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Registration number: 01456399

Shaunaks Limited

Annual Report and Financial Statements

for the Year Ended 29 February 2024

 

Shaunaks Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Profit and Loss Account

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11 to 21

 

Shaunaks Limited

Company Information

Directors

Mr K D Shaunak

Mr V D Shaunak

Company secretary

Mr K D Shaunak

Registered office

Shaunak House
Netham Road
Redfield
Bristol
BS5 9PQ

Auditors

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

Shaunaks Limited

Strategic Report for the Year Ended 29 February 2024

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

Principal activity

The principal activity of the company is that of a dispensing pharmacists, retailing medicines, toiletries, domestic household products and cosmetic products and wholesale activity. No significant changes in activities arose during the year.

Fair review of the business

During the year, the company consolidated its position by improving its existing branches. At the year end, the company had 12 retail pharmacies in the South West. The pharmacies operated continue to be at the centre of the local community, dispensing 2,050,360 (2023 - 1,972,806) NHS items.

The results for the year which are set out in the profit and loss account show turnover of £22,466,696 (2023 - £20,914,286) and an operating profit of £77,572 (2023 - £2,245,453). The reduction in operating profit is due to an increase in the inter group loan write off to Shaunaks Investments Limited, along with cuts to the NHS funding during the year.

At 29 February 2024 the company had net assets of £4,887,113 (2023 - £5,376,090). The directors consider the performance for the year and the financial position at the year end to be satisfactory.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2024

2023

Turnover

£

22,466,696

20,914,286

Gross profit

£

7,158,038

7,841,076

Gross profit margin

%

32

37

Adjusted EBITDA

£

2,820,676

3,954,246

Adjusted EBITDA

%

13

19

Net Assets

£

4,887,113

5,376,090

Average number of employees

No

130

135

Earnings before interest, tax, depreciation and amortisation (EBITDA) is calculated as operating profit before depreciation and amortisation charges. Adjusted EBITDA represents EBITDA excluding intercompany loan write offs.

Principal risks and uncertainties

The management of the company and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to reductions in NHS funding and the competition in the local market.

Approved by the Board on 27 November 2024 and signed on its behalf by:


Mr K D Shaunak
Director

 

Shaunaks Limited

Directors' Report for the Year Ended 29 February 2024

The directors present their report and the financial statements for the year ended 29 February 2024.

Directors of the company

The directors who held office during the year were as follows:

Mr K D Shaunak

Mr V D Shaunak

Financial instruments

The company's financial instruments, comprise cash and liquid resources, and various other items such as trade debtors, trade creditors, etc that arise directly from its operations. The main purposes of these financial instruments is to finance the operations of the company. As the company's main source of income is prescription receipts from the NHS, these trade debtors are not subject to credit risk although the timing of these receipts gives rise to a cash flow risk.

The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.

The company aims to mitigate liquidity risk by managing cash generation of its operations and monitoring trading results to ensure that the company can meet its future obligations as they fall due.

The Board constantly monitor the company's trading results to ensure that the company can meet its future obligations as they fall due and have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Future developments

The impact from funding cuts to the NHS budget will provide a tough environment for pharmacies to operate in, however, the directors remain confident that they will be able to increase the profitability of the company through organic growth and acquisitions.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office.

Approved by the Board on 27 November 2024 and signed on its behalf by:


Mr K D Shaunak
Director

 

Shaunaks Limited

Statement of Directors' Responsibilities

The directors are responsible for preparing the Strategic Report, Directors' 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards has been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

 

Shaunaks Limited

Independent Auditor's Report to the Members of Shaunaks Limited

Opinion

We have audited the financial statements of Shaunaks Limited (the 'company') for the year ended 29 February 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and 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 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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:

 

Shaunaks Limited

Independent Auditor's Report to the Members of Shaunaks Limited (continued)

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 4, 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.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, 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:

We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statement;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

 

Shaunaks Limited

Independent Auditor's Report to the Members of Shaunaks Limited (continued)

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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

Use of this 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.





Julian Gaskell (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Staverton Court
Staverton
Cheltenham
GL51 0UX

28 November 2024

 

Shaunaks Limited

Profit and Loss Account for the Year Ended 29 February 2024

Note

2024
£

2023
£

Turnover

3

22,466,696

20,914,286

Cost of sales

 

(15,308,658)

(13,073,210)

Gross profit

 

7,158,038

7,841,076

Administrative expenses:

 

Administrative expenses

 

(4,514,146)

(4,047,010)

Write off of intercompany loan debtor

 

(2,566,320)

(1,548,613)

Total administrative expenses

 

(7,080,466)

(5,595,623)

Operating profit

4

77,572

2,245,453

Other interest receivable and similar income

5

98,105

38,219

Interest payable and similar expenses

6

(93)

(20,700)

Profit before tax

 

175,584

2,262,972

Taxation

10

(664,561)

(862,884)

(Loss)/profit for the financial year

 

(488,977)

1,400,088

The above results were derived from continuing operations.

