REGISTERED NUMBER: SC441171 (Scotland) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 29 February 2024 |
for |
Aver Generics Ltd |
REGISTERED NUMBER: SC441171 (Scotland) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 29 February 2024 |
for |
Aver Generics Ltd |
Aver Generics Ltd (Registered number: SC441171) |
Contents of the Consolidated Financial Statements |
for the Year Ended 29 February 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 8 |
Consolidated Income Statement | 12 |
Consolidated Other Comprehensive Income | 13 |
Consolidated Balance Sheet | 14 |
Company Balance Sheet | 16 |
Consolidated Statement of Changes in Equity | 18 |
Company Statement of Changes in Equity | 19 |
Consolidated Cash Flow Statement | 20 |
Notes to the Consolidated Cash Flow Statement | 21 |
Notes to the Consolidated Financial Statements | 23 |
Aver Generics Ltd |
Company Information |
for the Year Ended 29 February 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
T/A Accountants Plus |
Statutory Auditor |
Unit 1 Cadzow Park |
82 Muir Street |
Hamilton |
ML3 6BJ |
Aver Generics Ltd (Registered number: SC441171) |
Group Strategic Report |
for the Year Ended 29 February 2024 |
The directors present their strategic report of the company and the group for the year ended 29 February 2024. |
Aver Generics Ltd (Registered number: SC441171) |
Group Strategic Report |
for the Year Ended 29 February 2024 |
REVIEW OF BUSINESS |
The past year has been transformative for Aver Generics, marked by significant achievements that underscore our commitment to growth, operational excellence, and resilience. We proudly attained accreditation to the Scottish Real Living Wage, reinforcing our dedication to creating a workplace that prioritises employee well-being. Celebrating our 10th anniversary in June 2023, we received an Early Day Motion in Parliament, acknowledging our impact and contributions to the industry. |
We further strengthened our executive team by adding a Head of Technology to drive data analysis and technological advancements, as well as appointing a Chief Financial Officer, who will join in Q4 2024, to enhance our financial strategies and risk management. These changes underscore our commitment to robust leadership, positioning us for sustained progress. |
As a wholesale distributor within the pharmaceutical sector, Aver Generics recognises the critical importance of adhering to MHRA standards in all aspects of our operations. We have invested extensively in a fully owned, temperature-controlled fleet that ensures safe storage and transport for sensitive pharmaceutical products. Additionally, our warehouse facilities are equipped with advanced temperature control and monitoring systems to uphold compliance with regulatory standards. Our continuous investments in infrastructure, technology, and staff training reinforce our commitment to quality, especially as we prepare for the MHRA regulatory updates under the Windsor Framework, due to come into effect in January 2025, which will change shipping requirements to Northern Ireland. |
Our ethos as a family-run business is rooted in being "local and reliable," a value that permeates every aspect of our operations. This approach has fostered strong, long-term partnerships with independent community pharmacies, setting us apart in a competitive market. The development of our tailored ordering system for pharmacies, aligns with our long-term vision of supporting independent pharmacies with the tools they need to thrive amidst industry volatility. We remain adaptable to sector challenges, including ongoing shortages and changes in NHS contracts in Scotland and England, ensuring that Aver Generics continues to lead in pharmaceutical distribution. |
Business Operations |
Aver Generics has continued to strengthen its operational capacity with strategic investments in infrastructure. This includes an expanded temperature-controlled fleet and significant advancements in IT infrastructure, which support our operational resilience. Through our electronic ordering system, alongside our investments in data analytics, reporting capabilities, and automation, we are better positioned to respond to market demands and enhance efficiency. |
Competition and Consumer Trends |
Following the sale of Lloyds pharmacies in Scotland to independent community pharmacies, we have actively explored new growth opportunities. Our renewed focus on NHS contracts, systematic collection of customer feedback, and expansion of electronic ordering systems reflects our commitment to adapting to consumer needs, positioning us to better serve our clients. |
