Company registration number 03784836 (England and Wales)
PILL BOX CHEMISTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
PILL BOX CHEMISTS LIMITED
COMPANY INFORMATION
Directors
Mr Davinder Singh Virdee
Mrs Harminder Kaur Virdee
Secretary
Mrs Harminder Kaur Virdee
Company number
03784836
Registered office
17 David Road
Colnbrook
Slough
Berkshire
England
SL3 0DB
Auditor
MUS Accountants Limited
268 Bath Road, Regus
Office 146
Slough
SL1 4DX
PILL BOX CHEMISTS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 30
PILL BOX CHEMISTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The directors present the strategic report for the year ended 30 June 2023.

Fair review of the business

The group continues to trade satisfactorily with the pharmacies acquired over the last few years. Turnover for the year ended 30 June 2023 amounted to £52.4m compared to £47.6m in the previous year and the operating profit for the year is £506k compared to previous year's small operating profit of £683.

 

Future developments

The directors aim to continue with the management policies which has resulted in the group's steady growth in recent years. The outlook for 2023-24 is reasonably encouraging with the director being optimistic that current performance can be maintained.

Principal risks and uncertainties

The group faces a number of operating risks and uncertainties. There are a small number of risks that could impact the group's long term performance and steps are taken to understand and evaluate these in order to achieve our objective of sustainable growth.

 

The business operates in regulated markets and could be adversely affected by changes to existing regulation, new regulation and/or failure to comply with regulation.

 

Pharmaceutical wholesale sales are subject to a range of regulations relating to such things as product margins, product traceability and the conditions under which products must be stored.

 

The management have a risk management process in place, which is designed to identify, manage and mitigate business risks.

Financial risk management objectives and policies

 

The business has various tools to manage financial risk. Quarterly analysis of performance is prepared by management to provide updates on trading and profitability. Controls by management are in place to manage the cash requirements of the business on a monthly basis with a focus on stock control, debtors and creditors.

 

The key financial risks are described below:

 

Interest rate risk

The directors monitor the banking facilities and interest rates on a regular basis to make sure that the group is not exposed to material levels of interest rate risk. The group has in place variable interest rates on its loans over a medium term period.

 

Liquidity risk

In respect of bank balances the liquidity is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at fixed rates of interest. The group also manages the liquidity risk by using the draw down facility. Trade creditor liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

 

Credit risk

The group monitors credit risk closely and considers that its current policies of credit checks meets its objectives of managing exposure to credit risk.

Key performance indicators

The key financial performance indicators of the group are Gross profit margin and EBITDA.

 

During the year, the group achieved GP margin of 15.75% (2022: 16.74%) and EBITDA of £1.8m (2022: £1.7m).

 

The key non financial performance indicators are customer service and satisfaction.

PILL BOX CHEMISTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
Section 172 statement - Companies (Miscellaneous Reporting) Regulations 2018:

Section 172 of the Companies Act 2006 requires an entity's Directors to act in a way they consider, in good faith, will promote the success of the company for the benefit of its stakeholders. The Directors of Pill Box Chemists Limited have considered their duties, and amongst other matters, have had regard to:

 

In satisfying Section 172 duties, the Directors have thought about the factors set out above along with other components which we consider to be important when decisions are being made. Examples of those include relationships with employees, customers, and suppliers.

On behalf of the board

Mr Davinder Singh Virdee
Director
12 August 2024
PILL BOX CHEMISTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 June 2023.

Principal activities

The principal activity of the company and group continued to be that of operating community pharmacies and wholesale distribution of pharmaceutical and associated products.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £45,000. The directors do not recommend payment of a further dividend.

Directors

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

Mr Davinder Singh Virdee
Mrs Harminder Kaur Virdee
Auditor

The auditor, MUS Accountants Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

As the group 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 Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PILL BOX CHEMISTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr Davinder Singh Virdee
Director
12 August 2024
PILL BOX CHEMISTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PILL BOX CHEMISTS LIMITED
- 5 -
Opinion

We have audited the financial statements of Pill Box Chemists Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

PILL BOX CHEMISTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PILL BOX CHEMISTS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent 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 parent 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.

