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REGISTERED NUMBER: 05666241 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2023

for

Central Pharma Contract Packing Limited

Central Pharma Contract Packing Limited (Registered number: 05666241)






Contents of the Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 12

Notes to the Financial Statements 13


Central Pharma Contract Packing Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: A J Smit
M C Keane
K Y Nichol
E Swanepoel
I P Robinson





REGISTERED OFFICE: Caxton Road
Elm Farm Industrial Estate
Bedford
Bedfordshire
MK41 0XZ





REGISTERED NUMBER: 05666241 (England and Wales)





AUDITORS: WP Audit Limited
Statutory Auditors
TOR
Saint-Cloud Way
Maidenhead
Berkshire
SL6 8BN

Central Pharma Contract Packing Limited (Registered number: 05666241)

Strategic Report
for the Year Ended 31 December 2023

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

REVIEW OF BUSINESS
The key financial performance indicators during the period were as follows:

2023
£'000s

Turnover 17,760
Gross profit margin 37.8%
EBITDA 479
Operating loss (565 )
Shareholders' funds 1,676

The company's investment made in expanding its capability has allowed the business to grow its revenue during the year. Pressures on costs as well as activity designed to streamline the business and facilitate additional service offerings have led to a decline in the gross margin and operating result for the year. The company's key profit measure is EBITDA, which is calculated as operating profit excluding depreciation,amortisation and intra-group charges. In 2023, the EBITDA was £213,690. The company's operating loss reported on a statutory basis was £564,705 which includes depreciation of £778,395. The loss incurred for the year has affected the balance sheet position compared with last year with net assets at the year end of £1,675,889.

Following a challenging year from the perspective of reduced profitability, the company is better placed now to capitalise on operational improvement implemented during 2023. Capital expenditure was £332,048 in the year which was reduced compared with the prior year as the company benefits from the investment made previously. The company works closely with its lenders to help fund its investment and this continued support should enable the company to realise the growth opportunities which the investment is designed to capitalise on.

PRINCIPAL RISKS AND UNCERTAINTIES
The market in which the company operates continues to provide opportunities for expansion and our focus on service and quality will allow us to continue to meet the needs of our customers and adapt to any changes in the regulatory environment. However, with substantial fixed costs within the business the primary risk to the business would be a substantial loss of volume. The directors will continue to look to grow the customer base as a way of managing the risk that the loss of a significant customer (or a material reduction in volumes) could present.

ON BEHALF OF THE BOARD:





A J Smit - Director


1 November 2024

Central Pharma Contract Packing Limited (Registered number: 05666241)

Report of the Directors
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of contract packing for the pharmaceutical and health supplement industries.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

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

A J Smit
M C Keane
K Y Nichol
E Swanepoel

Other changes in directors holding office are as follows:

I P Robinson - appointed 1 January 2023

D J Hodgson ceased to be a director after 31 December 2023 but prior to the date of this report.

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





A J Smit - Director


1 November 2024

Report of the Independent Auditors to the Members of
Central Pharma Contract Packing Limited

Opinion
We have audited the financial statements of Central Pharma Contract Packing Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 December 2023 and of its loss 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.

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.

Report of the Independent Auditors to the Members of
Central Pharma Contract Packing Limited


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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
Central Pharma Contract Packing 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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlines 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud.

-The engagement partners ensured that the engagement team collectively had the appropriate competence, capabilities and skill to identify or recognise non-compliance with applicable laws and regulations;

-we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the recruitment sector;

-we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

-we assessed the extent of compliance with laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

-identified laws and regulations were communicated within the audit team regularly and the team remained alert to instance of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

-making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

-considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

-understanding the design of the company's remuneration policies.

To address the risk of fraud through management bias and override of controls, we;

-performed analytical procedures to identify unusual or unexpected relationships;

-tested journal entries to identify unusual transactions;

-assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

-investigated the rationale behind significant or unusual transactions.

Audit response to risks identified
In response to the risk of irregularities and non-compliance with laws and regulations; we designed procedures which included, but were not limited to;

-agreeing financial statement disclosures to underlying supporting documentation;
-enquiring of management as to actual and potential litigation and claims; and
-reviewing correspondence with HMRC, relevant regulators and company's legal advisors.


