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REGISTERED NUMBER: SC498329 (Scotland)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 29 February 2024

for

Simple Online Healthcare Ltd

Simple Online Healthcare Ltd (Registered number: SC498329)






Contents of the Financial Statements
for the Year Ended 29 February 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Statement of Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 17


Simple Online Healthcare Ltd

Company Information
for the Year Ended 29 February 2024







DIRECTORS: A Mohammed
A K Nassar





REGISTERED OFFICE: 77 Dunn Street
Glasgow
G40 3PA





REGISTERED NUMBER: SC498329 (Scotland)





AUDITORS: RA Audit Services Limited
2nd Floor
Grove House
55 Lowlands Road
Harrow
Middlesex
HA1 3AW

Simple Online Healthcare Ltd (Registered number: SC498329)

Strategic Report
for the Year Ended 29 February 2024

The directors present their strategic report for the year ended 29 February 2024.

REVIEW OF BUSINESS
Simple Online Healthcare was established in 2015 as an independent, online pharmacy combining the patient centricity of a community pharmacy with the accessibility and ease of use of a digital experience.

From the beginning in local community pharmacy, Simple Online Healthcare group has grown to now have digital health services in the UK, Australia and Germany. Simple Online Pharmacy in the UK, Simple Online Doctor in Australia, Kapsel in Germany.

The aim of each service is to make healthcare easily, accessible and simple for our patients.

The company currently offers over the counter sales, as well as a private and NHS prescription service to patients in the United Kingdom, and a private prescription service within Germany.

After several periods of year-on-year growth, global supply chain challenges in FY24 contributed to a slight decrease in revenue versus FY23, and the company delivered nearly £17m turnover. The temporary slow down in activity allowed the company to focus on its operational efficiency, and review its strategy. As a result, the directors took the decision to partially exit the NHS market, and disposed of a Scottish bricks and mortar pharmacy, generating a gain on sale of £1.3m which supplemented operating profit of £2m.


Simple Online Healthcare Ltd (Registered number: SC498329)

Strategic Report
for the Year Ended 29 February 2024

PRINCIPAL RISKS AND UNCERTAINTIES
The directors have set out below a number of key risks and uncertainties that could impact future performance:

Commercial risk
The primary business risks and uncertainties affecting the company relate to competition from other digital healthcare providers. In addition, the company operates in a more challenging economic environment characterized by fluctuating consumer spending patterns and unpredictable market conditions.

To mitigate these risks and uncertainties, the company has implemented various strategies, including enhancing its competitive advantage through product differentiation and expanding its online presence and visibility. Management maintains strong relationships with key stakeholders including suppliers and regulatory bodies and closely monitors clinical guidance and market trends.

Liquidity risk
Liquidity risk refers to the potential inability to meet financial obligations as they become due, which could adversely impact the company's ability to fund its operations and meet its short-term obligations. To effectively manage liquidity risk, Management maintains a robust liquidity management framework. This includes closely monitoring cash flow projections, maintaining adequate cash reserves, and regularly reviewing the company's financial position to identify potential liquidity challenges. The company has no debt obligations.

Regulatory compliance risk
The company is regulated by the General Pharmaceutical Council ('GPhC') and follows specific clinical and governance frameworks. The company's pharmacists are registered with the GPhC and maintain a close working relationship to mitigate the risk of non-compliance.

Currency risk
The majority of the company's purchases and sales are denominated in GBP, minimising currency risk.

IT risk
To mitigate IT risk, the company has robust cybersecurity measures and controls, including vulnerability assessments, access controls and data recovery contingencies to ensure business continuity in the event of any disruptions.


Simple Online Healthcare Ltd (Registered number: SC498329)

Strategic Report
for the Year Ended 29 February 2024

KEY PERFORMANCE INDICATORS
The company's key performance indicators for the year ended 28 February 2023 are as follows:



YE 29.02.2024 YE 28.02.2023
£   s £   s
Turnover 16,585 20,896
Gross profit 6,932 6,246
Gross profit margin 41.80% 29.89%
(Loss)/Profit before tax 2,084 (1,341)
Shareholders' equity 179 (405)

The company's key performance indicators were in line with expectations.