Health and Safety |
Our commitment to health and safety remains robust. Ongoing reviews of first-aid and mental health resources ensure we provide comprehensive support for employee well-being. We have also added electric vehicles for senior staff as part of our broader commitment to both safety and environmental responsibility. |
Environmental Matters |
Aver Generics Ltd (Registered number: SC441171) |
Group Strategic Report |
for the Year Ended 29 February 2024 |
In our ongoing sustainability efforts, Aver Generics has expanded its electric vehicle fleet for staff and initiated a review of warehouse operations to identify sustainable packaging solutions. These initiatives underscore our commitment to reducing our environmental footprint and operating responsibly. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Competitive Landscape |
Operating in a competitive pharmaceutical wholesale market, Aver Generics differentiates itself through a broad portfolio of competitively priced products, high-quality standards, and a robust supply chain. We proactively manage this risk through careful pricing strategies and by maintaining strong value-added services that set us apart. |
Financial Risks |
Aver Generics manages credit, liquidity, and cash flow risks with the support of retained earnings and independent credit management facility companies, which provide guidance on credit risk. The upcoming addition of a CFO will further reinforce our financial risk management strategies. |
Technology and Data Security |
With the addition of a Head of Technology, our focus on IT infrastructure and data security has intensified. Leveraging advanced systems and best practices, we are well-positioned to navigate technological risks and safeguard our data assets. |
Supply Chain and Regulatory Compliance |
As a regulated entity in the pharmaceutical sector, maintaining compliance with MHRA standards is essential. We remain engaged with regulatory bodies to ensure full alignment with the Windsor Framework's January 2025 requirements for shipping to Northern Ireland. Additionally, we continue to monitor and adapt to changes in dispensing practices, including the evolving hub-and-spoke model, leveraging our technological agility to meet industry shifts. |
SECTION 172(1) STATEMENT |
Aver Generics affirms that its activities over the period have been conducted in good faith, taking into account the interests of employees, customers, and suppliers. Our commitment to the Scottish Real Living Wage, responsible colleague remuneration, and support for local charities and foundations exemplifies our dedication to these principles. |
ENVIRONMENTAL AND SOCIAL RESPONSIBILITY |
Our environmental strategy includes the integration of electric vehicles within our fleet and targeted waste reduction in our warehouse operations. These initiatives reflect our commitment to sustainability and social responsibility. |
Aver Generics Ltd (Registered number: SC441171) |
Group Strategic Report |
for the Year Ended 29 February 2024 |
EMPLOYEE WELLBEING AND GROWTH |
Employee well-being remains a core priority, demonstrated by our Scottish Real Living Wage accreditation and our commitment to high standards of health and safety. These initiatives reflect our dedication to our workforce and position us as a responsible employer. |
ON BEHALF OF THE BOARD: |
Aver Generics Ltd (Registered number: SC441171) |
Report of the Directors |
for the Year Ended 29 February 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 29 February 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of wholesale of pharmaceutical goods and pharmaceutical retail. |
DIVIDENDS |
No interim dividend was paid during the year. The directors recommend a final dividend of £1.13 per share. |
The total distribution of dividends for the year ended 29 February 2024 will be £ 300,000 . |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 March 2023 to the date of this report. |
FINANCIAL INSTRUMENTS |
Aver Generics utilises various financial instruments, including bank balances, trade debtors, and trade creditors, managed through rigorous internal controls. This oversight ensures both operational stability and preparedness for growth opportunities. |
POLITICAL DONATIONS AND EXPENDITURE |
Of the donations made in the period to 29th February 2024, none of these were political. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
Aver Generics Ltd (Registered number: SC441171) |
Report of the Directors |