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, was as follows:

 

We also considered potential fraud drivers: including financial or other pressures, opportunity, override of controls and personal or corporate motivations. We considered the programmes and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included testing journals, evaluating the business rationale of significant transactions outside the normal course of business and validating the appropriateness of internal controls and significant accounting estimations based on our fraud risk criteria;

 

PILL BOX CHEMISTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PILL BOX CHEMISTS LIMITED
- 7 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

We obtained understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those related to the financial reporting framework, tax regulations in the jurisdictions in which the company operates.

Based on this understanding we designed our audit procedures to identify non-compliance with laws and regulations. Our procedures involved: making enquiries of management, those responsible for legal and compliance procedures and reviewing other correspondence.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Mr Muhammad Usman FCCA (Senior Statutory Auditor)
For and on behalf of MUS Accountants Limited
12 August 2024
Chartered Certified Accountants
Statutory Auditor
268 Bath Road, Regus
Office 146
Slough
SL1 4DX
PILL BOX CHEMISTS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
52,369,924
47,674,592
Cost of sales
(44,152,478)
(39,692,015)
Gross profit
8,217,446
7,982,577
Administrative expenses
(7,857,460)
(7,469,126)
Other operating income
146,200
169,562
Operating profit
4
506,186
683,013
Interest receivable and similar income
8
1,357
6
Interest payable and similar expenses
9
(455,800)
(250,686)
Profit before taxation
51,743
432,333
Tax on profit
10
(151,681)
(221,677)
(Loss)/profit for the financial year
(99,938)
210,656
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
PILL BOX CHEMISTS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
2023
2022
£
£
(Loss)/profit for the year
(99,938)
210,656
Other comprehensive income
-
-
Total comprehensive income for the year
(99,938)
210,656
Total comprehensive income for the year is all attributable to the owners of the parent company.
PILL BOX CHEMISTS LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2023
30 June 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
1,484,411
2,228,087
Tangible assets
13
1,315,430
1,389,189
2,799,841
3,617,276
Current assets
Stocks
16
4,134,275
3,813,214
Debtors
17
3,015,728
4,978,353
Cash at bank and in hand
2,189,299
3,549,599
9,339,302
12,341,166
Creditors: amounts falling due within one year
18
(4,293,933)
(7,599,431)
Net current assets
5,045,369
4,741,735
Total assets less current liabilities
7,845,210
8,359,011
Creditors: amounts falling due after more than one year
19
(8,413,007)
(8,781,870)
Net liabilities
(567,797)
(422,859)
Capital and reserves
Called up share capital
22
1,000
1,000
Revaluation reserve
163,944
185,964
Profit and loss reserves
(732,741)
(609,823)
Total equity
(567,797)
(422,859)
The financial statements were approved by the board of directors and authorised for issue on 12 August 2024 and are signed on its behalf by:
12 August 2024
Mr Davinder Singh Virdee
Director
Company registration number 03784836 (England and Wales)
PILL BOX CHEMISTS LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
79,499
291,061
Tangible assets
13
1,299,682
1,369,446
Investments
14
3,200,327
3,200,327
4,579,508
4,860,834
Current assets
Stocks
16
3,819,435
3,482,296
Debtors
17
2,807,486
5,550,537
Cash at bank and in hand
1,860,908
2,355,253
8,487,829
11,388,086
Creditors: amounts falling due within one year
18
(3,407,340)
(6,517,621)
Net current assets
5,080,489
4,870,465
Total assets less current liabilities
9,659,997
9,731,299
Creditors: amounts falling due after more than one year
19
(8,322,347)
(8,676,481)
Net assets
1,337,650
1,054,818
Capital and reserves
Called up share capital
22
1,000
1,000
Revaluation reserve
163,944
185,964
Profit and loss reserves
1,172,706
867,854
Total equity
1,337,650
1,054,818

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £327,831 (2022 - £739,317 profit).

