Company registration number SC523044 (Scotland)
THE M&D GREEN GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
THE M&D GREEN GROUP LIMITED
COMPANY INFORMATION
Directors
M J Green
Mrs D A Green
Company number
SC523044
Registered office
Bankwell House
Strathblane Road
Milngavie
Glasgow
United Kingdom
G62 8LE
Auditor
Azets Audit Services
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
THE M&D GREEN GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group profit and loss account
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 31
THE M&D GREEN GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

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

Review of the business

The company acquired the trade and a pharmacy from another entity during the year as part of its overall group expansion plan. On 31st March 2023, the trade and assets of three fellow subsidiaries were transferred into the company.

 

The results for the year show an increase in turnover to £67,406,400 from £51,054,145 and an increase in gross margin from 37% to 39% in 2023 as a result of the prior year group restructure, acquisitions and organic growth. Earnings before interest, taxes, amortisation and depreciation have increased from £5,966,163 to £8,813,857.

 

The Group’s borrowing facility which includes a revolving credit facility and a standard bank loan is due for renewal in February 2025 and has thus been included in creditors due within less than one year. The Group is in the process of commencing the refinancing exercise and expects this to be completed by 31 December 2024.

 

The Board is confident that the group's performance and profitability will continue to be strong in 2024/25 and in subsequent years.

 

The group's website continues to raise the profile of the business and provides a platform for information and signposting. The group continues to invest in advertising to help facilitate the continued growth of the business.

Principal risks and uncertainties

We believe that the group can meet the key business risks of competition, both local and national, and also of employee retention.

 

The principal uncertainty of the business relates to the level of funding going forward as a result of the Government's spending reviews and any subsequent decision to reduce NHS funding. This could impact the performance of the group in forthcoming years. In addition to this, like most businesses, the 'cost of living' crisis and continued high inflation poses a risk.

Key performance indicators

The Board considers the key performance financial performance indicator of the group to be the profitability of each pharmacy under management and assesses this on a monthly basis.

Directors' statement of compliance with duty to promote the success of the group
THE M&D GREEN GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

The directors are aware of the requirements under Section 172 of the Companies Act 2006 to act in good faith to promote the success of the group for the benefit of its members as a whole and in doing so have regard (amongst other matters) to:

 

(a) the likely consequences of any decision in the long term;

 

The directors have a long-term strategy to continue to grow the group through continued investment in existing pharmacies as well as look at opportunities to expand further through the acquisition of additional pharmacies as the directors looks to strengthen the group’s position in the market-place.

 

(b) the interests of the group's employees;

 

The group values its employees and ensures that pay and conditions are competitive. The group's long-term strategy to continue to invest in existing pharmacies whilst looking at further acquisitions will ensure that the group has a sustainable future for its employees. The group communicates significant matters to its employees and welcomes feedback from employees.

 

(c) the need to foster the group's business relationships with suppliers, customers and others;

 

The group maintains good relationships with its suppliers and ensure that all payments are made within the agreed credit terms. The group has built strong sustainable relationships with its key suppliers.

 

Customer satisfaction and retention is key to the group's success and our focus has and will continue to be to look at ways to improve the customer experience through continued investment in our pharmacies and services for the benefit of customers.

(d) the impact of the group's operations on the community and the environment;

 

The group recognises its responsibility in respect of the environment and looks to minimise its carbon footprint by making the group as energy efficient as possible.

 

Our pharmacies play an important part of their local communities providing an essential service.

 

(e) the desirability of the group maintaining a reputation for high standards of business conduct; and

 

The directors and senior management team are focussed on ensuring the highest standards of business conduct and ensuring all legislation is met. The group seeks advice and updates from its solicitors and accountants in respect of changes in legislation affecting the group. All tax liabilities continue to be paid within the deadlines set by HMRC.

 

(f) the need to act fairly as between members of the group

 

There are two shareholders of the group. The shareholders share the same objective of continuing to grow and invest in the group, ensuring a long-term sustainable business that will continue to benefit its key stakeholders.

On behalf of the board

M J Green
Director
14 November 2024
THE M&D GREEN GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company and group continued to be that of a dispensing chemist in specialised stores.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £255,860. The directors do not recommend payment of a further dividend.

Directors

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

M J Green
Mrs D A Green
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

Business relationships

The required disclosure in respect of this has been included within the section 172(1) statement within the Strategic Report.

Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

THE M&D GREEN GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Energy and carbon report
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
2,324,480
1,889,814
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
102.45
77.52
- Fuel consumed for owned transport
318.46
258.96
420.91
336.48
Scope 2 - indirect emissions
- Electricity purchased
117.04
97.22
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the - Fuel consumed for transport not owned
-
-
Total gross emissions
537.95
433.70
Intensity ratio
Tonnes CO2e per employee
0.98
.97
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the UK Government's Greenhouse Gas Reporting: Conversion Factors 2024

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per full time employee.

Measures taken to improve energy efficiency

The group continues to invest in energy efficiency measures to reduce the carbon footprint.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
M J Green
Director
14 November 2024
THE M&D GREEN GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THE M&D GREEN GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE M&D GREEN GROUP LIMITED
- 6 -
Opinion

We have audited the financial statements of The M&D Green Group Limited (the 'company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group profit and loss account, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and the 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 group and 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 group's and 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

THE M&D GREEN GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE M&D GREEN GROUP LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' 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 directors

As explained more fully in the directors' responsibilities statement, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company'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.

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.

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.

THE M&D GREEN GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE M&D GREEN GROUP LIMITED
- 8 -

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the group and the company, their activities, their control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the group and the company are complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the group and the company that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

James McBride (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
19 November 2024
Chartered Accountants
Statutory Auditor
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
THE M&D GREEN GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
Turnover
67,406,400
51,054,145
Cost of sales
(41,417,393)
(31,941,964)
Gross profit
25,989,007
19,112,181
Administrative expenses
(22,915,261)
(18,575,093)
Other operating income
60,500
144,625
Operating profit
4
3,134,246
681,713
Interest receivable and similar income
7
396
251
Interest payable and similar expenses
8
(2,572,002)
(1,630,823)
Profit/(loss) before taxation
562,640
(948,859)
Tax on profit/(loss)
9
(1,102,546)
(890,782)
Loss for the financial year
25
(539,906)
(1,839,641)
Loss for the financial year is all attributable to the owners of the parent company.
There was no other comprehensive income (2023: £nil).
THE M&D GREEN GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
23,372,330
27,689,771
Tangible assets
12
3,150,909
3,249,334
26,523,239
30,939,105
Current assets
Stocks
15
1,727,556
1,568,348
Debtors
16
10,976,676
9,829,631
Cash at bank and in hand
6,210,610
4,666,389
18,914,842
16,064,368
Creditors: amounts falling due within one year
18
(38,793,996)
(10,902,147)
Net current (liabilities)/assets
(19,879,154)
5,162,221
Total assets less current liabilities
6,644,085
36,101,326
Creditors: amounts falling due after more than one year
19
(2,343,029)
(30,783,500)
Provisions for liabilities
Deferred tax liability
22
367,060
588,064
(367,060)
(588,064)
Net assets
3,933,996
4,729,762
Capital and reserves
Called up share capital
24
1,002
1,002
Share premium account
25
12,199,000
12,199,000
Profit and loss reserves
25
(8,266,006)
(7,470,240)
Total equity
3,933,996
4,729,762
The financial statements were approved by the board of directors and authorised for issue on 14 November 2024 and are signed on its behalf by:
14 November 2024
M J Green
Director
Company registration number SC523044 (Scotland)
THE M&D GREEN GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
41,559,781
41,559,781
Current assets
Debtors
16
674,304
279,863
Cash at bank and in hand
6,717
10,868
681,021
290,731
Creditors: amounts falling due within one year
18
(28,437,680)
(1,354,413)
Net current liabilities
(27,756,659)
(1,063,682)
Total assets less current liabilities
13,803,122
40,496,099
Creditors: amounts falling due after more than one year
19
(1,603,120)
(28,296,097)
Net assets
12,200,002
12,200,002
Capital and reserves
Called up share capital
24
1,002
1,002
Share premium account
25
12,199,000
12,199,000
Total equity
12,200,002
12,200,002

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £255,860 (2023 - £298,810 profit).