ON BEHALF OF THE BOARD:





A Mohammed - Director


29 November 2024

Simple Online Healthcare Ltd (Registered number: SC498329)

Report of the Directors
for the Year Ended 29 February 2024

The directors present their report with the financial statements of the company for the year ended 29 February 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of digital pharmacy and online doctor services.

DIVIDENDS
An interim dividend of 4.16 per share was paid on 6 April 2023. The directors recommend a final dividend of 11.74 per share, making a total of 15.90 per share for the year ended 29 February 2024.

The total distribution of dividends for the year ended 29 February 2024 will be £ 1,901,109 .

No dividends were declared for the year ended 28 February 2023.

FUTURE DEVELOPMENTS
The directors are committed to ensuring the growth and success of the Company. The outlook for FY25 is very positive, and by continuing to invest in operational efficiency, as well as new products and markets, the directors are confident of delivering significant revenue growth and profit.

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.

A Mohammed
A K Nassar

FINANCIAL INSTRUMENTS
Financial instruments
The company's principal financial instruments comprise bank balances, trade debtors, trade creditors, balances due to and from related companies. The main purpose of these instruments is to raise funds for company's operations and to finance company's trading activities.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding.

Trade debtors are managed in respect of credit and cash flow risk by regular monitoring of amounts outstanding.

Trade creditors liquidity risk is managed by ensuring funds are available to meet amounts due within agreed terms.

In respect of loans due to related parties, these are interest-free and repayable on demand. This allows the company to maintain sufficient funds to meet its payment to creditors.


Simple Online Healthcare Ltd (Registered number: SC498329)

Report of the Directors
for the Year Ended 29 February 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, RA Audit Services Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





A Mohammed - Director


29 November 2024

Report of the Independent Auditors to the Members of
Simple Online Healthcare Ltd

Opinion
We have audited the financial statements of Simple Online Healthcare Ltd (the 'company') for the year ended 29 February 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 29 February 2024 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Report of the Independent Auditors to the Members of
Simple Online Healthcare Ltd


Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Simple Online Healthcare 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:

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

The client partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify and recognise non-compliance with applicable laws and regulations.

1) We identified the laws and regulations applicable to the company through discussions with directors, key management personnel and from our commercial knowledge and experience.

2) We focused on specific laws and regulations which we considered may have a direct effect on financial statements or the operations of the company including Companies Act 2006, current taxation legislation, data protection, anti-bribery and money laundering, food safety, employment and health and safety legislation.
3) We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management.
4) Identified laws and regulations were communicated with the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by;
1) Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual suspected and alleged fraud and
2) Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
1) Performed analytical procedures to identify any unusual and unexpected relationships,
2) Tested journal entries to identify unusual transactions,
3) Investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included,but were not limited to:
1) Agreeing financial statements disclosures to underlying supporting documentation.
2) Enquiring of management as to actual and potential litigation and claims and
3) Reviewing correspondence with HMRC, enquiring of management over health and safety.


Report of the Independent Auditors to the Members of
Simple Online Healthcare Ltd

There are inherent limitations in our audit procedures described above. Auditing standards also limit the audit procedures required to identifying non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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




Poonam Madani BFP ACA FCCA (Senior Statutory Auditor)
for and on behalf of RA Audit Services Limited
2nd Floor
Grove House
55 Lowlands Road
Harrow
Middlesex
HA1 3AW

29 November 2024

Simple Online Healthcare Ltd (Registered number: SC498329)

Statement of Comprehensive Income
for the Year Ended 29 February 2024

29.2.24 28.2.23
Notes £    £   

REVENUE 4 16,585,481 20,896,802

Cost of sales 9,652,710 14,650,460
GROSS PROFIT 6,932,771 6,246,342

Administrative expenses 6,570,217 7,869,251
362,554 (1,622,909 )

Other operating income 469,531 281,503
OPERATING PROFIT/(LOSS) 6 832,085 (1,341,406 )

Profit/loss on sale of tang fa 7 8,571 -
Profit/loss on sale of invest 7 1,268,609 -
2,109,265 (1,341,406 )

Interest receivable and similar
income

1,463

-
2,110,728 (1,341,406 )

Interest payable and similar
expenses

8

26,181

-
PROFIT/(LOSS) BEFORE TAXATION 2,084,547 (1,341,406 )

