REGISTERED NUMBER: 08126719 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Central Pharma Contract Holdings Limited |
REGISTERED NUMBER: 08126719 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Central Pharma Contract Holdings Limited |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 19 |
Central Pharma Contract Holdings Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
TOR |
Saint-Cloud Way |
Maidenhead |
Berkshire |
SL6 8BN |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The group's key financial performance indicators during the period were as follows: |
2023 |
£'000s |
Group turnover | 19,088 |
Gross profit margin | 40.2% |
Operating profit / (loss) | (1,090 | ) |
EBITDA | (21 | ) |
Net cash from operating activities | 1,307 |
Shareholders' funds | (1,927 | ) |
The group's investments made in expanding its service offering has allowed the business to grow its revenue during the year. Pressures on costs as well as activity designed to streamline the business and facilitate additional service offerings have led to a decline in the gross margin and operating result for the year with continued investment made in ensuring that the group's operations meet the needs of its customers across a range of supply chain offerings. This has created challenging conditions for the group but the directors consider that the group remains a going concern and is well placed to move forward. The group continues to be recognised as a leader in its field with the the group being awarded the Best Pharmaceutical Supply Chain Services & Manufacturing Company 2022 at the Global Health & Pharma Global Excellence Awards. |
The group's key profit measure is EBITDA, which is calculated as operating profit excluding depreciation,amortisation and intra-group charges. In 2023 the EBITDA loss was £21,638. The group's operating loss reported on a statutory basis was £1,090,252 which includes depreciation and amortisation of £1,068,614. The loss incurred for the year has affected the balance sheet position compared with last year with net liabilities at the year end of £1,927,135. |
Following a challenging year from the perspective of reduced profitability, the group is better placed now to capitalise on operational improvement implemented during 2023. Capital expenditure was £335,459 in the year which was reduced compared with the prior year as the group benefits from the investment made previously. In addition, the group agreed a further equity investment from existing investors to reduce the level of debt and strengthen the balance sheet. The group works closely with its lenders to help fund its investment and this continued support should enable the group to realise the growth opportunities which the investment is designed to capitalise on. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The market in which the group operates continues to provide opportunities for expansion and our focus on service and quality will allow us to continue to meet the needs of our customers and adapt to any changes in the regulatory environment. However, with substantial fixed costs within the business the primary risk to the business would be a substantial loss of volume. The directors will continue to look to grow the customer base as a way of managing the risk that the loss of a significant customer could present. |
ON BEHALF OF THE BOARD: |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of contract packing for the pharmaceutical and health supplement industries. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Central Pharma Contract Holdings Limited |
Opinion |
We have audited the financial statements of Central Pharma Contract Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
_ |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Conclusions relating to going concern In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made within the notes to the financial statements concerning the company's ability to continue as a going concern. |
Should the group not achieve its financial plan it may require additional funding. In this event, there is a possibility that the group may not be able to continue as a going concern. The financial statements do not include the adjustments that would result if the company were unable to continue as a going concern. Our opinion is not modified in respect of this matter. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Central Pharma Contract Holdings Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Central Pharma Contract Holdings Limited |
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, outlines 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 considered capable of detecting irregularities, including fraud. |
