Company registration number 01592283 (England and Wales)
FORUM HEALTH PRODUCTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
FORUM HEALTH PRODUCTS LIMITED
COMPANY INFORMATION
Directors
Mr N J Copp
Mr A J Litchfield
Secretary
N Copp
Company number
01592283
Registered office
Part Second Floor
The Omnibus Building
Lesbourne Road
Reigate
Surrey
RH2 7LD
Auditor
Moore (South) LLP
Suite 3, Second Floor
Friary Court
13-21 High Street
Guildford
Surrey
GU1 3DG
FORUM HEALTH PRODUCTS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 20
FORUM HEALTH PRODUCTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

 

The principal activity of the company in the year under review was distribution of Department of Health prescription products.

 

Fair review of the business

Turnover for the year ended 31 December 2023 amounted to £77.6m (2022: £85.7m). This equates to a 9.5% decrease in turnover, mainly driven by divestment of a key product in the last quarter of 2022. This reduction in turnover did not have an impact on gross profit. which decreased slightly to £1.36m (2022: £1.37m).

 

Overheads in the year ended 31 December 2023 amounted to £0.3m and overall operating profit for 2023 was £1.0m in line with the previous year.

 

The directors continue to plan the future development of the business through building new commercial partnerships.

 

The directors are satisfied with the results for the period.

 

Net current assets and shareholders' funds at 31 December 2023 of £1.7m decreased £0.3m versus the value at 31 December 2022.

Principal risks and uncertainties

The Directors are aware of their responsibility for managing risks, which are regularly reviewed to ensure that risk management is being implemented and monitored effectively.


The company's operations expose it to a variety of financial risks that include credit risk and liquidity risk. The company has put in place policies and procedures that seek to limit the effect of these risks.

 

The company actively maintains cash in hand at a level that is designed to ensure sufficient available funds for operations.

 

The company has policies that require appropriate credit checks on potential and existing customers before sales are made.

 

The company actively maintains a credit insurance policy that is designed to ensure that all of the company's sales invoices are covered against default, where a customer can no longer meet its payment obligations. Credit limits are reviewed regularly to ensure the correct level of cover is in place to cover the company's requirements. Where the company is granted an insufficient limit, the customers past trading history is taken into account when determining the level of credit to grant them. The company aims to operate with just 1% of the value of open sales invoices not being covered by credit insurance, this way the potential risk to the company is minimised.

 

The company is exposed to changes in the selling prices of medicinal products. Changes in prices may be forced by Governments or competitive forces such as the development of competitor products, patent protection and competitor discounting.

Key performance indicators

The directors have deemed the key performance indicators of the Company to be turnover, gross profit, profit before tax and net assets. The directors have determined these to be key performance indicators of the Company due to its nature as a trading company with the principal activity of distributing prescription products.

 

Turnover was £77.6m (2022: £85.7m). Gross Profit was £1.4m (2022: £1.4m). Profit before tax was £1.0m (2022: £1.0m), while net assets decreased to £1.7m (2022: £2.0m).

FORUM HEALTH PRODUCTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Other information and explanations

Future developments

There continues to be a considerable focus to obtain new distribution contracts. This strategy of expanding the company’s product portfolio provides an opportunity to grow turnover and gross margin as well as being a further opportunity to mitigate future risk.

While the company's turnover in 2023 decreased, gross margin and EBITDA remained consistent with the previous year.

The outlook for 2024, is that the company will trade with fewer principals, despite this we expect overall performance in 2024 to be in line with the results achieved in 2023.

Statement by the Directors in relation to Performance of their Statutory Duties in accordance with Section 172 of the Companies Act 2006

Section 172 of the Companies Act 2006 requires Directors to take into consideration the interests of stakeholders in their decision-making. While discharging their duties, Section 172 requires the Directors to consider amongst other matters:

 

  1. The likely consequences of any decision in the long term

  2. The interests of the company’s employees

  3. The need to foster the company’s business relationships with suppliers, customers and others

  4. The impact of the company’s operations on the community and the environment

  5. The desirability of the company maintaining a reputation for high standards of business conduct and the need to act fairly

As the Company is a Distributer which outsources many of its activities and has very few employees, the decisions of which have minimal impact on the community and the environment, the Directors consider point (d) to be irrelevant to the Company. A statement detailing how the Directors have regard for parts (a), (b), (c) and (e) of Section 172 of the Companies Act 2006 is set out below.