The financial statements were approved by the board of directors and authorised for issue on 14 November 2024 and are signed on its behalf by:
14 November 2024
M J Green
Director
Company registration number SC523044 (Scotland)
THE M&D GREEN GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
1,002
12,199,000
(5,331,789)
6,868,213
Year ended 31 March 2023:
Loss and total comprehensive income
-
-
(1,839,641)
(1,839,641)
Dividends
10
-
-
(298,810)
(298,810)
Balance at 31 March 2023
1,002
12,199,000
(7,470,240)
4,729,762
Year ended 31 March 2024:
Loss and total comprehensive income
-
-
(539,906)
(539,906)
Dividends
10
-
-
(255,860)
(255,860)
Balance at 31 March 2024
1,002
12,199,000
(8,266,006)
3,933,996
THE M&D GREEN GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
1,002
12,199,000
-
0
12,200,002
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
298,810
298,810
Dividends
10
-
-
(298,810)
(298,810)
Balance at 31 March 2023
1,002
12,199,000
-
0
12,200,002
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
255,860
255,860
Dividends
10
-
-
(255,860)
(255,860)
Balance at 31 March 2024
1,002
12,199,000
-
0
12,200,002
THE M&D GREEN GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
8,384,348
5,427,151
Income taxes paid
(948,143)
(986,884)
Net cash inflow from operating activities
7,436,205
4,440,267
Investing activities
Purchase of intangible assets
(500,000)
Purchase of tangible fixed assets
(721,766)
(280,661)
Proceeds from disposal of tangible fixed assets
221,262
9,851
Purchase of subsidiaries, net of cash acquired
-
(6,606,807)
Interest received
396
251
Net cash used in investing activities
(1,000,108)
(6,877,366)
Financing activities
Proceeds from new bank loans
-
7,510,000
Repayment of bank loans
(1,959,103)
(2,967,170)
Payment of finance leases obligations
(52,046)
(519,218)
Interest paid
(2,572,002)
(1,630,823)
Dividends paid to equity shareholders
(255,860)
(298,810)
Net cash (used in)/generated from financing activities
(4,839,011)
2,093,979
Net increase/(decrease) in cash and cash equivalents
1,597,086
(343,120)
Cash and cash equivalents at beginning of year
4,666,389
5,009,509
Cash and cash equivalents at end of year
6,210,610
4,666,389
CASH FLOW OUT OF BALANCE BY:
52,865
-
THE M&D GREEN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
1
Accounting policies
Company information

The M&D Green Group Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Bankwell House, Strathblane Road, Milngavie, Glasgow, G62 8LE.

 

The group consists of The M&D Green Group Limited and all of its subsidiaries.

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 £.

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

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company The M&D Green Group Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

THE M&D GREEN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Going concern

The directors are required to prepare the statutory financial statements on the going concern basis unless it is inappropriate to presume that the group and the company will continue in business. In satisfaction of this responsibility the directors have considered the group's and the company's ability to meet its liabilities as they fall due.

 

The directors have made appropriate enquiries and carried out a review of the group’s projections and available banking facilities, taking account of possible changes in trading performance and considering business risk.

 

The current and future financial position of the group, its cash flows and liquidity position have been reviewed by the directors. The group has a strong cash position as at 31 March 2024 and funding in place through bank funding for the next year. The directors expect the group to continue to generate significant trading profits going forward, noting the reported loss for the group this year includes amortisation charges in respect of the intangible assets of £4.8m. Following this review, the directors have a reasonable expectation that the group has adequate resources to continue in operational existences for the foreseeable future.

 

As such, the directors consider that it is appropriate to prepare the financial statements on the going concern basis

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

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.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
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.

THE M&D GREEN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -

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:

Freehold land and buildings
2% - 5% straight line
Leasehold land and buildings
4% straight line
Plant and equipment
25% reducing balance
Fixtures and fittings
20% straight line / 20-25% reducing balance
Motor vehicles
20% - 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 recognised in the profit and loss account.

1.7
Fixed asset investments

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

THE M&D GREEN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -

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.

1.10
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.

1.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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 group 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.

THE M&D GREEN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
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 group after deducting all of its liabilities.

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.

Other financial liabilities

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

1.13
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 profit and loss account 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

THE M&D GREEN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
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 profit and loss account, 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 if, and only if, there is 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.

1.14
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.

1.15
Retirement benefits

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

1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

THE M&D GREEN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are 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.

 

Goodwill

Goodwill is carried at cost less amortisation and accumulated impairment losses. Goodwill amortisation is calculated applying the straight line method to its estimated useful life. Estimates of the economic useful life of goodwill are based on a variety of factors such as the expected use of the acquired business, the expected useful life of cash generating units to which goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses.

3
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
8,800
8,400
Audit of the financial statements of the company's subsidiaries
46,200
52,700
55,000
61,100
For other services
Taxation compliance services
10,000
20,200
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
182,638
203,514
Depreciation of tangible fixed assets held under finance leases
504,532
441,240
Profit on disposal of tangible fixed assets
(88,241)
(2,547)
Amortisation of intangible assets
4,817,441
4,639,696
Operating lease charges
151,950
95,942
THE M&D GREEN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Admin staff
5
3
-
-
Pharmacy managers
56
31
-
-
Pharmacy & support staff
489
415
-
-
Total
550
449
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
11,773,087
8,739,122
-
0
-
0
Social security costs
970,244
784,669
-
-
Pension costs
488,029
357,740
-
0
-
0
13,231,360
9,881,531
-
0
-
0
6
Directors' remuneration
2024
2023
£
£
Company pension contributions to defined contribution schemes
24,000
24,000

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted 2 (2023 - 2).