Report of the Independent Auditors to the Members of
Central Pharma Contract Packing Limited

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment of collusion.

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.

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.




Philippa Duckworth BSc FCCA Senior Statutory Auditor
for and on behalf of WP Audit Limited
Statutory Auditors
TOR
Saint-Cloud Way
Maidenhead
Berkshire
SL6 8BN

14 November 2024

Central Pharma Contract Packing Limited (Registered number: 05666241)

Income Statement
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   

TURNOVER 3 17,760,223 18,637,361

Cost of sales (11,038,835 ) (12,153,607 )
GROSS PROFIT 6,721,388 6,483,754

Administrative expenses (7,286,093 ) (6,993,445 )
OPERATING LOSS 5 (564,705 ) (509,691 )


Interest payable and similar expenses 6 (238,843 ) (188,116 )
LOSS BEFORE TAXATION (803,548 ) (697,807 )

Tax on loss 7 153,221 113,919
LOSS FOR THE FINANCIAL YEAR (650,327 ) (583,888 )

Central Pharma Contract Packing Limited (Registered number: 05666241)

Other Comprehensive Income
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   

LOSS FOR THE YEAR (650,327 ) (583,888 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR (650,327 )
Prior year adjustment (180,000 )
TOTAL COMPREHENSIVE INCOME SINCE LAST
ANNUAL REPORT

(763,888

)

Central Pharma Contract Packing Limited (Registered number: 05666241)

Balance Sheet
31 December 2023

31.12.23 31.12.22
Notes £    £   
FIXED ASSETS
Intangible assets 8 - -
Tangible assets 9 3,057,907 3,504,254
3,057,907 3,504,254

CURRENT ASSETS
Stocks 10 1,410,763 1,153,805
Debtors 11 8,989,823 8,108,218
Cash in hand 438 720
10,401,024 9,262,743
CREDITORS
Amounts falling due within one year 12 (9,892,173 ) (8,277,375 )
NET CURRENT ASSETS 508,851 985,368
TOTAL ASSETS LESS CURRENT LIABILITIES 3,566,758 4,489,622

CREDITORS
Amounts falling due after more than one year 13 (1,101,466 ) (1,466,193 )

PROVISIONS FOR LIABILITIES 17 (441,098 ) (348,908 )
NET ASSETS 2,024,194 2,674,521

CAPITAL AND RESERVES
Called up share capital 18 200,000 200,000
Retained earnings 19 1,824,194 2,474,521
SHAREHOLDERS' FUNDS 2,024,194 2,674,521

Central Pharma Contract Packing Limited (Registered number: 05666241)

Balance Sheet - continued
31 December 2023



The financial statements were approved by the Board of Directors and authorised for issue on 1 November 2024 and were signed on its behalf by:





A J Smit - Director


Central Pharma Contract Packing Limited (Registered number: 05666241)

Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 200,000 3,238,409 3,438,409
Prior year adjustment - (180,000 ) (180,000 )
As restated 200,000 3,058,409 3,258,409

Changes in equity
Total comprehensive income - (583,888 ) (583,888 )
Balance at 31 December 2022 200,000 2,474,521 2,674,521

Changes in equity
Total comprehensive income - (650,327 ) (650,327 )
Balance at 31 December 2023 200,000 1,824,194 2,024,194

Central Pharma Contract Packing Limited (Registered number: 05666241)

Notes to the Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Central Pharma Contract Packing 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.

The presentation currency of the financial statements is the Pound Sterling (£).


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 historical cost convention is modified by the use of fair values for certain financial instruments in accordance with the accounting policies set out below.

The accounts are prepared on a going concern basis. The nature of the company's business means that it has a significant level of fixed costs and lending commitments to fund capital expenditure. As a consequence of this, the company's cash flow can be adversely affected in the event of an unexpected loss of volume from a key customer. The directors prepare financial forecasts based on expected trading activity and based on these forecasts the company is considered to be a going concern with the ability to service its obligations as they fall due for the foreseeable future, that is at least 12 months from the date of approval of these accounts.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirement of paragraph 33.7.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Central Pharma Contract Packing Limited (Registered number: 05666241)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Significant judgements and estimates
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.

