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REGISTERED NUMBER: 07058830 (England and Wales)










Strategic Report, Report of the Directors and

Audited Financial Statements

for the Year Ended 31 December 2023

for

Jhoots Healthcare Limited

Jhoots Healthcare Limited (Registered number: 07058830)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Strategic Report 1

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 15


Jhoots Healthcare Limited (Registered number: 07058830)

Strategic Report
for the Year Ended 31 December 2023

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

Principal objectives and strategies
The principal activity of the company during the year continued to be that of dispensing chemists. The directors report that the company is currently working with a key educational partner to grow training and development through the business. The directors are therefore confident of the company's future prospects.

Pharmacy is the third pillar for the NHS and the new service income opportunity for the company created additional opportunity to support communities with their wellbeing. New services like Hypertension, Community Pharmacy Consulting Service and Covid Hubs are going to help support the future of the company.

Development and performance
The directors report that during the year under review, the company generated turnover of £8,147,248 and a gross margin of 34.32% (33.29% in 2022).

The company's result before taxation is a loss of £355,799 against a loss in 2022 of £397,581. At the year end the company had shareholders funds of £448,596 and distributable reserves of £448,496.

Principal risks and uncertainties
Increasing competitive pressure in the UK market is a continuing risk for the company, however this risk is managed by the directors by growing new revenue streams and providing new value added services and maintaining strong customer relationships and consistently developing innovative, customer focused solutions. The directors have also embarked on implementing a hub and spoke model to further reduce dispensing costs to further mitigate risk.

The company operates in a regulated markets and is subject to significant governmental regulation. This relates to virtually every aspect of our business, from labels and dispensing process to reimbursement for NHS prescriptions. Like every business, our management team is regularly monitoring our risk profile and provides clear guidelines and assurances that all social, legal and health and safety responsibilities are adhered to.

Competitive risk
Government reduction in pharmacy reimbursement and remuneration have served to increase competition. The markets remain competitive with price and margin fluctuation, which are dependent on relationships with key suppliers. .

Operational risk
The main operational risk relating to the company's operations of the dispensing chemist. The company holds and buys its stock based on confirmed contracts and directors consider the impact on operations and current shutdown, will be limited on the company's operational risks.

Credit risk
Credit risk is the risk of financial loss of the company if a customer or a counterparty to a financial instrument fails to meet its obligation and arises principally from the Company's receivables from customers. The company has no credit risk because all of its external trade receivables are guaranteed to be paid by the National Health Service on their due date.

Liquidity Risk
The company funds its operations through a mix of retained earnings, borrowings and lending that is designed to ensure company has sufficient funds for its day to day operations and other activities and manages liquidity risk by maintaining adequate reserves, banking facilities and by monitoring cash flows.

Market Risk
Market risk is the changes in market prices, such as foreign exchange rates and interest rates that affect the company's income or the value of the holding of its financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. The company is not exposed to currency risk, as all revenue is derive from United Kingdom, and all expenditure is incurred within the United Kingdom.


Jhoots Healthcare Limited (Registered number: 07058830)

Strategic Report
for the Year Ended 31 December 2023




Regulations and government
The company operates in highly regulated markets and changes to which would have a negative impact on business performance. The Department of Health could take further action and again reduce drug tariff reimbursement levels, we may be non-compliant with existing regulations and the regulations themselves may change, or further changes to the control of entry regulations could adversely impact the company's profitability.

Other Matters
During the year, company has discontinued Pool Road branch.

In January 2024, Company has sold the Radford branch.

Key performance indicators
Key performance indicators are used to measure and evaluate company performance against targets and monitor various activities throughout the company. The main key performance indicators employed in the company are:

2023 2022 2021
Turnover levels £8,147,248 £11,093,032 £13,231,775
Gross Profit / (Loss) Levels £ 2,796,458 £ 3,693,179 £ 4,567,579
Net Profit / (Loss) before tax Levels (£355,799) (£397,581) ( £513,241)
Staff costs £1,464,269 £2,152,292 £2,749,633

The board monitor these on a monthly basis against budgets.