 

The directors are deemed to be the key management personnel.

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
396
251
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
396
251
THE M&D GREEN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
2,438,737
1,520,628
Other finance costs:
Interest on finance leases and hire purchase contracts
133,265
110,195
Total finance costs
2,572,002
1,630,823
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,321,341
743,362
Adjustments in respect of prior periods
2,209
-
0
Total current tax
1,323,550
743,362
Deferred tax
Origination and reversal of timing differences
(221,004)
147,420
Total tax charge
1,102,546
890,782

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

2024
2023
£
£
Profit/(loss) before taxation
562,640
(948,859)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
140,660
(180,283)
Tax effect of expenses that are not deductible in determining taxable profit
31,914
44,734
Tax effect of income not taxable in determining taxable profit
-
0
(7,121)
Adjustments in respect of prior years
2,209
-
0
Fixed asset differences
1,137,719
919,344
Remeasurement of deferred tax for changes in tax rates
-
0
47,872
Other tax adjustments, reliefs and transfers
(1)
66,229
Deferred tax not recognised
-
0
7
Adjustments to tax charge in respect of previous periods - deferred tax
(209,955)
-
Taxation charge
1,102,546
890,782
THE M&D GREEN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
255,860
298,810
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2023
56,607,523
Additions
500,000
At 31 March 2024
57,107,523
Amortisation and impairment
At 1 April 2023
28,917,752
Amortisation charged for the year
4,817,441
At 31 March 2024
33,735,193
Carrying amount
At 31 March 2024
23,372,330
At 31 March 2023
27,689,771
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023.
THE M&D GREEN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2023
1,310,002
132,326
564,508
4,077,309
692,763
6,776,908
Additions
-
0
-
0
-
0
485,714
236,052
721,766
Disposals
(107,560)
-
0
-
0
-
0
(188,063)
(295,623)
At 31 March 2024
1,202,442
132,326
564,508
4,563,023
740,752
7,203,051
Depreciation and impairment
At 1 April 2023
145,793
4,411
533,132
2,468,709
375,529
3,527,574
Depreciation charged in the year
24,498
5,293
-
0
553,179
104,200
687,170
Eliminated in respect of disposals
(18,834)
-
0
-
0
-
0
(143,768)
(162,602)
At 31 March 2024
151,457
9,704
533,132
3,021,888
335,961
4,052,142
Carrying amount
At 31 March 2024
1,050,985
122,622
31,376
1,541,135
404,791
3,150,909
At 31 March 2023
1,164,209
127,915
31,376
1,608,600
317,234
3,249,334
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Fixtures and fittings
1,203,487
1,195,895
-
0
-
0
Motor vehicles
284,194
210,227
-
0
-
0
1,487,681
1,406,122
-
-
THE M&D GREEN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
41,559,781
41,559,781
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
41,559,781
Carrying amount
At 31 March 2024
41,559,781
At 31 March 2023
41,559,781
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
M&D Green Dispensing Chemist Limited
UK
Ordinary
100.00
W B Penman Limited
UK
Ordinary
100.00
Thomas McLean & Sons Limited
UK
Ordinary
100.00
Great Glen Pharma Limited
UK
Ordinary
100.00
SHC Pharmacy Limited
UK
Ordinary
100.00
Carrick Knowe Pharmacy Limited
UK
Ordinary
100.00
-

During the year to 31 March 2024 Calder Pharmacy Limited and BGR Healthcare Limited were dissolved.

15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
1,727,556
1,568,348
-
0
-
0
THE M&D GREEN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
5,476,726
4,946,664
-
0
-
0
Amounts owed by group undertakings
-
-
-
80,436
Other debtors
1,376,377
864,183
674,304
199,427
Amounts owed by related parties
3,976,995
3,901,995
-
Prepayments and accrued income
146,578
116,789
-
0
-
0
10,976,676
9,829,631
674,304
279,863
17
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Debt instruments measured at amortised cost
10,194,739
9,118,250
674,304
279,863
Measured at amortised cost
40,176,194
41,152,657
30,040,800
29,650,510
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
20
27,998,887
1,510,538
27,998,887
1,352,668
Obligations under finance leases
21
459,128
518,155
-
0
-
0
Trade creditors
7,469,505
6,587,746
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
374,745
-
0
Corporation tax payable
670,614
295,207
-
0
-
0
Other taxation and social security
290,217
237,783
-
-
Other creditors
1,409,078
1,664,527
64,048
1,745
Accruals and deferred income
496,567
88,191
-
0
-
0
38,793,996
10,902,147
28,437,680
1,354,413
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
1,603,120
30,050,572
1,603,120
28,296,097
Obligations under finance leases
21
739,909
732,928
-
0
-
0
2,343,029
30,783,500
1,603,120
28,296,097
THE M&D GREEN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
29,602,007
31,561,110
29,602,007
29,648,765
Payable within one year
27,998,887
1,510,538
27,998,887
1,352,668
Payable after one year
1,603,120
30,050,572
1,603,120
28,296,097