-The engagement partners ensured that the engagement team collectively had the appropriate competence, capabilities and skill to identify or recognise non-compliance with applicable laws and regulations; |
-we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the recruitment sector; |
-we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; |
-we assessed the extent of compliance with laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
-identified laws and regulations were communicated within the audit team regularly and the team remained alert to instance 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; |
-making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
-considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and |
-understanding the design of the company's remuneration policies. |
To address the risk of fraud through management bias and override of controls, we; |
-performed analytical procedures to identify unusual or unexpected relationships; |
-tested journal entries to identify unusual transactions; |
-assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
-investigated the rationale behind significant or unusual transactions. |
Audit response to risks identified |
In response to the risk of irregularities and non-compliance with laws and regulations; we designed procedures which included, but were not limited to; |
-agreeing financial statement disclosures to underlying supporting documentation; |
-enquiring of management as to actual and potential litigation and claims; and |
-reviewing correspondence with HMRC, relevant regulators and company's legal advisors. |
Report of the Independent Auditors to the Members of |
Central Pharma Contract Holdings Limited |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify 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 of 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. |
for and on behalf of |
Statutory Auditors |
TOR |
Saint-Cloud Way |
Maidenhead |
Berkshire |
SL6 8BN |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Consolidated Income Statement |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
as restated |
Notes | £ | £ |
TURNOVER | 3 | 19,088,166 | 19,535,666 |
Cost of sales | (11,418,683 | ) | (13,014,195 | ) |
GROSS PROFIT | 7,669,483 | 6,521,471 |
Administrative expenses | (8,770,435 | ) | (9,160,946 | ) |
(1,100,952 | ) | (2,639,475 | ) |
Other operating income | 10,700 | - |
OPERATING LOSS | 5 | (1,090,252 | ) | (2,639,475 | ) |
Interest payable and similar expenses | 6 | (251,039 | ) | (274,647 | ) |
LOSS BEFORE TAXATION | (1,341,291 | ) | (2,914,122 | ) |
Tax on loss | 7 | 162,831 | 128,930 |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
Loss attributable to: |
Owners of the parent | (1,178,460 | ) | (2,785,192 | ) |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Consolidated Other Comprehensive Income |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
as restated |
Notes | £ | £ |
LOSS FOR THE YEAR | (1,178,460 | ) | (2,785,192 | ) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | (1,178,460 | ) | (2,785,192 | ) |
Note |
Prior year adjustment | 9 | (77,307 | ) | (180,000 | ) |
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
(1,255,767 |
) |
(2,965,192 |
) |
Total comprehensive income attributable to: |
Owners of the parent | (1,255,767 | ) | (2,965,192 | ) |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Consolidated Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 | 1.1.22 |
as restated |
Notes | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 1,362,199 | 1,520,902 | 1,679,605 |
Tangible assets | 11 | 3,483,511 | 4,065,429 | 4,722,074 |
Investments | 12 | - | - | - |
4,845,710 | 5,586,331 | 6,401,679 |
CURRENT ASSETS |
Stocks | 13 | 1,671,317 | 1,361,868 | 1,653,341 |
Debtors | 14 | 3,659,894 | 3,379,197 | 4,012,067 |
Cash in hand | 438 | 720 | 720 |
5,331,649 | 4,741,785 | 5,666,128 |
CREDITORS |
Amounts falling due within one year | 15 | (10,561,930 | ) | (9,124,537 | ) | (8,479,748 | ) |
NET CURRENT LIABILITIES | (5,230,281 | ) | (4,382,752 | ) | (2,813,620 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES | (384,571 | ) | 1,203,579 | 3,588,059 |
CREDITORS |
Amounts falling due after more than one year | 16 | (1,101,466 | ) | (1,601,888 | ) | (2,711,261 | ) |
PROVISIONS FOR LIABILITIES | 21 | (441,098 | ) | (350,366 | ) | (469,908 | ) |
NET (LIABILITIES)/ASSETS | (1,927,135 | ) | (748,675 | ) | 406,890 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 272,740 | 272,740 | 140,755 |
Share premium | 23 | 1,939,935 | 1,939,935 | 442,290 |
Retained earnings | 23 | (4,139,810 | ) | (2,961,350 | ) | (176,155 | ) |
SHAREHOLDERS' FUNDS | (1,927,135 | ) | (748,675 | ) | 406,890 |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Consolidated Balance Sheet - continued |
