Company registration number 04662060 (England and Wales)
LONDON PHARMA & CHEMICALS GROUP LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
LONDON PHARMA & CHEMICALS GROUP LTD
COMPANY INFORMATION
Directors
D R Straus
J A Sandler
K M Cousins
(Appointed 6 July 2023)
Secretary
L P C Secretarial Limited
Company number
04662060
Registered office
Unit 10, Delta Court
Manor Way
Borehamwood
Hertfordshire
WD6 1FJ
Auditor
Morris Palmer Limited
Barttelot Court
Barttelot Road
Horsham
West Sussex
RH12 1DQ
Business address
Unit 10, Delta Court
Manor Way
Borehamwood
Hertfordshire
WD6 1FJ
Bankers
Barclays Bank plc
1 Churchill Place
London
E14 5HP
LONDON PHARMA & CHEMICALS GROUP LTD
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 33
LONDON PHARMA & CHEMICALS GROUP LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present the Strategic Report for the year ended 31 December 2023.

Section 172 Companies Act
Promoting the success of the company

Section 172 of the Companies Act 2006 requires a director of a company to act in the way they consider, in good faith, would most likely promote the success of the company for the benefit of its members as a whole. In doing this, section 172 requires a director to have regard, amongst other matters, to the:

 

 

During the course of this financial year we have discharged our section 172 duties by taking into account the above. By considering the company's purpose and obligations to its employees, creditors, banks and regulatory bodies we aim to fulfil the needs of our stakeholders whilst maintaining our core values and principles.

 

An example of discharging our duties as set out in section 172(1)(a)-(f) was the introduction of a hybrid working pattern open to all employees whose work could be conducted away from the office. This has led to greater employee work-life balance and has added to overall employee satisfaction.

Fair Review of the Business and Analysis of Development and Performance

London Pharma & Chemicals Group Ltd (LPC) derives income from its equity interests in its subsidiaries and from its various trade activities which include sales of goods, provision of finance and staff and the provision of accounting and management support services across the group. The year's results for the company, set out on page 8, show a profit before tax of £979,106 (2022 - £4,676,577).

 

Average staff numbers reduced from 9 to 8 during the year.

 

LPC continues to generate income from management charges, interest receivable from group undertakings and dividends. Loans to subsidiary companies are made in the subsidiary's local currency. The directors of the company have monitored the movements in Sterling over the period and have attempted to mitigate currency losses from exchange rate fluctuations via the use of derivative contracts.

 

The company has purchased the intellectual property rights to Phytodroitin and Vollagen, two products within the nutraceutical market. This purchase compliments not only the range of Nutra products held within the group, but also allows the group to expand its portfolio within this market sector.

 

LPC intends to maintain its existing operations as well as expand into new markets and the directors are confident that the company will see growth in the following period. The company feels that it currently has the right level of staffing to ensure that it continues to provide the requisite level of service to its subsidiaries.

 

 

KPIs                y/e 31/12/2023         y/e 31/12/2022

 

Profit/(Loss) after Tax        £988,990         £4,751,741

            

Gross Assets            £34,789,377        £30,649,154

 

Net Assets            £22,719,505        £21,730,515

 

Current Ratio            2.51            3.08

 

- 1 -
LONDON PHARMA & CHEMICALS GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Principal Risks and Uncertainties

The company's principal financial instruments comprise cash at bank, receivables and payables and the main purpose of these instruments is to finance the company's operations. The policy of the company is to ensure that credit risk, cash flow risk and currency risk are minimised. Credit and cash flow risk is mitigated by proactive credit management policies of all receivables. Liquidity risk in respect of payables is managed by ensuring sufficient funds are available to meet amounts due. The company operates internationally and ensures that there is no significant currency risk by hedging transactions in foreign currencies using forward foreign exchange contracts where considered necessary. As a result of these objectives and policies, the directors consider that the company's overall exposure to financial risk is low.

- 2 -
LONDON PHARMA & CHEMICALS GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

On behalf of the board

D R Straus
Director
12 September 2024
- 3 -
LONDON PHARMA & CHEMICALS GROUP LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Principal activities

The principal activity of the company is that of a holding company providing management services and financial support to the LPC group of companies.

 

A review of the business together with details of the principal risks faced by the business may be found in the Strategic Report on page 1.