The long-term loans are secured by fixed charges over the properties owned by M&D Dispensing Chemist Limited and by floating charges over all assets owned by each of the group companies.

 

The interest rate on the bank loan is 2.25% per annum over base rate. The bank loan and interest repayments are dependant on movements in the base rate.

 

There is a bond and floating charge and standard securities held by the bank over the group's assets.

 

There is a Unlimited Multilateral Guarantee given by all the group companies.

 

The Group’s borrowing facility which includes a revolving credit facility and a standard bank loan is due for renewal in February 2025 and has thus been included in creditors due within less than one year. The Group is in the process of commencing the refinancing exercise and expects this to be completed by 31 December 2024.

21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
459,128
518,155
-
0
-
0
In two to five years
739,909
732,928
-
0
-
0
1,199,037
1,251,083
-
-

Finance lease payments represent rentals payable by the group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4.5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

THE M&D GREEN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
22
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
367,060
588,064
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
588,064
-
Credit to profit or loss
(221,004)
-
Liability at 31 March 2024
367,060
-
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
488,029
357,740

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1,002
1,002
1,002
1,002
25
Reserves
Share premium

The group's share premium is made up of the additional premium paid above par value on the issue of shares.

Equity reserve

The group's profit and loss reserves are made up of accumulated profits retained by the group.

THE M&D GREEN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
26
Contingent Assets

Due to ongoing issues with the NHS computer system, there have been discrepancies in respect of the revenue the NHS are recognising as due to the group and what the group believes should be recognised. The NHS has been attempting to address these system issues and additional sums have been received and recognised by the group in the year as the NHS work towards a resolution. However, the directors believe more monies are due to the group in respect of 2023/24 however are not able to quantify the total due as a result of the errors in information provided by the NHS. Thus, a contingent asset has been disclosed in respect of this sums that are expected to be received by the NHS once they resolve these IT issues.

27
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
378,730
342,015
-
-
Between two and five years
939,535
769,752
-
-
In over five years
1,178,193
821,386
-
-
2,496,458
1,933,153
-
-
28
Related party transactions

Dividends of £63,860 (2023: £106,810) have been paid to the trusts, held on behalf of the directors' children, during the year and are included in dividends.

 

At 31 March 2024, £3,976,995 (2023: £3,901,995) was due from and £118,952 (2023: £420,822) was due to businesses in which the directors have an interest. Management fees were received of £50,000 (2023: £127,500) from a business in which the directors have an interest.

 

During the period, no purchases (2023: £22,236) were made from Community Pharmacy Scotland Limited, a company under common directorship with M&D Green Dispensing Chemist Limited.

29
Controlling party

Ultimate controlling parties are Mr M Green and Mrs D Green by virtue of their 100% shareholding in The M & D Green Group Limited.

THE M&D GREEN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
30
Cash generated from group operations
2024
2023
£
£
Loss for the year after tax
(539,906)
(1,839,641)
Adjustments for:
Taxation charged
1,102,546
890,782
Finance costs
2,572,002
1,630,823
Investment income
(396)
(251)
Gain on disposal of tangible fixed assets
(88,241)
(2,547)
Amortisation and impairment of intangible assets
4,817,441
4,639,696
Depreciation and impairment of tangible fixed assets
687,170
644,754
Movements in working capital:
Increase in stocks
(159,208)
(82,752)
Increase in debtors
(1,094,180)
(1,240,975)
Increase in creditors
1,087,120
787,262
Cash generated from operations
8,384,348
5,427,151
31
Analysis of changes in net debt - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
4,666,389
1,544,221
6,210,610
Borrowings excluding overdrafts
(31,561,110)
1,959,103
(29,602,007)
Obligations under finance leases
(1,251,083)
52,046
(1,199,037)
(28,145,804)
3,555,370
(24,590,434)
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