31 December 2023 |
The financial statements were approved by the Board of Directors and authorised for issue on 28 November 2024 and were signed on its behalf by: |
Mr A J Smit - Director |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Company Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
as restated |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 16 | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Share premium | 23 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (445,934 | ) | (7,813 | ) |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Company Balance Sheet - continued |
31 December 2023 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | 140,755 | 3,842 | 442,290 | 586,887 |
Prior year adjustment | - | (180,000 | ) | - | (180,000 | ) |
As restated | 140,755 | (176,158 | ) | 442,290 | 406,887 |
Changes in equity |
Issue of share capital | 131,985 | - | 1,497,645 | 1,629,630 |
Total comprehensive income | - | (2,707,885 | ) | - | (2,707,885 | ) |
Balance at 31 December 2022 | 272,740 | (2,884,043 | ) | 1,939,935 | (671,368 | ) |
Prior year adjustment | - | (77,307 | ) | - | (77,307 | ) |
As restated | 272,740 | (2,961,350 | ) | 1,939,935 | (748,675 | ) |
Changes in equity |
Total comprehensive income | - | (1,178,460 | ) | - | (1,178,460 | ) |
Balance at 31 December 2023 | 272,740 | (4,139,810 | ) | 1,939,935 | (1,927,135 | ) |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 December 2023 |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,555,075 | 126,449 |
Interest paid | (182,282 | ) | (211,542 | ) |
Interest element of hire purchase payments paid | (68,757 | ) | (63,105 | ) |
Tax paid | 3,563 | (4,589 | ) |
Net cash from operating activities | 1,307,599 | (152,787 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (199,854 | ) | (188,471 | ) |
Sale of tangible fixed assets | - | 62,008 |
Net cash from investing activities | (199,854 | ) | (126,463 | ) |
Cash flows from financing activities |
Loan repayments in year | (236,186 | ) | (111,186 | ) |
Invoice financing drawdown / (repayment) | (217,709 | ) | 1,159,449 |
Loan notes redeemed in year | - | (1,629,630 | ) |
Capital repayments in year | (380,970 | ) | 503,913 |
Share issue | - | 1,629,630 |
Net cash from financing activities | (834,865 | ) | 1,552,176 |
Increase in cash and cash equivalents | 272,880 | 1,272,926 |
Cash and cash equivalents at beginning of year | 2 | (456,627 | ) | (1,729,553 | ) |
Cash and cash equivalents at end of year | 2 | (183,747 | ) | (456,627 | ) |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Loss before taxation | (1,341,291 | ) | (2,914,122 | ) |
Depreciation charges | 1,068,614 | 1,037,426 |
Loss on disposal of fixed assets | 7,466 | - |
Finance costs | 251,039 | 274,647 |
(14,172 | ) | (1,602,049 | ) |
(Increase)/decrease in stocks | (309,449 | ) | 291,473 |
(Increase)/decrease in trade and other debtors | (280,697 | ) | 632,870 |
Increase in trade and other creditors | 2,159,393 | 804,155 |
Cash generated from operations | 1,555,075 | 126,449 |
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 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 438 | 720 |
Bank overdrafts | (184,185 | ) | (457,347 | ) |
(183,747 | ) | (456,627 | ) |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
as restated |
£ | £ |
Cash and cash equivalents | 720 | 720 |
Bank overdrafts | (457,347 | ) | (1,730,273 | ) |
(456,627 | ) | (1,729,553 | ) |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.1.23 | Cash flow | changes | At 31.12.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 720 | (282 | ) | 438 |
Bank overdrafts | (457,347 | ) | 273,162 | (184,185 | ) |
(456,627 | ) | 272,880 | (183,747 | ) |
Debt |
Finance leases | (1,584,967 | ) | 380,970 | - | (1,339,602 | ) |
Debts falling due |
within 1 year | (1,754,160 | ) | 206,134 | - | (1,548,026 | ) |
Debts falling due |
after 1 year | (443,436 | ) | 258,462 | - | (184,974 | ) |
(3,782,563 | ) | 845,566 | - | (3,072,602 | ) |
Total | (4,239,190 | ) | 1,118,446 | - | (3,256,349 | ) |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Central Pharma Contract Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The accounts are prepared on a going concern basis as the directors consider that the group has sufficient funding to meet its obligations as they fall due. The group has invested heavily in machinery to grow the business and capitalise on new opportunities which has increased the funding requirement from lenders. The directors are of the opinion that this investment, together with cost efficiencies being realised through property rationalisation, will enhance operating profit and cash flow available to service debt and manage working capital requirements. The directors have prepared forecasts for the foreseeable future, that is at least 12 months from the date of approval of these accounts, to support the going concern conclusion. |
