Company registration number SC361420 (Scotland)
WEB PHARMACY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
WEB PHARMACY LIMITED
COMPANY INFORMATION
Directors
Mr A Cruickshank
Mr N Wicks
Company number
SC361420
Registered office
Unit 79-81
Bandeath Industrial Estate
Throsk
Stirling
FK7 7NP
Auditor
Thomson Cooper
3 Castle Court
Carnegie Campus
Dunfermline
Fife
KY11 8PB
Bankers
Bank of Scotland
167-201 Argyle Street
Glasgow
G2 8BU
Solicitors
Aberdein Considine
23 Port Street
Stirling
FK6 2EJ
WEB PHARMACY LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Balance Sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
WEB PHARMACY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 1 -
The directors present the strategic report for the year ended 28 February 2024.
Fair review of the business
This year has proved to be another strong year of trading as shown in the financial results reported. Turnover has continued to improve during the year.
This year has shown improved margins which are attributed to maintaining the core business and the effective execution of a buying strategy.
Since the year end the company has continued to grow.
Principal risks and uncertainties
The directors are ultimately responsible for the system of internal controls, which cover all aspects of the business, and for reviewing its effectiveness. However, any such system is designed to manage, rather than eliminate, the risk of failure to achieve the company's objectives. Therefore any system is only able to provide reasonable assurance, and not absolute assurance against material misstatement or loss. The directors regularly review the risks to which the company is exposed, as well as the operation and effectiveness of the system of internal controls. This is an ongoing process, involving the identification, evaluation and management of significant risks faced by the company.
Risks are assessed on a regular basis across all areas but, in particular, health and safety, information flow, asset protection and regulatory requirements.
Key performance indicators
The key financial indicators used by the directors are detailed as follows:-
The directors also use a number of monthly non-financial metrics based around the NHS service provision to provide insight and assist with decision making within the company.
Mr N Wicks
Director
22 November 2024
WEB PHARMACY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 2 -
The directors present their annual report and financial statements for the year ended 28 February 2024.
Principal activities
The principal activity of the company continued to be that of dispensing chemist.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr A Cruickshank
Mr N Wicks
Results and dividends
The results for the year are set out on page 6.
No ordinary dividends were paid, The directors do not recommend payment of a final dividend.
Auditor
In accordance with the company's articles, a resolution proposing that Thomson Cooper be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
WEB PHARMACY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 3 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr N Wicks
Director
22 November 2024
WEB PHARMACY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WEB PHARMACY LIMITED
- 4 -
Opinion
We have audited the financial statements of Web Pharmacy Limited (the 'company') for the year ended 28 February 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 28 February 2024 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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 information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
WEB PHARMACY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WEB PHARMACY LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was capable of detecting irregularities, including fraud
We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: existence and timing of recognition of income, posting of unusual journals along with complex transactions. We discussed these risks with management, designed audit procedures to test the timing and existence of revenue, tested a sample of journals to confirm they were appropriate and reviewed areas of judgement for indicators of management bias to address these risks.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the officers and other management (as required by the auditing standards).
We reviewed the laws and regulations in areas that directly affect the financial statements including financial and taxation legislation and considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
With the exception of any known or possible non-compliance with relevant and significant laws and regulations, and as required by the auditing standards, our work in respect of these was limited to enquiry of the officers and management of the company.
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
WEB PHARMACY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WEB PHARMACY LIMITED
- 6 -
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
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.
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.
Sharon Collins (Senior Statutory Auditor)
For and on behalf of Thomson Cooper, Statutory Auditors
Dunfermline
22 November 2024
WEB PHARMACY LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
2
13,656,983
12,020,392
Cost of sales
(8,840,084)
(7,876,050)
Gross profit
4,816,899
4,144,342
Administrative expenses
(4,788,460)
(4,032,721)
Other operating income
218,629
232,346
Operating profit
3
247,068
343,967
Interest receivable and similar income
5
588
153,543
Interest payable and similar expenses
6
(352,364)
(298,098)
Fair value adjustment on investment properties
7
70,000
-
(Loss)/profit before taxation
(34,708)
199,412
Tax on (loss)/profit
8
(184,200)
(160,182)
(Loss)/profit for the financial year
(218,908)
39,230
The profit and loss account has been prepared on the basis that all operations are continuing operations.