Results and dividends

The results for the year are set out on page 9.

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

Directors

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

D R Straus
A E Eastwood
(Resigned 31 May 2023)
J A Sandler
K M Cousins
(Appointed 6 July 2023)
Auditor

The auditor, Morris Palmer Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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.

Statement of disclosure to auditor

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

- 4 -
LONDON PHARMA & CHEMICALS GROUP LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
On behalf of the board
D R Straus
Director
12 September 2024
- 5 -
LONDON PHARMA & CHEMICALS GROUP LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF LONDON PHARMA & CHEMICALS GROUP LTD
Opinion

We have audited the financial statements of London Pharma & Chemicals Group Ltd (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- 6 -
LONDON PHARMA & CHEMICALS GROUP LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF LONDON PHARMA & CHEMICALS GROUP LTD (CONTINUED)
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 and the directors' report.

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

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

 

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

 

- 7 -
LONDON PHARMA & CHEMICALS GROUP LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF LONDON PHARMA & CHEMICALS GROUP LTD (CONTINUED)

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

 

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

 

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

 

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

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

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

Marti Stenton FCA
Senior Statutory Auditor
For and on behalf of Morris Palmer Limited
12 September 2024
Chartered Accountants
Statutory Auditor
Barttelot Court
Barttelot Road
Horsham
West Sussex
RH12 1DQ
- 8 -
LONDON PHARMA & CHEMICALS GROUP LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
2023
2022
Notes
£
£
Turnover
3
661,820
452,555
Administrative expenses
(1,144,533)
(884,064)
Other operating income
282,750
43,710
Operating loss
4
(199,963)
(387,799)
Income from shares in group undertakings
8
1,001,561
5,050,802
Interest receivable from group undertakings
8
68,084
102,581
Other interest receivable and similar income
8
557,679
387,052
Interest payable to group undertakings
9
(235,000)
(49,181)
Other interest payable and similar expenses
9
(72,016)
(24,588)
Other gains and losses
10
(141,239)
(402,290)
Profit before taxation
979,106
4,676,577
Tax on profit
11
9,884
75,164
Profit for the financial year
988,990
4,751,741

The Profit and Loss Account has been prepared on the basis that all operations are continuing operations.

- 9 -
LONDON PHARMA & CHEMICALS GROUP LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
2023
2022
£
£
Profit for the year
988,990
4,751,741
Other comprehensive income
-
-
Total comprehensive income for the year
988,990
4,751,741
- 10 -
LONDON PHARMA & CHEMICALS GROUP LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
656,250
750,000
Tangible assets
13
42,508
57,460
Investments
14
10,117,357
10,258,596
10,816,115
11,066,056
Current assets
Debtors
18
7,567,223
5,510,378
Cash at bank and in hand
16,406,039
14,072,720
23,973,262
19,583,098
Creditors: amounts falling due within one year
19
(9,548,706)
(6,360,021)
Net current assets
14,424,556
13,223,077
Total assets less current liabilities
25,240,671
24,289,133
Creditors: amounts falling due after more than one year
20
(2,000,000)
(2,000,000)
Provisions for liabilities
Deferred tax liability
23
521,166
558,618
(521,166)
(558,618)
Net assets
22,719,505
21,730,515
Capital and reserves
Called up share capital
25
1,000,000
1,000,000
Revaluation reserve
26
4,312,217
4,312,217
Other reserves
27
1,317,270
1,423,199
Distributable profit and loss reserves
16,090,018
14,995,099
Total equity
22,719,505
21,730,515
The financial statements were approved by the board of directors and authorised for issue on 12 September 2024 and are signed on its behalf by:
D R Straus
Director
Company registration number 04662060 (England and Wales)
- 11 -
LONDON PHARMA & CHEMICALS GROUP LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
Share capital
Revaluation reserve
Fair value reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2022
1,000,000
4,312,217
1,724,916
9,941,641
16,978,774
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
4,751,741
4,751,741
Transfer of fair value losses through profit and loss (net of deferred tax thereon)
-
-
(301,717)
301,717
-
Balance at 31 December 2022
1,000,000
4,312,217
1,423,199
14,995,099
21,730,515
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
988,990
988,990
Transfer of fair value losses through profit and loss (net of deferred tax thereon)
-
-
(105,929)
105,929
-
Balance at 31 December 2023
1,000,000
4,312,217
1,317,270
16,090,018
22,719,505
- 12 -
LONDON PHARMA & CHEMICALS GROUP LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
31
663,157
(3,068,455)
Interest paid
(322,046)
(62,940)
Income taxes paid
(6,212)
(12,596)
Net cash inflow/(outflow) from operating activities
334,899
(3,143,991)
Investing activities
Purchase of intangible assets
-
0
(750,000)
Purchase of tangible fixed assets
(4,205)
(13,991)
Purchase of investments in subsidiaries
-
0
(344,478)
Interest received
684,961
268,467
Dividends received
1,376,862
6,072,009
Net cash generated from investing activities
2,057,618
5,232,007
Net increase in cash and cash equivalents
2,392,517
2,088,016
Cash and cash equivalents at beginning of year
14,072,720
11,793,278
Effect of foreign exchange rates
(59,198)
191,426
Cash and cash equivalents at end of year
16,406,039
14,072,720
- 13 -
LONDON PHARMA & CHEMICALS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
Company information

