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Registered number: 06408300







PHARMACARE (EUROPE) LIMITED
FINANCIAL STATEMENTS
For the Year Ended 30 June 2024






















TWP ACCOUNTING LLP
Chartered Accountants & Statutory Auditors
The Old Rectory
Church Street
Weybridge
Surrey
KT13 8DE

 
PHARMACARE (EUROPE) LIMITED
 

Company Information


Directors
T R Browne 
A J Robertson 




Company secretary
T R Browne



Registered number
06408300



Registered office
The Old Rectory
Church Street

Weybridge

Surrey

KT13 8DE




Independent auditor
TWP Accounting LLP
Chartered Accountants & Statutory Auditors

The Old Rectory

Church Street

Weybridge

Surrey

KT13 8DE





 
PHARMACARE (EUROPE) LIMITED
 

Contents



Page
Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditor's Report
6 - 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 - 25


 
PHARMACARE (EUROPE) LIMITED
 

Strategic Report
For the Year Ended 30 June 2024

The directors, in preparing this strategic report, have complied with s414C of the Companies Act 2006.

Principal Activities
 
PharmaCare (Europe) Limited, whose ultimate parent is PharmaCare Laboratories Pty Ltd, an Australian registered company, operates in the UK, Europe and Middle East, marketing and distributing a range of natural health and beauty products to pharmacy, retail and online customers.
The strategic objective of PharmaCare (Europe) is the sale, marketing and distribution of exceptional products in key market segments like health, wellness and skin care which will provide our customers with the highest quality products.  

Review of the business
 
We aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at year end. Our review is consistent with the size and complexity of our business and is written in the context of the risks and uncertainty we face.
The financial year ended 30th June 2024 presented ongoing challenges, especially the operating environment, where geopolitical tensions remained elevated, particularly due to the prolonged conflict in Ukraine, which continued to exacerbate global energy concerns and contribute to supply chain disruptions. Although global inflation pressures eased somewhat compared to previous years, high core inflation persisted and while the impact of Covid-19 has diminished, lingering effects on global supply chains are still evident. 
As a result, one of most significant economic impacts on PharmaCare (Europe) was the continued pressure on input costs, where although inflation in the UK eased from its 2022 peak, core inflation in key areas such as services and manufacturing remained high throughout the year. 
Despite this, the growing focus on health and wellness continues to drive demand in the VMS (vitamins, minerals and supplements) market, where in 2024 UK sales of PharmaCare products grew by 10%, demonstrating sustained interest in its vitamin and immune health ranges.
PharmaCare’s export markets did not fare as well, with total sales 1% lower than 2023 levels.  Inflationary pressure (and consequential local currency weakness) was a key driver that contributed to lower consumer demand in some of these markets.   
Although total sales increased in the year, the continued inflationary pressure on input costs, along with the general state of the global economies and their impact on consumer behaviour, resulted in a slight reduction to gross profit for 2024, down to 47.8% (2023: 48.3%) and consequently a 0.5% drop in operating profit to 14.1% (2023: 14.6%). 
The Company remains committed to revenue growth, increased profitability and improved cash flow in order to continue the momentum gains made in recent years. 
New product development is fundamental to PharmaCare’s goal of continued revenue growth, with a focus on VMS markets.  The UK VMS sector is estimated to be worth £568m (Mintel Group 2023), whilst the global nutraceutical market is worth some £240bn and expected to grow at a CAGR of 9.24% between 2024 and 2031 (Grand View Research Inc, published January 2024). The association with the PharmaCare Group, its expertise and broad product portfolio, will continue to afford further opportunities for growth, both within existing brands and in the form of strategic acquisitions.