The financial statements were approved by the board of directors and authorised for issue on 12 August 2024 and are signed on its behalf by:
12 August 2024
Mr Davinder Singh Virdee
Director
Company registration number 03784836 (England and Wales)
PILL BOX CHEMISTS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2021
1,000
207,984
(842,499)
(633,515)
Year ended 30 June 2022:
Profit and total comprehensive income
-
-
210,656
210,656
Transfer of excess depreciation between historical cost depreication charge and actual depreciation charge on the revalued amount
-
(22,020)
22,020
-
Balance at 30 June 2022
1,000
185,964
(609,823)
(422,859)
Year ended 30 June 2023:
Loss and total comprehensive income
-
-
(99,938)
(99,938)
Dividends
11
-
-
(45,000)
(45,000)
Transfer of excess depreciation between historical cost depreication charge and actual depreciation charge on the revalued amount
-
(22,020)
22,020
-
Balance at 30 June 2023
1,000
163,944
(732,741)
(567,797)
PILL BOX CHEMISTS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2021
1,000
207,984
106,517
315,501
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
-
739,317
739,317
Transfer of excess depreciation between historical cost depreication charge and actual depreciation charge on the revalued amount
-
(22,020)
22,020
-
Balance at 30 June 2022
1,000
185,964
867,854
1,054,818
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
-
327,832
327,832
Dividends
11
-
-
(45,000)
(45,000)
Transfer of excess depreciation between historical cost depreication charge and actual depreciation charge on the revalued amount
-
(22,020)
22,020
-
Balance at 30 June 2023
1,000
163,944
1,172,706
1,337,650
PILL BOX CHEMISTS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
215,888
2,197,578
Interest paid
(455,800)
(250,686)
Income taxes paid
(256,388)
(153,523)
Net cash (outflow)/inflow from operating activities
(496,300)
1,793,369
Investing activities
Purchase of tangible fixed assets
(22,287)
(2,982)
Interest received
1,357
6
Net cash used in investing activities
(20,930)
(2,976)
Financing activities
Repayment of bank loans
(368,863)
(533,904)
Dividends paid to equity shareholders
(45,000)
-
0
Net cash used in financing activities
(413,863)
(533,904)
Net (decrease)/increase in cash and cash equivalents
(931,093)
1,256,489
Cash and cash equivalents at beginning of year
3,065,901
1,809,412
Cash and cash equivalents at end of year
2,134,808
3,065,901
Relating to:
Cash at bank and in hand
2,189,299
3,549,599
Bank overdrafts included in creditors payable within one year
(54,491)
(483,698)
PILL BOX CHEMISTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 15 -
1
Accounting policies
Company information

Pill Box Chemists Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 17 David Road, Poyle Industrial Estate, Colnbrook, SL3 0DB.

 

The group consists of Pill Box Chemists Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The 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 for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

PILL BOX CHEMISTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Pill Box Chemists Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 June 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

In assessing the validity of the going concern basis, the Directors have considered the level of bank facilities available to the group, and its compliance with bank covenant tests both during the period and for the period ahead. The group has passed all covenants during the period just entered. Having considered the group's financial budget, investment and financing commitments and cash flow commitments requirements for the year until 30 June 2023, the Board expects to continue to meet all financial movements as well as ensuring that liabilities are settled as they fall due.

 

Having considered the above, the Board conclude that it is appropriate to adopt the going concern basis of accounting because there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the group to continue as going concern.

1.5
Turnover

Revenue from dispensed prescriptions of drugs and appliance is recognised when statements from Prescription Pricing Division of the NHS are issued. For wholesale trade, revenue is recognised when the risks and rewards of ownership of products are passed to the customer which is generally on dispatch of goods.

 

Supplier rebates are recognised on accrual basis and accounted for against purchases.

PILL BOX CHEMISTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 17 -

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

1.6
Intangible fixed assets - goodwill

Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of 5 years.

1.7
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:

Freehold land and buildings
Straight line over 50 years - on Buildings
Leasehold land and buildings
Straight line over the life of the lease
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Motor vehicles
25% reducing balance

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

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

PILL BOX CHEMISTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 18 -

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

1.11
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.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

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

 

Financial assets and liabilities are offset and 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.

PILL BOX CHEMISTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 19 -
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.

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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

PILL BOX CHEMISTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 20 -
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 group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

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

1.14
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’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 if, and only if, there is 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.

PILL BOX CHEMISTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 21 -
1.15
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.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

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

1.17
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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

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

Stock

Stocks are valued at lower cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which includes forecast consumer demand and inventory loss trends.