The historical cost convention is modified by the use of fair values for certain financial instruments in accordance with the accounting policies set out below. |
Basis of consolidation |
The group financial statements consolidate the financial statements of Central Pharma Contract Holdings Limited and all its subsidiary undertakings drawn up to 31 December each year. Subsidiary undertakings are included in the group financial statements using the acquisition method of accounting. |
In the parent company financial statements, investments in subsidiaries, joint ventures and associates are accounted for at the lower of cost and net realisable value. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Significant judgements and estimates |
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. |
Tangible fixed assets |
Tangible fixed are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. |
Stock provision |
On an annual basis the company make an assessment of the stock held and review its aging profile Base on this a provision will be included within the financial statements to reflect what is unlikely to be used. This varies on an annual basis with the directors required to make an estimation on their potential use. |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover arises from the group's principal activity of contract packing. Turnover is recognised at the fair value of the consideration received or receivable for the provision of packing services which occurs when the product has been packed. Turnover is shown net of Value Added Tax. |
Goodwill |
Tangible fixed assets |
Short leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. |
Stocks |
Stocks, which primarily relate to raw materials used in packing, are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost is the purchase cost of the materials. Provision is made for obsolete, slow-moving or defective items where appropriate. |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the instrument. 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. |
(i) Financial assets and liabilities |
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. Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. |
Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method: |
(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate. |
(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged. |
(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a). |
(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods. |
(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law. |
(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c). |
Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment. With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss. Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment. |
Financial assets are derecognised when and only when (a) the contractual rights to the cash flows from the financial asset expire or are settled, (b) the company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or (c) the company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party. Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires. |
(ii) Investments |
Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment. |
In the company balance sheet, investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored. |
(iii) Equity instruments |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Equity instruments issued by the company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Confidential invoice discounting |
The subsidiary of the group, Central Pharma Contract Packing, has a confidential invoice discounting facility in place. The accounting policy is to include the returnable element of the proceeds within current liabilities and present trade debtors within one year as gross. Service charges and interest are charged to the profit and loss account when paid. Bad debts are borne by the company and are charged to the profit and loss account when incurred. |
Investment in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less any impairment. |
Holiday pay accrual |
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance Sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Balance Sheet date. |
Dilapidations provision |
The directors have included a dilapidation provision within the financial statements. This is based on an estimate by the directors to cover the cost of potential spend to restore the premises to their original condition in accordance with the lease. |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | TURNOVER |