Page 1

 
PHARMACARE (EUROPE) LIMITED
 

Strategic Report (continued)
For the Year Ended 30 June 2024

Key performance indicators
 
The Directors consider that the most important key performance indicators are those that communicate the financial performance and strength of the Company’s trading results, these being Revenue, Gross Profit and Operating Profit.  
The Company reports on the twelve months trading to 30th June 2024, which generated Net Revenue of £36,547,801 (2023: £34,140,155), a Gross Profit of 47.8% (2023: 48.3%) and an Operating Profit of £5,149,104 (2023: £4,996,277).
The Directors and senior management team monitor the Company’s performance through a number of other KPI’s on a continual basis to ensure the company’s revenue, profit, cash flow and balance sheet strength are in line with the targets set at the beginning of the financial year. 
Despite the fall in 2024 Gross Profit levels and the continued pressure from third party suppliers on product cost increases, the Directors and senior management team have confidence in the financial fundamentals underpinning the business.  The product cost drivers and overhead structure are routinely reviewed to ensure the company maintains, and where possible improves, its profitability.  Continuous improvement and business process efficiency are key elements to this, permeated throughout the organisation.

Principal risks and uncertainties
 
The Company, in common with other suppliers in the retail environment, is dependent on the geopolitical stability of the countries in which it operates. It manages this risk by supporting its brands within each marketplace and maintaining strong relationships with both customers and suppliers.
The Company's future trading success remains dependent on the overall state of the economy. At the date of signing this report, global economic conditions remain uncertain, with growth expected to stabilise toward the end of 2024, albeit at a slower rate than pre-pandemic levels. The UK economy, while showing signs of recovery from the impacts of the pandemic and elevated inflation, continues to face challenges such as persistent core-inflation, high interest rates (albeit now moderating) and ongoing geopolitical tensions. 
PharmaCare (Europe) Ltd is exposed to the potential impact on the supply, distribution and other operational challenges associated with these risks. However, the Directors feel confident that the Company, supported as required by its parent company, will have sufficient resources to continue trading for the next year should such risks have an unforeseen impact on the Company.
The Company trades in a number of different territories, principally within Europe but also in other territories of the world where regulatory, economic and political change can all impact on retail markets. The volatility of raw material prices compounded by continued import/export problems post-Brexit, along with the uncertainty surrounding the continued Ukraine/Russia conflict and its detrimental effect on supply chain, remain potential threats. The Company therefore continues to evaluate alternative Supply Chain channels and other opportunities, managing these risks by trading in a diverse group of countries to reduce the impact of any potential downturn in an individual territory. 
A significant proportion of export sales are denominated in foreign currencies and as such there is exposure to movement in the Sterling exchange rate. This risk is ameliorated to some extent by the natural hedging provided through foreign currency denominated purchases and normal trading activities within the PharmaCare Group companies.
The company’s principal financial assets are bank balances (including cash) and trade debtors, the latter carrying with it an element of credit risk. The amounts presented in the balance sheet are net of allowances for doubtful debts and the Company has no significant concentration of credit risk, as it holds credit insurance covering many of the larger customers, and any remaining exposure is spread across a large number of customers.
In order to maintain liquidity and ensure that sufficient funds are retained to enable the Company to meet its day-to-day obligations as they become due, the Company uses cash resources, an invoice discounting facility, and has access to both bank finance and working capital made available by its parent company if required. 

Page 2

 
PHARMACARE (EUROPE) LIMITED
 

Strategic Report (continued)
For the Year Ended 30 June 2024

Future developments
 
The business strategy for growth is achieved through both organic growth and new product development, plus brand acquisition, with the company continuing to invest in new opportunities and innovation within niche markets that will deliver long term market differentiation from our competitors. 


This report was approved by the board on 24 September 2024 and signed on its behalf by:.



................................................
A J Robertson
Director

Page 3

 
PHARMACARE (EUROPE) LIMITED
 

 
Directors' Report
For the Year Ended 30 June 2024

The directors present their report and the financial statements for the year ended 30 June 2024.

Principal activity

The principal activity of the company in the year under review was the marketing and distribution of natural healthcare and skin care products.

Results and dividends

The profit for the year, after taxation, amounted to £3,838,465 (2023 - £3,961,643).