WEB PHARMACY LIMITED
BALANCE SHEET
AS AT 28 FEBRUARY 2024
28 February 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
9
3,573,172
3,568,798
Other intangible assets
9
1,079
1,079
Total intangible assets
3,574,251
3,569,877
Tangible assets
10
1,673,186
1,772,166
Investment properties
11
1,964,999
1,894,999
7,212,436
7,237,042
Current assets
Stocks
12
635,937
614,212
Debtors
13
1,496,654
1,172,805
Cash at bank and in hand
810,311
1,236,728
2,942,902
3,023,745
Creditors: amounts falling due within one year
14
(3,506,818)
(2,782,342)
Net current (liabilities)/assets
(563,916)
241,403
Total assets less current liabilities
6,648,520
7,478,445
Creditors: amounts falling due after more than one year
15
(5,462,408)
(6,059,281)
Provisions for liabilities
(24,092)
(38,236)
Net assets
1,162,020
1,380,928
Capital and reserves
Called up share capital
19
120
120
Profit and loss reserves
1,161,900
1,380,808
Total equity
1,162,020
1,380,928
The financial statements were approved by the board of directors and authorised for issue on 22 November 2024 and are signed on its behalf by:
Mr N Wicks
Director
Company Registration No. SC361420
WEB PHARMACY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 March 2022
120
1,341,578
1,341,698
Year ended 28 February 2023:
Profit and total comprehensive income
-
39,230
39,230
Balance at 28 February 2023
120
1,380,808
1,380,928
Year ended 28 February 2024:
Loss and total comprehensive income
-
(218,908)
(218,908)
Balance at 28 February 2024
120
1,161,900
1,162,020
WEB PHARMACY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
1,452,987
1,087,875
Interest paid
(352,364)
(298,098)
Income taxes paid
(157,746)
(169,557)
Net cash inflow from operating activities
942,877
620,220
Investing activities
Purchase of business
(710,425)
Purchase of intangible assets
(1,202,462)
Purchase of tangible fixed assets
(30,060)
(106,583)
Proceeds from disposal of subsidiaries
1,202,462
Interest received
588
Dividends received
153,543
Net cash (used in)/generated from investing activities
(739,897)
46,960
Financing activities
Repayment of bank loans
(629,397)
(600,175)
Net cash used in financing activities
(629,397)
(600,175)
Net (decrease)/increase in cash and cash equivalents
(426,417)
67,005
Cash and cash equivalents at beginning of year
1,236,728
1,169,723
Cash and cash equivalents at end of year
810,311
1,236,728
WEB PHARMACY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 11 -
1
Accounting policies
Company information
Web Pharmacy Limited is a private company limited by shares incorporated in Scotland. The registered office is Unit 79-81, Bandeath Industrial Estate, Throsk, Stirling, FK7 7NP.
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, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Right Medicine Pharmacy Limited. These consolidated financial statements are available from its registered office, 79-81 Bandeath Industrial Estate, Throsk, Stirling, FK7 7NP.
1.2
Going concern
At the time of approving the financial statements, the directors expect that the truecompany has adequate resources to continue in operational existence for a period of not less than twelve months. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
WEB PHARMACY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 12 -
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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. Goodwill arising on group reorganisations is amortised over a 20 year period.
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.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
33% Straight Line
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.
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:
Heritable Property
2% straight line
Plant and equipment
33% straight line
Fixtures and fittings
20% straight line
Equipment
33% straight line
Motor vehicles
33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
WEB PHARMACY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 13 -
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
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 at bank and in hand
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 company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
WEB PHARMACY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies 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
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
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 company’s contractual obligations expire or are discharged or cancelled.
WEB PHARMACY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 15 -
1.12
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
WEB PHARMACY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 16 -
2
Turnover
2024
2023
£
£
Turnover analysed by class of business
Sales
13,656,983
12,020,392
3
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
7,916
6,550
Depreciation of owned tangible fixed assets
129,040
130,975
Amortisation of intangible assets
742,012
776,172
Operating lease charges
110,542
74,394
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administrative and pharmacy staff
86
94
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,690,638
2,228,017
Social security costs
183,742
159,504
Pension costs
45,578
37,539
2,919,958
2,425,060
5
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
588
Income from fixed asset investments
Income from shares in group undertakings
153,543
Total income
588
153,543
WEB PHARMACY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 17 -
6
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
256,538
225,003
Other interest on financial liabilities
95,731
72,738
Other interest
95
357
352,364
298,098
7
Amounts written off investments
2024
2023
£
£
Changes in the fair value of investment properties
70,000
-
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
198,121
149,588
Adjustments in respect of prior periods
223
(1,028)
Total current tax
198,344
148,560
Deferred tax
