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REGISTERED NUMBER: 00797583 (England and Wales)









H.J. EVERETT (CHEMIST) LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024






H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 15


H.J. EVERETT (CHEMIST) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2024







DIRECTORS: T Baker
C Baker





SECRETARY: D M Russell





REGISTERED OFFICE: 42 Bridge Road
Park Gate
Southampton
Hants
SO31 7GF





REGISTERED NUMBER: 00797583 (England and Wales)





AUDITORS: Morris Crocker Limited
Chartered Accountants
Statutory Auditors
Station House
North Street
Havant
Hampshire
PO9 1QU

H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their strategic report for the year ended 31 March 2024.

REVIEW OF BUSINESS
Everetts Pharmacy is a longstanding independent community pharmacy multiple. The principal activity of the company remains that of operating registered community pharmacies, conducting prescription dispensing, retail sales and professional healthcare services, across eleven sites in Hampshire.

Company performance, with continued consolidation and efficiencies during the year, has resulted in a net profit of £137,226 (2023: £57,771). This increase is attributed to more control in drug purchasing and an increase in NHS services achieved. The continued turnover increase is due to population and housing growth, with continued closures of community pharmacies as companies move their business online.

Everetts Pharmacy has continued to modernise branches with improved consultation areas for services, greater IT options and access to remote support. There is ongoing investment in centralised prescription dispensing and distribution and in training skilled staff. Drug price volatility, often not matched by funding in the NHS drug tariff, combined with a lack of import regulation, is being countered at Everetts Pharmacy by the adoption of alternative purchasing software which has been effective in regaining some of the gross margin lost since 2022.

Advanced services have expanded, notably from February 2024 with the Pharmacy First Service, and we apply for commissioned NHS services, supplemented by private services, where possible.

PRINCIPAL RISKS AND UNCERTAINTIES
The current trend in community pharmacy in our region is for independent pharmacies to outnumber the national multiple pharmacies who continue to close and merge branches to reduce costs. This leaves an increasing workload between often aggressively competitive new independent contractors, and a public affected by the stubbornly high cost of living but with less access to primary care GP access.
A change of government is welcomed but the NHS spending review and new Community Pharmacy 5-year contract is not expected until 2025, with funding remaining static - the funding for the new Pharmacy First Service is being taken from Drug Tariff margin and other existing funding that was intended to be protected.

The continued DHSC policy of encouraging online pharmacy activity, makes the move from retail high street to online difficult for a traditional community orientated pharmacy structure but, for Everetts Pharmacy, both approaches are increasingly necessary to survive. At Everetts Pharmacy we will continue to increase our online presence, focusing on our local customer base, and improve the efficiency of our purchasing, centralised dispensing, and home delivery service. More efficient massive work hubs and online attraction of pharmacy business remain the biggest threat to the traditional high street pharmacy. 'Face-to-face' trading is preferred but markedly the least efficient method, leaving an ever-increasing proportion of pharmacy business online.

The biggest costs remain drug purchase costs and staffing, and both can continue to be improved, primarily through technology.

The Company continues to deliver remote services by telephone and has started providing private services where the NHS leaves gaps and there is demand. The close proximity of branches and small group strong mentality has helped the company retain much of its core business. We are pleased with the community pharmacy service that we provide to our localities, despite a challenging market and limited central financial support. This year, as with last, Everetts Pharmacy will continue to advance healthcare services by blending our strong traditional structure and set-up with further modernisation.


H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

FINANCIAL KEY PERFORMANCE INDICATORS
The following KPls are continually reviewed by the company:

a) Company turnover has increased to £17.3M from £16.1M in the previous period.

b) The company's gross profit margin has increased to 27.0% for the year, from 25.4% in 2023. The increase is due to continued cost benefits from purchasing efficiencies in addition to the focus on the provision of pharmacy provided services on behalf of the NHS.

c) Operating profit increased to £260K from £113K in the prior year, with profit before tax of £207K compared to the prior year figure of £76K.

ON BEHALF OF THE BOARD:





T Baker - Director


3 October 2024

H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report with the financial statements of the company for the year ended 31 March 2024.

DIVIDENDS
No dividends will be distributed for the year ended 31 March 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report.

T Baker
C Baker

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Morris Crocker Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





T Baker - Director


3 October 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
H.J. EVERETT (CHEMIST) LIMITED

Opinion
We have audited the financial statements of H.J. Everett (Chemist) Limited (the 'company') for the year ended 31 March 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
_
In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 March 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
H.J. EVERETT (CHEMIST) LIMITED


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 Report of the Directors.