A dividend amounting to £5,100,000 (2023 - £3,100,000) has been declared and paid in the current year.
The directors do not recommend any further dividend for the year ended 30 June 2024.

Directors

The directors who served during the year were:

T R Browne 
A J Robertson 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

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

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

Page 4

 
PHARMACARE (EUROPE) LIMITED
 

 
Directors' Report (continued)
For the Year Ended 30 June 2024

Post balance sheet events

There have been no significant events affecting the company since the balance sheet date.

Auditor

The auditor, TWP Accounting LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 24 September 2024 and signed on its behalf.
 





................................................
A J Robertson
Director

Page 5

 
PHARMACARE (EUROPE) LIMITED
 

 
Independent Auditor's Report to the Members of PharmaCare (Europe) Limited
 

Opinion


We have audited the financial statements of PharmaCare (Europe) Limited (the 'Company') for the year ended 30 June 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 30 June 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Other information


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


We have nothing to report in this regard.


Page 6

 
PHARMACARE (EUROPE) LIMITED
 

 
Independent Auditor's Report to the Members of PharmaCare (Europe) Limited (continued)


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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.


Page 7

 
PHARMACARE (EUROPE) LIMITED
 

 
Independent Auditor's Report to the Members of PharmaCare (Europe) Limited (continued)


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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined 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:
Obtain an understanding of the policies and procedures management has in place to detect and prevent fraud and non-compliance with laws and regulations.
Enquire of management any cases of actual or suspected fraud and non-compliance with laws and regulations.
Enquire of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Assess the key risk areas within the financial statements which are susceptible to fraud or error and design our audit approach thereon.
Perform substantive tests on a sample of transactions throughout the financial statements to ensure that no material errors have been identified.
Perform cut off tests on a sample of transactions to ensure income has been accounted for in the correct period.
Review of after year end information to ensure expenditure have been accounted for in the correct period.
Perform analytical review procedures to identify any irregularities and investigation thereon. 
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.


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


Page 8

 
PHARMACARE (EUROPE) LIMITED
 

 
Independent Auditor's Report to the Members of PharmaCare (Europe) Limited (continued)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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 members, as a body, for our audit work, for this report, or for the opinions we have formed.





Philip Munk FCA FCCA (Senior Statutory Auditor)
  
for and on behalf of
TWP Accounting LLP
 
Chartered Accountants & Statutory Auditors
  
The Old Rectory
Church Street
Weybridge
Surrey
KT13 8DE

24 September 2024
Page 9

 
PHARMACARE (EUROPE) LIMITED
 

Statement of Comprehensive Income
For the Year Ended 30 June 2024

2024
2023
                                                                                                                   Note
£
£

  

Turnover
 4 
36,547,801
34,140,155

Cost of sales
  
(19,065,953)
(17,647,557)

Gross profit
  
17,481,848
16,492,598

Administrative expenses
  
(12,332,744)
(11,496,321)

Operating profit
 5 
5,149,104
4,996,277

Interest receivable and similar income
 8 
93,999
37,045

Profit before tax
  
5,243,103
5,033,322

Tax on profit
 9 
(1,404,638)
(1,071,679)

Profit for the financial year
  
3,838,465
3,961,643

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 14 to 25 form part of these financial statements.

Page 10

 
PHARMACARE (EUROPE) LIMITED
Registered number: 06408300

Balance Sheet
As at 30 June 2024

2024
2023
                                                                         Note
£
£

Fixed assets
  

Intangible assets
 11 
960,366
1,120,427

Tangible assets
 12 
140,706
254,624

Investments
 13 
858
858

  
1,101,930
1,375,909

Current assets
  

Stocks
 14 
3,546,434
4,630,120

Debtors: amounts falling due within one year
 15 
8,556,163
7,948,133

Cash at bank and in hand
 16 
5,076,380
5,016,483

  
17,178,977
17,594,736

Creditors: amounts falling due within one year
 17 
(9,325,588)
(8,753,791)

Net current assets
  
 
 
7,853,389
 
 
8,840,945

Total assets less current liabilities
  
8,955,319
10,216,854

  

Net assets
  
8,955,319
10,216,854


Capital and reserves
  

Called up share capital 
 18 
1,300,600
1,300,600

Share premium account
 19 
500
500

Profit and loss account
 19 
7,654,219
8,915,754

  
8,955,319
10,216,854


The financial statements were approved and authorised for issue by the board of directors and were signed on its behalf on 24 September 2024.




