PCT Healthcare Limited 01768840 false 2022-12-01 2023-11-30 2023-11-30 The principal activity of the company is retail pharmacy. 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Company registration number: 01768840

PCT Healthcare Limited

Financial Statements

for the Year Ended 30 November 2023

 

PCT Healthcare Limited

Contents

Company Information

1

Strategic Report

2 to 4

Directors' Report

5 to 6

Statement of Directors' Responsibilities

7

Independent Auditor's Report

8 to 11

Profit and Loss Account and Statement of Retained Earnings

12

Balance Sheet

13

Notes to the Financial Statements

14 to 30

 

PCT Healthcare Limited

Company Information

Directors

Mr J Cattee

Mr G A Tims

Mrs A J Cattee

Mr P Cattee

Company secretary

Mrs A J Cattee

Registered office

11 Manchester Road
Walkden
Manchester
M28 3NS

Auditors

BK Plus Audit Limited
Chartered Certified Accountants and Statutory Auditors
7 Waterside Court
St. Helens
Merseyside
WA9 1UA

 

PCT Healthcare Limited

Strategic Report for the Year Ended 30 November 2023

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

Principal activity

The principal activity of the company is retail pharmacy.

Fair review of the business

During the current year the company has continued to react to the challenging financial constraints that the sector has experienced. There have been 2 branch disposals during the year, with 6 more planned and 2 'merge and closures' within the company. The company is only looking at strategic pharmacy acquisitions going forwards if they are in proximity to pharmacies already within the estate.

The company has focused on the building and installation of its Hub and Spoke offering over the year to create the ability for the branch network to send original pack prescriptions to be assembled en-masse at the new site. This combats the challenges of staff recruitment, offers a more sustainable (and accurate) dispensing of medication for our patients, and creates capacity within the pharmacies for our teams to continue to promote additional services, and support with the NHS/Private services already available within community pharmacy. The company is committed to actively work in partnership with local clinical commissioning groups in the promotion of additional healthcare services.

Prescription numbers within the business continue to grow, and delivery of services continues to expand, we are confident that the company will continue to monitor its overheads diligently to navigate through the financial challenges the sector faces as we await the new Community Pharmacy Conceptual Framework.

Quantitative measures in terms of business performance and profitability are important to shareholders and provide assurances as to the continuing stability of the organisation.

Basic KPI's (key performance indicators) which the company bases financial evaluations upon are gross profit, net profit and staff cost based. There is a direct link between profitability and branch staffing levels, which is reflected in the budgeting process.

Gross profit percentage has decreased from 29% in 2022 to 28% in 2023.

Staff remain the greatest asset, but also the largest cost to the company, amounting to £32.5m in 2023 and £29.2m in 2022. Staff costs as a percentage of turnover were 18% in 2022 and 2023.

Other costs are not significant to the profitability of the company and so are not deemed sufficient KPI's.

Company shareholders will note that the company made a loss before tax of £4.4m and earnings before interest, tax and depreciation (EBITDA) was £3.1m. In the forthcoming year the company expects continued pressure on profitability due to the reduction in the overall level of government funding to pharmacies.

The company had a net bank surplust of £3.4m and net assets of £30.7m at the year end, whilst the group had a net bank surplus, before bank loans, of £4.9m.

 

PCT Healthcare Limited

Strategic Report for the Year Ended 30 November 2023

Section 172(1) statement

Our planning is designed to have a long-term beneficial impact on the company and contribute to its future success through improving quality, operating within budgetary controls and in line with our regulatory targets. This requires us to consider the long term in all of our strategic decisions at board level.

Our employees are fundamental to the success of our company. We aim to be a responsible employer in our approach to the pay and benefits our employees receive. The health, safety and well-being of our employees is one of our primary considerations in how we operate.

We aim to act responsibly and fairly in how we engage with suppliers. The company has oversight of the procurement processes and receives regular updates on any matter of significance. The company is very much focused on its customers, and the directors commit considerable time, effort and resources into understanding and responding to the needs of customers. The directors also seek to build strong relationships with other stakeholders in the areas where we operate.

As an independent pharmacy chain, the directors understand the impact of the company's operations on the communities it serves and the environment, and attribute performance to behaving as a responsible business.

The director's intention is to behave responsibly and ensure that management operates in a responsible manner, operating within the high standards of conduct and good governance required for a business in our sector. All of our people are expected to act within the regulatory framework dictated by our sector. Our reputation is important and the reputational impact of decisions made by the directors are always considered.