Consequences of any decisions

The Directors of the Company are fully aware of the requirement for them to act in a way that they believe, in good faith, would be most likely to promote the long term success of the Company for the benefit of its stakeholders. In the performance of its duty to promote the success of the Company, the Board has regard to a number of matters, including the likely consequence of any decisions in the long term, and listens to the views of the Group’s key stakeholders to build trust and ensure it fully understands the potential impacts of the decisions it makes.

Employees

 

The Company’s employees are fundamental to the overall success of the business. The directors manage the day to day decision making, engagement and communications with employees and ensure that people are treated fairly and are valued with respect to pay, benefit and conditions. We fully realise that our employees wish to be informed and consulted on matters affecting their work and to be involved in problem-solving affecting their own areas of interest and responsibility.

 

The Company is firmly committed to a policy of good communication at all levels and we aim to establish a climate which constantly encourages the open flow of information and ideas, which is discussed via regular meetings with the employees.

 

Suppliers and customers

 

The Company acts in a fair manner with all suppliers and customers and seeks to maintain strong business relationships with them. This is achieved via regular meetings with all our key suppliers and via clear communication to all our customers. The Company ensures suppliers are paid promptly and ensures it acts fairly and in a transparent manner with all customers, and actively engages to resolve any disputes or defaults.

FORUM HEALTH PRODUCTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

Business conduct

 

As Directors our intention is to behave responsibly, ensuring management operate the business with integrity and in accordance with the high standards of conduct and governance expected of a business such as ours. Our intention is to work with other businesses that share our values.

 

The Directors are responsible for ensuring that the activities of the Company are conducted in compliance with the law and applicable governance and regulatory authorities. The Directors actively promotes a corporate culture that is based on ethical values and behaviours.

 

The Directors ensure that the financial statements give a true and fair view of the state of affairs of the Company.

On behalf of the board

Mr N J Copp
Director
26 September 2024
FORUM HEALTH PRODUCTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

Results and dividends

The results for the year are set out on page 10.

An interim dividend of £12,750 per share totalling £1,275,000 was declared in 2023 compared with £875,000 in 2022.

 

Directors

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

Mr N J Copp
Mr A J Litchfield
Directors' insurance

Indemnity insurance for the benefit of the directors was in force during the year.

Auditor

In accordance with the company's articles, a resolution proposing that Moore (South) LLP be reappointed as auditor of the company will be put at a General Meeting.

Corporate governance

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

Energy and carbon report

The company outsources many of it’s activities and as such has consumed less than 40,000kWh of energy during the period and hence information on the Company’s carbon emissions and energy consumption during the year as well as energy efficiency activities have not been disclosed.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually 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.

On behalf of the board
Mr N J Copp
Director
26 September 2024
FORUM HEALTH PRODUCTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

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.

 

In addition, the directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website.

FORUM HEALTH PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF FORUM HEALTH PRODUCTS LIMITED
- 6 -
Opinion

We have audited the financial statements of Forum Health Products 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 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:

FORUM HEALTH PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF FORUM HEALTH PRODUCTS LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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:

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.

 

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

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outline above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

FORUM HEALTH PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF FORUM HEALTH PRODUCTS LIMITED
- 8 -

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

 

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

 

Our approach was as follows:

 

 

 

 

 

 

 

In response to the risk of fraud due to management override, we:

FORUM HEALTH PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF FORUM HEALTH PRODUCTS LIMITED
- 9 -

In response to the risk of irregularities with regards to the recognition of revenue, we;

 

In response to the potential for incorrect valuation of inventory, we:

 

In response to the potential to overstate the value of receivables, we:

 

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

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.

