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Scope Ophthalmics Limited
 
Reports and Financial Statements
 
for the financial year ended 31 December 2023



Scope Ophthalmics Limited
DIRECTORS AND OTHER INFORMATION

 
Directors Laurence Dunne
Tom Freyne
 
 
Company Secretary Tom Freyne
 
 
Company Registration Number 07883194
 
 
Registered Office and Business Address 1st Floor Unit 4 Amberly Court,
Whitworth Road, County Oak Way,
Crawley, West Sussex,
RH11 7XL
England
 
 
Independent Auditors Hugh McCarthy & Associates
Chartered Accountants and Statutory Audit Firm
1st and 2nd Floor, The Mill
Greenmount Industrial Estate
Harolds Cross, Dublin 12
Ireland
 
 
Bankers Barclays Bank
  Guilford
  Surrey
  GU1 4UL
  England
   
   
  Bank of Ireland UK
  PO Box 2124,
  Belfast,
  BT1 9RS,
  Northern Ireland



Scope Ophthalmics Limited
STRATEGIC REPORT
for the financial year ended 31 December 2023

 
The directors present their strategic report on the company for the financial year ended 31 December 2023.
 
Review of the Company's Business
Results and Performance

The results of the company for the year show sales reaching £46,576,345 (2022: £42,445,883), this represents a 9.73% growth from last year. The main drivers to this this increase were annual volume growth, new customers and an inflationary impact on product prices. Gross profit amounted to £13,807,980 (2022: £13,028,228) representing gross profit margin of 29.6% (2022: 30.7%), a decrease of 1.1 % in the gross profit margin compared to last year. Total overhead expenses amounted to £12,906,105 (2022: £11,375,915), the increase being mainly attributable to an increase in wages & salaries, marketing, storage and distribution cost. As a result the company made a profit before tax for the period of £959,294 (2022: £1,667,127).

The company had net assets of £7,999,020 (2022: £7,278,054) at the reporting date. The directors are satisfied with the results and are confident the company will continue to achieve sales and profits growth into the future.
       
Principal Risks and Uncertainties
In common with all companies operating in this sector, the company faces increasing energy and material costs. The directors are of the opinion that the company is well positioned to manage these costs.

The company faces strong competition in the market and if the company fails to compete successfully market share may decline.

Through financial instruments held the company's operations expose it to a variety of financial risks that include price risk, credit risk, liquidity risk and interest rate risk.  

Price Risk
The company is exposed to the price risk of commodities through its operations.  The directors believe that the cost of managing this risk is in excess of the potential benefits given the size of the company.  The directors, however, review the appropriateness of this policy on an annual basis.

Credit Risk  
The company requires that appropriate credit checks are carried out on new customers before sales are made.  All customers have individual credit limits that are reviewed on an ongoing basis by the board.  Provisions for bad debts are made based on historical evidence and any new events which might indicate a reduction in the recoverability of cash flows.  

Liquidity Risk
The company maintains short term finance to ensure the company has sufficient funds available to meet obligations as they fall due.

Interest Rate Risk
The company holds interest bearing assets.  Assets include cash balances which earn a fixed rate of interest.
       
Development and Performance
Business Environment
The UK industry in which the company operates is highly competitive. Many companies offer similar products giving rise to aggressive pricing structures. The impact of technology continues to evolve and it is essential that we keep abreast of advances in this area.

Strategy
The company's success is dependent on the proper selection, pricing and on-going management of its products and relationships with clients. In the business, we have continued to consolidate our position. We believe it is important to retain a diversified portfolio of products in order to achieve maximum profitability in this highly competitive marketplace. The company will continue to consolidate its position and concentrate its efforts on achieving maximum growth in its existing market segments. We aim to improve efficiency in all areas of our operations through cost reduction and growth into larger margin pharmaceutical product on areas. Customer service remains a top priority.
       
Financial Key Performance Indicators
We have made significant progress throughout the year in relation to key elements of our strategy. The Board monitors the progress of the company by reference to the following KPIs:
          
Revenue                      
                                              2023:   £46,576,435
                                              2022:   £42,445,883

This measure assesses the growth of the company.