................................................
A J Robertson
Director

The notes on pages 14 to 25 form part of these financial statements.

Page 11

 
PHARMACARE (EUROPE) LIMITED
 

Statement of Changes in Equity
For the Year Ended 30 June 2024


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 July 2022
1,300,600
500
8,054,111
9,355,211



Profit for the year
-
-
3,961,643
3,961,643

Dividends: Equity capital
-
-
(3,100,000)
(3,100,000)



At 1 July 2023
1,300,600
500
8,915,754
10,216,854



Profit for the year
-
-
3,838,465
3,838,465

Dividends: Equity capital
-
-
(5,100,000)
(5,100,000)


At 30 June 2024
1,300,600
500
7,654,219
8,955,319


The notes on pages 14 to 25 form part of these financial statements.

Page 12

 
PHARMACARE (EUROPE) LIMITED
 

Statement of Cash Flows
For the Year Ended 30 June 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
3,838,465
3,961,643

Adjustments for:

Amortisation of intangible assets
160,061
160,061

Depreciation of tangible assets
136,954
136,072

Interest received
(93,999)
(37,045)

Decrease/(increase) in stocks
1,083,686
(2,064,479)

(Increase) in debtors
(611,333)
(1,009,973)

Increase in creditors
311,865
2,017,882

Corporation tax (paid)
(1,287,268)
(1,169,083)

Net cash generated from operating activities

3,538,431
1,995,078


Cash flows from investing activities

Purchase of tangible fixed assets
(23,045)
(81,159)

Interest received
93,999
37,045

Net cash from investing activities

70,954
(44,114)

Cash flows from financing activities

Increase/(decrease) in invoice factoring debt
1,550,512
604,989

Dividends paid
(5,100,000)
(3,100,000)

Net cash used in financing activities
(3,549,488)
(2,495,011)

Net increase/(decrease) in cash and cash equivalents
59,897
(544,047)

Cash and cash equivalents at beginning of year
5,016,483
5,560,530

Cash and cash equivalents at the end of year
5,076,380
5,016,483


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
5,076,380
5,016,483

5,076,380
5,016,483


The notes on pages 14 to 25 form part of these financial statements.

Page 13

 
PHARMACARE (EUROPE) LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

1.


General information

PharmaCare (Europe) Limited is a private company limited by shares, registered in England and Wales. The principal activity of the company in the year under review was the marketing and distribution of natural healthcare and skin care products.
The company's registered office address can be found on the Company Information page.
The company's principal place of business is:
Unit 3, Dialog
Fleming Way
Crawley
West Sussex
RH10 9NQ

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

Monetary amounts in these financial statements are rounded to the nearest pound.

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

The following principal accounting policies have been applied:

 
2.2

Turnover

Total turnover is the total amount receivable by the company for goods supplied after deducting VAT and trade discounts. Total turnover is recognised on despatch or in accordance with sales terms of the customer.

 
2.3

Goodwill and intangible assets

Intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses.
Amortisation is charged so as to allocate the cost of intangibles less their residual values over their estimated useful lives, using the straight line method. The intangible assets are amortised over the following useful economic lives.
                    Goodwill                                   - 10 years

 
2.4

Tangible fixed assets

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

Page 14

 
PHARMACARE (EUROPE) LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

2.Accounting policies (continued)


2.4
Tangible fixed assets (continued)

The estimated useful lives range as follows:

Leasehold improvements
-
5 to 10 years over the life of the lease
Plant and machinery
-
5 years
Fixtures and fittings
-
5 years
Computer equipment
-
3 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted respectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Depreciation is charged so as to allocate the cost of assets less their residual value over their
estimated useful lives, using the straight-line method.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.5

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.6

Stocks

Stock is valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items. Cost includes all direct expenditure attributable to each product. Cost is based on the cost of purchase on a first in first out basis.
Net realisable value is determined by deducting any future costs from the selling price of each product.