Christopher Goodwin
Senior Statutory Auditor
For and on behalf of Moore (South) LLP
26 September 2024
Chartered Accountants
Statutory Auditor
Suite 3, Second Floor
Friary Court
13-21 High Street
Guildford
Surrey
GU1 3DG
FORUM HEALTH PRODUCTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
77,615,277
85,669,666
Cost of sales
(76,258,486)
(84,302,594)
Gross profit
1,356,791
1,367,072
Administrative expenses
(308,943)
(357,532)
Operating profit
4
1,047,848
1,009,540
Interest receivable and similar income
8
175,569
32,141
Other interest payable and similar expenses
9
(160)
-
0
Profit before taxation
1,223,257
1,041,681
Tax on profit
10
(287,466)
(225,938)
Profit for the financial year
935,791
815,743

The profit and loss account has been prepared on the basis that all operations are continuing operations.

FORUM HEALTH PRODUCTS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Current assets
Stocks
13
1,090,432
1,168,106
Debtors
14
13,030,772
12,140,664
Cash at bank and in hand
2,022,754
2,866,065
16,143,958
16,174,835
Creditors: amounts falling due within one year
15
(14,474,781)
(14,166,449)
Net current assets
1,669,177
2,008,386
Capital and reserves
Called up share capital
17
100
100
Profit and loss reserves
1,669,077
2,008,286
Total equity
1,669,177
2,008,386
The financial statements were approved by the board of directors and authorised for issue on 26 September 2024 and are signed on its behalf by:
Mr N J Copp
Director
Company registration number 01592283 (England and Wales)
FORUM HEALTH PRODUCTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100
2,067,543
2,067,643
Year ended 31 December 2022:
Profit and total comprehensive income
-
815,743
815,743
Dividends
11
-
(875,000)
(875,000)
Balance at 31 December 2022
100
2,008,286
2,008,386
Year ended 31 December 2023:
Profit and total comprehensive income
-
935,791
935,791
Dividends
11
-
(1,275,000)
(1,275,000)
Balance at 31 December 2023
100
1,669,077
1,669,177
FORUM HEALTH PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Forum Health Products Limited ('the Company') is a private company, limited by shares, incorporated in England and Wales. The address of its registered office and principal place of business is The Omnibus Building, Lesbourne Road, Reigate, Surrey, RH2 7LD.

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. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

Forum Health Products Limited is a wholly owned subsidiary of Barentz Holding BV and the results of Forum Health Products Limited are included in the consolidated financial statements of Barentz Holding BV which are publicly available. The registered office is Saturnsstraat 15, 2132 HB Hoofdorp, The Netherlands.

The principal activity of the Company is that of a distributor of Department of Health prescription products.

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

Turnover, which is all within the UK, excludes value added tax and represents the invoiced value of goods supplied. Invoices raised for goods and services are based on fulfilled obligations.

1.4
Stocks

Stocks are stated at the lower of cost and net realisable value. Costs are determined on a first in, first out basis, subject to commercial decisions over the age of the stock held, and includes, where relevant, costs incurred in moving product to warehouse, together with packaging costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for costs of realisation. Provision is made where necessary for obsolete, slow-moving and defective stocks.

FORUM HEALTH PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.5
Financial instruments

Financial assets and liabilities are recognised when the Company becomes party to the contractual provisions of the financial instrument. The Company holds basic financial instruments, which comprise cash and cash equivalents, trade and other receivables derivative financial instruments, trade and other payables. The Company has chosen to apply the provisions of Section 11 Basic Financial Instruments and Section 12 Other Financial Instruments in full.

Basic financial assets

(i) Cash and cash equivalents

 

Cash and cash equivalents include cash in hand and deposits held with banks.

 

(ii) Trade and other receivables

 

Trade and other receivables are initially recognised at the transaction price, including any transaction costs, and are subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Amounts that are receivable within one year are measured at the undiscounted amount of the cash expected to be received, net of any impairment.

 

At the end of each reporting period, the Company assesses whether there is objective evidence that any receivable amount may be impaired. A provision for impairment is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. The amount of the provision is the difference between the asset's carrying amount and the present value of the estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised immediately in profit or loss.

 

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.

FORUM HEALTH PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities

(iii) Trade and other payables and loans and borrowings

 

Trade and other payables are initially measured at the transaction price, including any transactions costs, and subsequently measured at amortised cost using the effective interest method. Amounts that are payable within one year are measured at the undiscounted amount of the cash expected to be paid.

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.

1.6
Equity instruments

Dividends distributed are recognised in the year which they are approved.

1.7
Taxation

Taxation for the year comprises current tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

 

Current taxation assets and liabilities are not discounted.