ON BEHALF OF THE BOARD:





A Parikh - Director


10 September 2024

Jhoots Healthcare Limited (Registered number: 07058830)

Report of the Directors
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

Mrs S K Jhooty
M S Jhooty
A Parikh

GOING CONCERN
The directors have reviewed and factored potential delays and reassess cash flow forecasts and budgets, which show that the company would have sufficient working capital for at least a year from the date these Financial Statements are approved. This is based on the assumptions that the budgeted forecasts are achievable. Given the above, the directors consider it appropriate to adopt a going concern basis in preparing the financial statements.

FUTURE DEVELOPMENTS
The directors have not identified any material events post balance sheet date which would require adjustments to the financial statements, and are continuing to monitor, assess and act to the current changing environment in order to position the company to ensure its future success. The company continues to achieve growth by seeking and acquiring more pharmacies and rationalize loss making branches to expand business and improve gross margins, maximise profitability by realising efficiencies within the business.

STRATEGIC REPORT
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments, research & development and financial instruments.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

Jhoots Healthcare Limited (Registered number: 07058830)

Report of the Directors
for the Year Ended 31 December 2023


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, SKS Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





A Parikh - Director


10 September 2024

Report of the Independent Auditors to the Members of
Jhoots Healthcare Limited

Opinion
We have audited the financial statements of Jhoots Healthcare Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 31 December 2023 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Jhoots Healthcare Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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 three, 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 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.

Auditors' responsibilities for the audit of the financial statements

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

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

The following laws and regulations were identified as being of significance to the entity:
-Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.

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

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

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

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

Report of the Independent Auditors to the Members of
Jhoots Healthcare Limited


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 a Report of the Auditors 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.




Moganarden Pillay Chelvanaigum (Senior Statutory Auditor)
for and on behalf of SKS Audit LLP
3 Sheen Road
Richmond Upon Thames
TW9 1AD

11 September 2024

Jhoots Healthcare Limited (Registered number: 07058830)

Income Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

TURNOVER 2 8,147,248 11,093,032

Cost of sales (5,351,030 ) (7,403,104 )
GROSS PROFIT 2,796,218 3,689,928

Administrative expenses (3,198,978 ) (4,300,415 )
(402,760 ) (610,487 )

Other operating income 376,302 405,281
OPERATING LOSS 4 (26,458 ) (205,206 )


Interest payable and similar expenses 5 (329,341 ) (192,375 )
LOSS BEFORE TAXATION (355,799 ) (397,581 )

Tax on loss 6 (93,901 ) 41,238
LOSS FOR THE FINANCIAL YEAR (449,700 ) (356,343 )

Jhoots Healthcare Limited (Registered number: 07058830)

Other Comprehensive Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

LOSS FOR THE YEAR (449,700 ) (356,343 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(449,700

)

(356,343

)

Jhoots Healthcare Limited (Registered number: 07058830)

Balance Sheet
31 December 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 7 4,004,177 4,327,710
Tangible assets 8 195,701 238,624
4,199,878 4,566,334

CURRENT ASSETS
Stocks 9 426,488 519,351
Debtors 10 2,161,538 2,171,090
Cash at bank and in hand 392,198 69,500
2,980,224 2,759,941
CREDITORS
Amounts falling due within one year 11 (3,641,572 ) (3,331,344 )
NET CURRENT LIABILITIES (661,348 ) (571,403 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,538,530

3,994,931

CREDITORS
Amounts falling due after more than one year 12 (2,826,922 ) (2,927,524 )

PROVISIONS FOR LIABILITIES 15 (263,012 ) (169,111 )
NET ASSETS 448,596 898,296

CAPITAL AND RESERVES
Called up share capital 16 100 100
Retained earnings 17 448,496 898,196
SHAREHOLDERS' FUNDS 448,596 898,296

The financial statements were approved by the Board of Directors and authorised for issue on 10 September 2024 and were signed on its behalf by:





