 Peterborough Road
Harrow
Middlesex
HA1 2AX
Auditor
John Cumming Ross Limited
Chartered Certified Accountants
1st Floor, Kirkland House
11-15 Peterborough Road
Harrow
Middlesex
HA1 2AX
FLAMINGO PHARMA (UK) LTD
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Profit and loss account
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 21
FLAMINGO PHARMA (UK) LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Fair review of the business

 

Flamingo Pharma UK Ltd is a wholly owned subsidiary of Flamingo Pharmaceuticals Ltd incorporated in India and has four established manufacturing units in the state of Maharashtra. They provide affordable and quality medicines across the world.

 

Flamingo Pharma UK Ltd has a long-term focus on providing quality medicines approved by Medicines and Healthcare products Regulatory Agency (“MHRA”) and is exposed to the risk of action being taken against the company by MHRA if quality standards are not met. The company has a team of qualified people who continuously monitor quality control and assurance practices. During the year there has been no reported areas of failure.

Principal risks and uncertainties

 

Market risk

 

The company operates in highly competitive marketplace. To remain competitive, there have been downward pricing pressure on the company for certain products. The company views such factor as routine in a highly competitive market and indeed notes that such conditions prevail generally in wholesale arena. The company seeks to address these factors by employing a strategy which focuses on the following key pillars:

 

Financing

 

The company relies on an invoice finance facility to provide working capital finance for the company's trading operations.

 

Compliance with MHRA

 

The company is regulated by the Medicines and Healthcare products Regulatory Agency ("MHRA") and is exposed to the risk of action being taken against the company by MHRA if quality standards are not met.

FLAMINGO PHARMA (UK) LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Key performance indicators

 

The directors monitor the performance of the company by reference to key performance indicators including turnover,gross profit and margin,operating profit and key areas including working capital. These are discussed more in detail below.

 

Profit and loss

 

In the year ended 31 March 2024 the company recorded turnover of £27.5m compared to £16.5m for the year ended 31 March 2023. The increase in turnover during the year is due to combination of receiving approval of more licences from MHRA and shortage of certain drugs in the market.

 

The gross profit of the company increased from £2m in 2023 to £4.2m in 2024, with the gross profit margin increasing from 12.44% to 15.25%. Recognising that the company operates in very price sensitive and competitive market, with certain revenue segments subject to regulated pricing, the board and its sales team continued to focus efforts during the year to ensure that the company maintains strong oversight and an agile approach over its product mix offering, pricing and stock holding policy. The company also ensured that the parent company continued to supply on timely basis. The combination of this efforts delivered the results for the year.

 

Operating Profit :

 

The operating profit for the year is £0.8m compared to £0.7m in the pervious year. The marginal increase is not significant as a result of huge increase in the product development cost of 1.3m.

 

Profit before tax for FY 2024 was £0.8m compared to £0.7m.

 

Balance sheet

 

The financial position of the company is strong with its net assets of £3.06m in 2024 compared to £2.47m in 2023.

 

The value of stocks held at 31 March 2024 was £8.6m compared to £7m at 31 March 2023.The increase in stock is predominantly as a result of company acquiring more licenses during the year.

The company’s working capital requirement is continue to be met through an invoice financing facility with an amount due at £3.51m in 2024 compared to £2.54m in 2023.The bank has also increased its facility from £3.2m in 2023 to £6m in 2024.

 

The gross assets of the company increased from £10.9m in 2023 to £13.9m in 2024.

 

Other key performance indicators

 

None-financial key performance indicators including adherence to Goods Distribution Practice regulations as per MHRA regulations are reviewed on a regular basis with improvement plans executed as appropriate. The directors are satisfied with the company's performance against the key performance indicators.

 

Future developments

 

The company is continuously focused on new product development and currently has several projects underway. The directors consider the company is well positioned to manage potential adverse impacts of certain global economic, political and financial uncertainties as well as any market opportunities and consider the company to be well placed to deliver a strong operational and financial performance.

 

 

FLAMINGO PHARMA (UK) LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

On behalf of the board

Mr A J Thacker
Director
31 July 2024
FLAMINGO PHARMA (UK) LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

The directors present their report and the audited financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company continued to be that of wholesale of prescription and non-prescription pharmaceutical products licenced by the Medicines & Healthcare Regulatory Agency (MHRA).

Results and dividends

The results for the year are set out on page 9.

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

Directors

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

Mr A J Thacker
Mr P A Thacker
Miss M M Virani
Auditor

John Cumming Ross Limited 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.

Energy and carbon report

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

Statement of directors' responsibilities

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 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.

