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Registered number: 05421174










RECORDATI PHARMACEUTICALS LIMITED










DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
RECORDATI PHARMACEUTICALS LIMITED
 

COMPANY INFORMATION


Directors
Alberto Martinez Martinez-Canavate (resigned 18 September 2023)
Benoit Slavicek 
Christopher Paul Surridge 
Ana Lopez (appointed 18 September 2023)




Company secretary
Aldwych Secretaries Limited



Registered number
05421174



Registered office
Breakspear Park
Breakspear Way

Hemel Hempstead

HP2 4TZ




Independent auditors
James Cowper Kreston Audit
Chartered Accountants and Statutory Auditor

Reading Bridge House

George Street

Reading

Berkshire

RG1 8LS





 
RECORDATI PHARMACEUTICALS LIMITED
 

CONTENTS



Page
Directors' report
1 - 2
Independent auditors' report
3 - 5
Statement of comprehensive income
6
Balance sheet
7
Statement of changes in equity
8
Notes to the financial statements
9 - 18


 
RECORDATI PHARMACEUTICALS LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors

The directors who served during the year were:

Alberto Martinez Martinez-Canavate (resigned 18 September 2023)
Benoit Slavicek 
Christopher Paul Surridge 
Ana Lopez (appointed 18 September 2023)

Business review

The Directors are satisfied with the results for the year of trading. There has been an increase in sales due to the launch of two new products and improved market conditions. The gross profit decreased due to additional costs associated with the two new products however due to the responsible management of the company’s operating expenses and increased interest received on an intercompany loan there has been an increase in the profit for the financial year. 
Pharmaceutical regulations are under constant review and changes will lead to more controls being needed within the industry. This could in turn lead to more costs imposed on the company to adhere to these regulations.
The pharmaceutical industry is always at high risk that products may experience adverse drug reports. If these were to occur they could significantly affect turnover. 
Going Concern
After making enquiries the directors have a reasonable expectation that the Company has adequate resources to continue its operational existence for the foreseeable future. Accordingly, the Company continues to adopt the going concern basis in preparing the annual report and accounts. 

Results and dividends

The profit for the year, after taxation, amounted to £1,004,315 (2022 - £882,624).

No dividend was paid in or proposed for the current year or the previous year.

Political contributions

The Company made no political donations or incurred any political expenditure during the year.

Page 1

 
RECORDATI PHARMACEUTICALS LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Directors' responsibilities statement

The directors are responsible for preparing the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditorsJames Cowper Kreston Auditwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





Christopher Paul Surridge
Director

Date: 22 July 2024

Page 2

 
RECORDATI PHARMACEUTICALS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RECORDATI PHARMACEUTICALS LIMITED
 

Opinion


We have audited the financial statements of Recordati Pharmaceuticals Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 profit 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Other information


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


We have nothing to report in this regard.


Page 3

 
RECORDATI PHARMACEUTICALS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RECORDATI PHARMACEUTICALS LIMITED (CONTINUED)


Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors' report has been prepared in accordance with applicable legal requirements.


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 Directors' report.


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


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; or
the directors were not entitled take advantage of the small companies' exemptions in preparing the Directors' report and from the requirement to prepare a Strategic report.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Auditors' responsibilities for the audit of the financial statements
 

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


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
 
Page 4

 
RECORDATI PHARMACEUTICALS LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RECORDATI PHARMACEUTICALS LIMITED (CONTINUED)



The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:

Enquiry of management and those charged with governance around actual and potential litigation and claims;
Enquiry of management and those charged with governance to identify any material instances of non-compliance with laws and regulations;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.


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 Auditors' report.
 