A Parikh - Director


Jhoots Healthcare Limited (Registered number: 07058830)

Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 100 1,254,539 1,254,639

Changes in equity
Total comprehensive income - (356,343 ) (356,343 )
Balance at 31 December 2022 100 898,196 898,296

Changes in equity
Total comprehensive income - (449,700 ) (449,700 )
Balance at 31 December 2023 100 448,496 448,596

Jhoots Healthcare Limited (Registered number: 07058830)

Cash Flow Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 806,538 288,461
Interest paid (329,341 ) (192,375 )
Tax paid (4,937 ) (11,889 )
Net cash from operating activities 472,260 84,197

Cash flows from investing activities
Purchase of tangible fixed assets - (38,983 )
Sale of intangible fixed assets - 345,794
Sale of tangible fixed assets - 89,757
Net cash from investing activities - 396,568

Cash flows from financing activities
Loan repayments in year (100,601 ) 68,721
Amount withdrawn by directors (48,961 ) (80,243 )
Net cash from financing activities (149,562 ) (11,522 )

Increase in cash and cash equivalents 322,698 469,243
Cash and cash equivalents at beginning of
year

2

69,500

(399,743

)

Cash and cash equivalents at end of year 2 392,198 69,500

Jhoots Healthcare Limited (Registered number: 07058830)

Notes to the Cash Flow Statement
for the Year Ended 31 December 2023

1. RECONCILIATION OF LOSS FOR THE FINANCIAL YEAR TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Loss for the financial year (449,700 ) (356,343 )
Depreciation charges 366,456 421,659
Loss on disposal of fixed assets - 207,897
Finance costs 329,341 192,375
Taxation 93,901 (41,238 )
339,998 424,350
Decrease in stocks 92,863 96,871
(Increase)/decrease in trade and other debtors (16,200 ) 583,374
Increase/(decrease) in trade and other creditors 389,877 (816,134 )
Cash generated from operations 806,538 288,461

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 392,198 69,500
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 69,500 30,634
Bank overdrafts - (430,377 )
69,500 (399,743 )


Jhoots Healthcare Limited (Registered number: 07058830)

Notes to the Cash Flow Statement
for the Year Ended 31 December 2023

3. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 69,500 322,698 392,198
69,500 322,698 392,198
Debt
Debts falling due within 1 year (142,871 ) 15,138 (127,733 )
Debts falling due after 1 year (2,927,524 ) 100,602 (2,826,922 )
(3,070,395 ) 115,740 (2,954,655 )
Total (3,000,895 ) 438,438 (2,562,457 )

Jhoots Healthcare Limited (Registered number: 07058830)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

2.2 Going concern
In our capacity as directors, we are required to consider the company's going concern status on an ongoing basis and at the time we approve and sign off our financial statements, considering a period of no less than 12 months from the date of approval.

At 31 December 2023 the company had net current liabilities of £661,348 (net current liabilities in 2022: £571,403) and net loss after tax of £449,700 (2022 loss: £356,344), however the financial statements have been prepared on a going concern basis.

In making this assessment, the directors have prepared forecasts for the company for the period to 31 December 2025.These forecasts have been based on the income expected to be generated from current government prescription pricing and anticipated changes thereon. In addition, and in light of the disclosures made in note 13 to the financial statements, the forecasts assume that the company will continue to operate within existing bank facilities and that bank loans will continue to be repaid in line their agreed terms.

As part of their going concern assessment, the directors have considered the forecasts carefully and also considered the ability of the company to raise additional funds (and consequentially reduce its debt profile) through the sale of existing branches, a process which is ongoing at the date these financial statements were approved.

The directors are therefore satisfied that they have made appropriate enquiries, considered all the available information and assessed the company's current and forecast trading situation in their going concern assessment. As a result, directors have at the time of signing the financial statements have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and accordingly have continued to adopt the going concern basis in preparing the financial statements.

2.3 Turnover
Turnover represents revenue recognised by the company in respect of goods and services supplied to retail markets , NHS prescriptions and services, private prescriptions and counter services during the year, exclusive of VAT and trade discounts.