 

 

FLAMINGO PHARMA (UK) LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
Statement of disclosure to auditor

So far as the directors are aware, there is no relevant audit information (as defined by section 418(3) of the Companies Act 2006) of which the company's auditors are unaware. Additionally, the directors 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 auditors are aware of that information.

On behalf of the board
Mr A J Thacker
Director
31 July 2024
FLAMINGO PHARMA (UK) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF FLAMINGO PHARMA (UK) LTD
- 6 -
Opinion

We have audited the financial statements of Flamingo Pharma (UK) Ltd (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 Director's report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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:

FLAMINGO PHARMA (UK) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF FLAMINGO PHARMA (UK) LTD
- 7 -
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 and the directors' report.

 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on Page 4, 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.

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.

Discussions were held with the directors with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. The outcomes of these discussions and enquiries were shared with the engagement team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

 

The laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.

 

Those laws and regulations considered to have a direct effect on the day to day operations of the company include General Data Protection Regulation (GDPR), Medicines & Healthcare Regulatory Agency (MHRA) and Employment law

 

It is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the business.

FLAMINGO PHARMA (UK) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF FLAMINGO PHARMA (UK) LTD
- 8 -

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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 in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to 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 for our audit work, for this report, or for the opinions we have formed.
Dilip Popatlal Unarket (Senior Statutory Auditor)
For and on behalf of John Cumming Ross Limited
Chartered Certified Accountants and Statutory Auditors
1st Floor, Kirkland House
11-15 Peterborough Road
Harrow
Middlesex
HA1 2AX
31 July 2024
FLAMINGO PHARMA (UK) LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
27,455,612
16,470,873
Cost of sales
(23,283,390)
(14,422,528)
Gross profit
4,172,222
2,048,345
Administrative expenses
(3,427,927)
(1,309,739)
Other operating income
96,062
-
0
Operating profit
5
840,357
738,606
Interest payable and similar expenses
9
(52,038)
(61,860)
Amounts written off investments
8
175
-
Profit before taxation
788,494
676,746
Tax on profit
10
(198,085)
(126,677)
Profit for the financial year
590,409
550,069

The profit and loss account has been prepared on the basis that all operations are continuing operations.

 

There are no items of other comprehensive income for either the year or the prior year other than the profit for the year. Accordingly, no statement of other comprehensive income has been presented.

FLAMINGO PHARMA (UK) LTD
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
232,604
457,870
Tangible assets
12
8,006
8,724
240,610
466,594
Current assets
Stocks
13
8,619,074
7,048,647
Debtors
14
4,884,955
3,305,357
Cash at bank and in hand
135,781
93,564
13,639,810
10,447,568
Creditors: amounts falling due within one year
15
(10,177,753)
(7,614,404)
Net current assets
3,462,057
2,833,164
Total assets less current liabilities
3,702,667
3,299,758
Creditors: amounts falling due after more than one year
16
(636,696)
(824,196)
Provisions for liabilities
Deferred tax liability
18
2,181
2,181
(2,181)
(2,181)
Net assets
3,063,790
2,473,381
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
21
3,063,690
2,473,281
Total equity
3,063,790
2,473,381
The financial statements were approved by the board of directors and authorised for issue on 31 July 2024 and are signed on its behalf by:
Mr A J Thacker
Director
Company Registration No. 09006526
FLAMINGO PHARMA (UK) LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
100
1,923,212
1,923,312
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
550,069
550,069
Balance at 31 March 2023
100
2,473,281
2,473,381
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
590,409
590,409
Balance at 31 March 2024
100
3,063,690
3,063,790
FLAMINGO PHARMA (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information

Flamingo Pharma (UK) Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 1st Floor, Kirkland House, 11-15 Peterborough Road, Harrow, Middlesex, HA1 2AX.

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Flamingo Pharmaceuticals Limited. These consolidated financial statements are available from its registered office, 7/G&1, Corporate Park, Sion Trombay Road, Chembur (East), Mumbai, Maharashtra 400071, India.

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 goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the wholesale of prescription and non-prescription pharmaceutical products licenced by the MHRA is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Research and development expenditure

Research expenditure is written off against profits after updating of marketing status at MHRA.

1.5
Intangible fixed assets other than goodwill

Patents acquired are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

FLAMINGO PHARMA (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -

Amortisation is recognised so as to write off the cost of patents less their residual values over their useful lives on the following bases:

Patents
20% per annum on straight line basis

Amortisation of licenses has been amended from 10 to 5 years based on the directors reassessing the useful lives of the intangible asset.

1.6
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% per annum on straight line basis

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.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. 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.

 

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

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.

1.10
Financial instruments
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

FLAMINGO PHARMA (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
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.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from parent undertaking, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instruments are measured at the present value of the future payments discounted at market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.

