CRUCIBLE PHARMACY LIMITED

Company Registration Number:
14637395 (England and Wales)

Unaudited abridged accounts for the year ended 31 March 2024

Period of accounts

Start date: 03 February 2023

End date: 31 March 2024

CRUCIBLE PHARMACY LIMITED

Contents of the Financial Statements

for the Period Ended 31 March 2024

Balance sheet
Notes

CRUCIBLE PHARMACY LIMITED

Balance sheet

As at 31 March 2024


Notes

14 months to 31 March 2024


£
Fixed assets
Intangible assets: 3 195,260
Tangible assets: 4 725,807
Total fixed assets: 921,067
Current assets
Stocks: 1,399,519
Debtors:   2,799,072
Cash at bank and in hand: 59,248
Total current assets: 4,257,839
Creditors: amounts falling due within one year:   (4,127,177)
Net current assets (liabilities): 130,662
Total assets less current liabilities: 1,051,729
Creditors: amounts falling due after more than one year: 5 (1,311,007)
Total net assets (liabilities): (259,278)
Capital and reserves
Called up share capital: 100
Profit and loss account: (259,378)
Shareholders funds: (259,278)

The notes form part of these financial statements

CRUCIBLE PHARMACY LIMITED

Balance sheet statements

For the year ending 31 March 2024 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

The members have agreed to the preparation of abridged accounts for this accounting period in accordance with Section 444(2A).

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The directors have chosen to not file a copy of the company’s profit & loss account.

This report was approved by the board of directors on 22 October 2024
and signed on behalf of the board by:

Name: Mark Andrew Tuckett
Status: Director

The notes form part of these financial statements

CRUCIBLE PHARMACY LIMITED

Notes to the Financial Statements

for the Period Ended 31 March 2024

1. Accounting policies

These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

Turnover policy

1.9 Revenue recognition Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts. The company recognises revenue when: the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

Tangible fixed assets and depreciation policy

1.11 Depreciation or amortisation is charged to write off the costs or valuation of fixed assets and intangible assets, less any residual value, on a straight-line basis over their estimated useful lives. The estimated useful life of an asset is the period over which the company expects to obtain economic benefits or service potential from the asset. Estimated useful lives and residual values are reviewed each year end, with the effect of any changes recognised on a prospective basis. Assets held under finance leases are depreciated over the shorter of the lease term and the estimated useful life. At each financial year end, the company checks whether there is any indication that its fixed assets or intangible assets have suffered an impairment loss. If there is indication of such an impairment, the recoverable amount of the asset is estimated to determine whether there has been a loss and, if so, its amount. Impairment losses that arise from a clear consumption of economic benefit are taken to expenditure. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of the recoverable amount but capped at the amount that would have been determined had there been no initial impairment loss. The reversal of the impairment loss is credited to expenditure. Assets in the course of construction are not depreciated. The depreciation that is charged so as to write off the cost of assets, other than land over their estimated useful lives, is as follows: Plant and Machinery Straight line over 14 years Buildings Straight line over 14 years Furniture and fittings Straight line over 10 years IT equipment Straight line over 5 years