Revenue from sale of goods is recognized when the significant risk and rewards 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 cost incurred in respect of the transaction can be measured reliably.

2.4 Intangible fixed assets - goodwill

Jhoots Healthcare Limited (Registered number: 07058830)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023
Intangible fixed assets are initially measured at cost and subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life. Where a reliable estimate of the useful life cannot be made, the useful life shall not exceed five years.
The directors have determined the useful economic life of intangible fixed assets to be 20 years.

2.5 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:

Leasehold land and buildings 5% straight line method
Fixtures, fittings and equipment 10% straight line method
Motor vehicles 25% reducing balance method
Computer equipments 25% straight line method

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

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

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.

2.7 Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost includes material plus incidental costs of transport.

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


Jhoots Healthcare Limited (Registered number: 07058830)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023
2.8 Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset , with the net amounts presented in the financial statements , when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include 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.

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.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, and loans from fellow group companies 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.

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

Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, where transactions or events that result in an obligation to pay more or a right to pay less tax in the future have occurred by the balance sheet date with certain limited exceptions.

Deferred tax is calculated on an undiscounted basis at the tax rates that are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

2.10 Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense .

Jhoots Healthcare Limited (Registered number: 07058830)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

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.

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

2.12 Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.


2.13 Government Grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model.

2.14 Trade & Other Debtors
Trade and other debtors that are receivable within one year and do not constitute a financing transaction are
recorded at the undiscounted amount expected to be received, net of impairment. Those that are receivable after more than one year or that constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised cost, net of impairment.

2.15 Trade & Other Creditors
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

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


2.17 Reporting period
The company's reporting period ends on 31st December 2023.

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

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

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

Intangible fixed assets

Jhoots Healthcare Limited (Registered number: 07058830)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023
The directors believe that the right for dispensing UK NHS prescriptions, represented by the purchased goodwill, has a continuing value. Such rights, conferred by the Department of Health, as contracts to dispense prescriptions, are not generally granted to new pharmacies in the same locality. Consequently. the directors consider that the value of purchased goodwill has a life of 20 years and is therefore amortised over that period.

2. TURNOVER

Turnover is wholly attributable to the company's principal activity of retail pharmacy and is wholly incurred within the United Kingdom.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,363,546 2,054,900
Social security costs 60,789 82,010
Other pension costs 15,754 15,382
1,440,089 2,152,292

The average number of employees during the year was as follows:
2023 2022

Management, Administration & Branches 46 78

2023 2022
£    £   
Directors' remuneration - -

4. OPERATING LOSS

The operating loss is stated after charging:

2023 2022
£    £   
Other operating leases 259,105 419,169
Depreciation - owned assets 42,923 62,174
Loss on disposal of fixed assets - 207,897
Goodwill amortisation 323,533 359,486

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 329,341 192,375

Jhoots Healthcare Limited (Registered number: 07058830)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

6. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the loss for the year was as follows:
2023 2022
£    £   
Deferred tax 93,901 (41,238 )
Tax on loss 93,901 (41,238 )

RECONCILIATION OF TOTAL TAX CHARGE/(CREDIT) INCLUDED IN PROFIT AND LOSS
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Loss before tax (355,799 ) (397,581 )
Loss multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

(67,602

)

(75,540

)

Effects of:
Income not taxable for tax purposes 869 38,733
Capital allowances in excess of depreciation - (7,407 )
Adjustments to tax charge in respect of previous periods 19,254 (7,176 )
Amortisation on assets not qualifying for tax allowances 47,479 54,313
Deferred Tax Charge for the period 93,901 (44,161 )

Total tax charge/(credit) 93,901 (41,238 )

7. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 January 2023
and 31 December 2023 6,470,658
AMORTISATION
At 1 January 2023 2,142,948
Amortisation for year 323,533
At 31 December 2023 2,466,481
NET BOOK VALUE
At 31 December 2023 4,004,177
At 31 December 2022 4,327,710

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets / license acquired of dispensing chemist business to expand it operation.