The turnover and loss before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
United Kingdom | 18,572,276 | 17,671,108 |
Markets outside the UK | 515,890 | 1,864,558 |
19,088,166 | 19,535,666 |
4. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Wages and salaries | 6,974,627 | 6,834,133 |
Social security costs | 658,036 | 711,083 |
Other pension costs | 136,416 | 116,640 |
7,769,079 | 7,661,856 |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
as restated |
Operations and production | 161 | 192 |
Administration | 51 | 39 |
Sales | 7 | 2 |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Directors' remuneration | 284,162 | 324,152 |
Directors' pension contributions to money purchase schemes | 19,681 | 19,121 |
Information regarding the highest paid director is as follows: |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Emoluments etc | 156,712 | 152,148 |
Pension contributions to money purchase schemes | 10,969 | 10,650 |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
5. | OPERATING LOSS |
The operating loss is stated after charging/(crediting): |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Hire of plant and machinery | 85,129 | 38,374 |
Other operating leases | 1,487,576 | 1,741,974 |
Depreciation - owned assets | 706,043 | 542,862 |
Depreciation - assets on hire purchase contracts | 203,868 | 335,865 |
Loss on disposal of fixed assets | 7,466 | - |
Goodwill amortisation | 158,703 | 158,702 |
Auditors' remuneration | 42,600 | 15,000 |
Foreign exchange differences | (6,823 | ) | 18,901 |
Pension contributions totalling £26,896 (2022: £31,585) were payable to the pension fund at the year end and are included in creditors due less than 1 year. |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Bank interest | 158,821 | 64,814 |
Bank loan interest | 13,069 | - |
Other interest | 10,392 | 146,728 |
Hire purchase | 68,757 | 63,105 |
251,039 | 274,647 |
7. | TAXATION |
Analysis of the tax credit |
The tax credit on the loss for the year was as follows: |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Current tax: |
UK corporation tax | (2,529 | ) | (9,388 | ) |
Deferred tax | (160,302 | ) | (119,542 | ) |
Tax on loss | (162,831 | ) | (128,930 | ) |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
7. | TAXATION - continued |
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Loss before tax | (1,341,291 | ) | (2,914,122 | ) |
Loss multiplied by the standard rate of corporation tax in the UK of 23.500 % (2022 - 19 %) |
(315,203 |
) |
(553,683 |
) |
Effects of: |
Expenses not deductible for tax purposes | 119,857 | 45,668 |
Utilisation of tax losses | (2,892 | ) | - |
Adjustments to tax charge in respect of previous periods | (2,529 | ) | - |
Group relief | (2,514 | ) | - |
Losses carried forward not recognised in deferred tax | 40,450 | 361,248 |
Deferred tax provided for at a higher rate | - | 17,837 |
recognised |
Total tax credit | (162,831 | ) | (128,930 | ) |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | PRIOR YEAR ADJUSTMENT |
A prior year adjustment has been made in one of the group's subsidiaries to restate the debtors balance following a material credit note that was raised post year end and overstated bad debt provision.There has been no impact to the overall trade debtors balance. Profits have been reduced by £72,200. There has been no impact to the tax charge. |
A further prior year adjustment was made in one of the group's subsidiaries for understated staff costs of £5,107. Profits have been reduced by £5,107.There has been no impact to the tax charge. |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
and 31 December 2023 | 3,174,047 | 4 | 3,174,051 |
AMORTISATION |
At 1 January 2023 | 1,653,149 | - | 1,653,149 |
Amortisation for year | 158,703 | - | 158,703 |
At 31 December 2023 | 1,811,852 | - | 1,811,852 |
NET BOOK VALUE |
At 31 December 2023 | 1,362,195 | 4 | 1,362,199 |
At 31 December 2022 | 1,520,898 | 4 | 1,520,902 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Short | Plant and | and |
leasehold | machinery | fittings |
£ | £ | £ |
COST |
At 1 January 2023 | 61,373 | 7,413,698 | 849,657 |
Additions | - | 165,575 | 154,905 |
Disposals | - | (10,000 | ) | - |
At 31 December 2023 | 61,373 | 7,569,273 | 1,004,562 |
DEPRECIATION |
At 1 January 2023 | 53,003 | 4,121,763 | 364,621 |
Charge for year | 1,494 | 667,282 | 118,943 |
Eliminated on disposal | - | (2,534 | ) | - |
At 31 December 2023 | 54,497 | 4,786,511 | 483,564 |
NET BOOK VALUE |
At 31 December 2023 | 6,876 | 2,782,762 | 520,998 |
At 31 December 2022 | 8,370 | 3,291,935 | 485,036 |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 175,130 | 668,779 | 9,168,637 |
Additions | - | 14,979 | 335,459 |
Disposals | - | - | (10,000 | ) |