Current tax

Current tax is recognised at the amount of the tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

1.8
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.

1.9
Retirement benefits

The Company operates a defined contribution pension scheme. Contributions payable to the Company's pension scheme are charged to profit or loss in the period to which they relate.

 

FORUM HEALTH PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
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.

Critical judgements in applying the Company's accounting policies

(i) Assessing indicators of impairment

 

In assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairments identified during the current financial year.

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

 

(ii) Recoverability of receivables

 

The Group establishes a provision for receivables that are estimated not to be recoverable. When assessing recoverability the directors consider factors such as the ageing of the receivables, whether the receivables are covered by credit insurance, past experience of recoverability, and the credit profile of individual or groups of customers.

3
Turnover

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

2023
2022
£
£
Turnover analysed by geographical market
UK
77,615,277
85,669,666
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Operating lease charges (rent)
35,000
35,000
FORUM HEALTH PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
17,525
9,500
For other services
Taxation compliance services
1,000
1,000
All other non-audit services
2,000
2,000
3,000
3,000
6
Employees

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

2023
2022
Number
Number
Finance and operations
2
2
Technical
1
1
Directors
2
2
Total
5
5

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
205,941
199,533
Social security costs
10,028
9,741
Pension costs
5,193
4,684
221,162
213,958
FORUM HEALTH PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
7
Directors' remuneration

There was no remuneration paid to the directors in the year (2022 - £Nil).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
175,323
32,141
Other interest income
246
-
0
Total income
175,569
32,141
9
Interest payable and similar expenses
2023
2022
£
£
Other interest
160
-
Disclosed on the profit and loss account as follows:
Other interest payable and similar expenses
160
-
0
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
287,466
225,938

The actual charge 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
1,223,257
1,041,681
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
287,465
197,919
Adjustments in respect of prior years
-
0
28,019
Other permanent differences
1
-
0
Taxation charge for the year
287,466
225,938
FORUM HEALTH PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
11
Dividends
2023
2022
2023
2022
Per share
Per share
Total
Total
£
£
£
£
Ordinary shares
Interim paid
12,750.00
8,750.00
1,275,000
875,000
12
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
15,028,964
14,709,366
Carrying amount of financial liabilities
Measured at amortised cost
14,382,942
14,166,449
13
Stocks
2023
2022
£
£
Finished goods and goods for resale
1,090,432
1,168,106

The cost of goods expensed through the Profit and Loss account was £75,141,375 (2022: £83,201,967).

14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
13,006,210
11,843,301
Corporation tax recoverable
-
0
2,080
Other debtors
-
0
204,126
Prepayments and accrued income
24,562
91,157
13,030,772
12,140,664
15
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
14,091,177
13,584,408
Amounts owed to group undertakings
43,667
317,005
Corporation tax
25,139
-
0
Other taxation and social security
66,700
-
0
Accruals and deferred income
248,098
265,036
14,474,781
14,166,449
FORUM HEALTH PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
5,193
4,684

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.

 

There was no pension creditor at the year end (2022 - £nil).

17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
18
Financial commitments, guarantees and contingent liabilities

A standard multilateral bank guarantee is held by NatWest Bank plc with Barentz UK Limited, Forum Products Holdings Limited, and Forum Health Products Limited.

19
Events after the reporting date

Subsequent to the balance sheet date, a fixed charge was created in favour of Receivables Procurements Securitisation Company B.V. covering all present and future assets. This relates to a new debt factoring arrangement.

 

During the first half of 2024, the company paid dividends amounting to £1,455,000 to the parent company, Forum Products Holdings Limited.

20
Related party transactions

Section 33 "Related Party Disclosures" requires disclosure of the details of material transactions between the reporting entity and related parties. The company is exempt from disclosing related party transactions with entities that are part of the Forum Products Holdings Limited group.

21
Ultimate controlling party

The company's immediate parent undertaking is Forum Products Holdings Limited a company registered at the same address as Forum Health Products Limited and incorporated in England and Wales. The results of Forum Health Products Limited are included in the consolidated financial statements of Barentz Holding BV.

 

The ultimate parent undertaking is Rivage Jersey Holding Limited, a company registered in Jersey.

The ultimate controlling party is the Cinven Fund VI.

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