for the Year Ended 29 February 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Accountants Plus (Hamilton) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Aver Generics Ltd |
Opinion |
We have audited the financial statements of Aver Generics Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 29 February 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
_ |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 29 February 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 parent 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. |
Report of the Independent Auditors to the Members of |
Aver Generics Ltd |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages six and seven, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Aver Generics Ltd |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. |
The key factors impacting the detection of irregularities are the inherent difficulty in detecting irregularities, the effectiveness of the group's controls and the nature, timing and extent of the audit procedures performed. |
We note that it can be harder to detect irregularities arising due to fraud as they may involve deliberate concealment or collusion. We focused on laws and regulations that could give rise to a material misstatement in the financial statements Including, but not limited to, the Companies Act 2006 and significant regulations relating to the sector in which the group operates. |
Our procedures in relation to fraud and irregularities included but were not limited to: |
-Inquiries of management whether they have knowledge of any actual, suspected or alleged fraud. |
- Gaining an understanding of the legal and regulatory framework through discussion with management and identifying how the entity ensures compliance through a review of systems. Assessing the collective ability of the audit team to identify or recognize non-compliance with laws and regulations. We identified the following as significant laws and regulations for this company - MHRA wholesale dealer license and GPhC pharmacy regulations.. |
-Gaining an understanding of the internal controls established to mitigate risk related to fraud. |
- Making an assessment of the susceptibility of the group's financial statements to material misstatement. |
- Carrying out a review of accounting systems and procedure and making an assessment on the effectiveness of its control environment. |
-Identifying the principal risks where fraud could take place eg posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates and significant one-off or unusual transaction. Discussion of these matters by the audit team. |
-Addressing the risk of fraud through management override of controls by performing journal entry testing. |
- Review of board minutes and relevant correspondence with regulators and legal advisors. |
- Agreement of the financial statement disclosures to underlying supporting documentation |
The primary responsibility for the prevention and detection of irregularities including fraud rests with both those charged with governance and management. |
Report of the Independent Auditors to the Members of |
Aver Generics Ltd |
Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK) |
In particular, the more removed from the financial transactions, the less likely it is that we would become aware of non-compliance with laws and regulations. |
As a result of our procedures, we did not identify any key audit matters relating to irregularities. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
T/A Accountants Plus |
Statutory Auditor |
Unit 1 Cadzow Park |
82 Muir Street |
Hamilton |
ML3 6BJ |
Aver Generics Ltd (Registered number: SC441171) |
Consolidated Income Statement |
for the Year Ended 29 February 2024 |
29.2.24 | 28.2.23 |
Notes | £ | £ | £ | £ |
TURNOVER | 31,589,019 | 21,113,199 |
Cost of sales | 25,135,966 | 16,204,925 |
GROSS PROFIT | 6,453,053 | 4,908,274 |
Distribution costs | 144,198 | 122,475 |
Administrative expenses | 4,413,322 | 2,986,275 |
4,557,520 | 3,108,750 |
1,895,533 | 1,799,524 |
Other operating income | 3,133 | 2,246 |
OPERATING PROFIT | 4 | 1,898,666 | 1,801,770 |
Interest payable and similar expenses |
5 |
100,033 |
3,113 |
PROFIT BEFORE TAXATION | 1,798,633 | 1,798,657 |
Tax on profit | 6 | 496,440 | 381,849 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,245,514 | 1,416,808 |
Non-controlling interests | 56,679 | - |
1,302,193 | 1,416,808 |
Aver Generics Ltd (Registered number: SC441171) |
Consolidated Other Comprehensive Income |
for the Year Ended 29 February 2024 |
29.2.24 | 28.2.23 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,302,193 | 1,416,808 |