 
2.7

Debtors

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

 
2.8

Cash and cash equivalents

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

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Page 15

 
PHARMACARE (EUROPE) LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

2.Accounting policies (continued)

 
2.9

Financial instruments

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

 
2.10

Creditors

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

 
2.11

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

 
2.12

Finance costs

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

 
2.13

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.14

Leases

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 16

 
PHARMACARE (EUROPE) LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

2.Accounting policies (continued)

 
2.15

Pensions

Defined contribution pension plan

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

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

 
2.16

Interest income

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

 
2.17

Taxation

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

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


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Critical judgements in applying the Company's accounting policies
The following are the critical judgements, apart from those involving estimations (which are dealt with separately below), that the directors have made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.
In making its judgement, management considered the detailed criteria for the recognition of revenue from the sale of goods set out in FRS 102 Section 23 
Revenue  and, in particular, whether the Company had transferred to the buyer the significant risks and rewards of ownership of the goods. Following the detailed review of sales and subsequent rebates and the agreed limitation on the customer's ability to require replacement of the goods, the directors are satisfied that the significant risks and rewards have been transferred and that recognition of the revenue in the current year is appropriate, in conjunction with recognition of an appropriate provision for the rectification costs. 

Page 17

 
PHARMACARE (EUROPE) LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

4.


Turnover

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


2024
2023
£
£

Sales of healthcare products
36,547,801
34,140,155

36,547,801
34,140,155


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
27,593,074
25,201,433

Europe
6,312,905
5,456,436

Rest of the world
6,988,547
8,009,437

40,894,526
38,667,306


Trade discounts
(4,346,725)
(4,527,151)

36,547,801
34,140,155


The company has carried on one class of business, the sale of healthcare products, during the financial period.  


5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Research & development charged as an expense
42,320
-

Exchange differences
(46,077)
186,181

Other operating lease rentals
479,060
420,904


6.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2024
2023
£
£

Auditor's remuneration
31,250
30,000

Page 18

 
PHARMACARE (EUROPE) LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

7.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
3,356,765
2,997,484

Social security costs
415,496
346,288

Cost of defined contribution scheme
225,435
210,855

3,997,696
3,554,627


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


        2024
        2023
            No.
            No.







Sales and distribution
23
23



Administration
29
29

52
52

During the year the directors received no remuneration for their services to the company (2023 - £nil).


8.


Interest receivable

2024
2023
£
£


Other interest receivable
93,999
37,045

93,999
37,045


9.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
1,391,906
1,071,679

Adjustments in respect of previous periods
12,732
-

1,404,638
1,071,679


Page 19

 
PHARMACARE (EUROPE) LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of25% (2023 - 25%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
5,243,103
5,033,322


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
1,310,776
1,258,331

Effects of:


Non-tax deductible amortisation of goodwill and impairment
40,015
40,015

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
14,549
1,000

Capital allowances for year in excess of depreciation
26,569
7,842

Adjustments to tax charge in respect of prior periods
12,729
-

Changes in tax rates leading to an increase in the tax charge
-
(235,509)

Total tax charge for the year
1,404,638
1,071,679


10.


Dividends

2024
2023
£
£


Dividends on A1 Ordinary Shares
100,000
100,000


Dividends on Ordinary Shares
5,000,000
3,000,000

5,100,000
3,100,000

Page 20

 
PHARMACARE (EUROPE) LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

11.


