MEDEXPRESS ENTERPRISES LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Company Registration No. 08805262 (England and Wales)
MEDEXPRESS ENTERPRISES LTD
COMPANY INFORMATION
Director
D G D'Souza
Secretary
D G D'Souza
Company number
08805262
Registered office
87a Worship Street
London
EC2A 2BE
Auditor
DSG Audit
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
MEDEXPRESS ENTERPRISES LTD
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 23
MEDEXPRESS ENTERPRISES LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The director presents the strategic report for the year ended 31 December 2023.

Fair review of the business

The company has continued to trade successfully during the year with revenue increasing from £13.2m to £14.5m. The company has generated a loss of £1.7m in the year (2022: profit of £779k) due to investments made in order to drive future growth.

Principal risks and uncertainties

The company considers the current difficult economic environment as the principal business risk. The company's policy is to effectively manage working capital in order to continue operating and mitigate any such risks. The company trades controlled pharmaceutical products subject to relevant regulations. The risk of non-compliance with those regulations is addressed through continuous monitoring of the regulatory environment and ongoing internal reviews to ensure compliance by suitably qualified individuals.

Key performance indicators and future developments

The company is currently focused on growing the brands that it controls, therefore revenue growth is considered a key performance indicator. Cash holding of the company is also a key performance indicator to ensure that the company can continue to fund growth and manage business risks. Cash increased to £1.5m at the end of 2023 (2022: £0.6m). Looking ahead to 2024, the company has continued to expand it's product offering and expects this to drive further growth in the coming years.

On behalf of the board

D G D'Souza
Director
15 November 2024
MEDEXPRESS ENTERPRISES LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The director presents his annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of providing consumer health services.

Results and dividends

The results for the year are set out on page 8.

No dividends were paid in the year (2022: £nil). The director does not recommend payment of a final dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

D G D'Souza

Financial risk management objectives and policies

The company's operations expose it to a variety of financial risks that principally include the effects of changes in price risk, credit risk, liquidity risk and interest rate risk. The company has a risk management programme in place that seeks to limit the adverse effects on the financial performance of the company of all identified risks.

 

Price risk

The company is exposed to commodity price risk as a result of its operations. However given the size of the company's operations, the cost of managing exposure through the use of hedging instruments to commodity price risk exceed any potential benefits.

 

Credit risk

As the company trades direct with consumers and does not provide credit, the company is not exposed to credit risk.

 

Liquidity and interest rate risk

The company currently has no requirement for debt finance and no interest bearing liabilities. When the company has a requirement for funds for operations and planned expansions then this is supported by available group resources.

Auditor

DSG resigned as auditor to the company on 11 September 2024. DSG Audit were appointed as auditor to the company on 11 September 2024, and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the director's report. It has done so in respect of the business review, principal risks and uncertainties, and future developments.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

MEDEXPRESS ENTERPRISES LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
On behalf of the board
D G D'Souza
Director
15 November 2024
MEDEXPRESS ENTERPRISES LTD
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

MEDEXPRESS ENTERPRISES LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF MEDEXPRESS ENTERPRISES LTD
- 5 -
Opinion

We have audited the financial statements of Medexpress Enterprises Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

MEDEXPRESS ENTERPRISES LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MEDEXPRESS ENTERPRISES LTD
- 6 -
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 director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the company.

The following laws and regulations were identified as being of significance to the company:

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the company complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of entries in the nominal ledger, including journal entries which may be indicative of fraud; and reviewing transactions around the end of the reporting period to identify items which ought to have been recorded.

MEDEXPRESS ENTERPRISES LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MEDEXPRESS ENTERPRISES LTD
- 7 -

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the company’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

Laura Leslie BSc ACA (Senior Statutory Auditor)
For and on behalf of DSG Audit
15 November 2024
Chartered Accountants
Statutory Auditor
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
MEDEXPRESS ENTERPRISES LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
14,483,029
13,220,784
Cost of sales
(10,098,570)
(9,031,233)
Gross profit
4,384,459
4,189,551
Administrative expenses
(13,752,789)
(9,542,596)
Other operating income
3
7,619,451
6,131,902
(Loss)/profit before taxation
4
(1,748,879)
778,857
Tax on (loss)/profit
7
195,237
134,826
(Loss)/profit for the financial year
(1,553,642)
913,683

There was no other comprehensive income for 2023 (2022: £nil).