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 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 Statement of Directors' Responsibilities set out on page four, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
H.J. EVERETT (CHEMIST) LIMITED


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

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

From discussion with management and those charged with governance information about the entity is documented to assess the activity within the organisation. We discuss management's assessment of risk in respect of irregularities, fraud and going concern.

Based on these discussions and our own assessments we determined that the key risk areas were income recognition in respect of cut off issues and management override concerning the size of the organisation.

We set financial statement materiality level based on the level of income. As a trading organisation generating income is its primary focus which is why income was used to determine the level of materiality. Our overall assessment of risk was used to determine performance materiality at an appropriate level.

Substantive audit tests were designed after assessing and performing walkthrough tests. The walkthrough testing confirmed documented systems which have been designed to act as a preventative measure against fraud and error which appear to be operating as documented. Substantive testing tested a sample of the population, representative of the population, to identify errors. The testing did not identify any material misstatements in areas tested.

Audit substantive tests concluded no material errors over the key risk areas of income recognition and management override.

The audit considers the organisation is not exposed to material risk of error as a result of assessing laws and regulations that are appropriate to the organisation.

Management assessed there is no going concern risk. The audit undertook a review of budgets, management accounts and the review of board minutes and came to the same conclusion as management.

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 Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
H.J. EVERETT (CHEMIST) LIMITED


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 a Report of the Auditors 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.




Paul Underwood, FCCA (Senior Statutory Auditor)
for and on behalf of Morris Crocker Limited
Chartered Accountants
Statutory Auditors
Station House
North Street
Havant
Hampshire
PO9 1QU

22 October 2024

H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583)

INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024

2024 2023
Notes £    £   

TURNOVER 17,262,306 16,131,263

Cost of sales 12,600,756 12,028,747
GROSS PROFIT 4,661,550 4,102,516

Administrative expenses 4,449,489 4,023,938
212,061 78,578

Other operating income 48,339 34,493
OPERATING PROFIT 5 260,400 113,071

Interest receivable and similar income 6 14,639 9,345
275,039 122,416

Interest payable and similar expenses 7 68,015 46,519
PROFIT BEFORE TAXATION 207,024 75,897

Tax on profit 8 69,996 18,126
PROFIT FOR THE FINANCIAL YEAR 137,028 57,771

H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 137,028 57,771


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

137,028

57,771

H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583)

BALANCE SHEET
31 MARCH 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 2,716,676 2,666,674
Investments 11 - 100
2,716,676 2,666,774

CURRENT ASSETS
Stocks 12 864,860 792,230
Debtors 13 2,166,272 1,804,161
Cash at bank and in hand 14 1,225,328 1,613,412
4,256,460 4,209,803
CREDITORS
Amounts falling due within one year 15 2,796,023 3,398,779
NET CURRENT ASSETS 1,460,437 811,024
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,177,113

3,477,798

CREDITORS
Amounts falling due after more than one
year

16

(551,486

)

-

PROVISIONS FOR LIABILITIES 19 (140,483 ) (129,682 )
NET ASSETS 3,485,144 3,348,116

CAPITAL AND RESERVES
Called up share capital 20 3,870 3,870
Share premium 21 2,670 2,670
Capital redemption reserve 21 75 75
Retained earnings 21 3,478,529 3,341,501
SHAREHOLDERS' FUNDS 3,485,144 3,348,116

The financial statements were approved by the Board of Directors and authorised for issue on 3 October 2024 and were signed on its behalf by:





T Baker - Director


H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 1 April 2022 3,870 3,283,730 2,670 75 3,290,345

Changes in equity
Total comprehensive income - 57,771 - - 57,771
Balance at 31 March 2023 3,870 3,341,501 2,670 75 3,348,116

Changes in equity
Total comprehensive income - 137,028 - - 137,028
Balance at 31 March 2024 3,870 3,478,529 2,670 75 3,485,144

H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 592,191 (140,487 )
Interest paid (68,015 ) (46,519 )
Tax paid (3,695 ) (125,608 )
Net cash from operating activities 520,481 (312,614 )

Cash flows from investing activities
Purchase of tangible fixed assets (217,700 ) (143,635 )
Sale of tangible fixed assets 100 -
Costs of disposing of assets (2,310 ) -
Interest received 14,639 9,345
Net cash from investing activities (205,271 ) (134,290 )