PILL BOX CHEMISTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful life of Property, Plant and Equipment

Management reviews the useful lives and residual values of the items of property, plant and equipment on a regular basis. During the financial year, the directors determined no significant changes in the useful lives and residual values.

Trade debtors

Trade debtors are reviewed regularly for potential impairment. The review is performed on a customer by customer basis by management and considers factors such as age of debt, recovery since the reporting date and discussions with the customers. Provisions are raised where debtors are not considered recoverable in full or in part. Provisions are assessed as part of the above review and are released where subsequent information support recovery of the debt.

3
Turnover

The total turnover of the group for the year has been derived from its principal activity wholly undertaken in the United Kingdom.

4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
96,045
110,437
Amortisation of intangible assets
743,676
911,258
Operating lease charges
537,615
530,237
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
15,000
15,000
Audit of the financial statements of the company's subsidiaries
4,000
5,000
19,000
20,000
PILL BOX CHEMISTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 23 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management and administrative
40
16
15
16
Sales assistants
103
127
103
101
Dispensers
34
32
34
32
Distribution
21
20
21
20
Total
198
195
173
169

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,164,391
3,053,870
2,852,117
2,698,829
Social security costs
228,656
217,402
213,697
192,019
Pension costs
34,482
34,955
29,786
29,762
3,427,529
3,306,227
3,095,600
2,920,610
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
30,000
30,000
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
1,357
6
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
1,357
6
PILL BOX CHEMISTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 24 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
14,986
20,491
Other interest on financial liabilities
438,694
228,485
453,680
248,976
Other finance costs:
Other interest
2,120
1,710
Total finance costs
455,800
250,686
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
151,681
221,677

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
51,743
432,333
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
12,936
82,143
Tax effect of expenses that are not deductible in determining taxable profit
349
275
Depreciation and amortisation added back
144,331
140,163
Capital allowances
(5,935)
(904)
Taxation charge
151,681
221,677
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
45,000
-
PILL BOX CHEMISTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 25 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 July 2022 and 30 June 2023
16,524,172
Amortisation and impairment
At 1 July 2022
14,296,085
Amortisation charged for the year
743,676
At 30 June 2023
15,039,761
Carrying amount
At 30 June 2023
1,484,411
At 30 June 2022
2,228,087
Company
Goodwill
£
Cost
At 1 July 2022 and 30 June 2023
12,820,416
Amortisation and impairment
At 1 July 2022
12,529,355
Amortisation charged for the year
211,562
At 30 June 2023
12,740,917
Carrying amount
At 30 June 2023
79,499
At 30 June 2022
291,061
PILL BOX CHEMISTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 26 -
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 July 2022
1,418,018
182,237
11,139
1,236,073
106,066
2,953,533
Additions
-
0
-
0
-
0
22,287
-
0
22,287
At 30 June 2023
1,418,018
182,237
11,139
1,258,360
106,066
2,975,820
Depreciation and impairment
At 1 July 2022
378,258
61,831
8,971
1,020,365
94,920
1,564,345
Depreciation charged in the year
28,360
3,630
434
60,835
2,786
96,045
At 30 June 2023
406,618
65,461
9,405
1,081,200
97,706
1,660,390
Carrying amount
At 30 June 2023
1,011,400
116,776
1,734
177,160
8,360
1,315,430
At 30 June 2022
1,039,760
120,406
2,168
215,709
11,146
1,389,189
Company
Freehold land and buildings
Leasehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2022
1,418,018
182,237
1,206,481
100,616
2,907,352
Additions
-
0
-
0
22,287
-
0
22,287
At 30 June 2023
1,418,018
182,237
1,228,768
100,616
2,929,639
Depreciation and impairment
At 1 July 2022
378,258
61,831
1,007,432
90,386
1,537,907
Depreciation charged in the year
28,360
3,630
57,503
2,557
92,050
At 30 June 2023
406,618
65,461
1,064,935
92,943
1,629,957
Carrying amount
At 30 June 2023
1,011,400
116,776
163,833
7,673
1,299,682
At 30 June 2022
1,039,760
120,406
199,050
10,230
1,369,446
PILL BOX CHEMISTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 27 -
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
3,200,327
3,200,327
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2022 and 30 June 2023
3,200,327
Carrying amount
At 30 June 2023
3,200,327
At 30 June 2022
3,200,327
15
Subsidiaries

Details of the company's subsidiaries at 30 June 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Bassil Limited*
England and Wales
Ordinary
100.00
Gorham Medical Limited
England and Wales
Ordinary
100.00
Abington Pharmacy Limited
England and Wales
Ordinary
100.00

*The subsidiary company is exempt from the requirements of the Companies Act 2006 relating to the audit of its individual accounts by virtue of section 479A.