Tangible fixed assets
Tangible fixed are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Stock provision
On an annual basis the company make an assessment of the stock held and review its aging profile Base on this a provision will be included within the financial statements to reflect what is unlikely to be used. This varies on an annual basis with the directors required to make an estimation on their potential use.

Intra-group debtors
The company provides funds to its parent company and other subsidiaries of its parent company in order to manage the group's funding and facilitate development of the entire group's services. The directors are required to make an estimation of any potential recoverability issues when considering the carrying value of the intra-group debtors.

Turnover
Turnover arises from the company's principal activity of contract packing. Turnover is recognised at the fair value of the consideration received or receivable for the provision of packing services which occurs when the product has been packed. Turnover is shown net of Value Added Tax.

Goodwill
Goodwill arising on the acquisition of a business has been amortised evenly over its estimated useful life.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Short leasehold - Over the lease term
Plant and machinery - 20% on cost, 15% on cost, 10% on cost and at varying rates on cost
Fixtures and fittings - 33% on cost and 20% on cost
Motor vehicles - 33% on cost, 25% on cost and 20% on cost
Computer equipment - 33% on cost and 20% on cost

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment.

Stocks
Stocks, which primarily comprise raw materials for packing, are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost is the purchase price of the materials. Provision is made for obsolete, slow-moving or defective items where appropriate.

Central Pharma Contract Packing Limited (Registered number: 05666241)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
Financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

(i) Financial assets and liabilities
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. Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:
(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.
(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.
(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).
(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.
(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.
(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).

Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment. With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss. Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.

Financial assets are derecognised when and only when (a) the contractual rights to the cash flows from the financial asset expire or are settled, (b) the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or (c) the company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party. Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

(ii) Investments
Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.
In the company balance sheet, investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.

(iii) Equity instruments

Central Pharma Contract Packing Limited (Registered number: 05666241)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued
Equity instruments issued by the company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs.

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.

Current or deferred taxation assets and liabilities are not discounted.

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

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 it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Confidential invoice discounting
The company has a confidential invoice discounting facility. The accounting policy is to include the returnable element of the proceeds within current liabilities and present trade debtors within one year as gross. Service charges and interest are charged to the profit and loss account when paid. Bad debts are borne by the company and are charged to the profit and loss account when incurred.

Holiday pay accrual
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance Sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Balance Sheet date.

Bad debt provisions
Provisions are estimated by the company in respect of specific debts based upon the age of the debt and knowledge of known issues.

Dilapidations provision
The directors have included a dilapidation provision within the financial statements. This is based on an estimate by the directors to cover the cost of potential spend to restore the premises to their original condition in accordance with the lease.

Central Pharma Contract Packing Limited (Registered number: 05666241)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

3. TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

31.12.23 31.12.22
£    £   
United Kingdom 17,573,319 16,742,330
Markets outside United Kingdom 186,904 1,895,031
17,760,223 18,637,361

4. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 6,407,104 6,204,321
Social security costs 619,216 649,748
Other pension costs 124,392 101,189
7,150,712 6,955,258

The average number of employees during the year was as follows:
31.12.23 31.12.22

Operations and production 161 178
Administration 41 48
Sales 7 5
209 231

31.12.23 31.12.22
£    £   
Directors' remuneration 663,822 508,281
Directors' pension contributions to money purchase schemes 43,417 33,992

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 6 5

Information regarding the highest paid director is as follows:
31.12.23 31.12.22
£    £   
Emoluments etc 156,712 152,148
Pension contributions to money purchase schemes 10,969 10,650

The directors are the key management personnel of the company and therefore the amount of key management remuneration is the same as the directors remuneration.