Operating Profit Margin        
                                              2023:  1.9%
                                              2022:  3.9%          

This profitability measure detects consistency or positive/negative trends in a company's earnings. Positive profit margin analysis translates into positive investment quality. The company shows an decrease in gross profit percentage by 2%.

Gross Profit Percentage                        
                                              2023:   29.6%  
                                              2022:   30.7%    

This profit measure assesses the company's profitability from revenues after accounting for the cost of goods sold. The Directors are pleased with the result for the year.
       
Statement by the Directors in performance of their statutory duties in accordance with Section 172(1) Companies Act 2006

The Directors of the Company must act in accordance with a set of general duties including (among others) those under s172 of the Companies Act to promote the success of the companies.  The Directors consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1) (a-f) of the Act) in the decisions taken during the year ended December 31, 2023.

The Directors oversee a structured approach to the development of the Company’s strategy, looking at commercial considerations and the development of current and possible future markets. They also take a long-term perspective on matters such as possible strategic workforce requirements and the impact of new technology. Long-term business planning and key strategic decisions are undertaken in line with the strategy agreed by the Directors.

The Company's employees are fundamental to the delivery of the company's goals. The Company aims to be a responsible employer in their approach to the pay and benefits their employees receive. The health, safety, and well-being of their employees is one of their primary considerations in the way it does business (see previous section). In this regard, the Company annually conducts an in-depth review of the entire workforce remuneration and the alignment of incentives with the Company's culture. The review covers the structuring of pay and incentives across the Company.

Delivering on the commitments the companies make to their customers is critical to their long-term success. Senior Executives meet regularly with customers and, as necessary, subsequently brief the Directors on the status of these important relationships and how the Company is delivering on its commitments. During the year, the Directors were also provided with details of the output from the company’s customer satisfaction surveys.

The Company considered the impact of its operations on the community and environment and in particular how the companies influence the regions where facilities are located.

Responsible behaviour is fundamental to how companies do business. The company sets out the standards and behaviours expected of all the companies' employees to meet the high standards of business conduct legally and ethically that their customers and other stakeholders expect. The director's intention is to behave responsibly and ensure that management operates the business in a responsible manner, operating within the high standards of business conduct and good governance. The intention is to nurture the companies' reputation through compliance with the Code of Conduct which is reflected in the companies' actions. Also, during the year the Directors reviewed how employees were encouraged to seek guidance, raise concerns, or report issues, if necessary, to the Company's Ethics Committee.

Directors’ intention is to behave responsibly toward Company’s shareholders and treat them fairly and equally, so they too may benefit from the successful delivery of the Company’s long-term objectives.
       
       
On behalf of the board
       
       
       
Laurence Dunne Tom Freyne
Director Director
       
30 September 2024 30 September 2024



Scope Ophthalmics Limited
DIRECTORS' REPORT
for the financial year ended 31 December 2023

 
The directors present their report and the audited financial statements for the financial year ended 31 December 2023.
 
Principal Activity
The principle activity of the company is that of the wholesale and retail sale of pharmaceutical and healthcare products.
     
Results and Dividends
The profit for the financial year after providing for taxation amounted to £720,966 (2022 - £1,338,390).
The directors do not recommend payment of a dividend.
     
Directors
The directors who served during the financial year are as follows:
     
Laurence Dunne
Tom Freyne
   
There were no changes in shareholdings between 31 December 2023 and the date of signing the financial statements.
     
Future Developments
The directors anticipate that the company’s current activities will continue in the foreseeable future. Future innovation and service developments will continue to be supported by investment into organisational systems, which will underpin the continued profitable growth path.
     
Events After the End of the Reporting Period
There have been no significant events affecting the company since the financial year-end.
     
Political Contributions
The company did not make any disclosable political donations in the current financial year.
     
Indemnity Insurance
In accordance with our articles of association and to the fullest extent permitted by the laws of England and Wales, directors are granted an indemnity from the Company in respect of liabilities incurred as a result of their office. Our indemnity does not provide cover in the event that a director is proven to have acted dishonestly or fraudulently.
     