OTHER COMPREHENSIVE INCOME |
Purchase of own shares | (254,988 | ) | - |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(254,988 |
) |
- |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,047,205 |
1,416,808 |
Total comprehensive income attributable to: |
Owners of the parent | 990,526 | 1,416,808 |
Non-controlling interests | 56,679 | - |
1,047,205 | 1,416,808 |
Aver Generics Ltd (Registered number: SC441171) |
Consolidated Balance Sheet |
29 February 2024 |
29.2.24 | 28.2.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 2,336,629 | - |
Tangible assets | 10 | 527,102 | 471,802 |
Investments | 11 | - | - |
2,863,731 | 471,802 |
CURRENT ASSETS |
Stocks | 12 | 1,741,806 | 2,220,539 |
Debtors | 13 | 5,449,272 | 4,116,007 |
Cash at bank and in hand | 545,414 | 47,496 |
7,736,492 | 6,384,042 |
CREDITORS |
Amounts falling due within one year | 14 | 6,095,693 | 4,909,809 |
NET CURRENT ASSETS | 1,640,799 | 1,474,233 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,504,530 |
1,946,035 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(1,688,927 |
) |
(57,559 |
) |
PROVISIONS FOR LIABILITIES | 19 | (163,255 | ) | (149,430 | ) |
NET ASSETS | 2,652,348 | 1,739,046 |
Aver Generics Ltd (Registered number: SC441171) |
Consolidated Balance Sheet - continued |
29 February 2024 |
29.2.24 | 28.2.23 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 20 | 266,117 | 300,000 |
Share premium | 21 | 199,980 | - |
Capital redemption reserve | 21 | 33,908 | - |
Retained earnings | 21 | 2,095,664 | 1,439,046 |
SHAREHOLDERS' FUNDS | 2,595,669 | 1,739,046 |
NON-CONTROLLING INTERESTS | 22 | 56,679 | - |
TOTAL EQUITY | 2,652,348 | 1,739,046 |
The financial statements were approved by the Board of Directors and authorised for issue on 22 November 2024 and were signed on its behalf by: |
C McDowall - Director |
Aver Generics Ltd (Registered number: SC441171) |
Company Balance Sheet |
29 February 2024 |
29.2.24 | 28.2.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
Aver Generics Ltd (Registered number: SC441171) |
Company Balance Sheet - continued |
29 February 2024 |
29.2.24 | 28.2.23 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Capital redemption reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year |
1,205,849 |
1,416,808 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Aver Generics Ltd (Registered number: SC441171) |
Consolidated Statement of Changes in Equity |
for the Year Ended 29 February 2024 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 March 2022 | 300,000 | 454,376 | - |
Changes in equity |
Dividends | - | (432,138 | ) | - |
Total comprehensive income | - | 1,416,808 | - |
Balance at 28 February 2023 | 300,000 | 1,439,046 | - |
Changes in equity |
Issue of share capital | (33,883 | ) | - | 199,980 |
Dividends | - | (300,000 | ) | - |
Total comprehensive income | - | 956,618 | - |
Balance at 29 February 2024 | 266,117 | 2,095,664 | 199,980 |
Capital |
redemption | Non-controlling | Total |
reserve | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1 March 2022 | - | 754,376 | - | 754,376 |
Changes in equity |
Dividends | - | (432,138 | ) | - | (432,138 | ) |
Total comprehensive income | - | 1,416,808 | - | 1,416,808 |
Balance at 28 February 2023 | - | 1,739,046 | - | 1,739,046 |
Changes in equity |
Issue of share capital | - | 166,097 | - | 166,097 |
Dividends | - | (300,000 | ) | - | (300,000 | ) |
Total comprehensive income | 33,908 | 990,526 | 56,679 | 1,047,205 |
Balance at 29 February 2024 | 33,908 | 2,595,669 | 56,679 | 2,652,348 |
Aver Generics Ltd (Registered number: SC441171) |
Company Statement of Changes in Equity |
for the Year Ended 29 February 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 March 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 28 February 2023 |
Changes in equity |
Issue of share capital | ( |
) | - | - | ( |
) |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 29 February 2024 |
Aver Generics Ltd (Registered number: SC441171) |
Consolidated Cash Flow Statement |
for the Year Ended 29 February 2024 |
29.2.24 | 28.2.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,132,898 | (87,688 | ) |
Interest paid | (93,460 | ) | - |
Interest element of hire purchase payments paid |
(6,573 |
) |
(3,113 |
) |
Tax paid | (239,109 | ) | (124,249 | ) |
Net cash from operating activities | 1,793,756 | (215,050 | ) |
Cash flows from investing activities |
Purchase of intangible fixed assets | (2,496,118 | ) | - |
Purchase of tangible fixed assets | (239,372 | ) | (604,923 | ) |
Sale of tangible fixed assets | - | 4,500 |