The company has no other comprehensive income for the year.

 

Shaunaks Limited

(Registration number: 01456399)
Balance Sheet as at 29 February 2024

Note

2024
 £

2023
 £

Fixed assets

 

Intangible assets

11

-

72,193

Tangible assets

12

599,289

658,011

 

599,289

730,204

Current assets

 

Stocks

13

2,126,757

2,325,366

Debtors

14

1,981,095

2,897,088

Debtors: Amounts falling due after more than one year

14

500,000

500,000

Cash at bank and in hand

 

2,070,837

1,281,567

 

6,678,689

7,004,021

Creditors: Amounts falling due within one year

15

(2,320,437)

(2,271,436)

Net current assets

 

4,358,252

4,732,585

Total assets less current liabilities

 

4,957,541

5,462,789

Deferred tax

10

(70,428)

(86,699)

Net assets

 

4,887,113

5,376,090

Capital and reserves

 

Called up share capital

17, 18

40,200

40,200

Capital redemption reserve

18

23,370

23,370

Profit and loss account

18

4,823,543

5,312,520

Total equity

 

4,887,113

5,376,090

Approved and authorised by the Board on 27 November 2024 and signed on its behalf by:
 


Mr K D Shaunak
Director

 

Shaunaks Limited

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

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 March 2023

40,200

23,370

5,312,520

5,376,090

Loss for the year

-

-

(488,977)

(488,977)

At 29 February 2024

40,200

23,370

4,823,543

4,887,113

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 March 2022

40,200

23,370

3,912,432

3,976,002

Profit for the year

-

-

1,400,088

1,400,088

At 28 February 2023

40,200

23,370

5,312,520

5,376,090

 

Shaunaks Limited

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

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Shaunak House
Netham Road
Redfield
Bristol
BS5 9PQ

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Summary of disclosure exemptions

Shaunaks Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of disclosure exemptions available to it in respect of its financial statements.

Exemptions have been taken in relation to financial instruments and presentation of a statement of cash flows.

Going concern

After reviewing the company's forecasts and projections, 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.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

 

Shaunaks Limited

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

 

2

Accounting policies (continued)

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity, and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold property

2% on cost

Leasehold improvements

Straight line over period of lease

Plant and machinery

15% on reducing balance basis

Motor vehicles

25% on reducing balance basis

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the company in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the company includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

 

Shaunaks Limited

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

 

2

Accounting policies (continued)

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

Over 5 years

Trade debtors

Trade debtors are amounts due from customers for goods sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of stocks comprises direct materials and, where applicable, and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Shaunaks Limited

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

 

2

Accounting policies (continued)

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Shaunaks Limited

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

 

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

22,073,952

20,653,854

Rendering of services

392,744

260,432

22,466,696

20,914,286

The total turnover of the company has been derived from its principal activity wholly undertaken in the United Kingdom.

 

4

Operating profit

Arrived at after charging

2024
£

2023
£

Depreciation expense

120,957

86,976

Amortisation expense (included in administrative expenses)

72,193

73,204

Operating lease expense - property

377,135

356,633

 

5

Other interest receivable and similar income

2024
£

2023
£

Interest income on other loans

98,105

38,219

 

6

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

93

-

Interest expense on other finance liabilities

-

20,700

93

20,700

 

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

2,597,962

2,351,035

Social security costs

230,896

215,525

Pension costs, defined contribution scheme

160,145

114,873

2,989,003

2,681,433

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

 

Shaunaks Limited

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

 

7

Staff costs (continued)

2024
No.

2023
No.

Administration and support

8

7

Sales, marketing and distribution

122

128

130

135

 

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

8,168

15,400

Contributions paid to money purchase schemes

120,000

80,000

128,168

95,400

During the year the number of directors who were receiving benefits was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

2

2

 

9

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

10,650

10,650


 

 

10

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

680,832

695,513

UK corporation tax adjustment to prior periods

-

112,261

680,832

807,774

Deferred taxation

Arising from origination and reversal of timing differences

(16,271)

34,302

Arising from changes in tax rates and laws

-

20,808

Total deferred taxation

(16,271)

55,110

Tax expense in the profit and loss account

664,561

862,884

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 24.5% (2023 - 19%).

The differences are reconciled below:

 

Shaunaks Limited

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

 

10

Taxation (continued)

2024
£

2023
£

Profit before tax

175,584

2,262,972

Corporation tax at standard rate

43,004

429,965

Effect of expense not deductible in determining taxable profit (tax loss)

628,363

310,770

UK tax expense relating to changes in tax rates or laws

-

20,808

Increase in relation to adjustment for prior periods

-

112,261

Tax increase/(decrease) from effect of capital allowances

17,704

(10,920)

Tax decrease arising from group relief

(24,510)

-

Total tax charge

664,561

862,884

In March 2021 changes to the UK corporation tax rate were announced by the Chancellor of the Exchequer, including an increase in the main rate of corporation tax to 25% from April 2023, which was substantively enacted in May 2021. The enacted rates at the balance sheet date have been appropriately reflected in the calculation of deferred tax in the company's financial statements.