At 31 December 2023 | 175,130 | 683,758 | 9,494,096 |
DEPRECIATION |
At 1 January 2023 | 109,889 | 453,932 | 5,103,208 |
Charge for year | 15,974 | 106,218 | 909,911 |
Eliminated on disposal | - | - | (2,534 | ) |
At 31 December 2023 | 125,863 | 560,150 | 6,010,585 |
NET BOOK VALUE |
At 31 December 2023 | 49,267 | 123,608 | 3,483,511 |
At 31 December 2022 | 65,241 | 214,847 | 4,065,429 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 2,584,565 | 79,887 | 2,664,452 |
Additions | 135,605 | - | 135,605 |
Transfer to ownership | (963,342 | ) | - | (963,342 | ) |
At 31 December 2023 | 1,756,828 | 79,887 | 1,836,715 |
DEPRECIATION |
At 1 January 2023 | 657,661 | 14,646 | 672,307 |
Charge for year | 187,894 | 15,974 | 203,868 |
Transfer to ownership | (430,225 | ) | - | (430,225 | ) |
At 31 December 2023 | 415,330 | 30,620 | 445,950 |
NET BOOK VALUE |
At 31 December 2023 | 1,341,498 | 49,267 | 1,390,765 |
At 31 December 2022 | 1,926,904 | 65,241 | 1,992,145 |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Caxton Road, Elm Farm Industrial Estate, Bedford, Bedfordshire, MK41 0XZ |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves |
Loss for the year | ( |
) | ( |
) |
Registered office: Caxton Road, Elm Farm Industrial Estate, Bedford, Bedfordshire, MK41 0HT |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Profit/(loss) for the year | ( |
) |
Registered office: 2 Park Place, City Gate, Mahon, Cork, T12D H0F |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: Central Pharma Caxton Road, Elm Farm Industrial Estate, Bedford, United Kingdom, MK41 0HT |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves |
Registered office: Central Pharma Caxton Road, Elm Farm Industrial Estate, Bedford, United Kingdom, MK41 0HT |
Nature of business: |
% |
Class of shares: | holding |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
13. | STOCKS |
Group |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Stocks | 1,671,317 | 1,361,868 |
An assessment is performed annually to assess stock held at the year end which is based on the ageing and the movement of stock items. The stock provision at the year end is £453,698 (2022: £394,664). |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Trade debtors | 2,759,269 | 2,899,397 |
Other debtors | 68,137 | 140,469 |
Prepayments and accrued income | 832,488 | 339,331 |
3,659,894 | 3,379,197 |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
as restated | as restated |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 1,732,211 | 2,211,507 |
Hire purchase contracts (see note 18) | 423,110 | 426,515 |
Trade creditors | 3,784,648 | 3,089,169 |
Amounts owed to group undertakings | - | - |
Social security and other taxes | 223,936 | 260,246 |
VAT | 1,442,366 | 942,286 | - | - |
Other creditors | 596,703 | 70,890 |
Directors' current accounts | - | 180,000 | - | - |
Accruals and deferred income | 207,500 | 125,798 |
Accrued expenses | 2,151,456 | 1,818,126 |
10,561,930 | 9,124,537 |
Amounts due to group undertakings in the company balance sheet relates to an amount due to the subsidiary, Central Pharma Contract Packing Limited. |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
as restated | as restated |
£ | £ | £ | £ |
Bank loans (see note 17) | 184,974 | 307,736 |
Other loans (see note 17) | - | 135,700 |
Hire purchase contracts (see note 18) | 916,492 | 1,158,452 |
1,101,466 | 1,601,888 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
as restated | as restated |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 184,185 | 457,347 |
Bank loans | 1,548,026 | 1,754,160 |
1,732,211 | 2,211,507 |
Amounts falling due between one and two years: |
Bank loans - 1-2 years | 135,967 | 122,762 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years | 49,007 | 184,974 |
Series 2 loan note | - | 135,700 | - | 135,700 |
49,007 | 320,674 |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Net obligations repayable: |
Within one year | 423,110 | 426,515 |
Between one and five years | 916,492 | 1,158,452 |
1,339,602 | 1,584,967 |
Group |
Non-cancellable operating | leases |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Within one year | 1,177,000 | 536,540 |
Between one and five years | 4,708,000 | 4,708,000 |
In more than five years | 5,118,000 | 5,961,667 |
11,003,000 | 11,206,207 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Bank overdraft | 184,185 | 457,347 |
Hire purchase contracts | 1,339,602 | 1,584,967 |
Bank loans | 1,425,264 | 1,642,974 |
2,949,051 | 3,685,288 |
Bank loans relate to an invoice finance facility of £1,425,264 (2022: £1,642,974) provided by Clydesdale Bank PLC. The invoice finance facility accrues discount charges at 2.4% of notified receivables. The bank debt and overdraft is secured by fixed and floating charges over the undertaking and all property and assets present and future. |