London Pharma & Chemicals Group Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit 10, Delta Court, Manor Way, Borehamwood, Hertfordshire, WD6 1FJ.

1.1
Accounting convention

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

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

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

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

London Pharma & Chemicals Group Ltd is a wholly owned subsidiary of London Pharma & Chemicals Holdings Ltd and the results of London Pharma & Chemicals Group Ltd are included in the consolidated financial statements of London Pharma & Chemicals Holdings Ltd which are available from Unit 10, Delta Court, Manor Way, Borehamwood, WD6 1FJ.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover
- 14 -

Turnover represents sales of goods to third parties and management charges receivable from subsidiary and associated undertakings and is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

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

Revenue from the provision of accounting services is recognised by reference to hourly staff costs incurred.

Dividend income from investments is recognised when the shareholder's right to receive payment has been established.

 

Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation 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:

Intellectual property rights
12.5% straight line (from 1 January 2023)
LONDON PHARMA & CHEMICALS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost 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 improvements
Straight line over the life of the lease
Fixtures, fittings and equipment
25% straight line
Computer equipment & software
25% & 33.3% straight line

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.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

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

1.7
Impairment of fixed assets
- 15 -

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.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

LONDON PHARMA & CHEMICALS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
1.9
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

- 16 -
LONDON PHARMA & CHEMICALS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
Basic financial liabilities

Basic financial liabilities, including creditors, bank overdrafts, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

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

1.11
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.12
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.

- 17 -
LONDON PHARMA & CHEMICALS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

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

1.14
Retirement benefits

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

1.15
Leases
- 18 -

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

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

1.16
Foreign exchange

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

LONDON PHARMA & CHEMICALS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
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:

Impairment of fixed asset investments

Determine whether there are indicators of impairment of the company's fixed asset investments (investments in subsidiaries and associates). Factors taken into consideration in reaching a decision include the financial position of the entities at the reporting date and the future financial performance of both the entities and their subsidiaries and associates.

Impairment of the company's tangible fixed assets

Determine whether there are indicators of impairment of the group's tangible fixed assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Provisions for impairment of group and other debtors

Determine whether there are indicators of impairment of the company's group and other debtors. Factors taken into consideration in reaching such a decision include the financial viability and expected future performance of the relevant subsidiaries and other economic factors.

Key sources of estimation uncertainty

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

Listed investments (see Note 14)

In determining the carrying value of listed investments at fair value through profit and loss, the company has reference to the quoted share price and net assets value of the company, but applies the overriding concept that fair value is the amount for which an asset can be exchanged between knowledgeable willing parties in an arm's length transaction. The nature, facts and circumstance of the investment drives the valuation methodology.

 

The value of the listed investment is based on available market price information and the directors’ assessment of the marketability of the shares on the reporting date, translated into GBP at the closing rate of exchange on that date.