Use of our report
 

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





Alan Poole BA (Hons) FCA (Senior Statutory Auditor)
  
for and on behalf of
James Cowper Kreston Audit
 
Chartered Accountants and Statutory Auditor
  
Reading Bridge House
George Street
Reading
Berkshire
RG1 8LS

23 July 2024
Page 5

 
RECORDATI PHARMACEUTICALS LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
9,484,547
7,838,203

Cost of sales
  
(6,824,686)
(4,744,039)

Gross profit
  
2,659,861
3,094,164

Distribution costs
  
(121,132)
(98,470)

Administrative expenses
  
(1,603,264)
(1,873,795)

Operating profit
 5 
935,465
1,121,899

Interest receivable and similar income
 8 
354,204
47,672

Interest payable and similar expenses
  
(12,516)
-

Profit before tax
  
1,277,153
1,169,571

Tax on profit
 9 
(272,838)
(286,947)

Profit for the financial year
  
1,004,315
882,624

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022£NIL).

The notes on pages 9 to 18 form part of these financial statements.

Page 6

 
RECORDATI PHARMACEUTICALS LIMITED
REGISTERED NUMBER: 05421174

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 10 
-
607

  
-
607

Current assets
  

Inventories
 11 
1,705,833
1,988,930

Debtors: amounts falling due within one year
 12 
11,773,032
12,420,323

Cash at bank and in hand
 13 
1,867,175
1,698,113

  
15,346,040
16,107,366

Creditors: amounts falling due within one year
 14 
(2,702,868)
(4,469,116)

Net current assets
  
 
 
12,643,172
 
 
11,638,250

Total assets less current liabilities
  
12,643,172
11,638,857

  

Net assets
  
12,643,172
11,638,857


Capital and reserves
  

Called up share capital 
 15 
15,000,000
15,000,000

Profit and loss account
 16 
(2,356,828)
(3,361,143)

  
12,643,172
11,638,857


The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Christopher Paul Surridge
Director

Date: 22 July 2024

The notes on pages 9 to 18 form part of these financial statements.

Page 7

 
RECORDATI PHARMACEUTICALS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
15,000,000
(4,243,767)
10,756,233


Comprehensive income for the year

Profit for the year
-
882,624
882,624



At 1 January 2023
15,000,000
(3,361,143)
11,638,857


Comprehensive income for the year

Profit for the year
-
1,004,315
1,004,315


At 31 December 2023
15,000,000
(2,356,828)
12,643,172


The notes on pages 9 to 18 form part of these financial statements.

Page 8

 
RECORDATI PHARMACEUTICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Recordati Pharmaceuticals Limited (the "Company") is a company limited by shares and incorporated and domiciled in the UK. The Company's Registered Office and principal place of business is at Breakspear Park, Breakspear Way, Hemel Hempstead, HP2 4TZ. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Recordati Industria Chimica a Farmaceutica S.p.A. as at 31 December 2023 and these financial statements may be obtained from Via Matteo Civitali, 1 20148 Milano - Italy.

 
2.3

Revenue

Turnover represents amounts derived from the provision of goods and services which fall within the company’s ordinary activities after deductions of trade discounts and Value Added Tax. Income is recognised on despatch of goods. 

 
2.4

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 9

 
RECORDATI PHARMACEUTICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.5
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures, fittings and office equipment
-
3 years
Computer equipment
-
3 years
Computer software
-
3 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.6

Inventories

Inventories are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If inventory is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.7

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.8

Cash and 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.

 
2.9

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.10

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Page 10

 
RECORDATI PHARMACEUTICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.12

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 11

 
RECORDATI PHARMACEUTICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.14

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgments have had the most significant effect on amounts recognised in the financial statements:
Bad debt provision
Provisions are estimated by the company in respect of specific bad debts based upon the age of the debt and any known recoverability issues.
Stock provision
Provisions are estimated by the company in respect of specific stock items based upon the age and condition of the items and any known issues.

Page 12

 
RECORDATI PHARMACEUTICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sale of pharmaceuticals
9,484,547
7,838,203


All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation
607
2,315

Exchange differences
(3,491)
4,435

Audit of these financial statements
12,700
11,600


6.