Origination and reversal of timing differences
(14,144)
11,622
Total tax charge
184,200
160,182
WEB PHARMACY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
8
Taxation
(Continued)
- 18 -
The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
(Loss)/profit before taxation
(34,708)
199,412
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(8,677)
37,888
Tax effect of expenses that are not deductible in determining taxable profit
187,489
131,799
Effect of change in corporation tax rate
(3,574)
Permanent capital allowances in excess of depreciation
22,883
9,074
Under/(over) provided in prior years
223
(1,028)
Deferred tax adjustments in respect of prior years
(14,144)
11,622
Dividend income
(29,173)
Taxation charge for the year
184,200
160,182
9
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 March 2023
7,652,065
3,450
7,655,515
Additions
746,386
746,386
At 28 February 2024
8,398,451
3,450
8,401,901
Amortisation and impairment
At 1 March 2023
4,083,267
2,371
4,085,638
Amortisation charged for the year
742,012
742,012
At 28 February 2024
4,825,279
2,371
4,827,650
Carrying amount
At 28 February 2024
3,573,172
1,079
3,574,251
At 28 February 2023
3,568,798
1,079
3,569,877
WEB PHARMACY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 19 -
10
Tangible fixed assets
Heritable Property
Plant and equipment
Fixtures and fittings
Equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2023
1,747,893
29,424
354,276
202,963
88,968
2,423,524
Additions
12,372
17,688
30,060
At 28 February 2024
1,747,893
29,424
366,648
220,651
88,968
2,453,584
Depreciation and impairment
At 1 March 2023
190,558
29,423
205,565
155,643
70,169
651,358
Depreciation charged in the year
34,958
50,955
29,612
13,515
129,040
At 28 February 2024
225,516
29,423
256,520
185,255
83,684
780,398
Carrying amount
At 28 February 2024
1,522,377
1
110,128
35,396
5,284
1,673,186
At 28 February 2023
1,557,335
1
148,711
47,320
18,799
1,772,166
WEB PHARMACY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 20 -
11
Investment property
2024
£
Fair value
At 1 March 2023
1,894,999
Net gains or losses through fair value adjustments
70,000
At 28 February 2024
1,964,999
Investment properties were valued by Christie & Co on 2 February 2024. The directors do not consider there to have been any material change in the value between the date of the valuations and the balance sheet date.
12
Stocks
2024
2023
£
£
Finished goods and goods for resale
635,937
614,212
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,170,658
968,800
Corporation tax recoverable
14,196
Other debtors
183,885
138,026
Prepayments and accrued income
127,915
65,979
1,496,654
1,172,805
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
675,793
708,317
Trade creditors
1,763,293
1,435,763
Amounts owed to group undertakings
428,740
135,166
Corporation tax
126,526
71,732
Other taxation and social security
47,715
33,245
Other creditors
224,333
228,631
Accruals and deferred income
240,418
169,488
3,506,818
2,782,342
The Bank of Scotland Plc holds a legal charge dated 28 October 2014 over all property and undertakings of the company. The Bank of Scotland Plc also holds various standard securities over the heritable property owned by the company.
WEB PHARMACY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 21 -
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
5,322,408
5,919,281
Other creditors
140,000
140,000
5,462,408
6,059,281
Amounts included above which fall due after five years are as follows:
Payable by instalments
2,558,650
2,559,694
16
Loans and overdrafts
2024
2023
£
£
Bank loans
5,998,201
6,627,598
Payable within one year
675,793
708,317
Payable after one year
5,322,408
5,919,281
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
24,092
38,236
2024
Movements in the year:
£
Liability at 1 March 2023
38,236
Credit to profit or loss
(14,144)
Liability at 28 February 2024
24,092
WEB PHARMACY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 22 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
45,578
37,539
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
120
120
120
120
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
11,400
11,400
Between two and five years
18,950
30,350
30,350
41,750
Lessor
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2024
2023
£
£
Within one year
153,508
153,508
Between two and five years
411,208
496,129
In over five years
102,627
187,881
667,343
837,518
21
Related party transactions
Transactions with related parties
The company has taken advantage of the exemption conferred by FRS 102 regarding disclosures between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.
WEB PHARMACY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 23 -
22
Ultimate controlling party
The directors consider the ultimate controlling party throughout the current year to be Right Medicine Pharmacy Limited, a company incorporated in Scotland.
The accounts of Right Medicine Pharmacy Limited are available to the public via Companies House. The registered office of this company is 79 - 81 Bandeath Industrial Estate, Throsk, Stirling, FK7 7NP.
23
Cash generated from operations
2024
2023
£
£
(Loss)/profit for the year after tax
(218,908)
39,230
Adjustments for:
Taxation charged
184,200
160,182
Finance costs
352,364
298,098
Investment income
(588)
(153,543)
Fair value gain on investment properties
(70,000)
Amortisation and impairment of intangible assets
742,012
776,172
Depreciation and impairment of tangible fixed assets
129,040
130,975
Movements in working capital:
Decrease/(increase) in stocks
7,095
(83,774)
(Increase)/decrease in debtors
(309,652)
12,488
Increase/(decrease) in creditors
637,424
(91,953)
Cash generated from operations
1,452,987
1,087,875
24
Analysis of changes in net debt
1 March 2023
Cash flows
28 February 2024
£
£
£
Cash at bank and in hand
1,236,728
(426,417)
810,311
Borrowings excluding overdrafts
(6,627,598)
629,397
(5,998,201)
(5,390,870)
202,980
(5,187,890)
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