Other accounting policies

1 Accounting policies 1.1 Summary of significant accounting policies and key accounting estimates The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied unless otherwise stated. 1.2 Statement of compliance These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. There are no material departures from this standard. 1.3 Basis of preparation These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value. The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest one thousand pounds. 1.4 Summary of disclosure exemptions Under FRS102 paragraphs 1.11 and 1.12 the Company is exempt from the requirement to prepare a cash flow statement on the grounds that a parent undertaking includes the Company in its own published consolidated financial statements. As 100% of the Company's voting rights are controlled within the group headed by Sheffield Teaching Hospitals NHS Foundation Trust, the Company has taken advantage of the exemption contained in FRS 102 and has therefore not disclosed transactions or balances with entities which form part of the group. The consolidated financial statements for Sheffield Teaching Hospitals NHS Foundation Trust are available to the public via the Trust website. 1.5 Going concern The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons. The Company has the ability to draw down loans from its parent Trust, Sheffield Teaching Hospitals NHS Foundation Trust. Sheffield Teaching Hospitals NHS Foundation Trust has indicated its intention to continue to make available such funds as are needed by the company for a period of a minimum of 12 months from the date of the Audit Report. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so. The company has a long term contract in place which is expected to generate income and cash that will be more than sufficient to pay its liabilities as they are due. The directors have prepared cash flow forecasts for a period of 12 months from approval of these financial statements which indicate that the company will have sufficient funds through funding from its parent Trust to meet its liabilities as they fall due for that period. The directors therefore, after making enquiries, have a reasonable expectation that the company has adequate resources to continue in operational existence at least until at least 12 months after the date of approval of these financial statements. Accordingly, they have prepared the annual report and accounts on a going concern basis. 1.6 Critical accounting judgements and key sources of estimation uncertainty In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised 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. 1.7 Judgements While not considered to be a significant judgement, stock held by the Company is recorded at the lower of initial cost and net realisable value. There is an element of judgement in determining where an impairment to stock balances has taken place. 1.8 Key sources of estimation uncertainty No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies. 1.10 Fixed assets Fixed assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An asset is capitalised if it is held for use in delivering services or for administrative purposes; it is probable that future economic benefits will flow to, or service potential will be supplied to the company it is expected to be used for more than one financial year; and the cost of the item can be measured reliably, and either the item individually has a cost of at least £5,000, or collectively, a number of items have a cost of at least £5,000 sterling and individually have a cost of more than £250, where the assets are functionally interdependent, had broadly simultaneous purchase dates, are anticipated to have simultaneous disposal dates and are under single managerial control. Property, plant and equipment assets are also capitalised where they form part of the initial equipping and setting-up cost of a new building, ward or unit irrespective of their individual or collective cost. All Fixed Assets measured at cost, representing the cost directly attributable to acquiring or constructing the asset and bringing it to the location and condition necessary for it to be capable of operating in the manner intended by management Borrowing costs are not capitalised 1.13 Trade debtors Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors. 1.14 Stocks Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. Stocks held include pharmacy related drugs and medication. At each reporting date, stocks are assessed for impairment. Stocks are impaired if they have become obsolete and have no net realisable value. At this point the carrying value is reduced to zero and the impairment loss is recognised in the Profit & Loss account. 1.15 Taxation Taxation for the year compromises current and deferred tax. Tax is recognised in the Profit & Loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. Current or deferred taxation assets and liabilities are not discounted. Current tax is recognised at the amount of tax payable or recoverable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. 1.16 Deferred Tax Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. 1.17 Trade creditors Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid. 1.18 Provisions Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the directors best estimate of the expenditure required to settle the obligation at the reporting date and are discounted to present value where the effect is material. 1.19 Share capital Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. 1.20 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 are charged to profit or loss on a straight-line basis over the period of the tease. Leases in which substantially all the risks and rewards of ownership are passed to the lessee are classified as finance leases. 1.21 Financial risk management The company's activities expose it to a variety of financial risks, such as market risk (including foreign currency, price risk and interest rate risk), credit risk and liquidity risk. 1.22 Market risk The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimising the return on risk. 1.23 Foreign exchange risk The company does not hold any balances in currencies other than Sterling, the presentational and functional 1.24 Price risk The company does not actively trade in markets and therefore is not exposed to either commodity price or equity price risks. 1.25 Interest rate risk Interest rate risk is the possibility that changes in interest rates will result in higher financing costs or reduced income from the company's interest-bearing financial assets and liabilities. The company does not currently consider it necessary to actively manage interest rate risk. 1.26 Credit risk Credit risk is the risk of suffering financial loss should the company's customers, clients or counterparties fail to fulfil their contractual obligations to the company. The company's core business is primarily the supply of Outpatient Pharmaceutical Dispensing Services to its parent company. As a result, the company is not exposed to any material third party credit risk as the large majority of receivables are from a related company. 1.27 Liquidity risk Liquidity risk is the risk that the company is unable to meet its obligations when they fall due as a result of cash requirements from contractual commitments or other cash flows. The company manages liquidity by maintaining sufficient cash with banks to meet its on-going commitments and accessing loan funding from the parent company. 1.28 Defined contribution pension obligation A defined contribution plan is a pension plan under which fixed contributions are paid into a separate entity and the company has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. For defined contribution plans contributions are paid into publicly or privately administered pension insurance plans on a mandatory or contractual basis. The contributions are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as an asset. Following the Pensions Act 2008, the company has a duty to provide a pension scheme for employees. The company has selected NEST as its partner to meet the duty. The scheme operated by NEST on the company's behalf is a defined contribution scheme, employers’ contributions are charged to operating expenses as and when they become due. Employee and employer contribution rates are a combined minimum of 8 per cent. As covered in Note 5 and Note 18 to the accounts, the Directors of Crucible Pharmacy Limited are substantive employees of the Parent Trust, Sheffield Teaching Hospitals, and remunerated solely by that entity, and as such no pensionable benefits accrue to them from Crucible Pharmacy Limited. Financial instruments 1.29 Classification Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract. that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account 1.30 Recognition and measurement All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

CRUCIBLE PHARMACY LIMITED

Notes to the Financial Statements

for the Period Ended 31 March 2024

2. Employees

14 months to 31 March 2024
Average number of employees during the period 6

CRUCIBLE PHARMACY LIMITED

Notes to the Financial Statements

for the Period Ended 31 March 2024

3. Intangible Assets

Total
Cost £
Additions 195,260
At 31 March 2024 195,260
Net book value
At 31 March 2024 195,260

CRUCIBLE PHARMACY LIMITED

Notes to the Financial Statements

for the Period Ended 31 March 2024

4. Tangible Assets

Total
Cost £
Additions 735,576
At 31 March 2024 735,576
Depreciation
Charge for year 9,769
At 31 March 2024 9,769
Net book value
At 31 March 2024 725,807

CRUCIBLE PHARMACY LIMITED

Notes to the Financial Statements

for the Period Ended 31 March 2024

5. Creditors: amounts falling due after more than one year note

Of the amount due after one year of £1.311m, £1.2m relates to a working capital loan from the Parent Trust which is repayable by 31 March 2038 at the latest.

CRUCIBLE PHARMACY LIMITED

Notes to the Financial Statements

for the Period Ended 31 March 2024

6. Financial commitments

At the reporting date, the company had capital expenditure commitments of £471k. (Comprising building works of £349k and dispensing robot £122k) In 2024/25 the company will draw down £1.1m of a second loan facility from the parent Trust. This will fund the above capital commitments and most of the cost of Fixed asset expenditure already incurred. This will be repayable as follows: Within one year ( i.e by 31 March 2025) £80k Within two to five years £240k After more than five years £780k

CRUCIBLE PHARMACY LIMITED

Notes to the Financial Statements

for the Period Ended 31 March 2024

7. Related party transactions

The company is a wholly owned and controlled subsidiary of Sheffield Teaching Hospitals NHS Foundation Trust. The Company has taken advantage of the exemption contained in FRS 102 and has therefore not disclosed transactions or balances with entities which form part of the group. During the period none of the Board members or members of key management staff (who are all either Board members or employed within senior management roles at the Parent Trust), or parties related to them, has undertaken any material transactions with Sheffield Teaching Hospitals NHS Foundation Trust. Key management compensation consists entirely of the emoluments of the Board of Directors of the company which for the reporting period is £Nil.