Employee Engagement
Employees are kept as fully informed as practicable about developments within the business. It is the policy of the company to offer opportunities to all employees having regard to their aptitudes and abilities in relation to jobs available.
     
Statement of Directors' Responsibilities
             
The directors are responsible for preparing the Strategic Report, 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including FRS 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 and apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable UK Accounting Standards comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
                 
Disclosure of Information to Auditor
Each persons who are directors at the date of approval of this report confirms that:
In so far as the directors are aware:
-there is no relevant audit information (information needed by the company's auditor in connection with preparing the auditor's report) of which the company's auditor is unaware, and
-the directors have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
     
Auditors
The auditors, Hugh McCarthy & Associates, (Chartered Accountants) have indicated their willingness to continue in office in accordance with the provisions of Section 485 of the Companies Act 2006.
     
Engagement with suppliers, customers and others
The company focuses on strong customer satisfaction and continuously seek to improve in all aspects of the business. Customer satisfaction and feedback is one of our 8 core strategic pillars.

The company works closely with all of its suppliers to have all products available at any time to achieve the highest possible customer satisfaction, and to ensure compliance of all of our products with all applicable legislation, rules and regulations governing our sale of those products.

We have dedicated teams dealing with all aspects of stakeholder engagement.
     
Greenhouse Gas Emissions, Energy Consumption and Energy Efficiency Action
Scope Group actively looks to measure and reduce its carbon footprint. Sustainability is one of our 8 core strategic pillars.
     
     
On behalf of the board
     
     
     
Laurence Dunne Tom Freyne
Director Director
     
30 September 2024 30 September 2024



INDEPENDENT AUDITOR'S REPORT
to the Shareholders of Scope Ophthalmics Limited

 
Report on the audit of the financial statements
 
Opinion
We have audited the financial statements of Scope Ophthalmics Limited ('the company') for the financial year ended 31 December 2023 which comprise the Income Statement, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and the related notes to the financial statements, including significant accounting policies set out in note . The financial reporting framework that has been applied in their preparation is applicable Law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the financial 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 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 the date 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.
 
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 our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any 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:
- adequate accounting records have not been kept; 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 for the financial statements
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 they 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 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 has 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.
 
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:
 
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to completeness of income, management override of journal adjustments and recoverability of intercompany debtors, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to completeness of income, management override of journal adjustments and recoverability of intercompany debtors. Audit procedures performed included:

- All of the systems and information systems of the company was documented in full at the planning stage of the audit with a specific focus on the sales and income aspects of the system.
- Based on documentation of systems and information systems, walk through testing, control testing and detailed initial analytical review risk was formally assessed in relation to completeness of income.
- Review and assessment of significant journal entries during the year.
- Review of trading results and projections of companies with intercompany balance to assess recoverability.
- Discussions with Management

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
 
Further information regarding the scope of our responsibilities as auditor
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor's Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor's Report. However, future events or conditions may cause the company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
 
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
 
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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.
 
 
 
Garrett McCarthy (Senior Statutory Auditor)
for and on behalf of
HUGH MCCARTHY & ASSOCIATES
Chartered Accountants and Statutory Audit Firm
1st and 2nd Floor, The Mill
Greenmount Industrial Estate
Harolds Cross, Dublin 12
Ireland
 
30 September 2024



Scope Ophthalmics Limited
INCOME STATEMENT
for the financial year ended 31 December 2023
2023 2022
Notes £ £

Revenue 4 46,576,345 42,445,883
 
Cost of sales (32,768,365) (29,417,655)
───────── ─────────
Gross profit 13,807,980 13,028,228
 
Administrative expenses (12,906,105) (11,375,915)
───────── ─────────
Operating profit 5 901,875 1,652,313
 
Finance income 6 57,419 14,814
───────── ─────────
Profit before taxation 959,294 1,667,127
 
Tax on profit 8 (238,328) (328,737)
───────── ─────────
Profit for the financial year 720,966 1,338,390
    ═════════   ═════════



Scope Ophthalmics Limited
Company Registration Number: 07883194
STATEMENT OF FINANCIAL POSITION
as at 31 December 2023