As a company, our intention is to behave responsibly toward our shareholders and to treat them fairly and equally, so they too may benefit from the company's success.

Section 172 (1) of the Companies act 2006 requires directors of the company to act in a way which they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard to the interests of the stakeholders, including customers, suppliers and the wider community in which it operates. In doing this, Section 172 requires each director to have regard to the above matters.

 

Engagement with employees

The company places considerable value on the involvement of its employees and has continued its previous practice of keeping them informed on matters affecting them as employees and on the various factors affecting the performance of the company. This is achieved through formal and informal meetings, internal bulletins and the company website. Employees are consulted regularly on a wide range of matters likely to affect their interests.

Engagement with suppliers, customers and other relationships

The company aims to act responsibly and fairly in how it engages with suppliers and customers and has policies in place for entering and maintaining relationships to ensure that it treats all suppliers and customers fairly.

 

PCT Healthcare Limited

Strategic Report for the Year Ended 30 November 2023

Non-financial and sustainability information

Environmental report

We have considered the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) when preparing this report. These recommendations encourage businesses to increase disclosure of climate-related information, with an emphasis on financial disclosure. PCT Healthcare Limited supports these recommendations and are committed to disclosing the relevant information which can be found below.

Metrics and targets

The company has continued to improve efficiency and minimise fuel consumption within its warehouses.

During the previous year an electric vehicle scheme was launched for high mileage employees and this will be rolled out further in future years. Reviews of van mileage have been carried out regularly with adjustments made to schedules when required to ensure most efficient routing.

Work has been completed on the building of a new warehouse facility which will be fully operational in 2024. This will consolidate existing warehouse facilities in to one building built with energy efficient measures in mind.

The store estate had grown through acquisitions in the previous year, increasing overall usage. The company's upgrade programme continues to ensure that boilers, fridges, lights and air-conditioning, where replaced, are more efficient than previous.

Emissions and energy consumption

Summary of greenhouse gas emissions and energy consumption for the year ended 30 November 2023:

Name and
description

Metric
and / or KPI

Unit of
measurement

2023

2022

Total energy use

Number of employees

kWh (000s)

5,308

4,850

Total emissions

Number of employees

CO2e

1,164

1,042

         

Intensity ratio

Intensity ratio (tCO2e/Employees)

The intensity ratio based on total Scope 1, 2 and 3 emissions (location based) against number of employees. During the year ended 30 November 2023 this was 0.80% (2022 - 0.70%).

Approved by the Board on 28 August 2024 and signed on its behalf by:

.........................................
Mr P Cattee
Director

   
     
 

PCT Healthcare Limited

Directors' Report for the Year Ended 30 November 2023

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

Directors of the company

The directors who held office during the year were as follows:

Mr J Cattee

Mr G A Tims

Mrs A J Cattee - Company secretary and director

Mr P Cattee

Dividends

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

Financial instruments

Objectives and policies

The company's principal financial instruments comprise bank balances, bank overdrafts, trade creditors, trade debtors and loans to the company. The main purpose of these instruments is to raise funds for the company's operations and to finance them.

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Employment of disabled persons

The company's employment policies are fair and equitable and consistent with the skills and abilities of the employees and the needs of the company's business. If any employee becomes disabled, the objective is the continued provision of suitable employment either in the same or an alternative position with appropriate training if necessary.

Employee involvement

Information on matters of concern to employees is given through internal bulletins and a website which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance. Arrangements exist to consult and discuss with employees on matters likely to affect their interests.

Engagement with suppliers, customers and other relationships

The company aims to act responsibly and fairly in how it engages with suppliers and customers and has policies in place for entering and maintaining relationships to ensure that it treats all suppliers and customers fairly.

Future developments

The company expects to consolidate its trading in the following year.

Important non adjusting events after the financial period

Since the year end the company has sold 4 pharmacy contracts and closed 2 retail pharmacy branches.

 

PCT Healthcare Limited

Directors' Report for the Year Ended 30 November 2023

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors BK Plus Audit Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved by the Board on 28 August 2024 and signed on its behalf by:

.........................................
Mr P Cattee
Director

   
     
 

PCT Healthcare Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.