Deferred tax

Deferred tax assets and liabilities

2024

Liability
£

Fixed asset timing differences

70,428

70,428

2023

Liability
£

Fixed asset timing differences

86,699

86,699

 

11

Intangible assets

Goodwill
 £

Cost or valuation

At 1 March 2023

14,539,493

At 29 February 2024

14,539,493

Amortisation

At 1 March 2023

14,467,300

Amortisation charge for the year

72,193

At 29 February 2024

14,539,493

Carrying amount

At 29 February 2024

-

At 28 February 2023

72,193

 

Shaunaks Limited

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

 

12

Tangible assets

Land and buildings
£

Leasehold improvements
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost

At 1 March 2023

158,515

248,083

1,139,611

373,903

1,920,112

Additions

5,670

-

-

69,570

75,240

Disposals

-

-

-

(51,567)

(51,567)

At 29 February 2024

164,185

248,083

1,139,611

391,906

1,943,785

Depreciation

At 1 March 2023

57,269

149,479

945,134

110,217

1,262,099

Charge for the year

2,419

9,415

28,940

80,183

120,957

Eliminated on disposal

-

-

-

(38,560)

(38,560)

At 29 February 2024

59,688

158,894

974,074

151,840

1,344,496

Carrying amount

At 29 February 2024

104,497

89,189

165,537

240,066

599,289

At 28 February 2023

101,245

98,604

194,476

263,686

658,011

Included within the net book value of land and buildings above is £104,497 (2023 - £101,245) in respect of freehold land and buildings.
 

 

Shaunaks Limited

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

 

13

Stocks

2024
£

2023
£

Medicines and retail stock

2,126,757

2,325,366

 

14

Debtors

Current

2024
£

2023
£

Trade debtors

1,692,430

1,867,245

Other debtors

234,694

955,351

Prepayments

53,971

74,492

 

1,981,095

2,897,088

Non-current

2024
£

2023
£

Other debtors

500,000

500,000

Included in other debtors are loans of £500,000 (2023 - £1,200,000) of which £500,000 (2023 - £500,000) is repayable after more than one year. The loan is secured by a first legal fixed charge on the property concerned, is repayable in full on 31 October 2025, with interest charged at a fixed rate of 4%.

 

15

Creditors

2024
 £

2023
 £

Due within one year

Trade creditors

1,707,303

1,704,808

Amounts due to related parties

220,738

60,015

Social security and other taxes

60,771

48,432

Outstanding defined contribution pension costs

8,322

7,093

Other creditors

-

1,022

Accrued expenses

46,447

52,465

Corporation tax liability

276,856

397,601

2,320,437

2,271,436

 

16

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £160,145 (2023 - £114,873).

Contributions totalling £8,322 (2023 - £7,093) were payable to the scheme at the end of the year and are included in creditors.

 

Shaunaks Limited

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

 

17

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

A Ordinary shares of £1 each

4,027

4,027

4,027

4,027

B Ordinary shares of £1 each

2,673

2,673

2,673

2,673

C Ordinary shares of £1 each

6,700

6,700

6,700

6,700

D Ordinary shares of £1 each

6,700

6,700

6,700

6,700

V Ordinary shares of £1 each

20,100

20,100

20,100

20,100

 

40,200

40,200

40,200

40,200

The different classes of shares referred to above carry separate rights to dividends but, in all other significant respects, rank pari passu.

 

18

Reserves

Called up share capital
Share capital represents the issued equity share capital of the company.

Capital redemption reserve
The capital redemption reserve represents the nominal value of shares that have been repurchased by the company.

Profit and loss account
Represents cumulative profits or losses, net of dividends paid and other adjustments.

 

19

Obligations under leases

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

304,220

293,840

Later than one year and not later than five years

1,111,194

1,067,990

Later than five years

1,984,483

2,139,990

3,399,897

3,501,820

The amount of non-cancellable operating lease payments recognised as an expense during the year was £377,135 (2023 - £356,633).

 

20

Commitments

Capital commitments

The total amount contracted for but not provided in the financial statements in respect of motor vehicles was £Nil (2023 - £57,711).

 

21

Related party transactions

During the year the company received a loan advance of £160,723 (2023 - made loan repayments of £302,488 to) from the directors. At the balance sheet date, the company owed the directors £220,691 (2023 - £59,968) on which no interest is charged.
 

 

Shaunaks Limited

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

 

22

Parent and ultimate parent undertaking

The company's immediate and ultimate parent is Shaunaks Holdings Limited, incorporated in England and Wales.

 

Shaunaks Holdings Limited produces publicly available consolidated financial statements in which these financial statements are consolidated. The consolidated financial statements are available from Shaunak House, Netham Road, Redfield, Bristol, BS5 9PQ.