2023 2022
Notes £ £
 
Current Assets
Inventories 9 10,354,649 10,144,259
Receivables 10 15,927,786 16,213,534
Cash and cash equivalents 11 6,935,453 2,759,536
───────── ─────────
33,217,888 29,117,329
───────── ─────────
Payables: amounts falling due within one year 12 (25,218,868) (21,839,275)
───────── ─────────
Net Current Assets 7,999,020 7,278,054
───────── ─────────
Total Assets less Current Liabilities 7,999,020 7,278,054
═════════ ═════════
 
Equity
Called up share capital 16 100 100
Retained earnings 7,998,920 7,277,954
───────── ─────────
Equity attributable to owners of the company 7,999,020 7,278,054
═════════ ═════════
 
           
Approved by the Board and authorised for issue on 30 September 2024 and signed on its behalf by
           
           
           
Laurence Dunne     Tom Freyne
Director     Director
           



Scope Ophthalmics Limited
STATEMENT OF CHANGES IN EQUITY
as at 31 December 2023

Called up Retained Total
share earnings
capital
£ £ £
 
At 1 January 2022 100 5,939,564 5,939,664
───────── ───────── ─────────
Profit for the financial year - 1,338,390 1,338,390
───────── ───────── ─────────
At 31 December 2022 100 7,277,954 7,278,054
  ───────── ───────── ─────────
Profit for the financial year - 720,966 720,966
  ───────── ───────── ─────────
At 31 December 2023 100 7,998,920 7,999,020
  ═════════ ═════════ ═════════



Scope Ophthalmics Limited
STATEMENT OF CASH FLOWS
for the financial year ended 31 December 2023
2023 2022
Notes £ £

Cash flows from operating activities
Profit for the financial year 720,966 1,338,390
Adjustments for:
Finance income (57,419) (14,814)
Tax on profit on ordinary activities 238,328 328,737
───────── ─────────
901,875 1,652,313
Movements in working capital:
Movement in inventories (210,390) (5,022,557)
Movement in receivables 1,365,635 (2,732,405)
Movement in payables (7,266,587) 4,897,977
───────── ─────────
Cash used in operations (5,209,467) (1,204,672)
Tax paid (124,719) (458,162)
───────── ─────────
Net cash used in operating activities (5,334,186) (1,662,834)
───────── ─────────
Cash flows from investing activities
Interest received   57,419 14,814
Receipts from sales of intangible assets   - 4,103
    ───────── ─────────
Net cash generated from investment activities   57,419 18,917
    ───────── ─────────
Cash flows from financing activities
Advances to subsidiaries/group companies   (1,079,887) (2,391,551)
Advances from subsidiaries/group companies   10,532,571 -
    ───────── ─────────
Net cash generated from/(used in) financing activities   9,452,684 (2,391,551)
    ───────── ─────────
       
Net increase/(decrease) in cash and cash equivalents   4,175,917 (4,035,468)
Cash and cash equivalents at beginning of financial year   2,759,536 6,795,004
    ───────── ─────────
Cash and cash equivalents at end of financial year 11 6,935,453 2,759,536
    ═════════ ═════════



Scope Ophthalmics Limited
NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 31 December 2023

   
1. General Information
 
Scope Ophthalmics Limited is a private company limited by shares incorporated and registered in the United Kingdom. The registered number of the company is 07883194. The registered office of the company is 1st Floor Unit 4 Amberly Court, Whitworth Road, County Oak Way, Crawley, West Sussex, RH11 7XL, England. The nature of the company's operations and its principal activities are set out in the Directors' Report. The financial statements have been presented in Pound Sterling (£) which is also the functional currency of the company
         
2. Summary of Significant Accounting Policies
 
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company financial statements.
 
Statement of compliance
The financial statements of the company for the financial year ended 31 December 2023 have been prepared in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102) issued by the Financial Reporting Council and in accordance with the Companies Act 2006.
 
Basis of preparation
The financial statements have been prepared on the going concern basis and in accordance with the historical cost convention as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets.
 
Revenue
Revenue is recognised to the extent that the company obtains the right to consideration in exchange for its performance.  Revenue comprises the fair value of consideration received and receivable exclusive of value added tax and after discounts and rebates.