 

PCT Healthcare Limited

Independent Auditor's Report to the Members of PCT Healthcare Limited

Opinion

We have audited the financial statements of PCT Healthcare Limited (the 'company') for the year ended 30 November 2023, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 30 November 2023 and of its loss for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 director's 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 original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

 

PCT Healthcare Limited

Independent Auditor's Report to the Members of PCT Healthcare Limited

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities, set out on page 7, 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.

 

PCT Healthcare Limited

Independent Auditor's Report to the Members of PCT Healthcare Limited

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

the engagement partner ensured that the engagement team collectively had the appropriate competence , capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the retail pharmacy sector;

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

 

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

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

 

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

performed analytical procedures to identify any unusual or unexpected relationships;

tested journal entries to identify any unusual transactions;

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

investigated the rationale behind significant or unusual transactions.

 

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

agreeing financial statement disclosures to underlying supporting documentation;

reading the minutes of meetings of those charged with governance;

enquiring of management as to actual and potential litigation and claims; and

 

PCT Healthcare Limited

Independent Auditor's Report to the Members of PCT Healthcare Limited

reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Darren Leigh FCCA (Senior Statutory Auditor)
For and on behalf of BK Plus Audit Limited, Statutory Auditor

7 Waterside Court
St. Helens
Merseyside
WA9 1UA

28 August 2024

 

PCT Healthcare Limited

Profit and Loss Account and Statement of Retained Earnings for the Year Ended 30 November 2023

Note

2023
£

2022
£

Turnover

3

182,001,105

159,713,822

Cost of sales

 

(130,343,131)

(113,347,897)

Gross profit

 

51,657,974

46,365,925

Administrative expenses

 

(56,312,474)

(52,041,855)

Other operating income

4

441,728

709,150

Operating loss

5

(4,212,772)

(4,966,780)

Other interest receivable and similar income

6

13,048

7,601

Interest payable and similar charges

7

(174,187)

(58,600)

Loss before tax

 

(4,373,911)

(5,017,779)

Taxation

11

(116,769)

(223,793)

Loss for the financial year

 

(4,490,680)

(5,241,572)

Retained earnings brought forward

 

24,416,206

29,657,778

Retained earnings carried forward

 

19,925,526

24,416,206

 

PCT Healthcare Limited

(Registration number: 01768840)
Balance Sheet as at 30 November 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

12

26,758,883

33,034,165

Tangible assets

13

14,524,260

13,237,937

Investments

14

18

18

Other financial assets

15

891,710

891,710

 

42,174,871

47,163,830

Current assets

 

Stocks

16

9,554,200

8,904,280

Debtors

17

51,700,435

47,262,788

Cash at bank and in hand

18

3,491,324

1,181,620

 

64,745,959

57,348,688

Creditors: Amounts falling due within one year

19

(73,757,718)

(67,586,604)

Net current liabilities

 

(9,011,759)

(10,237,916)

Total assets less current liabilities

 

33,163,112

36,925,914

Provisions for liabilities

20

(2,474,580)

(1,746,702)

Net assets

 

30,688,532

35,179,212

Capital and reserves

 

Called up share capital

22

285,876

285,876

Other reserves

23

10,477,130

10,477,130

Profit and loss account

23

19,925,526

24,416,206

Shareholders' funds

 

30,688,532

35,179,212

Approved and authorised by the Board on 28 August 2024 and signed on its behalf by:
 

.........................................
Mr P Cattee
Director

   
     
 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
11 Manchester Road
Walkden
Manchester
M28 3NS
England

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

The financial statements are prepared in sterling as this is the base currency of the company.

Summary of disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:

(a) Disclosures in respect of each class of share capital have not been presented
(b) No cash flow statement has been presented for this company
(c) Disclosures in respect of financial instruments have not been presented
(d) Disclosures in respect of share based payments have not been presented
(e) No disclosure has been given for the aggregate remuneration of key management personnel.

Exemption from preparing group accounts

The financial statements contain information about PCT Healthcare Limited as an individual company and do not contain consolidated financial information as the parent of a group.
The company is exempt under section 400 of the Companies Act 2006 from the requirement to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, PCT Healthcare (Holdings) Limited.

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

Revenue recognition

Turnover comprises the fair value of the sale of goods and services. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue either at the point of sale or when the company has delivered the goods to the customer.

Government grants

Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.