Tangible fixed assets

Tangible fixed assets, other than investment properties, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

- 19 -
LONDON PHARMA & CHEMICALS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Management charges
661,820
452,555
2023
2022
£
£
Turnover analysed by geographical market
UK
416,770
290,802
Europe
245,050
161,753
661,820
452,555
2023
2022
£
£
Other revenue
Interest income
684,961
268,467
Dividends received
1,001,561
5,080,543
Commissions received
238,383
-
0
4
Operating loss
2023
2022
Operating loss for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
19,149
19,387
Loss on disposal of tangible fixed assets
8
-
Amortisation of intangible assets
93,750
-
Operating lease charges
66,220
64,166
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor:
£
£
For audit services
Audit of the financial statements of the company and the group
34,800
33,000
For other services
Accountancy and taxation compliance services
38,250
36,175

The company's auditors provide non-audit services in relation to accountancy, taxation and company secretarial assistance.

- 20 -
LONDON PHARMA & CHEMICALS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees

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

2023
2022
Number
Number
Administration
8
9

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
612,688
437,136
Social security costs
87,163
52,437
Pension costs
24,344
35,011
724,195
524,584
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
428,814
202,643
Company pension contributions to defined contribution schemes
11,415
10,073
440,229
212,716

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
270,000
141,112
Company pension contributions to defined contribution schemes
-
10,073

Total directors' remuneration and other emoluments (including amounts paid from subsidiaries) amounted to £741,163 (2022 - £629,450). Total pension contributions (including amounts paid from subsidiaries) amounted to £55,382 (2022 - £44,626).

- 21 -
LONDON PHARMA & CHEMICALS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
614,371
156,599
Interest receivable from group companies
68,084
102,581
Other interest income
2,506
9,287
Total interest revenue
684,961
268,467
Other income from investments
Dividends received (non-group)
-
0
29,741
Exchange differences
(59,198)
191,425
Total income excluding fixed asset investments
625,763
489,633
Income from fixed asset investments
Income from shares in group undertakings
1,001,561
5,050,802
Total income
1,627,324
5,540,435
Disclosed on the profit and loss account as follows:
Income from shares in group undertakings
1,001,561
5,050,802
Interest receivable from group undertakings
68,084
102,581
Other interest receivable and similar income
557,679
387,052

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
682,455
259,180
Dividends from financial assets measured at fair value through profit or loss
-
0
29,741
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
235,000
49,181
Other interest on financial liabilities
87,046
13,727
322,046
62,908
Other finance costs:
Finance costs/(credit) for financial instruments measured at fair value through profit or loss
(15,030)
10,829
Other interest
-
0
32
307,016
73,769
Disclosed on the profit and loss account as follows:
Interest payable to group undertakings
235,000
49,181
Other interest payable and similar expenses
72,016
24,588
- 22 -
LONDON PHARMA & CHEMICALS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Other gains and losses
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Change in value of financial assets held at fair value through profit or loss
(141,239)
(402,290)
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
27,568
6,212
Foreign current tax on profits for the current period
-
0
18,949
Total current tax
27,568
25,161
Deferred tax
Origination and reversal of timing differences
(37,452)
(100,325)
Total tax credit
(9,884)
(75,164)

The deferred tax rate applicable is 25% (2022 - 25%).

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

2023
2022
£
£
Profit before taxation
979,106
4,676,577
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
230,286
888,550
Tax effect of expenses that are not deductible in determining taxable profit
29,332
82,365
Tax effect of income not taxable in determining taxable profit
(235,567)
(965,304)
Deferred tax
(33,935)
(99,724)
Foreign taxes withheld
-
0
18,949
Taxation credit for the year
(9,884)
(75,164)
- 23 -
LONDON PHARMA & CHEMICALS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Intangible fixed assets
Intellectual property rights
£
Cost
At 1 January 2023 and 31 December 2023
750,000
Amortisation and impairment
At 1 January 2023
-
0
Amortisation charged for the year
93,750
At 31 December 2023
93,750
Carrying amount
At 31 December 2023
656,250
At 31 December 2022
750,000
13
Tangible fixed assets
Leasehold improvements
Fixtures, fittings and equipment
Computer equipment & software
Total
£
£
£
£
Cost
At 1 January 2023
118,297
53,062
48,237
219,596
Additions
-
0
-
0
4,205
4,205
Disposals
-
0
-
0
(11,424)
(11,424)
At 31 December 2023
118,297
53,062
41,018
212,377
Depreciation and impairment
At 1 January 2023
77,024
48,831
36,281
162,136
Depreciation charged in the year
12,175
1,616
5,358
19,149
Eliminated in respect of disposals
-
0
-
0
(11,416)
(11,416)
At 31 December 2023
89,199
50,447
30,223
169,869
Carrying amount
At 31 December 2023
29,098
2,615
10,795
42,508
At 31 December 2022
41,273
4,231
11,956
57,460
14
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
15
9,037,357
9,037,357
Listed investments
1,080,000
1,221,239
10,117,357
10,258,596
- 24 -
LONDON PHARMA & CHEMICALS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Fixed asset investments
(Continued)
Fixed asset investments revalued