Central Pharma Contract Packing Limited (Registered number: 05666241)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

5. OPERATING LOSS

The operating loss is stated after charging:

31.12.23 31.12.22
£    £   
Hire of plant and machinery 67,664 29,636
Other operating leases 962,705 1,241,518
Depreciation - owned assets 574,527 434,987
Depreciation - assets on hire purchase contracts 203,868 335,865
Auditors' remuneration 16,500 15,000
Foreign exchange differences 6,258 36,625

Pension contributions totalling £24,980 (2022: £31,585) were payable to the pension fund at the year end and are included in creditors due less than 1 year.

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.23 31.12.22
£    £   
Bank interest 158,821 64,814
Other interest 11,265 60,197
Hire purchase 68,757 63,105
238,843 188,116

7. TAXATION

Analysis of the tax credit
The tax credit on the loss for the year was as follows:
31.12.23 31.12.22
£    £   
Current tax:
UK corporation tax 4,589 4,589

Deferred tax (157,810 ) (118,508 )
Tax on loss (153,221 ) (113,919 )

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.23 31.12.22
£    £   
Loss before tax (803,548 ) (697,807 )
Loss multiplied by the standard rate of corporation tax in the UK of 19% (2022 -
19%)

(152,674

)

(132,583

)

Effects of:
Expenses not deductible for tax purposes (547 ) 827

Deferred tax provided for at a higher rate - 17,837
recognised
Total tax credit (153,221 ) (113,919 )

Central Pharma Contract Packing Limited (Registered number: 05666241)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

8. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 January 2023
and 31 December 2023 269,235
AMORTISATION
At 1 January 2023
and 31 December 2023 269,235
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 -

9. TANGIBLE FIXED ASSETS
Fixtures
Short Plant and and
leasehold machinery fittings
£    £    £   
COST
At 1 January 2023 61,373 7,327,526 278,825
Additions - 165,575 151,494
At 31 December 2023 61,373 7,493,101 430,319
DEPRECIATION
At 1 January 2023 53,002 4,097,834 278,597
Charge for year 1,494 655,259 6,873
At 31 December 2023 54,496 4,753,093 285,470
NET BOOK VALUE
At 31 December 2023 6,877 2,740,008 144,849
At 31 December 2022 8,371 3,229,692 228

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 January 2023 175,130 646,341 8,489,195
Additions - 14,979 332,048
At 31 December 2023 175,130 661,320 8,821,243
DEPRECIATION
At 1 January 2023 109,889 445,619 4,984,941
Charge for year 15,974 98,795 778,395
At 31 December 2023 125,863 544,414 5,763,336
NET BOOK VALUE
At 31 December 2023 49,267 116,906 3,057,907
At 31 December 2022 65,241 200,722 3,504,254

Central Pharma Contract Packing Limited (Registered number: 05666241)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

9. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 January 2023 2,584,565 79,887 2,664,452
Additions 135,605 - 135,605
Transfer to ownership (963,342 ) - (963,342 )
At 31 December 2023 1,756,828 79,887 1,836,715
DEPRECIATION
At 1 January 2023 657,661 14,646 672,307
Charge for year 187,894 15,974 203,868
Transfer to ownership (430,225 ) - (430,225 )
At 31 December 2023 415,330 30,620 445,950
NET BOOK VALUE
At 31 December 2023 1,341,498 49,267 1,390,765
At 31 December 2022 1,926,904 65,241 1,992,145

10. STOCKS
31.12.23 31.12.22
£    £   
Stocks 1,410,763 1,153,805

An assessment is performed annually to assess stock held at the year end which is based on the ageing and the movement of stock items. The stock provision at the year end is £406,920 (2022: £352,598).