Tax on profit/(loss) 9 (401,539 ) (196,166 )
PROFIT/(LOSS) FOR THE
FINANCIAL YEAR

2,486,086

(1,145,240

)

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,486,086

(1,145,240

)

Simple Online Healthcare Ltd (Registered number: SC498329)

Balance Sheet
29 February 2024

29.2.24 28.2.23
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 110,504 127,504
Property, plant and equipment 12 794,110 337,543
Investments 13 - -
904,614 465,047

CURRENT ASSETS
Inventories 14 494,323 478,542
Debtors 15 1,102,241 754,869
Cash at bank and in hand 1,639,843 686,221
3,236,407 1,919,632
CREDITORS
Amounts falling due within one year 16 3,521,828 2,762,446
NET CURRENT LIABILITIES (285,421 ) (842,814 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

619,193

(377,767

)

CREDITORS
Amounts falling due after more than
one year

17

(380,360

)

-

PROVISIONS FOR LIABILITIES 20 (59,213 ) (27,590 )
NET ASSETS/(LIABILITIES) 179,620 (405,357 )

CAPITAL AND RESERVES
Called up share capital 21 120 120
Retained earnings 179,500 (405,477 )
SHAREHOLDERS' FUNDS 179,620 (405,357 )

The financial statements were approved by the Board of Directors and authorised for issue on 29 November 2024 and were signed on its behalf by:



A Mohammed - Director



A K Nassar - Director


Simple Online Healthcare Ltd (Registered number: SC498329)

Statement of Changes in Equity
for the Year Ended 29 February 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 March 2022 120 739,763 739,883

Changes in equity
Total comprehensive income - (1,145,240 ) (1,145,240 )
Balance at 28 February 2023 120 (405,477 ) (405,357 )

Changes in equity
Dividends - (1,901,109 ) (1,901,109 )
Total comprehensive income - 2,486,086 2,486,086
Balance at 29 February 2024 120 179,500 179,620

Simple Online Healthcare Ltd (Registered number: SC498329)

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 2,964,942 (184,554 )
Interest element of finance lease
payments paid

(26,181

)

-
Tax paid (1,462 ) 140,147
Net cash from operating activities 2,937,299 (44,407 )

Cash flows from investing activities
Purchase of intangible fixed assets - (4 )
Purchase of tangible fixed assets (703,472 ) (38,078 )
Purchase of fixed asset investments (145,000 ) -
Sale of tangible fixed assets 136,429 -
Sale of fixed asset investments 145,000 -
Interest received 1,463 -
Net cash from investing activities (565,580 ) (38,082 )

Cash flows from financing activities
New loans in year 489,035 -
Equity dividends paid (1,901,109 ) -
Net cash from financing activities (1,412,074 ) -

Increase/(decrease) in cash and cash equivalents 959,645 (82,489 )
Cash and cash equivalents at
beginning of year

2

680,198

762,687

Cash and cash equivalents at end
of year

2

1,639,843

680,198

Simple Online Healthcare Ltd (Registered number: SC498329)

Notes to the Cash Flow Statement
for the Year Ended 29 February 2024

1. RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED
FROM OPERATIONS
29.2.24 28.2.23
£    £   
Profit/(loss) before taxation 2,084,547 (1,341,406 )
Depreciation charges 127,477 72,085
Finance costs 26,181 -
Finance income (1,463 ) -
2,236,742 (1,269,321 )
Increase in inventories (15,781 ) (14,407 )
Decrease in trade and other debtors 87,251 336,633
Increase in trade and other creditors 656,730 762,541
Cash generated from operations 2,964,942 (184,554 )

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 1,639,843 686,221
Bank overdrafts - (6,023 )
1,639,843 680,198
Year ended 28 February 2023
28.2.23 1.3.22
£    £   
Cash and cash equivalents 686,221 762,687
Bank overdrafts (6,023 ) -
680,198 762,687


Simple Online Healthcare Ltd (Registered number: SC498329)