MEDEXPRESS ENTERPRISES LTD
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
8
494,686
-
0
Tangible assets
9
278,238
348,982
772,924
348,982
Current assets
Stocks
10
561,159
824,685
Debtors
11
7,020,924
9,229,147
Cash at bank and in hand
1,464,835
575,784
9,046,918
10,629,616
Creditors: amounts falling due within one year
12
(1,339,656)
(1,620,409)
Net current assets
7,707,262
9,009,207
Total assets less current liabilities
8,480,186
9,358,189
Provisions for liabilities
Deferred tax liability
13
59,523
83,645
(59,523)
(83,645)
Net assets
8,420,663
9,274,544
Capital and reserves
Called up share capital
15
100
100
Capital contribution reserve
16
1,195,365
495,604
Profit and loss reserves
7,225,198
8,778,840
Total equity
8,420,663
9,274,544
The financial statements were approved and signed by the director and authorised for issue on 15 November 2024
D G D'Souza
Director
Company Registration No. 08805262
MEDEXPRESS ENTERPRISES LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Capital contribution reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
100
185,415
7,865,157
8,050,672
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
913,683
913,683
Capital contribution
16
-
310,189
-
0
310,189
Balance at 31 December 2022
100
495,604
8,778,840
9,274,544
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
(1,553,642)
(1,553,642)
Capital contribution
16
-
699,761
-
0
699,761
Balance at 31 December 2023
100
1,195,365
7,225,198
8,420,663
MEDEXPRESS ENTERPRISES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

Medexpress Enterprises Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 87a Worship Street, London, EC2A 2BE.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of HeliosX Holdings Limited as at 31 December 2023. These consolidated financial statements are available from Companies House, Crown Way, Cardiff, CF14 3UZ.

1.2
Going concern

The director, following a review of forecasts and the company and group's current financial position, believes that the company and the group of which the company is a part of has sufficient resources to meet its obligations when they fall due. The director is therefore of the opinion that the company should continue to adopt the going concern basis of accounting in preparing the annual financial statements.true

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

MEDEXPRESS ENTERPRISES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Intellectual Property
3 years
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery
25% reducing balance
Fixtures and fittings
25% reducing balance
Computer equipment
25% reducing balance
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

MEDEXPRESS ENTERPRISES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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.

MEDEXPRESS ENTERPRISES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

MEDEXPRESS ENTERPRISES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

 

The expense in relation to options over the parent company’s shares granted to employees and contractors providing services to this company is recognised as a capital contribution, and presented as an increase in the parent company’s investment in this company.

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

MEDEXPRESS ENTERPRISES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Determining and reassessing residual values and useful economic lives of tangible and intangible assets

The company depreciates tangible assets, and amortises intangible assets, over their estimated useful lives. In determining appropriate useful lives of tangible and intangible assets, the director has considered historic performance as well as future expectations for factors such as expected usage of the assets, physical wear and tear, technical and commercial obsolescence and legal limitations of the usage of the assets, such as lease terms. The actual lives of the tangible and intangible assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.

 

Judgement is applied to determine the residual values for tangible and intangible assets. When determining the residual values, the directors have assessed the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. At each reporting date, the director has also assessed whether there have been any indicators, such as a change in how the asset is used, significant unexpected wear and tear and changes in market prices, which suggest previous estimates may differ from current expectations. Where this is the case, the residual value and/or useful life is amended and accounted for on a prospective basis.

Determining fair value of share options

In calculating the share based payment charge there is estimation uncertainty surrounding the assumptions used for the inputs to the Black Scholes option pricing model from which the fair value charge is derived. These are the expected volatility, expected life and risk-free rate for the share options.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sales of goods
14,483,029
13,220,784
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
14,295,671
12,959,400
Rest of Europe
187,358
261,384
14,483,029
13,220,784
MEDEXPRESS ENTERPRISES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 17 -
2023
2022
£
£
Other revenue
Management charge receivable from group companies
7,617,128
6,008,806
Management fees receivable
-
116,273
Sundry income
2,323
6,823
7,619,451
6,131,902
4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
13,200
12,500
Depreciation of owned tangible fixed assets
97,230
133,866
Loss on disposal of tangible fixed assets
1,334
685
Amortisation of intangible assets
128,441
-
Operating lease charges
397,229
325,052

In the current and prior year, auditor's remuneration was borne by the company for the group, which consists of the parent company, HeliosX Holdings Limited, and fellow subsidiary undertakings; Levity Healthcare Limited (previously Bloom and Halo Ltd, and RocketRX UK Limited), Central Medical Solutions Ltd, Dermatica Ltd, Avianta Holdings Ltd, and Avianta Pharma Limited.

5
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
9,077
8,495
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Direct staff
71
48
Administrative staff
102
76
Directors
1
1
Total
174
125
MEDEXPRESS ENTERPRISES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
9,822,435
6,341,229
Social security costs
1,072,151
752,655
Pension costs
224,994
135,435
11,119,580
7,229,319
7
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
-
0
(32,083)
Deferred tax
Origination and reversal of timing differences
(20,297)
(25,196)
Deferred tax on share-based payments charge
(174,940)
(77,547)
Total deferred tax
(195,237)
(102,743)
Total tax credit
(195,237)
(134,826)