In the opinion of the directors, the listed investment is deemed to have a fair value of £1,080,000 (2022 - £1,221,239) based on available market price information and the limited marketability of the shares.

Fixed asset investments not carried at market value

Investments in subsidiaries are measured at deemed cost under FRS 102 which is represented by the previous UK GAAP valuation as at 1 June 2014. Investment additions since that date are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

Movements in fixed asset investments
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023
9,037,357
1,221,239
10,258,596
Valuation changes
-
(141,239)
(141,239)
At 31 December 2023
9,037,357
1,080,000
10,117,357
Carrying amount
At 31 December 2023
9,037,357
1,080,000
10,117,357
At 31 December 2022
9,037,357
1,221,239
10,258,596
- 25 -
LONDON PHARMA & CHEMICALS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Subsidiaries

These financial statements are the individual company financial statements for London Pharma & Chemicals Group Ltd. Consolidated financial statements are prepared for the group by the company's parent company, London Pharma & Chemicals Holdings Ltd and are publicly available from Companies House.

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking and country of
Nature of business
Class of
% Held
incorporation or residency
shares
Direct
Indirect
Chemgo AG
Florenz-Strasse 9, 4142
Muenchenstein, Switzerland
Pharmaceuticals
Ordinary
100.00
0
Chemgo SARL
Parc de Crécy, 1 rue Claude
Chappe, 69370 St-Didier-Au-
Mont-D'Or, France
Pharmaceuticals
Ordinary
100.00
0
F.I.T. Industries Limited
Unit 10, Delta Court, Manor
Way, Borehamwood, WD6 1FJ,
England
Property holding
Ordinary
100.00
0
LPC Bulgaria Ltd
World Trade Centre Interpred
office 102 B 36, Dragan
Tzankov blvd 1040 Sofia,
Bulgaria
Pharmaceuticals
Ordinary
60.00
0
ProTec Balkans Ltd
World Trade Centre Interpred
office 102 B 36, Dragan
Tzankov blvd 1040 Sofia,
Bulgaria
Cosmetic ingredients
Ordinary
100.00
0
ProTec Botanica Ltd
Unit 10, Delta Court, Manor
Way, Borehamwood, WD6 1FJ,
England
Essential oils
Ordinary
85.00
0
ProTec Ingredia GmbH
Wipperfürther Strasse 32,
51429 Bergisch Gladbach,
Germany
Cosmetic ingredients
Ordinary
80.00
0
ProTec Ingredia Limited
Unit 10, Delta Court, Manor
Way, Borehamwood, WD6 1FJ,
England
Cosmetic ingredients
Ordinary
92.00
0
ProTec Nutra Limited
Unit 10, Delta Court, Manor
Way, Borehamwood, WD6 1FJ,
England
Nutraceuticals
Ordinary
60.00
0
ProTec Polska Sp. z o.o.
ul. Berezynska 6A 03-904,
Warsaw, Poland
Cosmetic ingredients
Ordinary
99.60
0
S & D Pharma CZ, spol. s r.o.
Písnická 22/546, 142 00
Prague 4, Czech Republic
Pharmaceuticals
Ordinary
100.00
0
S & D Pharma Logistics BG
World Trade Centre Interpred
office 102 B 36, Dragan
Tzankov blvd 1040 Sofia,
Bulgaria
Pharmaceuticals
Ordinary
100.00
0
S & D Pharma Limited
Unit 10, Delta Court, Manor
Way, Borehamwood, WD6 1FJ,
England
Pharmaceuticals
Ordinary
100.00
0
S & D Pharma SK s r.o.
Farebná 32, 821 05 Bratislava,
Slovak Republic
Pharmaceuticals
Ordinary
97.00
0
Canprop Holdings Inc
46 Woburn Avenue, Toronto,
Ontario, Canada
Property holding
Ordinary
77.27
0
INB GmbH
Kirchseeon, Landkreis Ebersberg
Cosmetic ingredients
Ordinary
100.00
0
- 26 -
LONDON PHARMA & CHEMICALS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Subsidiaries
(Continued)

The investments in subsidiaries are all stated at deemed cost where these were acquired prior to 1 June 2014. Investment additions since that date are stated at cost less impairment.