Notes to the Cash Flow Statement
for the Year Ended 29 February 2024

3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.3.23 Cash flow At 29.2.24
£    £    £   
Net cash
Cash at bank and in hand 686,221 953,622 1,639,843
Bank overdrafts (6,023 ) 6,023 -
680,198 959,645 1,639,843
Debt
Finance leases - (489,035 ) (489,035 )
- (489,035 ) (489,035 )
Total 680,198 470,610 1,150,808

Simple Online Healthcare Ltd (Registered number: SC498329)

Notes to the Financial Statements
for the Year Ended 29 February 2024

1. STATUTORY INFORMATION

Simple Online Healthcare Ltd is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

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


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Revenue
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue for online and shipping sales is recognised at the point when order is placed and the payment is received from the customers. Revenue from the dispensing of NHS prescription is recognised at transaction price and at the point the item is dispensed.

Goodwill
Goodwill in connection with a business acquisition is being amortised on a straight line basis over an estimated useful life of 10 years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 2% on cost
Improvements to property - 2% on cost
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 25% on reducing balance

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

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

Simple Online Healthcare Ltd (Registered number: SC498329)

Notes to the Financial Statements - continued
for the Year Ended 29 February 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
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
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.

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

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.

Taxation
Taxation for the year comprises current and deferred 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.


Simple Online Healthcare Ltd (Registered number: SC498329)

Notes to the Financial Statements - continued
for the Year Ended 29 February 2024

2. ACCOUNTING POLICIES - continued
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
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

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

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 no longer at the discretion of the company.

Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks and bank overdraft. Bank overdrafts are shown within borrowings in current liabilities.

Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss

Simple Online Healthcare Ltd (Registered number: SC498329)

Notes to the Financial Statements - continued
for the Year Ended 29 February 2024

2. ACCOUNTING POLICIES - continued

Going concern
After reviewing the forecasts and projections, which cover the 12-month period from the date of signing the financial statements, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCER

In the application of the company's accounting policies, the directors are required to make judgments estimates and assumptions about the carrying amount of the assets and liabilities that are not readily apparent from other are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key Sources of estimation uncertainty
The following judgements have had the most significant effect on amounts recognised in the financial statements.

Useful lives of intangible fixed assets
Intangible fixed assets consist of goodwill. The annual amortisation charge depends on estimated useful economic life of the asset. The directors regularly review the remaining useful life of these assets. Changes in asset's useful economic life can have a significant impact on amortisation charge for the period. Detail of the useful economic life is included in accounting policies.

Useful lives of tangible fixed assets
The costs of tangible fixed assets less their residual value are depreciated over their estimated useful economic lives which are estimated by the director. Changes in the expected level of usage and technological developments could impact on the useful economic lives of these assets; therefore, further depreciation charges could be revised.

4. REVENUE

The revenue and profit (2023 - loss) before taxation are attributable to the one principal activity of the company.

An analysis of revenue by class of business is given below:

29.2.24 28.2.23
£    £   
Online doctor sales 15,471,159 17,439,653
Other sales 1,114,322 3,457,149
16,585,481 20,896,802

Simple Online Healthcare Ltd (Registered number: SC498329)

Notes to the Financial Statements - continued
for the Year Ended 29 February 2024

4. REVENUE - continued

An analysis of revenue by geographical market is given below:

29.2.24 28.2.23
£    £   
United Kingdom 15,808,826 20,229,677
Europe 776,655 667,125
16,585,481 20,896,802

5. EMPLOYEES AND DIRECTORS
29.2.24 28.2.23
£    £   
Wages and salaries 2,965,738 2,519,792
Social security costs 299,321 236,989
Other pension costs 49,601 43,224
3,314,660 2,800,005

The average number of employees during the year was as follows:
29.2.24 28.2.23

Admin 95 88

29.2.24 28.2.23
£    £   
Directors' remuneration - -

6. OPERATING PROFIT/(LOSS)

The operating profit (2023 - operating loss) is stated after charging/(crediting):

29.2.24 28.2.23
£    £   
Depreciation - owned assets 54,179 55,085
Depreciation - assets on finance leases 56,297 -
Goodwill amortisation 17,000 17,000
Auditors' remuneration 15,000 10,000
Foreign exchange differences 3,277 (1,501 )

Simple Online Healthcare Ltd (Registered number: SC498329)

Notes to the Financial Statements - continued
for the Year Ended 29 February 2024