Where the consideration receivable in cash or cash equivalents is deferred, and the arrangement constitutes a financing transaction, the fair value of the consideration is measured as the present value of all future receipts using the imputed rate of interest.

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.
 
Leasing
Rentals payable under operating leases are dealt with in the Income Statement as incurred over the period of the rental agreement.

Operating leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease.
 
Inventories
Inventories are valued at the lower of cost and net realisable value. Inventories are determined on a first-in first-out basis. Cost comprises expenditure incurred in the normal course of business in bringing inventories to their present location and condition. Full provision is made for obsolete and slow moving items and recognized in the income statement. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling.
 
Trade and other receivables
Trade and other receivables are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts. Impairment provisions are recognized in the income statement.
 
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the Statement of Financial Position bank overdrafts are shown within Payables.
 
Trade and other payables
Trade and other payables are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.
 
Employee benefits
The company provides a range of benefits to employees, including annual bonus arrangements, paid holiday arrangements and defined contribution pension plans.

(i) Short term benefits
Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

(ii) Annual bonus plans
The company recognises a provision and an expense for bonuses where the company has a legal or constructive obligation as a result of past events and a reliable estimate can be made.

Pension
The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. Annual contributions payable to the company's pension scheme are charged to the Income Statement in the period to which they relate.
 
Taxation and deferred taxation
Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the financial year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Statement of Financial Position date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements. Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the Statement of Financial Position date.
 
Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the Statement of Financial Position date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated at the rates of exchange ruling at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The resulting exchange differences are dealt with in the Income Statement.
 
Ordinary share capital
The ordinary share capital of the company is presented as equity.
   
3. Critical Accounting Judgements and Estimates
 
The directors consider the accounting estimates and assumptions below to be its critical accounting judgements and estimates:
 
(a) Inventory provisioning
The company is involved in the pharmaceutical industry. It is necessary to consider the recoverability of the cost of inventory and the associated provisioning required. When calculating the inventory provision, management considers the estimated realisable value. The level of provision required is reviewed on an on-going basis and has been disclosed in note 11.
 
(b) Providing for doubtful debts
The company makes an estimate of the recoverable value of trade and other debtors. The company uses estimates based on historical experience in determining the level of debts, which the company believes, will not be collected. These estimates include such factors as the current credit rating of the debtor, the ageing profile of debtors and historical experience. Any significant reduction in the level of customers that default on payments or other significant improvements that resulted in a reduction in the level of bad debt provision would have a positive impact on the operating results. The level of provision required is reviewed on an on-going basis and has been disclosed in note 12.
       
4. Revenue
 
The whole of the company's revenue is attributable to its market in the United Kingdom and is derived from the principal activity of the wholesale and retail sale of pharmaceutical and healthcare products.
       
5. Operating profit 2023 2022
  £ £
Operating profit is stated after charging/(crediting):
(Profit)/loss on foreign currencies (184,882) 332,906
Operating lease rentals
- Motor vehicles 211,962 217,067
Auditor's remuneration
- audit services 16,313 15,217
- other assurance services 5,000 -
  ═════════ ═════════
       
6. Finance income 2023 2022
  £ £
 
Bank interest 57,419 14,814
  ═════════ ═════════
       
7. Employees and remuneration
 
Number of employees
The average number of persons employed (including executive directors) during the financial year was as follows:
 
  2023 2022
  Number Number
 
Administration and Support 5 5
Finance 2 2
IT Business Support 1 1
Learning and Development 6 6
Sales 60 60
  ───────── ─────────
  74 74
  ═════════ ═════════
 
The staff costs (inclusive of directors' salaries) comprise: 2023 2022
  £ £
 
Wages and salaries 5,333,747 4,494,155
Social security costs 620,653 582,827
Pension costs 236,544 204,486
  ───────── ─────────
  6,190,944 5,281,468
  ═════════ ═════════
       
8. Tax on profit
  2023 2022
  £ £
(a)     Analysis of charge in the financial year
 
Current tax:
Corporation tax at 23.50% (2022 - 19.00%) 236,215 322,606
Under/(over) provision in prior year 2,113 6,131
  ───────── ─────────
Total current tax 238,328 328,737
  ═════════ ═════════
 