Net cash from investing activities | (2,735,490 | ) | (600,423 | ) |
Cash flows from financing activities |
New loans in year | 1,837,358 | - |
Capital repayments in year | 10,484 | 97,825 |
Amount introduced by directors | - | 637 |
Amount withdrawn by directors | (925 | ) | (101 | ) |
Share issue | 25 | - |
Share buyback | (288,896 | ) | - |
Share premium | 199,980 | - |
Equity dividends paid | (300,000 | ) | (432,138 | ) |
Net cash from financing activities | 1,458,026 | (333,777 | ) |
Increase/(decrease) in cash and cash equivalents | 516,292 | (1,149,250 | ) |
Cash and cash equivalents at beginning of year |
2 |
(1,867,800 |
) |
(718,550 |
) |
Cash and cash equivalents at end of year |
2 |
(1,351,508 |
) |
(1,867,800 |
) |
Aver Generics Ltd (Registered number: SC441171) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 29 February 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
29.2.24 | 28.2.23 |
£ | £ |
Profit before taxation | 1,798,633 | 1,798,657 |
Depreciation charges | 343,561 | 162,266 |
Profit on disposal of fixed assets | - | (565 | ) |
Finance costs | 100,033 | 3,113 |
2,242,227 | 1,963,471 |
Decrease/(increase) in stocks | 478,733 | (1,090,238 | ) |
Increase in trade and other debtors | (1,333,265 | ) | (1,484,465 | ) |
Increase in trade and other creditors | 745,203 | 523,544 |
Cash generated from operations | 2,132,898 | (87,688 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 29 February 2024 |
29.2.24 | 1.3.23 |
£ | £ |
Cash and cash equivalents | 545,414 | 47,496 |
Bank overdrafts | (1,896,922 | ) | (1,915,296 | ) |
(1,351,508 | ) | (1,867,800 | ) |
Year ended 28 February 2023 |
28.2.23 | 1.3.22 |
£ | £ |
Cash and cash equivalents | 47,496 | 82,107 |
Bank overdrafts | (1,915,296 | ) | (800,657 | ) |
(1,867,800 | ) | (718,550 | ) |
Aver Generics Ltd (Registered number: SC441171) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 29 February 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.3.23 | Cash flow | At 29.2.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 47,496 | 497,918 | 545,414 |
Bank overdrafts | (1,915,296 | ) | 18,374 | (1,896,922 | ) |
(1,867,800 | ) | 516,292 | (1,351,508 | ) |
Debt |
Finance leases | (97,825 | ) | (10,484 | ) | (108,309 | ) |
Debts falling due within 1 year | - | (105,990 | ) | (105,990 | ) |
Debts falling due after 1 year | - | (1,631,368 | ) | (1,631,368 | ) |
(97,825 | ) | (1,747,842 | ) | (1,845,667 | ) |
Total | (1,965,625 | ) | (1,231,550 | ) | (3,197,175 | ) |
Aver Generics Ltd (Registered number: SC441171) |
Notes to the Consolidated Financial Statements |
for the Year Ended 29 February 2024 |
1. | STATUTORY INFORMATION |
Aver Generics Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Aver Generics Ltd (Registered number: SC441171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Creditors |
Short term creditors are measured at transaction price, less any impairment. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Cash and bank balances |
Cash and bank balances are measured at the transaction price. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Aver Generics Ltd (Registered number: SC441171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2024 |
3. | EMPLOYEES AND DIRECTORS |
29.2.24 | 28.2.23 |
£ | £ |
Wages and salaries | 2,545,121 | 1,754,947 |
Social security costs | 232,873 | 162,461 |
Other pension costs | 32,994 | 16,420 |
2,810,988 | 1,933,828 |
The average number of employees during the year was as follows: |
29.2.24 | 28.2.23 |
Warehouse and operational | 72 | 55 |
Pharmacy | 12 | - |
The average number of employees by undertakings that were proportionately consolidated during the year was 5 (2023 - NIL ) . |
29.2.24 | 28.2.23 |
£ | £ |
Directors' remuneration | 101,387 | 99,140 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
29.2.24 | 28.2.23 |
£ | £ |
Hire of plant and machinery | 15,270 | 88,722 |
Other operating leases | 113,682 | 55,474 |
Depreciation - owned assets | 184,072 | 162,265 |
Profit on disposal of fixed assets | - | (565 | ) |
Goodwill amortisation | 159,489 | - |
Auditors' remuneration | 20,285 | 9,984 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
29.2.24 | 28.2.23 |
£ | £ |
Bank loan interest | 93,545 | - |
Tax repayment supplement | (85 | ) | - |
Hire purchase | 6,573 | 3,113 |
100,033 | 3,113 |
Aver Generics Ltd (Registered number: SC441171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2024 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
29.2.24 | 28.2.23 |
£ | £ |
Current tax: |
UK corporation tax | 482,615 | 239,109 |
Deferred tax | 13,825 | 142,740 |