16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
4,134,275
3,813,214
3,819,435
3,482,296
PILL BOX CHEMISTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 28 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,029,086
4,149,089
1,829,582
3,954,666
Amounts owed by group undertakings
-
-
143,698
811,420
Other debtors
886,805
731,803
734,369
686,990
Prepayments and accrued income
99,837
97,461
99,837
97,461
3,015,728
4,978,353
2,807,486
5,550,537
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
54,491
483,698
5,571
434,395
Trade creditors
2,141,601
4,927,292
1,717,282
4,355,485
Amounts owed to group undertakings
-
0
-
0
633,166
537,203
Corporation tax payable
382,080
486,787
336,139
460,801
Other taxation and social security
79,256
143,320
73,640
118,601
Other creditors
1,201,717
1,130,831
231,757
209,764
Accruals and deferred income
434,788
427,503
409,785
401,372
4,293,933
7,599,431
3,407,340
6,517,621
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
8,413,007
8,781,870
8,322,347
8,676,481
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
8,413,007
8,781,870
8,322,347
8,676,481
Bank overdrafts
54,491
483,698
5,571
434,395
8,467,498
9,265,568
8,327,918
9,110,876
Payable within one year
54,491
483,698
5,571
434,395
Payable after one year
8,413,007
8,781,870
8,322,347
8,676,481
PILL BOX CHEMISTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
20
Loans and overdrafts
(Continued)
- 29 -

Bank loans are secured by a debenture over the assets of the company and first legal charge over the properties. Interest and capital repayments are made monthly. Commercial rates of interest are charged on the loans.

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
34,482
34,955

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
23
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
361,683
334,083
347,683
320,083
Between two and five years
312,213
423,750
312,213
423,750
In over five years
18,000
3,375
18,000
3,375
691,896
761,208
677,896
747,208
24
Related party transactions

The company has taken advantage of the exemption available in FRS 102 (s33 "Related Party Disclosure"), where it has not disclosed transactions with any wholly owned subsidiary undertaking of the group.

 

The company paid rent during the year of £166,000 (2022: £166,000) to Nagina Investments Limited. At the balance sheet date, the amount due to Nagina Investments Limited amounted to £289,021 (2022: £452,521). The companies are related by virtue of common directors and shareholders.

PILL BOX CHEMISTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 30 -
25
Directors' transactions

At the balance sheet date, the balance payable to the director, Mr D Virdee, amounted to £551,536 (2022: £557,124).

26
Controlling party

The company is controlled by Davinder Singh Virdee and Harminder Kaur Virdee by vairtue of their 100% shareholding.

27
Cash generated from group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(99,938)
210,656
Adjustments for:
Taxation charged
151,681
221,677
Finance costs
455,800
250,686
Investment income
(1,357)
(6)
Amortisation and impairment of intangible assets
743,676
911,258
Depreciation and impairment of tangible fixed assets
96,045
110,437
Movements in working capital:
Increase in stocks
(321,061)
(91,753)
Decrease in debtors
1,962,625
820,882
Decrease in creditors
(2,771,583)
(236,259)
Cash generated from operations
215,888
2,197,578
28
Analysis of changes in net debt - group
1 July 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
3,549,599
(1,360,300)
2,189,299
Bank overdrafts
(483,698)
429,207
(54,491)
3,065,901
(931,093)
2,134,808
Borrowings excluding overdrafts
(8,781,870)
368,863
(8,413,007)
(5,715,969)
(562,230)
(6,278,199)
2023-06-302022-07-01falseCCH SoftwareCCH Accounts Production 2024.100Mr Davinder Singh VirdeeMrs Harminder Kaur VirdeeMrs Harminder Kaur 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