(b)     Factors affecting tax charge for the financial year
 
The tax assessed for the financial year differs from the standard rate of corporation tax in the United Kingdom 23.50% (2022 - 19.00%). The differences are explained below:
  2023 2022
  £ £
 
Profit taxable at 23.50% 959,294 1,667,127
  ═════════ ═════════
Profit before tax
multiplied by the standard rate of corporation tax
in the United Kingdom at 23.50% (2022 - 19.00%) 225,434 316,754
Effects of:
Expenses not deductible for tax purposes 10,781 5,852
Under/(over) provision from previous year 2,113 6,131
  ───────── ─────────
Total tax charge for the financial year (Note 8 (a)) 238,328 328,737
  ═════════ ═════════
 
 
(c)     Factors that may affect future tax charges
 
The standard rate of UK Corporation Tax was to remain at 19% until 31 March 2023. The Finance Act 2021, which was published on 11 March 2021 and has received Royal Assent in July 2021, states that this rate is to be increased from 19% to 25% from 1 April 2023. In summary, the rate of corporation tax from 1 April 2023 has increased to 25% for companies generating taxable profits of more than £250,000.
       
9. Inventories 2023 2022
  £ £
 
Finished goods and goods for resale 10,354,649 10,144,259
  ═════════ ═════════
 
The stock are stated after a provision for slow moving, obsolete and damaged stock amounting to £237,192 (2022: £350,356).

The replacement cost of stock did not differ significantly from the figures shown.
       
10. Receivables 2023 2022
  £ £
 
Trade receivables 7,429,094 9,205,418
Amounts owed by group undertakings (Note 20) 7,802,757 6,722,870
Prepayments and accrued income 695,935 285,246
  ───────── ─────────
  15,927,786 16,213,534
  ═════════ ═════════
 
The fair values of trade and other receivables approximate to their carrying amounts. Trade debtors are stated after a provision for bad and doubtful debts amounting to £10,000 (2022: £20,081).
       
11. Cash and cash equivalents 2023 2022
  £ £
 
Cash and bank balances 6,935,453 2,759,536
  ═════════ ═════════
       
12. Payables 2023 2022
Amounts falling due within one year £ £
 
Trade payables 11,834,145 9,266,813
Amounts owed to group undertakings (Note 20) 10,532,571 10,570,739
Taxation  (Note 13) 1,880,278 1,273,499
Accruals 971,874 728,224
  ───────── ─────────
  25,218,868 21,839,275
  ═════════ ═════════
 
Trade creditors include amounts owing to suppliers, who purport to include reservation of title clauses in their conditions of sale. It is not practicable to quantify this amount, or how much of it is included in stocks.
       
13. Taxation 2023 2022
  £ £
 
Payables:
VAT 1,277,795 989,424
Corporation tax 236,215 122,606
PAYE / NI 366,268 161,469
  ───────── ─────────
  1,880,278 1,273,499
  ═════════ ═════════
       
14. Financial Instruments
 
The company has chosen to apply the provisions of Section 11 and 12 of FRS 102 to account for all of its financial instruments.
  2023 2022
  £ £
Financial assets that are debt instruments measured at amortised cost
Trade debtors 7,429,094 9,205,418
Cash at bank and in hand 6,935,453 2,759,536
  ═════════ ═════════
 
Financial liabilities at amortised cost
Trade creditors 11,834,145 9,266,813
  ═════════ ═════════
 
 
 
Through financial instruments held the company’s operations expose it to a variety of financial risks that include price risk, credit risk, liquidity risk and interest rate risk.
 
Price risk
The company is exposed to the price risk of commodities through its operations. The directors believe that the cost of managing this risk is in excess of the potential benefits given the size of the company. The directors, however, review the appropriateness of this policy on an annual basis.
 
Credit risk
The company requires that appropriate credit checks are carried out on new customers before sales are made. All customers have individual credit limits that are reviewed on an ongoing basis by the board.  Provisions for bad debts are made based on historical evidence and any new events which might indicate a reduction in the recoverability of cash flows.
 