Tax

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

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequent stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Short leasehold property

Straight line over the lease

Fixtures, fittings and equipment

10% and 25% straight line

Motor vehicles

25% reducing balance

Improvements to property

10% straight line

Plant and machinery under construction

Not depreciated

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10% straight line

Investments

Investments in equity shares which are not publicly traded are measured at cost less impairment.

As part of the rationalisation of the group, the trades and net assets of subsidiary undertakings were transferred into the company in this and in previous years. The consideration for this was based upon the book values and took no account of the goodwill inherent in those businesses. This has resulted in an apparent overvaluation of investment's held in the company's books, though there has been no loss to the company and group. Schedule 4 to the Companies Act 2006 requires that, where such an overvaluation is expected to be permanent the investments should be written down accordingly. The directors consider that as the substance of the transaction was merely to re-organise the company's and group's operations, such treatment would fail to give a true and fair view and the value of investments has instead been allocated to goodwill. The effect on the company's balance sheet of this departure has been to recognise goodwill of £Nil (2022 £18,349,316).

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items.

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Provisions for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by transfer of an economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the profit and loss in the year that the company becomes aware of the obligation. and are measured at the best estimate as at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the balance sheet.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

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 values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 only affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements, estimates and assumptions have the most significant effect on the amounts recognised in the financial statements.

Depreciation, useful lives and residual values of plant, fixtures and equipment
The company estimates the useful lives and residual values of plant, fixtures and equipment in order to calculate depreciation charges. Changes in these estimates could result in changes being required to annual depreciation charges in the profit and loss account and the carrying values of plant, fixtures and equipment.

Amortisation, useful lives and residual values of intangible assets
The company estimates the useful lives and residual values of intangible assets in order to calculate amortisation charges. Changes in these estimates could result in changes being required to annual amortisation charges in the profit and loss account and the carrying values of intangible fixed assets.

Excess margins
The company is subject to review of certain income which may result in a clawback of revenues by the Department of Health. In the directors' view there was a reduction in the provision required in the current year.

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

3

Revenue

The analysis of the company's revenue for the year from continuing operations is as follows:

2023
 £

2022
 £

Sale of goods

182,001,105

159,713,822

The analysis of the company's turnover for the year by class of business is as follows:

2023
 £

2022
 £

Pharmacy

182,001,105

159,713,822

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
 £

2022
 £

Amounts due to group company written off

429,248

696,670

Management charges receivable

12,480

12,480

441,728

709,150

5

Operating loss

Arrived at after charging/(crediting)

2023
 £

2022
 £

Depreciation expense

1,862,229

1,710,768

Amortisation expense

5,871,949

6,183,307

Loss on disposal of property, plant and equipment

-

5,816

6

Other interest receivable and similar income

2023
 £

2022
 £

Interest income on bank deposits

5,801

3,797

Other finance income

7,247

3,804

13,048

7,601

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

7

Interest payable and similar expenses

2023
 £

2022
 £

Interest on bank overdrafts and borrowings

171,492

58,600

Interest expense on other finance liabilities

2,695

-

174,187

58,600

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
 £

2022
 £

Wages and salaries

29,759,372

26,717,184

Social security costs

2,237,530

2,074,942

Pension costs, defined contribution scheme

531,879

471,608

32,528,781

29,263,734

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Pharmacists, counter staff and drivers

1,465

1,322

Administrative staff

42

42

Management staff

1

4

1,508

1,368

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
 £

2022
 £

Remuneration

98,365

98,130

In respect of the highest paid director:

2023
 £

2022
 £

Remuneration

88,490

88,490

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

10

Auditors' remuneration

2023
 £

2022
 £

Audit of the financial statements

39,500

39,500


 

11

Taxation

Tax charged/(credited) in the income statement

2023
 £

2022
 £

Current taxation

UK corporation tax

(755,856)

(141,445)

UK corporation tax adjustment to prior periods

(105,253)

10,450

(861,109)

(130,995)

Deferred taxation

Arising from origination and reversal of timing differences

977,878

354,788

Tax expense in the income statement

116,769

223,793

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 23% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Loss before tax

(4,373,911)

(5,017,779)

Corporation tax at standard rate

(1,006,000)

(952,428)

Effect of expense not deductible in determining taxable profit (tax loss)

1,983,878

1,317,666

Decrease in UK and foreign current tax from adjustment for prior periods

(105,253)

-

Tax decrease arising from group relief

(755,856)

