REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements |
for the Year Ended 31 December 2023 |
for |
Jhoots Healthcare Limited |
REGISTERED NUMBER: |
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: |
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. |
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: |
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. |
for and on behalf of |
3 Sheen Road |
Richmond Upon Thames |
TW9 1AD |
Jhoots Healthcare Limited (Registered number: 07058830) |
Income Statement |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 2 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
(402,760 | ) | (610,487 | ) |
Other operating income |
OPERATING LOSS | 4 | ( |
) | ( |
) |
Interest payable and similar expenses | 5 | ( |
) | ( |
) |
LOSS BEFORE TAXATION | ( |
) | ( |
) |
Tax on loss | 6 | ( |
) |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
Jhoots Healthcare Limited (Registered number: 07058830) |
Other Comprehensive Income |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
LOSS FOR THE YEAR | ( |
) | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
( |
) |
Jhoots Healthcare Limited (Registered number: 07058830) |
Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 7 |
Tangible assets | 8 |
CURRENT ASSETS |
Stocks | 9 |
Debtors | 10 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 11 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 12 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 15 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Retained earnings | 17 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2023 |
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 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) |
Sale of intangible fixed assets |
Sale of tangible fixed assets |
Net cash from investing activities |
Cash flows from financing activities |
Loan repayments in year | ( |
) |
Amount withdrawn by directors | (48,961 | ) | (80,243 | ) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
(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 | ( |
) | ( |
) |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 329,341 | 192,375 |
Taxation | ( |
) |
339,998 | 424,350 |
Decrease in stocks |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
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 | ( |
) |
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 | 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 |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management, Administration & Branches |
2023 | 2022 |
£ | £ |
Directors' remuneration |
4. | OPERATING LOSS |
The operating loss is stated after charging: |
2023 | 2022 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Goodwill amortisation |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest |
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 | ( |
) |
Tax on loss | ( |
) |
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 | ( |
) | ( |
) |
Loss multiplied by the standard rate of corporation tax in the UK of (2022 - |
( |
) |
( |
) |
Effects of: |
Income not taxable for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Amortisation on assets not qualifying for tax allowances |
Deferred Tax Charge for the period | ( |
) |
Total tax charge/(credit) | 93,901 | (41,238 | ) |
7. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
Amortisation for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
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 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
9. | STOCKS |
2023 | 2022 |
£ | £ |
Stocks |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by participating interests | 410,688 | - |
Other debtors |
VAT |
Prepayments and accrued income |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 13) |
Trade creditors |
Amounts owed to participating interests | 815,156 | 324,052 |
Corporation tax |
Social security and other tax |
Other creditors |
Directors' current accounts | 60,932 | 109,892 |
Accruals and deferred income |
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) |
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 |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
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 |
Between one and five years |
In more than five years |
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 |
Provided during year |
Balance at 31 December 2023 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary Shares | 1 | 100 | 100 |
17. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2023 |
Deficit for the year | ( |
) |
At 31 December 2023 |
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 |
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 |