Hire purchase creditors are secured on the tangible asset that has been financed. |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
20. | FINANCIAL INSTRUMENTS |
Group |
31.12.23 |
31.12.22 (restated |
) |
£ | £ |
FINANCIAL ASSETS |
Financial assets measured at fair value through profit and loss | 438 | 720 |
Financial assets that are debt instruments measured at amortised cost | 3,638,163 | 3,379,197 |
3,638,601 | 3,379,197 |
FINANCIAL LIABILITIES |
Financial liabilities measured at amortised cost | (8,657,492 | ) | (7,658,926 | ) |
Company |
31.12.23 | 31.12.22 |
£ | £ |
FINANCIAL ASSETS |
Financial assets measured at fair value through profit and loss | 92 | 204 |
FINANCIAL LIABILITIES |
Financial liabilities measured at amortised cost | (1,651,469 | ) | (1,205,647 | ) |
Financial assets measured at amortised cost comprise trade debtors, amounts owed by group undertakings, other debtors and accrued income. |
Financial liabilities measured at amortised cost comprise bank and other loans, overdrafts, trade creditors, other creditors and accruals. |
21. | PROVISIONS FOR LIABILITIES |
Group |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Deferred tax | 191,098 | 350,366 |
Other provisions | 250,000 | - |
Aggregate amounts | 441,098 | 350,366 |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 January 2023 | 350,366 | - |
Provided during year | - | 250,000 |
Utilised during year | (159,268 | ) | - |
Balance at 31 December 2023 | 191,098 | 250,000 |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
21. | PROVISIONS FOR LIABILITIES - continued |
Deferred tax relates to timing differences arising from the amount of depreciation charged on fixed assets compared with capital allowances claimed. |
The other provison relates to a dilapidations claim. |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | as restated |
£ | £ |
Ordinary 'A' | £1 | 261,540 | 261,540 |
Ordinary 'B' | £1 | 11,107 | 11,107 |
Ordinary 'C' | £0.01 | 93 | 93 |
272,740 | 272,740 |
The Ordinary A, B and C shares all carry a right to dividend and capital distribution in the event of a return of capital. The Ordinary A and B shares carry voting rights whereas the Ordinary C shares have no voting rights. |
23. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2023 | (2,884,043 | ) | 1,939,935 | (944,108 | ) |
Prior year adjustment | (77,307 | ) | (77,307 | ) |
(2,961,350 | ) | (1,021,415 | ) |
Deficit for the year | (1,178,460 | ) | (1,178,460 | ) |
At 31 December 2023 | (4,139,810 | ) | 1,939,935 | (2,199,875 | ) |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2023 | 3,021,822 |
Deficit for the year | ( |
) | ( |
) |
At 31 December 2023 | 2,575,888 |
Central Pharma Contract Holdings Limited (Registered number: 08126719) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
24. | CONTINGENT LIABILITY |
The group is currently involved in a dispute with a supplier regarding overdue invoices approximately totalling £200,000. These invoices have been withheld due to significant quality issues identified in the goods supplied. The supplier disputes the group's assessment and demands full payment, claiming the goods met the agreed specifications. Since the initial notice of litigation from the supplier, the group provided third party evidence to the supplier of the goods not meeting specification and the formal litigation has not progressed further. Based on legal assessments, the likelihood of an outflow of economic resources is considered possible but not probable, and as such, no provision has been recorded in the financial statements. |
CONTINGENT ASSET |
The group is currently involved in a dispute against a supplier due to quality issues with the supplied goods. These issues have led to a customer submitting complaints regarding the group's manufactured products, mostly resulting in repackaged products. The group is currently in discussions with the supplier to seek compensation for the losses incurred. While the outcome is uncertain, the group believes it has a strong case for recovering these damages. No asset has been recognised in the financial statements at this time, as the realisation of this contingent asset is not yet virtually certain. |
25. | CAPITAL COMMITMENTS |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Contracted but not provided for in the |
financial statements | - | 127,740 |
26. | RELATED PARTY DISCLOSURES |
During the year, a total of key management personnel compensation of £ 460,030 (2022 - £ 442,276 ) was paid. |
Key management personnel includes the directors of both Central Pharma Contract Packing Limited as well as Central Pharma Contract Holdings Limited. |
27. | ULTIMATE CONTROLLING PARTY |