The actual credit for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
(Loss)/profit before taxation
(1,748,879)
778,857
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(411,336)
147,983
Tax effect of expenses that are not deductible in determining taxable profit
490,830
787
Adjustments in respect of prior years
-
0
(32,083)
Group relief
(263,162)
(208,292)
Other non-reversing differences
(11,569)
(43,221)
Taxation credit for the year
(195,237)
(134,826)
MEDEXPRESS ENTERPRISES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
8
Intangible fixed assets
Intellectual Property
£
Cost
At 1 January 2023
-
0
Additions
623,127
At 31 December 2023
623,127
Amortisation and impairment
At 1 January 2023
-
0
Amortisation charged for the year
128,441
At 31 December 2023
128,441
Carrying amount
At 31 December 2023
494,686
At 31 December 2022
-
0
9
Tangible fixed assets
Plant and machinery
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
75,675
493,040
195,238
31,490
795,443
Additions
-
0
3,788
35,864
-
0
39,652
Disposals
-
0
-
0
(435)
(31,490)
(31,925)
At 31 December 2023
75,675
496,828
230,667
-
0
803,170
Depreciation and impairment
At 1 January 2023
34,667
314,997
82,282
14,515
446,461
Depreciation charged in the year
10,252
51,700
31,034
4,244
97,230
Eliminated in respect of disposals
-
0
-
0
-
0
(18,759)
(18,759)
At 31 December 2023
44,919
366,697
113,316
-
0
524,932
Carrying amount
At 31 December 2023
30,756
130,131
117,351
-
0
278,238
At 31 December 2022
41,008
178,043
112,956
16,975
348,982
10
Stocks
2023
2022
£
£
Finished goods and goods for resale
561,159
824,685
MEDEXPRESS ENTERPRISES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
115,498
70,580
Corporation tax recoverable
-
0
302,119
Amounts owed by group undertakings
5,852,284
7,897,128
Other debtors
484,879
324,432
Prepayments and accrued income
259,479
497,218
6,712,140
9,091,477

Included within trade debtors is an amount of £115,498 (2022: £70,580) that relates to cash due to be recovered from website payment processing providers.

 

Amounts owed by group undertakings are unsecured, interest free, and repayable on demand.

 

Included within other debtors is D G D'Souza's director's loan account, which was overdrawn at the year end date by £nil (2022: £nil). The maximum overdrawn balance during the year was £38,952 (2022: £227,112).

2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 13)
308,784
137,670
Total debtors
7,020,924
9,229,147
12
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
395,141
714,102
Taxation and social security
313,446
293,166
Other creditors
130,552
127,592
Accruals and deferred income
500,517
485,549
1,339,656
1,620,409
MEDEXPRESS ENTERPRISES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
13
Deferred taxation

The following are the major deferred tax assets and liabilities recognised by the company and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£
£
£
£
Accelerated capital allowances
59,523
83,645
-
-
Share based payments
-
-
298,841
123,901
Other
-
-
9,943
13,769
59,523
83,645
308,784
137,670
2023
Movements in the year:
£
Net asset at 1 January 2023
(54,025)
Credit to profit or loss
(195,236)
Net asset at 31 December 2023
(249,261)

The principal deferred tax asset set out above relates to the accumulation of share based payment charges over the prior three years on which deferred tax assets is recognised and is expected to reverse at the end of the vesting period (expected to be four years). The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

14
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
224,994
135,435

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Contributions amounting to £50,991 (2022: £55,075) were payable by the company to the fund at the reporting date and are included within other creditors.

15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
MEDEXPRESS ENTERPRISES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
16
Capital contribution reserve

The capital contribution reserve includes £1,195,365 (2022: £495,604) that relates to a group share based payment scheme operated by, and relating to the equity of the parent company, HeliosX Holdings Limited. As the employees are contracted and the contractors provide services to Medexpress Enterprises Ltd, the company has borne the charge of the scheme as reflected in the statement of comprehensive income.

17
Financial commitments, guarantees and contingent liabilities

The company provided fixed and floating charges over all of the company's assets in favour of the bank, Natwest Bank PLC. The charge was satisfied in full on 29 April 2024.

18
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
209,541
290,449
Between two and five years
127,224
336,765
336,765
627,214
19
Related party transactions

Debtors falling due within one year comprise a balance of £88,060 (2022: £50,188) which is due from companies under common ownership. These amounts are interest free, unsecured, and repayable on demand.

 

Included within turnover are amounts of £82,757 (2022: £41,823), and included within purchases are amounts of £43,500 (2022: £nil) from companies under common ownership.

 

Included within purchases are amounts of £137,656 (2022: £nil) from a company under common directorship with a fellow group undertaking.

 

Key management personnel were granted 204,632 shares during the year, which were vested immediately. A share option charge of £175,765 has been recognised in the year.

 

The company has taken advantage of the exemption conferred by section 33.1A of FRS102 not to disclose transactions with other wholly owned subsidiaries within the group as consolidated accounts, including the subsidiary undertakings, are publically available.

MEDEXPRESS ENTERPRISES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
20
Ultimate parent company and controlling party

The immediate and ultimate parent company is HeliosX Holdings Limited. HeliosX Holdings Limited is registered in England and Wales with company registration number 10852429. The registered office address for HeliosX Holdings Limited is c/o Dermatica, 87a Worship Street, London EC2A 2BE.

 

HeliosX Holdings Limited is the smallest and largest group of companies into which the company’s results are consolidated where the financial statements are available to the public. Copies of the consolidated financial statements of HeliosX Holdings Limited can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

 

The ultimate controlling party is D G D'Souza.

 

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