Tax on profit | 496,440 | 381,849 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
29.2.24 | 28.2.23 |
£ | £ |
Profit before tax | 1,798,633 | 1,798,657 |
Profit multiplied by the standard rate of corporation tax in the UK of 24.532 % (2023 - 19 %) |
441,241 |
341,745 |
Effects of: |
Expenses not deductible for tax purposes | 15,996 | 11,453 |
Income not taxable for tax purposes | - | (107 | ) |
Capital allowances in excess of depreciation | - | (113,982 | ) |
Depreciation in excess of capital allowances | 25,378 | - |
Movement in deferred tax | 13,825 | 142,740 |
Total tax charge | 496,440 | 381,849 |
Tax effects relating to effects of other comprehensive | income |
29.2.24 |
Gross | Tax | Net |
£ | £ | £ |
Purchase of own shares | (254,988 | ) | - | (254,988 | ) |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
Aver Generics Ltd (Registered number: SC441171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2024 |
8. | DIVIDENDS |
29.2.24 | 28.2.23 |
£ | £ |
Ordinary shares of £1 each |
Final | 300,000 | 432,138 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
Additions | 2,496,118 |
At 29 February 2024 | 2,496,118 |
AMORTISATION |
Amortisation for year | 159,489 |
At 29 February 2024 | 159,489 |
NET BOOK VALUE |
At 29 February 2024 | 2,336,629 |
During the year, the company acquired shares in 2 companies - Howard Pharmacy (Williamwood HC) Ltd and Howard Pharmacy ( La Porte Precinct) Ltd. The former was dormant during this period. |
The latter company acquired a retail pharmacy business as a going concern. |
In addition, Aver Generics Ltd acquired a retail pharmacy as a going concern. The goodwill recorded relates to the purchase of these businesses. |
The companies also acquired stock and fixed assets in these businesses. |
These were accounted for using the acquisition method of accounting. |
Company |
Goodwill |
£ |
COST |
Additions |
At 29 February 2024 |
AMORTISATION |
Amortisation for year |
At 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
Aver Generics Ltd (Registered number: SC441171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2024 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 March 2023 | 21,007 | 185,511 | 544,690 | 751,208 |
Additions | 675 | 120,044 | 118,653 | 239,372 |
At 29 February 2024 | 21,682 | 305,555 | 663,343 | 990,580 |
DEPRECIATION |
At 1 March 2023 | 12,660 | 130,573 | 136,173 | 279,406 |
Charge for year | 1,805 | 50,475 | 131,792 | 184,072 |
At 29 February 2024 | 14,465 | 181,048 | 267,965 | 463,478 |
NET BOOK VALUE |
At 29 February 2024 | 7,217 | 124,507 | 395,378 | 527,102 |
At 28 February 2023 | 8,347 | 54,938 | 408,517 | 471,802 |
Company |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 March 2023 |
Additions |
At 29 February 2024 |
DEPRECIATION |
At 1 March 2023 |
Charge for year |
At 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
Aver Generics Ltd (Registered number: SC441171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2024 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
Additions |
At 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: In United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
Registered office: In United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
29.2.24 |
£ |
Aggregate capital and reserves |
12. | STOCKS |
Group | Company |
29.2.24 | 28.2.23 | 29.2.24 | 28.2.23 |
£ | £ | £ | £ |
Stocks | 79,729 | - |
Finished goods | 1,662,077 | 2,220,539 |
1,741,806 | 2,220,539 |
Aver Generics Ltd (Registered number: SC441171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2024 |
13. | DEBTORS |
Group | Company |
29.2.24 | 28.2.23 | 29.2.24 | 28.2.23 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 5,141,902 | 3,990,251 |
Prepayments | 307,370 | 125,756 |
5,449,272 | 4,116,007 |
Amounts falling due after more than | one year: |
Amounts owed by group undertakings | - | - |
Aggregate amounts | 5,449,272 | 4,116,007 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
29.2.24 | 28.2.23 | 29.2.24 | 28.2.23 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 2,002,912 |
1,915,296 |
Hire purchase contracts (see note 17) | 50,750 |
40,266 |
Trade creditors | 2,944,834 | 2,325,251 |
Amounts owed to participating interests | 100,000 | - | - | - |
Tax | 482,615 | 239,109 |
Social security and other taxes | 69,062 | 57,262 |
Wages payable | (4,251 | ) | (3,954 | ) | (4,251 | ) | (3,954 | ) |
Pensions payable | 9,966 | 4,302 | 8,891 | 4,302 |
VAT | 317,485 | 264,697 | 359,154 | 264,697 |
Directors' current accounts | 37 | 962 | 37 | 962 |
Accrued expenses | 122,283 | 66,618 |
6,095,693 | 4,909,809 |