Cash flows from financing activities
Loan repayments in year (353,294 ) (105,802 )
Amount withdrawn by directors (350,000 ) (220,000 )
Net cash from financing activities (703,294 ) (325,802 )

Decrease in cash and cash equivalents (388,084 ) (772,706 )
Cash and cash equivalents at
beginning of year

2

1,613,412

2,386,118

Cash and cash equivalents at end of
year

2

1,225,328

1,613,412

H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2024 2023
£    £   
Profit before taxation 207,024 75,897
Depreciation charges 137,638 134,470
Loss on disposal of fixed assets 32,370 1,377
Finance costs 68,015 46,519
Finance income (14,639 ) (9,345 )
430,408 248,918
Increase in stocks (72,630 ) (91,574 )
Increase in trade and other debtors (12,111 ) (243,648 )
Increase/(decrease) in trade and other creditors 246,524 (54,183 )
Cash generated from operations 592,191 (140,487 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2024
31.3.24 1.4.23
£    £   
Cash and cash equivalents 1,225,328 1,613,412
Year ended 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 1,613,412 2,386,118


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.23 Cash flow At 31.3.24
£    £    £   
Net cash
Cash at bank and in hand 1,613,412 (388,084 ) 1,225,328
1,613,412 (388,084 ) 1,225,328
Debt
Debts falling due within 1 year (952,005 ) 904,780 (47,225 )
Debts falling due after 1 year - (551,486 ) (551,486 )
(952,005 ) 353,294 (598,711 )
Total 661,407 (34,790 ) 626,617

H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1. STATUTORY INFORMATION

H.J. Everett (Chemist) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The following principal accounting policies have been applied:

Critical accounting judgements and key sources of estimation uncertainty
The preparation of the financial statements required management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Residual values:

The directors have reviewed the asset lives and associated residual values of all fixed asset classes and have concluded that asset lives and residual values are appropriate.

H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

2. ACCOUNTING POLICIES - continued

Turnover
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

- The company has transferred the significant risk and rewards of ownership to the buyer;

- the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the company will receive the consideration due under the transaction; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the company will receive the consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured realiably.

Intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

The estimated useful lives range as follows:

Goodwill - 7 years

H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical costs 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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Freehold property - 2-5% straight line
Long-term leasehold property- 2-5% straight line
Short-term leasehold property- straight line over period of lease
Motor Vehicles- 25% reducing balance
Fixtures and Fittings- 15-33.3% reducing balance
Office Equipment- 15-33.3% reducing balance

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

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement.

Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties and investments in non-puttable ordinary shares.

Trade and other 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

Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, deposits with banks and other short-term highly liquid investments and bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities.

Trade and other creditors
Short term trade 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


H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operate and generate income.

Deferred tax
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

-The recognition of deferred tax assets is limited to the extent that it is probable that they will be
recovered against the reversal of deferred tax liabilities or other future taxable profits;

-Any deferred tax balances are reversed if and when all conditions for retaining associated tax
allowances have been met; and

-Where they relate to timing differences in respect of interests in subsidiaries, associates, branches
and joint ventures and the company can control the reversal of the timing differences and such
reversal is not considered probable in the foreseeable future.

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

Pension costs and other post-retirement benefits
The company operated 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 the profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

Borrowing costs
All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Provisions for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

3. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 3,192,522 2,813,473
Social security costs 207,787 186,910
Other pension costs 68,287 58,887
3,468,596 3,059,270

The average number of employees during the year was as follows:
2024 2023

Administrative staff 174 161

4. DIRECTORS' EMOLUMENTS
2024 2023
£    £   
Directors' remuneration 128,792 138,542

5. OPERATING PROFIT

The operating profit is stated after charging:

2024 2023
£    £   
Hire of plant and machinery 16,923 16,428
Other operating leases 88,074 89,755
Depreciation - owned assets 137,638 134,470
Loss on disposal of fixed assets 32,370 1,377
Auditors' remuneration 6,000 5,500

6. INTEREST RECEIVABLE AND SIMILAR INCOME
2024 2023
£    £   
Deposit account interest 14,639 9,345

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank loan interest 67,947 46,517
Loan interest 68 2
68,015 46,519

H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 59,195 3,763

Deferred tax 10,801 14,363
Tax on profit 69,996 18,126

UK corporation tax was charged at 19%) in 2023.

9. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 April 2023
and 31 March 2024 832,058
AMORTISATION
At 1 April 2023
and 31 March 2024 832,058
NET BOOK VALUE
At 31 March 2024 -
At 31 March 2023 -

The goodwill relates to the acquisitions of Horndean and St Lukes, both of the pharmacies are still owned and used by HJ Everett. These were acquired in 2011 and 2012.

10. TANGIBLE FIXED ASSETS
Freehold Short Long
property leasehold leasehold
£    £    £   
COST
At 1 April 2023 1,544,008 130,645 1,479,866
Additions 11,625 - 62,575
Disposals - - (23,556 )
At 31 March 2024 1,555,633 130,645 1,518,885
DEPRECIATION
At 1 April 2023 488,021 130,328 360,351
Charge for year 24,878 51 26,400
Eliminated on disposal - - (4,232 )
At 31 March 2024 512,899 130,379 382,519
NET BOOK VALUE
At 31 March 2024 1,042,734 266 1,136,366
At 31 March 2023 1,055,987 317 1,119,515

H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

10. TANGIBLE FIXED ASSETS - continued

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 April 2023 1,390,809 - 162,114 4,707,442
Additions 105,048 8,495 29,957 217,700
Disposals (46,409 ) - (34,471 ) (104,436 )
At 31 March 2024 1,449,448 8,495 157,600 4,820,706
DEPRECIATION
At 1 April 2023 916,558 - 145,510 2,040,768
Charge for year 76,842 1,274 8,193 137,638
Eliminated on disposal (38,042 ) - (32,102 ) (74,376 )
At 31 March 2024 955,358 1,274 121,601 2,104,030
NET BOOK VALUE
At 31 March 2024 494,090 7,221 35,999 2,716,676
At 31 March 2023 474,251 - 16,604 2,666,674

11. FIXED ASSET INVESTMENTS

Company Investment
in subsidiary
company
£   
Cost or valuation

At 1 April 2023 100

Disposal (100 )
At 31 March 2024 0


Subsidiary undertaking

The following was a subsidiary undertaking of the company
which was disposed of during the year:


Name Registered office Class of shares Holding


Titchfield Off Licence Limited
42 Bridge Road, Park
Gate,

Ordinary

100%
Southampton, Hampshire
SO31 7GF



12. STOCKS
2024 2023
£    £   
Stocks 864,860 792,230

H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 1,425,552 1,485,628
Other debtors 28,763 20,092
Directors' current accounts 350,000 -
VAT 185,751 182,413
Prepayments 176,206 116,028
2,166,272 1,804,161

14. CASH AT BANK AND IN HAND
2024 2023
£    £   
Bank Account 1,220,006 1,608,088
Cash in hand 5,322 5,324
1,225,328 1,613,412

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 17) 47,225 952,005
Trade creditors 2,487,882 2,225,520
Corporation tax 59,195 3,695
PAYE and NIC 49,862 44,821
Other creditors 12,929 18,907
Accruals and deferred income 138,930 153,831
2,796,023 3,398,779

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank loans (see note 17) 551,486 -

17. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans 47,225 952,005

Amounts falling due between one and two years:
Bank loans - 1-2 years 551,486 -

Secured bank borrowing

Bank borrowing is secured by way of charges over the Company's properties.

H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

18. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 147,034 141,832
Between one and five years 456,544 503,903
In more than five years 275,556 352,270
879,134 998,005

19. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 140,483 129,682

Deferred
tax
£   
Balance at 1 April 2023 129,682
Charge to Income Statement during year 10,801
Balance at 31 March 2024 140,483

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
1,290 Ordinary A £1 1,290 1,290
1,290 Ordinary B £1 1,290 1,290
1,290 Ordinary C £1 1,290 1,290
3,870 3,870

21. RESERVES
Capital
Retained Share redemption
earnings premium reserve Totals
£    £    £    £   

At 1 April 2023 3,341,501 2,670 75 3,344,246
Profit for the year 137,028 137,028
At 31 March 2024 3,478,529 2,670 75 3,481,274

H.J. EVERETT (CHEMIST) LIMITED (REGISTERED NUMBER: 00797583)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024

22. CAPITAL COMMITMENTS
2024 2023
£    £   
Contracted but not provided for in the
financial statements 102,531 -

At the year-end, a contract had been signed in respect of the two projects at Warsash pharmacy - Phase 1, construction of a consultation room and Phase 2 - changes to entry point and construction of an access ramp. The work did not commence until April 2024.