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade debtors 2,515,238 2,818,417
Amounts owed by group undertakings 5,632,312 4,928,060
Other debtors 44,692 101,651
Prepayments and accrued income 797,581 260,090
8,989,823 8,108,218

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Bank loans and overdrafts (see note 14) 1,982,443 2,233,885
Hire purchase contracts (see note 15) 423,110 426,515
Trade creditors 3,296,197 2,605,072
Social security and other taxes 210,078 244,746
VAT 1,347,656 967,592
Other creditors 570,542 59,769
Directors' current accounts - 180,000
Accrued expenses 2,062,147 1,559,796
9,892,173 8,277,375

Central Pharma Contract Packing Limited (Registered number: 05666241)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31.12.23 31.12.22
£    £   
Bank loans (see note 14) 184,974 307,736
Hire purchase contracts (see note 15) 916,492 1,158,457
1,101,466 1,466,193

14. LOANS

An analysis of the maturity of loans is given below:

31.12.23 31.12.22
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 434,417 479,725
Bank loans 1,548,026 1,754,160
1,982,443 2,233,885

Amounts falling due between one and two years:
Bank loans - 1-2 years 135,967 122,762

Amounts falling due between two and five years:
Bank loans - 2-5 years 49,007 184,974

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31.12.23 31.12.22
£    £   
Net obligations repayable:
Within one year 423,110 426,515
Between one and five years 916,492 1,158,457
1,339,602 1,584,972

Non-cancellable operating leases
31.12.23 31.12.22
£    £   
Within one year 1,177,000 536,540
Between one and five years 4,708,000 4,708,000
In more than five years 5,118,000 5,961,667
11,003,000 11,206,207

Central Pharma Contract Packing Limited (Registered number: 05666241)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

16. SECURED DEBTS

The following secured debts are included within creditors:

31.12.23 31.12.22
£    £   
Bank loans 1,425,264 1,642,974

Included within bank loans is an Invoice finance facility of £1,425,264 (2022: £1,642,974) provided by Clydesdale Bank PLC. The invoice finance facility accrues discount charges at 2.4% of notified receivables. The bank debt is secured by fixed and floating charges over the undertaking and all property and assets present and future.

17. PROVISIONS FOR LIABILITIES
31.12.23 31.12.22
£    £   
Deferred tax 191,098 348,908
Dilapidation provision 250,000 -
441,098 348,908

Deferred Other
tax provisions
£    £   
Balance at 1 January 2023 348,908 -
Provided during year - 250,000
Utilised during year (157,810 ) -
Balance at 31 December 2023 191,098 250,000

Deferred tax relates to timing differences arising from the amount of depreciation charged on fixed assets compared with capital allowances claimed.

The other provision relates to a dilapidations claim.

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
200,000 Ordinary shares £1 200,000 200,000

The company has one class of ordinary shares which carry no right to fixed income. Ordinary shares carry a right to vote, a right to dividends and a right to a capital distribution in the event of a winding up or return of capital.

19. RESERVES
Retained
earnings
£   

At 1 January 2023 2,474,521
Deficit for the year (650,327 )
At 31 December 2023 1,824,194

Central Pharma Contract Packing Limited (Registered number: 05666241)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2023

20. ULTIMATE PARENT COMPANY

The ultimate parent company is Central Pharma Contract Holdings Limited, a company registered in England & Wales.

21. CONTINGENT LIABILITY

The company is currently involved in a dispute with a supplier regarding overdue invoices approximately totalling £200,000. These invoices have been withheld due to significant quality issues identified in the goods supplied. The supplier disputes the company's assessment and demands full payment, claiming the goods met the agreed specifications. Since the initial notice of litigation from the supplier, the company provided third party evidence to the supplier of the goods not meeting specification and the formal litigation has not progressed further. Based on legal assessments, the likelihood of an outflow of economic resources is considered possible but not probable, and as such, no provision has been recorded in the financial statements.

CONTINGENT ASSET

The company is currently involved in a dispute against a supplier due to quality issues with the supplied goods. These issues have led to a customer submitting complaints regarding the company's manufactured products, mostly resulting in repackaged products. The company is currently in discussions with the supplier to seek compensation for the losses incurred. While the outcome is uncertain, the company believes it has a strong case for recovering these damages. No asset has been recognised in the financial statements at this time, as the realisation of this contingent asset is not yet virtually certain.

22. CAPITAL COMMITMENTS
31.12.23 31.12.22
£    £   
Contracted but not provided for in the
financial statements - 127,740

23. ULTIMATE CONTROLLING PARTY

There is no single ultimate controlling party.