Liquidity risk
The company maintains short term finance to ensure the company has sufficient funds available to meet obligations as they fall due.
 
Interest rate risk
The company holds interest bearing assets. Assets include cash balances which earn a fixed rate of interest.
   
15. Pension costs - defined contribution
 
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.  Pension costs amounted to £236,544 (2022 - £204,486).
           
16. Share capital     2023 2022
      £ £
Description Number of shares Value of units    
 
Allotted, called up and fully paid
Ordinary Shares 100 £1.00 each 100 100
 
      ═════════ ═════════
           
The directors' interests in the share capital of other group companies are as follows:
 
    Class of Number Held At
Name Company Shares 31/12/23 01/01/23
 
Holdings in Parent Company
Tom Freyne Scope Ophthalmics Limited A Ordinary Shares 50 50
      ═════════ ═════════
  Holdings in Fellow Subsidiary Undertakings        
Tom Freyne Scope Ophthalmics (International Operations) Ltd B Ordinary 2 2
   
17. Financial commitments
 
At 31 December 2023, the company had no commitments under non-cancellable operating leases.
       
18. Capital commitments
 
The company had no material capital commitments at the financial year-ended 31 December 2023.
       
19. Directors' remuneration 2023 2022
  £ £
 
Remuneration 24,000 24,000
  ═════════ ═════════
 
Key management includes the Board of Directors and the Company Secretary. The compensation paid or payable to key management for employee services is shown above:

The key management are paid the above amounts by the company and are paid £775,636 (2022: £1,110,783) by other group companies.
         
20. Related party transactions
 
Transactions and balances with group companies:
 
    2023 2022
    £ £
 
Scope Ophthalmics Limited
 
During the year the company made repayments in the ordinary course of business with Scope Ophthalmics Limited, the parent company registered in Ireland, amounting to £38,168 (2022: £479,620). Amounts owed to Scope Ophthalmics Limited, the parent company registered in Ireland by Scope Ophthalmics Limited at the reporting date was £10,532,571 (2022: £10,570,739). These amounts all relate to trading balances and the close operational relationship that exists between the two companies. The balance owed is unsecured, interest free and repayable on demand.
 
Amount (owed to) Scope Ophthalmics Limited   (10,532,571) (10,570,739)
    ═════════ ═════════
 
Scope Health Inc
 
During the year the company made advances in the ordinary course of business to Scope Health Inc, a fellow subsidiary company registered in the United States of America, amounting to £1,235,471 (2022: £2,437,61). Amounts owed by Scope Health Inc, to Scope Ophthalmics Limited, at the reporting date was £6,949,582 (2022: £5,714,111 ). These amounts all relate to trading loan balances and the close operational relationship that exists between the two companies. The balance owed is unsecured, interest free and repayable on demand.
 
Amount due from Scope Health Inc   6,949,582 5,714,111
    ═════════ ═════════
 
Scope Ophthalmics (International Operations) Limited
 
During the year the company was repaid advances in the ordinary course of business from Scope Ophthalmics (International Operation) Limited, a fellow subsidiary company registered in Ireland, amounting to £155,584 (2022: £46,060). Amounts owed by Scope Ophthalmics (International Operations) Limited, to Scope Ophthalmics Limited at the reporting date was £853,175 (2022: £1,008,759). These amounts all relate to trading balances and the close operational relationship that exists between the two companies. The balance owed is unsecured, interest free and repayable on demand.
 
Amount due from Scope Ophthalmics (International Operations) Limited   853,175 1,008,759
    ═════════ ═════════
   
21. Parent company
 
The company regards Scope Ophthalmics Limited as its parent company. The companies ultimate parent undertaking is Scope Ophthalmics Limited. The address of Scope Ophthalmics Limited is Suite 5, Westland House, Westland Park, Willow Road, Dublin 12.
 
The parent of the largest group in which the results are prepared and consolidated is Scope Ophthalmics Limited.
 
   
22. Controlling interest
 
The company is ultimately controlled by Tom Freyne through his controlling interest in Scope Ophthalmics Limited, the parent company registered in Ireland.
   
23. Events After the End of the Reporting Period
 
There have been no significant events affecting the company since the financial year-end.