Jhoots Healthcare Limited (Registered number: 07058830)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

8. TANGIBLE FIXED ASSETS
Fixtures
Long and Motor Computer
leasehold fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 January 2023
and 31 December 2023 148,270 318,906 62,926 51,663 581,765
DEPRECIATION
At 1 January 2023 18,224 241,501 54,776 28,640 343,141
Charge for year 6,802 31,106 2,145 2,870 42,923
At 31 December 2023 25,026 272,607 56,921 31,510 386,064
NET BOOK VALUE
At 31 December 2023 123,244 46,299 6,005 20,153 195,701
At 31 December 2022 130,046 77,405 8,150 23,023 238,624

9. STOCKS
2023 2022
£    £   
Stocks 426,488 519,351

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,393,723 1,584,840
Amounts owed by participating interests 410,688 -
Other debtors 70,714 275,811
VAT 85,788 77,488
Prepayments and accrued income 200,625 232,951
2,161,538 2,171,090

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 13) 127,733 142,871
Trade creditors 1,478,308 1,584,113
Amounts owed to participating interests 815,156 324,052
Corporation tax 1,154 6,091
Social security and other tax 15,312 83,621
Other creditors 1,133,313 1,027,414
Directors' current accounts 60,932 109,892
Accruals and deferred income 9,664 53,290
3,641,572 3,331,344

Jhoots Healthcare Limited (Registered number: 07058830)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued

During the year and subsequent to the year end the directors have continued with their strategy to identify and dispose of branches whose location and performance are not aligned with the company’s overall business strategy to reduce the company’s debt profile.

In the opinion of the directors, the company has the continued support of the bank which has been achieved through the actions noted above and via regular and open dialogue between the two parties.

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 13) 2,826,922 2,927,524

13. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 127,733 142,871

Amounts falling due between one and two years:
Bank loans - 1-2 years 142,270 200,231

Amounts falling due between two and five years:
Bank loans - 2-5 years 507,447 681,958

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal 2,177,205 2,045,335

The bank loans and overdrafts are secured by fixed and floating charges over all current and future assets of the company. The bank loans are repayable in monthly instalments and carry interest at 3.73% plus LIBOR.

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 280,331 280,331
Between one and five years 650,468 748,836
In more than five years 89,525 199,050
1,020,324 1,228,217

Jhoots Healthcare Limited (Registered number: 07058830)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

15. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 263,012 169,111

Deferred
tax
£   
Balance at 1 January 2023 169,111
Provided during year 93,901
Balance at 31 December 2023 263,012

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
100 Ordinary Shares 1 100 100

17. RESERVES
Retained
earnings
£   

At 1 January 2023 898,196
Deficit for the year (449,700 )
At 31 December 2023 448,496

18. PENSION COMMITMENTS

Defined Contribution Schemes

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

During the year the company contributed £12,819 (2022: 15,382).

19. RELATED PARTY DISCLOSURES

Other related parties

The directors are also directors of a number of related companies that Jhoots Healthcare Limited has traded and dealt with. During the year the company was charged management fees amounting to £700,000 (2022 - £500,000) from these related parties for head office expenses. During the year management charge of £360,000 (2022 - £360,000) was levied to related party and is receivable as at 31st December 2023.

As at 31 December 2023, the amount owed to participating interest entities £ 404,167 (2022 - £ 1,303,351) and Directors’ current account balance of £60,932 (2022 -£109,893) owed by the company to Mr M S Jhooty.

Jhoots Healthcare Limited (Registered number: 07058830)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

20. POST BALANCE SHEET EVENTS

The directors have not identified any material events post balance sheet date which would require adjustments to the financial statements, and are continuing to monitor, assess and act to the current changing environment in order to position the company to ensure its future success.

21. ULTIMATE CONTROLLING PARTY

The controlling party is M S Jhooty.

He is the ultimate controlling party by virtue of his majority interest in the company's issued share capital