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.

1.11
Taxation

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

FLAMINGO PHARMA (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Current tax

The tax currently payable is based on taxable profit or loss 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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
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.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

 

1.13
Leases

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.

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

 

There are no estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

 

FLAMINGO PHARMA (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
27,455,612
16,470,873
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
23,000
19,000
5
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Research and development costs
1,504,300
150,562
Depreciation of owned tangible fixed assets
3,846
3,227
Amortisation of intangible assets
221,132
69,069
Loss on disposal of intangible assets
18,060
-
Operating lease charges
17,010
1,000
6
Employees

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

2024
2023
Number
Number
12
9

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
912,127
749,258
Social security costs
134,098
90,233
Pension costs
268,731
8,417
1,314,956
847,908
FLAMINGO PHARMA (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
218,620
107,424
Company pension contributions to defined contribution schemes
259,000
1,000
477,620
108,424
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
170,000
99,872
8
Amounts written off investments
2024
2023
£
£
Gain on disposal of financial assets held at cost
175
-
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
198,085
127,903
Adjustments in respect of prior periods
-
0
(3,407)
Total current tax
198,085
124,496
Deferred tax
Origination and reversal of timing differences
-
0
2,181
Total tax charge
198,085
126,677
FLAMINGO PHARMA (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
- 18 -

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:

2024
2023
£
£
Profit before taxation
788,494
676,746
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
197,124
128,582
Change in unrecognised deferred tax assets
-
0
2,181
Permanent capital allowances in excess of depreciation
-
0
(1,290)
Depreciation on assets not qualifying for tax allowances
961
613
Under/(over) provided in prior years
-
0
(3,409)
Taxation charge for the year
198,085
126,677
11
Intangible fixed assets
Patents
£
Cost
At 1 April 2023
755,714
Additions
102,820
Disposals
(37,608)
Transfers
(88,894)
At 31 March 2024
732,032
Amortisation and impairment
At 1 April 2023
297,844
Amortisation charged for the year
221,132
Disposals
(19,548)
At 31 March 2024
499,428
Carrying amount
At 31 March 2024
232,604
At 31 March 2023
457,870
FLAMINGO PHARMA (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
12
Tangible fixed assets
Fixtures, fittings & equipment
£
Cost
At 1 April 2023
15,698
Additions
3,128
Disposals
(801)
At 31 March 2024
18,025
Depreciation and impairment
At 1 April 2023
6,974
Depreciation charged in the year
3,846
Eliminated in respect of disposals
(801)
At 31 March 2024
10,019
Carrying amount
At 31 March 2024
8,006
At 31 March 2023
8,724
13
Stocks
2024
2023
£
£
Finished goods and goods for resale
8,619,074
7,048,647
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,638,055
3,284,700
Other debtors
215,820
-
0
Prepayments and accrued income
31,080
20,657
4,884,955
3,305,357
FLAMINGO PHARMA (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
3,512,752
2,537,229
Trade creditors
859,602
562,109
Amounts owed to group undertakings
3,847,896
2,855,733
Corporation tax
198,085
127,903
Other taxation and social security
779,165
980,001
Other creditors
4,078
2,876
Accruals and deferred income
976,175
548,553
10,177,753
7,614,404
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
-
0
187,500
Amounts owed to group undertakings
636,696
636,696
636,696
824,196
17
Bank loans and overdrafts
2024
2023
£
£
Bank loans
-
0
187,500
Bank overdraft
3,512,752
2,537,229
3,512,752
2,724,729
Payable within one year
3,512,752
2,537,229
Payable after one year
-
0
187,500

The bank holds fixed and floating charges over the assets of the company to secure the factoring facilities provided by the bank.

 

 

 

FLAMINGO PHARMA (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
18
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
2,181
2,181
There were no deferred tax movements in the year.
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
268,731
8,417

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.

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
21
Profit and loss reserves

The only movement in reserves for the years ended 31 March 2023 and 31 March 2022 is profit for the year.

22
Ultimate controlling party

The parent undertaking of Flamingo Pharma (UK) Limited is Flamingo Pharmaceuticals Limited, a company incorporated in India and its registered office is at 7/G&1, Corporate Park, Sion Trombay Road, Chembur (East), Mumbai, Maharashtra 400071, India

 

The consolidated financial statements of ultimate parent company Flamingo Pharmaceuticals Limited based in India registered with the ministry of corporate affairs of India with the number 036572 can be obtained from its registered office 7/G&1, Corporate Park, Sion Trombay Road, Chembur (East), Mumbai, Maharashtra 400071, India. Alternatively, the consolidated financial statements can be obtained in electronic form, from the www.mca.gov.in, website.

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