16
Associates

Details of the company's associates at 31 December 2023 are as follows:

Name of undertaking and country of
Nature of business
Class of
% Held
incorporation or residency
shares
Direct
Indirect
Lipoid Kosmetik Ltd
Unit 10, Delta Court,
Manor Way,
Borehamwood, WD6
1FJ, England
Cosmetic Ingredients
Ordinary
-
36.80
17
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
2,597
-
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
-
3,743
18
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,088
4,413
Amounts owed by group undertakings
6,565,385
3,986,307
Amounts owed by undertakings in which the company has a participating interest
419
-
0
Derivative financial instruments
2,597
-
Other debtors
258,387
900,737
Prepayments and accrued income
61,142
53,471
6,890,018
4,944,928
2023
2022
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
677,205
565,450
Total debtors
7,567,223
5,510,378

Other debtors include dividends receivable in the sum of £175,562 (2022 - £550,863).

- 27 -
LONDON PHARMA & CHEMICALS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
19
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
71,583
22,524
Amounts owed to group undertakings
6,703,570
4,041,054
Corporation tax
27,568
6,212
Other taxation and social security
9,977
10,738
Derivative financial instruments
-
0
3,743
Other creditors
2,257,821
2,032,425
Accruals and deferred income
478,187
243,325
9,548,706
6,360,021
20
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Redeemable preference shares
21
2,000,000
2,000,000
21
Loans, overdrafts and preference shares
2023
2022
£
£
Preference shares
2,000,000
2,000,000
Payable after one year
2,000,000
2,000,000

The Redeemable preference shares shown as financial liabilities >1 year are nil coupon shares with no voting rights but normal preferential rights to dividends and capital distributions whether on a winding up or otherwise. The shares are redeemable at the option of the company or the shareholder and have no fixed redemption date.

22
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
23
521,166
558,618
- 28 -
LONDON PHARMA & CHEMICALS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
23
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Capital allowances timing differences
8,933
11,075
Investments in subsidiaries and listed investments
512,233
547,543
521,166
558,618
2023
Movements in the year:
£
Liability at 1 January 2023
558,618
Credit to profit or loss
(37,452)
Liability at 31 December 2023
521,166

Of the deferred tax liability set out above, £4,666 (2022 - £4,648) is expected to reverse within 12 months. This relates to accelerated capital allowances that are expected to mature within the same period.

24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
24,344
35,011

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.

- 29 -
LONDON PHARMA & CHEMICALS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
25
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000,000
1,000,000
1,000,000
1,000,000

 

Shares classed as financial liabilities:

Allotted, called up and fully paid

2,000,000 Redeemable preference shares of £1 each

 

 

There are two classes of shares in issue. The ordinary shares are voting shares and carry normal preferential rights to dividends and capital distributions whether on a winding up or otherwise. The redeemable preference shares shown as financial liabilities >1 year are nil coupon shares with no voting rights but normal preferential rights to dividends and capital distributions whether on a winding up or otherwise. The shares are redeemable at the option of the company or the shareholder and have no fixed redemption date.

26
Revaluation reserve

The revaluation reserve arose historically following application of the alternative accounting rules of the Companies Act 2006 when investments in subsidiaries were carried at directors' valuation. On first time adoption of FRS 102, the directors chose to measure investments in subsidiaries at deemed cost, being the carrying amount at the date of transition as determined under the entity's previous UK GAAP. The balance on the revaluation reserve is shown net of deferred tax under FRS 102 and is non-distributable.

27
Fair value reserve

The fair value reserve has arisen from the uplift in value of listed investments from their carrying amount under previous UK GAAP to their fair value under FRS 102. The balance on the fair value reserve is stated net of deferred tax under FRS 102 and is non-distributable.

28
Operating lease commitments
Lessee

The operating lease represents a lease of land and buildings.

