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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: Mr A J Smit
Mr J E Derry-Evans
Mrs K Y Nichol
Mr M J Blood





REGISTERED OFFICE: Caxton Road
Elm Farm Industrial Estate
Bedford
Bedfordshire
MK41 0XZ





REGISTERED NUMBER: 08126719 (England and Wales)





AUDITORS: WP Audit Limited
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:





Mr A J Smit - Director


28 November 2024

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.

Mr A J Smit
Mr J E Derry-Evans
Mrs K Y Nichol
Mr M J Blood

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:





Mr A J Smit - Director


28 November 2024

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.




Philippa Duckworth BSc FCCA (Senior Statutory Auditor)
for and on behalf of WP Audit Limited
Statutory Auditors
TOR
Saint-Cloud Way
Maidenhead
Berkshire
SL6 8BN

28 November 2024

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 (1,178,460 ) (2,785,192 )
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 4,500,004 4,500,004
4,500,004 4,500,004

CURRENT ASSETS
Cash at bank 92 204

CREDITORS
Amounts falling due within one year 15 (1,651,469 ) (1,069,947 )
NET CURRENT LIABILITIES (1,651,377 ) (1,069,743 )
TOTAL ASSETS LESS CURRENT LIABILITIES 2,848,627 3,430,261

CREDITORS
Amounts falling due after more than one year 16 - (135,700 )
NET ASSETS 2,848,627 3,294,561

CAPITAL AND RESERVES
Called up share capital 22 272,739 272,739
Share premium 23 1,939,935 1,939,935
Retained earnings 23 635,953 1,081,887
SHAREHOLDERS' FUNDS 2,848,627 3,294,561

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 8 November 2024 and were signed on its behalf by:





Mr A J Smit - Director


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 140,754 1,089,700 442,290 1,672,744

Changes in equity
Issue of share capital 131,985 - 1,497,645 1,629,630
Total comprehensive income - (7,813 ) - (7,813 )
Balance at 31 December 2022 272,739 1,081,887 1,939,935 3,294,561

Changes in equity
Total comprehensive income - (445,934 ) - (445,934 )
Balance at 31 December 2023 272,739 635,953 1,939,935 2,848,627

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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

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
Goodwill, being the amount paid in connection with the acquisition of a business in 2012, is being amortised evenly over its estimated useful life of twenty years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Short leasehold - Over the lease term
Plant and machinery - 20% on cost, 15% on cost, 10% on cost and at varying rates on cost
Fixtures and fittings - 33% on cost and 20% on cost
Motor vehicles - 33% on cost, 25% on cost and 20% on cost
Computer equipment - 33% on cost and 20% on cost

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
219 233

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 4,500,004
NET BOOK VALUE
At 31 December 2023 4,500,004
At 31 December 2022 4,500,004

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Central Pharma Contract Packing Limited
Registered office: Caxton Road, Elm Farm Industrial Estate, Bedford, Bedfordshire, MK41 0XZ
Nature of business: Contract packing
%
Class of shares: holding
Ordinary 100.00
31.12.23 31.12.22
£    £   
Aggregate capital and reserves 2,024,194 2,674,521
Loss for the year (650,327 ) (583,888 )

Central Pharma Cell and Gene Therapy Ltd
Registered office: Caxton Road, Elm Farm Industrial Estate, Bedford, Bedfordshire, MK41 0HT
Nature of business: Contract packing
%
Class of shares: holding
Ordinary 100.00
31.12.23 31.12.22
£    £   
Aggregate capital and reserves (1,874,786 ) (1,876,164 )
Profit/(loss) for the year 1,378 (733,407 )

Central Pharma Europe Limited
Registered office: 2 Park Place, City Gate, Mahon, Cork, T12D H0F
Nature of business: Contract packing
%
Class of shares: holding
Ordinary 100.00
31.12.23 31.12.22
£    £   
Aggregate capital and reserves (1,434,648 ) (1,077,380 )
Loss for the year (357,268 ) (406,228 )

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

Central Pharma Manufacturing Ltd
Registered office: Central Pharma Caxton Road, Elm Farm Industrial Estate, Bedford, United Kingdom, MK41 0HT
Nature of business: Manufacture of basic pharmaceutical products
%
Class of shares: holding
Ordinary 100.00
31.12.23 31.12.22
£    £   
Aggregate capital and reserves 1 1

Central Pharma Biotechnica Limited
Registered office: Central Pharma Caxton Road, Elm Farm Industrial Estate, Bedford, United Kingdom, MK41 0HT
Nature of business: Contract packing
%
Class of shares: holding
Ordinary 100.00
31.12.23 31.12.22
£    £   
Aggregate capital and reserves (1,002,380 ) (740,684 )
Loss for the year (261,696 ) (842,332 )


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 - - 1,651,469 1,069,947
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 1,651,469 1,069,947

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 - 135,700
Hire purchase contracts (see note 18) 916,492 1,158,452 - -
1,101,466 1,601,888 - 135,700

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 - 135,700

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
£    £   
261,540 Ordinary 'A' £1 261,540 261,540
11,107 Ordinary 'B' £1 11,107 11,107
9,289 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 1,081,887 1,939,935 3,021,822
Deficit for the year (445,934 ) (445,934 )
At 31 December 2023 635,953 1,939,935 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

There is no single ultimate controlling party.