7. EXCEPTIONAL ITEMS
29.2.24 28.2.23
£    £   
Profit/loss on sale of tang fa 8,571 -
Profit/loss on sale of invest 1,268,609 -
1,277,180 -

8. INTEREST PAYABLE AND SIMILAR EXPENSES
29.2.24 28.2.23
£    £   
Hire purchase 26,181 -

9. TAXATION

Analysis of the tax credit
The tax credit on the profit for the year was as follows:
29.2.24 28.2.23
£    £   
Current tax:
R&D tax credit (433,161 ) (193,650 )

Deferred tax 31,622 (2,516 )
Tax on profit/(loss) (401,539 ) (196,166 )

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

29.2.24 28.2.23
£    £   
Profit/(loss) before tax 2,084,547 (1,341,406 )
Profit/(loss) multiplied by the standard rate of corporation tax
in the UK of 25% (2023 - 19%)

521,137

(254,867

)

Effects of:
Expenses not deductible for tax purposes 4,981 27,166
Income not taxable for tax purposes (643,819 ) -
Capital allowances in excess of depreciation (18,208 ) -
Depreciation in excess of capital allowances - 4,188
Utilisation of tax losses - 223,513
Deferred tax 31,623 (2,516 )
R&D tax credit (433,161 ) (193,650 )
Losses carried forward 135,908 -
Total tax credit (401,539 ) (196,166 )

Simple Online Healthcare Ltd (Registered number: SC498329)

Notes to the Financial Statements - continued
for the Year Ended 29 February 2024

10. DIVIDENDS
29.2.24 28.2.23
£    £   
Ordinary shares of £1 each
Final 500,000 -
Interim 1,401,109 -
1,901,109 -

11. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 March 2023
and 29 February 2024 170,004
AMORTISATION
At 1 March 2023 42,500
Amortisation for year 17,000
At 29 February 2024 59,500
NET BOOK VALUE
At 29 February 2024 110,504
At 28 February 2023 127,504

12. PROPERTY, PLANT AND EQUIPMENT
Improvements
Freehold to Plant and
property property machinery
£    £    £   
COST
At 1 March 2023 133,165 54,599 162,862
Additions - - 675,598
Disposals (133,165 ) (7,233 ) -
At 29 February 2024 - 47,366 838,460
DEPRECIATION
At 1 March 2023 6,406 1,092 108,571
Charge for year 222 960 81,480
Eliminated on disposal (6,628 ) (157 ) -
At 29 February 2024 - 1,895 190,051
NET BOOK VALUE
At 29 February 2024 - 45,471 648,409
At 28 February 2023 126,759 53,507 54,291

Simple Online Healthcare Ltd (Registered number: SC498329)

Notes to the Financial Statements - continued
for the Year Ended 29 February 2024

12. PROPERTY, PLANT AND EQUIPMENT - continued

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 March 2023 84,664 10,160 83,840 529,290
Additions 9,440 - 18,434 703,472
Disposals - - (5,285 ) (145,683 )
At 29 February 2024 94,104 10,160 96,989 1,087,079
DEPRECIATION
At 1 March 2023 40,396 5,874 29,408 191,747
Charge for year 11,766 1,071 14,977 110,476
Eliminated on disposal - - (2,469 ) (9,254 )
At 29 February 2024 52,162 6,945 41,916 292,969
NET BOOK VALUE
At 29 February 2024 41,942 3,215 55,073 794,110
At 28 February 2023 44,268 4,286 54,432 337,543

Fixed assets, included in the above, which are held under finance leases are as follows:
Plant and
machinery
£   
COST
Additions 562,969
At 29 February 2024 562,969
DEPRECIATION
Charge for year 56,297
At 29 February 2024 56,297
NET BOOK VALUE
At 29 February 2024 506,672

Simple Online Healthcare Ltd (Registered number: SC498329)

Notes to the Financial Statements - continued
for the Year Ended 29 February 2024

13. FIXED ASSET INVESTMENTS
Unlisted
investments
£   
COST
Additions 145,000
Disposals (145,000 )
At 29 February 2024 -
NET BOOK VALUE
At 29 February 2024 -