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

2023
2022
£
£
Within one year
66,220
66,220
Between two and five years
11,037
77,257
77,257
143,477
- 30 -
LONDON PHARMA & CHEMICALS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
29
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel of the company is as follows:

2023
2022
£
£
Aggregate compensation
502,806
243,673
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Net income/(expense) from interest, rent and costs recharged
Provision/(repayment) of finance
2023
2022
2023
2022
£
£
£
£
Entities over which the entity has control, joint control or significant influence
1,058,758
603,081
(838,652)
(1,335,363)
Other related parties
(66,220)
(64,166)
(233,378)
(97,248)

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts owed to related parties
£
£
Entities over which the entity has control, joint control or significant influence
4,918,792
3,541,054
Other related parties
2,334,949
2,203,108

The following amounts were outstanding at the reporting end date:

2023
Balance
Amounts owed by related parties
£
Entities with control, joint control or significant influence over the company
2,900,000
Entities over which the entity has control, joint control or significant influence
4,074,685
Other related parties
659
2022
Balance
Amounts owed by related parties in previous period
£
Entities with control, joint control or significant influence over the company
2,900,000
Entities over which the entity has control, joint control or significant influence
2,000,859
Other related parties
240
- 31 -
LONDON PHARMA & CHEMICALS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
29
Related party transactions
(Continued)

London Pharma & Chemicals Group Ltd ('LPCG Ltd') is the immediate parent company to the following non-100% owned subsidiaries: ProTec Ingredia Limited, ProTec Polska Sp. z o.o., ProTec Nutra Limited, ProTec Botanica Ltd, ProTec Ingredia GmbH, LPC Bulgaria Ltd, S & D Pharma Slovakia s r.o. and Canprop Holdings Inc.

 

Lipoid Kosmetik Ltd is an associated company of ProTec Ingredia Limited. Mr D R Straus is a director of LPCG Ltd and is the ultimate controlling party of the company's parent company. He is also a trustee and member of the Straus Family Pension Fund. Silverlane Limited is a connected company controlled by Mr D R Straus and Ms C J S Straus. Ms C J S Straus is a director and shareholder of the company's parent company.

 

The transactions and balances with these related parties during the period and at the balance sheet date are included in the tables above.

30
Ultimate controlling party

The company's ultimate parent company is London Pharma & Chemicals Holdings Ltd, a company registered in England and Wales. The registered office is Unit 10, Delta Court, Manor Way, Borehamwood, Hertfordshire, WD6 1FJ.

The ultimate controlling party is Mr D R Straus as the majority shareholder of the parent company.

The following are the parents of the largest and smallest groups in which this company's results are consolidated:

Largest group
London Pharma & Chemicals Holdings Ltd
Smallest group
London Pharma & Chemicals Holdings Ltd
31
Cash generated from/(absorbed by) operations
2023
2022
£
£
Profit for the year after tax
988,990
4,751,741
Adjustments for:
Taxation credited
(9,884)
(75,164)
Finance costs
307,016
73,769
Investment income
(1,627,324)
(5,540,435)
Loss on disposal of tangible fixed assets
8
-
Amortisation and impairment of intangible assets
93,750
-
0
Depreciation and impairment of tangible fixed assets
19,149
19,387
Other gains and losses
141,239
402,290
Movements in working capital:
(Increase)/decrease in debtors
(2,429,549)
87,704
Increase/(decrease) in creditors
3,179,762
(2,787,747)
Cash generated from/(absorbed by) operations
663,157
(3,068,455)
- 32 -
LONDON PHARMA & CHEMICALS GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
32
Analysis of changes in net debt
2023
£
Opening net funds/(debt)
Cash at bank and in hand
14,072,720
Borrowings excluding overdrafts
(2,000,000)
Net derivative financial instruments
(3,743)
12,068,977
Changes in net debt arising from:
Cash flows of the entity
2,392,517
Other non-cash changes
(8,690)
Changes in market value and exchange rates
(44,168)
Closing net funds/(debt) as analysed below
14,408,636
Closing net funds/(debt)
Cash at bank and in hand
16,406,039
Borrowings excluding overdrafts
(2,000,000)
Net derivative financial instruments
2,597
14,408,636
- 33 -
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.200D R StrausA E EastwoodJ A SandlerK M CousinsL P C Secretarial 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