Intangible assets




Goodwill

£



Cost


At 1 July 2023
1,640,977



At 30 June 2024

1,640,977



Amortisation


At 1 July 2023
520,550


Charge for the year on owned assets
160,061



At 30 June 2024

680,611



Net book value



At 30 June 2024
960,366



At 30 June 2023
1,120,427



Page 21

 
PHARMACARE (EUROPE) LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

12.


Tangible fixed assets





Leasehold improvement
Plant and machinery
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 July 2023
513,826
303,753
89,371
648,241
1,555,191


Additions
-
5,920
-
17,125
23,045



At 30 June 2024

513,826
309,673
89,371
665,366
1,578,236



Depreciation


At 1 July 2023
402,936
300,105
74,585
522,941
1,300,567


Charge for the year on owned assets
66,036
2,121
4,928
63,878
136,963



At 30 June 2024

468,972
302,226
79,513
586,819
1,437,530



Net book value



At 30 June 2024
44,854
7,447
9,858
78,547
140,706



At 30 June 2023
110,890
3,648
14,786
125,300
254,624


13.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 July 2023
858



At 30 June 2024
858






Net book value



At 30 June 2024
858



At 30 June 2023
858

This investment represents the company's shareholding in their wholly owned subsidiary, PAC Health (Europe) Limited. This is a company incorporated in the Republic of Ireland. The company was dormant during the period and is not consolidated with these financial statements.


Page 22

 
PHARMACARE (EUROPE) LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

14.


Stocks

2024
2023
£
£

Raw materials and consumables
315,984
305,938

Finished goods and goods for resale
3,230,450
4,324,182

3,546,434
4,630,120



15.


Debtors

2024
2023
£
£


Trade debtors
8,182,120
7,512,818

Amounts owed by group undertakings
7,306
23,677

Other debtors
108,695
117,792

Prepayments and accrued income
258,042
293,846

8,556,163
7,948,133



16.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
5,076,380
5,016,483

5,076,380
5,016,483


Page 23

 
PHARMACARE (EUROPE) LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
2,514,560
4,296,931

Amounts owed to group undertakings
14,960
205,203

Corporation tax
76,317
-

Other taxation and social security
170,017
-

Amounts due in respect of factored receivables
2,155,501
604,989

Other creditors
254,308
251,533

Accruals and deferred income
4,139,925
3,395,135

9,325,588
8,753,791


Amounts due in respect of invoice discounting facility are secured by a fixed charge on the related amounts due in respect of factored receivables and by a fixed and floating charge over the company’s assets.


18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1,300,100 (2023 - 1,300,100) Ordinary shares of £1.00 each
1,300,100
1,300,100
500 (2023 - 500) A1 Ordinary shares of £1.00 each
500
500

1,300,600

1,300,600



19.


Reserves

Share premium account

The share premium account represents the premium arising on the issue of shares, net of issue costs.

Profit and loss account

The profit and loss account represents cumulative profits and losses, net of dividends and other adjustments.


20.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £225,435 (2023 - £210,855). There are contributions payable to the fund at the balance sheet date in the current amounting to £34,574 (2023 - £31,508).

Page 24

 
PHARMACARE (EUROPE) LIMITED
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2024

21.


Commitments under operating leases

At 30 June 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
27,854
306,835

Later than 1 year and not later than 5 years
-
27,854

27,854
334,689


22.


Related party transactions

The company has taken advantage of the exemption available under paragraph 33.1A of FRS 102, whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertakings of the group.


23.


Controlling party

The immediate parent undertaking is Natural Bio Proprietary Limited, a company incorporated in Australia.
The ultimate parent undertaking is Pharmacare Laboratories Proprietary Limited, a company incorporated in Australia. The registered office address for Pharmacare Laboratories Proprietary Limited  is Level 4, 73 Walker Street, North Sydney, NSW 2059, Australia.
Copies of Pharmacare Laboratories Proprietary Limited's financial statements can be obtained from the Australian company public registrar, ASIC.
The ultimate controlling party is T R Browne.


Page 25