Employees

2023
2022
£
£

Wages and salaries
605,939
862,925

Social security costs
129,170
95,985

Other pension costs
24,486
62,065

759,595
1,020,975


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Management and administration
5
7

Page 13

 
RECORDATI PHARMACEUTICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Directors' remuneration

2023
2022
£
£

Salary and other benefits
180,998
105,000

Company contributions to defined contribution pension schemes
3,999
9,168

184,997
114,168


The Directors are remunerated by the group for services to multiple entities.   The amounts above reflect the portion of their remuneration which is borne by this entity, after recharges to and from other group companies.


8.


Interest receivable

2023
2022
£
£


Interest on balances owed by other group companies
354,204
47,672

Page 14

 
RECORDATI PHARMACEUTICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
258,718
207,035

Adjustments in respect of previous periods
14,120
79,912


Total current tax
272,838
286,947

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,277,153
1,169,571


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
300,131
222,218

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
94
-

Capital allowances for year in excess of depreciation
(289)
-

Deferred tax not recognised
-
(1,062)

Other timing differences leading to an increase (decrease) in taxation
(41,218)
(14,121)

Adjustments to tax charge in respect of previous years
14,120
79,912

Total tax charge for the year
272,838
286,947


Factors that may affect future tax charges

There were no factors that may materially affect future tax charges.

Page 15

 
RECORDATI PHARMACEUTICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Tangible fixed assets





Fixtures, fittings and office equipment
Computer equipment
Computer software
Total

£
£
£
£



Cost or valuation


At 1 January 2023
2,002
38,815
93,901
134,718



At 31 December 2023

2,002
38,815
93,901
134,718



Depreciation


At 1 January 2023
2,002
38,374
93,735
134,111


Charge for the year
-
441
166
607



At 31 December 2023

2,002
38,815
93,901
134,718



Net book value



At 31 December 2023
-
-
-
-



At 31 December 2022
-
441
166
607


11.


Inventories

2023
2022
£
£

Finished goods
1,705,833
1,988,930


Finished goods recognised as cost of sales in the year amounted to £6,706,489 (2022: £5,035,311). The write-down of inventories to net realisable value amounted to £nil (2022: £196,574). The reversal of write-downs amounted to £118,197 (2022: -£94,698). The write-down and reversal are included in cost of sales. Write-downs are reversed when market conditions indicate that existing write-downs are no longer appropriate.

Page 16

 
RECORDATI PHARMACEUTICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Debtors

2023
2022
£
£


Trade debtors
3,548,747
1,901,336

Amounts owed by group undertakings
7,850,384
10,333,476

Other debtors
39,503
176,848

Prepayments and accrued income
3,116
8,663

Tax recoverable
331,282
-

11,773,032
12,420,323



13.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
1,867,175
1,698,113



14.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
217,515
164,032

Amounts owed to group undertakings
2,024,961
3,302,242

Corporation tax
-
207,035

Other taxation and social security
374,578
490,186

Other creditors
8,753
20,654

Accruals and deferred income
77,061
284,967

2,702,868
4,469,116



15.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



15,000,000 (2022 - 15,000,000) Ordinary shares of £1.00 each
15,000,000
15,000,000

All shares are classified in shareholders' funds.
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company.


Page 17

 
RECORDATI PHARMACEUTICALS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Reserves

Profit and loss account

Retained earnings represents accumulated comprehensive income for the year and prior periods less dividends paid.


17.


Related party transactions

The company has taken advantage of the exemption granted by FRS 102 section 33.1A to subsidiary undertakings not to disclose transactions with other wholly owned group companies.


18.


Controlling party

The Company is a subsidiary undertaking of Recordati Industria Chimica e Faraceutica S.p.A. The ultimate controlling party is CVC Capital Partners VII Limited, a company registered in the Bailiwick of Jersey.
The parent undertaking of the group of which the company is a member and for which group accounts are prepared at the date of these financial statements is Recordati Industria Chimica e Faraceutica S.p.A. a company incorporated in Italy.
The consolidated financial statements of the group is available to the public and may be obtained from Recordati Industria Chimica e Faraceutica S.p.A., Via Matteo Civitali 1, 20148 Milano - Italy


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