(141,445)

Total tax charge

116,769

223,793

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

Deferred tax

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Accelerated capital allowances

-

1,924,360

Tax losses

314,020

-

314,020

1,924,360

2022

Asset
£

Liability
£

Accelerated capital allowances

-

1,493,906

Tax losses

861,444

-

861,444

1,493,906

12

Intangible assets

Goodwill
 £

Cost or valuation

At 1 December 2022

95,911,166

Disposals

(550,000)

At 30 November 2023

95,361,166

Amortisation

At 1 December 2022

62,877,001

Amortisation charge

5,871,949

Amortisation eliminated on disposals

(146,667)

At 30 November 2023

68,602,283

Carrying amount

At 30 November 2023

26,758,883

At 30 November 2022

33,034,165

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

13

Tangible assets

Short leasehold property
£

Plant and machinery
under construction
 £

Fixtures, fittings & equipment
£

Improvements to property
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 December 2022

12,335,047

-

20,271,060

2,091,359

216,668

34,914,134

Additions

-

1,681,483

1,456,280

-

-

3,137,763

Transfer from group company

-

-

10,789

-

-

10,789

Transfers

-

2,750,000

(2,750,000)

-

-

-

At 30 November 2023

12,335,047

4,431,483

18,988,129

2,091,359

216,668

38,062,686

Depreciation

At 1 December 2022

6,683,809

-

13,199,202

1,667,582

125,604

21,676,197

Charge for the year

475,764

-

1,192,489

171,210

22,766

1,862,229

At 30 November 2023

7,159,573

-

14,391,691

1,838,792

148,370

23,538,426

Carrying amount

At 30 November 2023

5,175,474

4,431,483

4,596,438

252,567

68,298

14,524,260

At 30 November 2022

5,651,238

-

7,071,858

423,777

91,064

13,237,937

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

14

Investments in subsidiaries, joint ventures and associates

2023
 £

2022
 £

Investments in subsidiaries

18

18

Subsidiaries

£

Cost or valuation

At 1 December 2022

18

Provision

Carrying amount

At 30 November 2023

18

At 30 November 2022

18

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Grasmere Leigh Ltd

Ordinary

100%

100%

 

     

TV Pharmacy Ltd

Ordinary

100%

100%

 

     

Television Pharmacy Ltd

Ordinary

100%

100%

 

     

Telepharm Ltd

Ordinary

100%

100%

 

     

Freephone Pharmacy Ltd

Ordinary

100%

100%

 

     

Roy Lamb Ltd

Ordinary

100%

100%

 

     

The Concourse Pharmacy Ltd

Ordinary

100%

100%

 

     

Andersons Investments Ltd

Ordinary

100%

100%

 

     

St Pauls (HCC) Ltd

Ordinary

100%

100%

 

     

R H Swinn Ltd

Ordinary

100%

100%

 

     

Jayne A Hibbard Ltd

Ordinary

100%

100%

 

     

Richard G Hardy Ltd

Ordinary

100%

100%

 

     

DFM Newco Ltd

Ordinary

100%

100%

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

 

     

Swift Chemists Ltd

Ordinary

100%

100%

 

     

Notmy Holdings Ltd

Ordinary

100%

100%

 

     

Medex Health Ltd

Ordinary

100%

100%

 

     

K M Brennan (Chemist) Ltd

Ordinary

100%

100%

 

     

C.G.Murray & Son Ltd

Ordinary

100%

100%

 

     

B. Payne & Son Ltd

Ordinary

100%

100%

 

     

Shires Group Holdings Ltd

Ordinary

100%

100%

 

     

Shires Pharmacies Ltd

Ordinary

100%

100%

 

     

All of the companies are dormant.


 

15

Other financial assets (current and non-current)

Financial assets at cost less impairment
£

Total
£

Non-current financial assets

Cost or valuation

At 1 December 2022

891,710

891,710

At 30 November 2023

891,710

891,710

Impairment

Carrying amount

At 30 November 2023

891,710

891,710

16

Stocks

2023
 £

2022
 £

Finished goods and goods for resale

9,554,200

8,904,280

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

17

Debtors

Note

2023
£

2022
£

Trade debtors

 

14,749,308

15,769,341

Amounts owed by group undertakings

26

32,897,214

26,868,340

Other debtors

 

2,483,260

2,720,079

Prepayments and accrued income

 