14. INVENTORIES
29.2.24 28.2.23
£    £   
Stocks 494,323 478,542

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
29.2.24 28.2.23
£    £   
Trade debtors 227,605 297,653
Other debtors 36,075 13,200
Tax 434,623 -
VAT 303,748 145,289
Prepayments and accrued income 100,190 298,727
1,102,241 754,869

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
29.2.24 28.2.23
£    £   
Bank loans and overdrafts (see note 18)
-

6,023
Finance leases (see note 19) 108,675 -
Trade creditors 1,931,094 1,814,474
Amounts owed to group undertakings 433,854 351,350
Social security and other taxes 87,813 -
Other creditors 907,902 561,926
Directors' current accounts 14,673 14,673
Accruals and deferred income 37,817 14,000
3,521,828 2,762,446

The amounts owed to group undertakings is interest free and repayable on demand.

Simple Online Healthcare Ltd (Registered number: SC498329)

Notes to the Financial Statements - continued
for the Year Ended 29 February 2024

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR
29.2.24 28.2.23
£    £   
Finance leases (see note 19) 380,360 -

18. LOANS

An analysis of the maturity of loans is given below:

29.2.24 28.2.23
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts - 6,023

19. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Finance leases
29.2.24 28.2.23
£    £   
Net obligations repayable:
Within one year 108,675 -
Between one and five years 380,360 -
489,035 -

Non-cancellable operating leases
29.2.24 28.2.23
£    £   
Within one year 75,650 49,250
Between one and five years 206,958 165,458
In more than five years 23,083 56,250
305,691 270,958

The lease payments recognised as an expense during the year were £51,235 (2023: £45,000).

20. PROVISIONS FOR LIABILITIES
29.2.24 28.2.23
£    £   
Deferred tax 59,213 27,590

Simple Online Healthcare Ltd (Registered number: SC498329)

Notes to the Financial Statements - continued
for the Year Ended 29 February 2024

20. PROVISIONS FOR LIABILITIES - continued

Deferred Other
tax provisions
£    £   
Balance at 1 March 2023 27,590 30,106
Provided during year 31,623 (2,516 )
Balance at 29 February 2024 59,213 27,590

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 29.2.24 28.2.23
value: £    £   
120 Ordinary £1 120 120

All shares rank pari passu with regards to voting rights, dividends and capital distributions.

22. ULTIMATE PARENT COMPANY

The company's parent company is Simple Online Holdings Limited, a company registered in England and Wales. The results of Simple Online Healthcare Limited are included in consolidated financial statement of Simple Online Holdings Limited which are available from their registered office address, 77 Dunn Street, Glasgow, Scotland, G40 3PA.

23. RELATED PARTY DISCLOSURES

Included in other debtors falling due within one year includes an amount of £14,300 (2023: £13,200) due from 2UP Property Limited, a company connected to the directors.

Included in other creditors falling due with one year is an amount of £212,914 (2023: £265,565) due to Mount Street (Aberdeen) Limited, a company connected to the directors.

During the year, the company paid management fees of £130,529 (2023:£73,337) and rent of £33,750 (2023: £33,750) to Logan Pharmaceuticals Limited, a company connected to the director, A Mohammed.

Included in other creditors falling due with one year is an amount of £250,000 (2023: £Nil) due to AFM Investments Limited, a company connected to director, A Mohammed.

Included in other creditors falling due with one year is an amount of £250,000 (2023: £Nil) due to Ahnsan Investments Limited, a company connected to director, A K Nassar. During the year, the company paid management fees of £129,779 (2023: £13,334) Ahnsan Investments Limited,

Included in other creditors falling due within one year is director's current account balance of £14,673 (2023: £14,673).

During the year, the company received management fees of £469,531 (2023: £281,503) from Simple Online Healthcare PTY Ltd, a fellow subsidiary based in Australia.

Simple Online Healthcare Ltd (Registered number: SC498329)

Notes to the Financial Statements - continued
for the Year Ended 29 February 2024

24. POST BALANCE SHEET EVENTS

In May-24, the directors took the decision to fully exit the NHS market, and the Group no longer provides an NHS prescription service.

25. ULTIMATE CONTROLLING PARTY

The ultimate controlling parties are both the directors with no one party having an overall control.