Aver Generics Ltd (Registered number: SC441171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2024 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
29.2.24 | 28.2.23 | 29.2.24 | 28.2.23 |
£ | £ | £ | £ |
Bank loans (see note 16) | 1,631,368 | - |
Hire purchase contracts (see note 17) | 57,559 |
57,559 |
Amounts owed to group undertakings | - | - | 1 | - |
1,688,927 | 57,559 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
29.2.24 | 28.2.23 | 29.2.24 | 28.2.23 |
£ | £ | £ | £ |
Amounts falling due within one year | or on demand: |
Bank overdrafts | 1,896,922 | 1,915,296 |
Bank loans | 105,990 | - |
2,002,912 | 1,915,296 |
Amounts falling due between one | and two years: |
Bank loans - 1-2 years | 110,183 | - |
Amounts falling due between two | and five years: |
Bank loans - 2-5 years | 359,575 | - |
Amounts falling due in more than | five years: |
Repayable otherwise than by | instalments |
Bank loans more 5 yrs non-inst | 690,000 | - | 690,000 | - |
Repayable by instalments |
Bank loans more 5 yr by instal | 471,610 | - | 82,914 | - |
Aver Generics Ltd (Registered number: SC441171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2024 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase | contracts |
29.2.24 | 28.2.23 |
£ | £ |
Net obligations repayable: |
Within one year | 50,750 | 40,266 |
Between one and five years | 57,559 | 57,559 |
108,309 | 97,825 |
Company |
Hire purchase | contracts |
29.2.24 | 28.2.23 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Group |
Non-cancellable | operating leases |
29.2.24 | 28.2.23 |
£ | £ |
Within one year | 133,127 | - |
Between one and five years | 532,507 | - |
In more than five years | 538,624 | - |
1,204,258 | - |
The above figures relate to property rental agreements and are based on the lease end date. Two of the lease agreements have break dates and should the agreements end at the break dates, the commitment would be substantially lower. |
Aver Generics Ltd (Registered number: SC441171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2024 |
17. | LEASING AGREEMENTS - continued |
Company |
Non-cancellable | operating leases |
29.2.24 | 28.2.23 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
29.2.24 | 28.2.23 | 29.2.24 | 28.2.23 |
£ | £ | £ | £ |
Bank overdraft | - | - |
Bank loans | 1,737,358 | - |
1,737,358 | - |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
29.2.24 | 28.2.23 | 29.2.24 | 28.2.23 |
£ | £ | £ | £ |
Deferred tax | 163,255 | 149,430 | 154,471 | 149,430 |
Group |
Deferred |
tax |
£ |
Balance at 1 March 2023 | 149,430 |
Provided during year | 13,825 |
Balance at 29 February 2024 | 163,255 |
Aver Generics Ltd (Registered number: SC441171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2024 |
19. | PROVISIONS FOR LIABILITIES - continued |
Company |
Deferred |
tax |
£ |
Balance at 1 March 2023 |
Provided during year |
Balance at 29 February 2024 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 29.2.24 | 28.2.23 |
value: | £ | £ |
Ordinary | £1 | 266,117 | 300,000 |
21. | RESERVES |
Group |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 March 2023 | 1,439,046 | - | - | 1,439,046 |
Profit for the year | 1,245,514 | 1,245,514 |
Dividends | (300,000 | ) | (300,000 | ) |
Purchase of own shares | (288,896 | ) | - | 33,908 | (254,988 | ) |
Cash share issue | - | 199,980 | - | 199,980 |
At 29 February 2024 | 2,095,664 | 199,980 | 33,908 | 2,329,552 |
Company |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 March 2023 | 1,439,046 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Purchase of own shares | (288,896 | ) | 33,908 | (254,988 | ) |
At 29 February 2024 | 2,089,907 |
Aver Generics Ltd (Registered number: SC441171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 29 February 2024 |
22. | NON-CONTROLLING INTERESTS |
The shares in Howard Pharmacy ( La Porte Precinct) Ltd are owned 75% by Aver Generics Ltd and 25% by other shareholders. |
23. | POST BALANCE SHEET EVENTS |
During the financial year, the company purchased the shares of one of the directors. The amount to be paid will total £511,200 and paid from revenue reserves. There shares are being bought in 3 instalments - 33,908 shares were purchased during the year with the agreement to purchase a further 26,092 shares in equal amounts over the following 2 years. |
In addition, the company diversified its operations through the acquisition of Retail Pharmacies one of which was operated during the year as a division of Aver Generics Ltd. Subsequent to the year end, this business has been transferred as a going concern to a subsidiary company. |