1,531,036

1,007,247

Corporation tax repayable

 

39,617

897,781

   

51,700,435

47,262,788

18

Cash and cash equivalents

2023
 £

2022
 £

Cash on hand

62,769

62,724

Cash at bank

3,428,555

1,118,896

3,491,324

1,181,620

Bank overdrafts

(67,812)

(1,915,562)

3,423,512

(733,942)

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

19

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

24

67,812

1,915,562

Trade creditors

 

20,354,060

15,470,626

Amounts owed to group undertakings

26

35,428,222

31,352,776

Social security and other taxes

 

748,949

636,699

Other creditors

 

249,050

557,731

Accruals and deferred income

 

856,030

1,019,664

Directors loan accounts

 

16,053,595

16,633,546

 

73,757,718

67,586,604

20

Provisions for liabilities

Deferred tax
£

NHS reimbursement
£

Total
£

At 1 December 2022

632,462

1,114,240

1,746,702

Increase (decrease) in existing provisions

977,878

(250,000)

727,878

At 30 November 2023

1,610,340

864,240

2,474,580

The NHS Reimbursement provision is to cover clawback of over-reimbursement received in previous financial years.

21

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £531,879 (2022 - £471,608).

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

22

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary A shares of £1 each

263,006

263,006

263,006

263,006

Ordinary B shares of £1 each

22,870

22,870

22,870

22,870

 

285,876

285,876

285,876

285,876

23

Reserves

Profit and loss account

This reserve records retained earnings and accumulated losses.

Merger reserve

This reserve represents the premium arising on each share issued as part of a reorganisation on 15 March 2021.

24

Loans and borrowings

2023
 £

2022
 £

Current loans and borrowings

Bank overdrafts

67,812

1,915,562

25

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

2,749,697

2,815,925

Later than one year and not later than five years

9,138,197

9,520,044

Later than five years

9,295,452

10,623,053

21,183,346

22,959,022

The amount of non-cancellable operating lease payments recognised as an expense during the year was £3,430,506 (2022 - £2,964,243).

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

26

Related party transactions

The company is controlled by Mr P Cattee and members of his close family.

The company does not disclose details of transactions with other group companies on the grounds that consolidated accounts are publicly available.

The amounts due to Mr G A Tims and Mr P Cattee at the balance sheet date were £1,711,282 and £14,342,313, respectively (2022 £2,018,269 and £14,615,277). The loans are interest free.

The company occupied premises owned by Mr P and Mrs A J Cattee. Rent paid during the year in respect of these properties amounted to £Nil (2022 £13,688).

The company occupied premises owned by the P and J Cattee pension scheme. Rent paid during the year in respect of these properties amounted to £20,750 (2022 £4,562).

Loans to related parties

2023

Parent
£

Subsidiary
£

Total
£

At start of period

16,949,786

9,918,554

26,868,340

Repaid

(3,481,995)

9,510,869

6,028,874

At end of period

13,467,791

19,429,423

32,897,214

2022

Parent
£

Subsidiary
£

Total
£

At start of period

15,801,684

19,914,848

35,716,532

Advanced

1,148,102

-

1,148,102

Repaid

-

(9,996,294)

(9,996,294)

At end of period

16,949,786

9,918,554

26,868,340

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2023

Loans from related parties

2023

Subsidiary
£

Total
£

At start of period

31,352,776

31,352,776

Advanced

4,075,446

4,075,446

At end of period

35,428,222

35,428,222

2022

Subsidiary
£

Total
£

At start of period

18,540,947

18,540,947

Advanced

12,811,829

12,811,829

At end of period

31,352,776

31,352,776

Terms of loans from related parties

The loans are interest free and repayable on demand.
 

27

Parent and ultimate parent undertaking

The company's immediate parent is PCT Healthcare (Holdings) Limited, incorporated in England and Wales.

 

28

Non adjusting events after the financial period

Since the year end the company has sold 4 pharmacy contracts and closed 2 retail pharmacy branches.

29

Contingent liabilities

The company is party to a cross guarantee arrangement. The company is potentially liable for £39,720,000. The directors do not consider it likely that this guarantee will be called upon.

The company is party to a debenture including fixed charge over all present freehold leasehold property: first fixed charge over book and other debtors, chattels, goodwill and uncalled capital, both present and future, and first floating charge over all assets and undertakings both present and future.