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REGISTERED NUMBER: 04423982 (England and Wales)















Strategic Report, Directors' Report and

Financial Statements for the Year Ended 31 March 2024

for

SKF. Lo (Chemists) Limited

SKF. Lo (Chemists) Limited (Registered number: 04423982)






Contents of the Financial Statements
for the Year Ended 31 March 2024




Page

Company Information 1

Strategic Report 2

Directors' Report 4

Independent Auditors' Report 6

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


SKF. Lo (Chemists) Limited

Company Information
for the Year Ended 31 March 2024







DIRECTORS: Mr S K F Lo
Mr K K K Lo
Mr J Lo
Mr C G Lo





REGISTERED OFFICE: Unit 5 Farfield Park
Manvers Way
Manvers
Rotherham
South Yorkshire
S63 5DB





REGISTERED NUMBER: 04423982 (England and Wales)





AUDITORS: Harris & Co Limited
Chartered Accountants & Statutory Auditor
Marland House
13 Huddersfield Road
Barnsley
South Yorkshire
S70 2LW

SKF. Lo (Chemists) Limited (Registered number: 04423982)

Strategic Report
for the Year Ended 31 March 2024

The directors present their strategic report for the year ended 31 March 2024.

PRINCIPAL RISKS AND UNCERTAINTIES
The company's operations expose it to a variety of financial risks that include the effects of price risk, credit risk, liquidity risk and interest rate risk. The company does not use derivative financial instruments to manage interest rate costs and as such no hedge accounting is applied.

The board of directors is responsible for monitoring financial risk and for deciding where it would be appropriate to use financial instruments to manage this risk.

Price risk
The company has no exposure to equity securities price risk as it holds no listed or other equity investments.

Credit risk
Other than the NHS Business Services Authority the company has no significant credit customers and is therefore not materially exposed to credit risk.

Liquidity risk
The company actively maintains a mixture of long-term and short-term debt, overdraft finance and lending from related companies that is designed to ensure the company has sufficient available funds for operations and planned expansions.

Interest rate risk
The company has both interest bearing assets and interest bearing liabilities. Interest bearing assets are cash and bank deposits which earn interest at a variable rate. Interest bearing liabilities include overdrafts and both short and long term debt. The board of directors regularly review the mix of overdraft and debt to manage interest risk and where possible use fixed rate debt to ensure certainty of future interest cash flows. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.

Other risks
The company operates in a highly regulated market. and changes to those regulations, including regulation changes to the NHS pharmacy contract, could potentially have a significant impact on the business. Management regularly review pending or potential changes to regulations and take steps to minimise the impact on the business.

BUSINESS REVIEW
The directors aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year-end. Our review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties we face.

The company acquired a number of new pharmacies between March 2023 and September 2023 which has resulted in an increase in turnover of £12.8m to £29.4m (2023: £16.6m). Whilst the increase in turnover resulted in an increase in gross profit of £3.3m to £7.9m (2023: £4.6m), the gross margin decreased slightly to 26.8% (2023: 27.4%). An increase in administrative expenses of £4.5m to £9.2m (2023: £4.7m) has resulted in an increase in operating loss of £1.1m to £1.2m (2023: £0.1m). An increase in borrowings to help fund the new pharmacy acquisitions has resulted in an increase in interest charges of £745k to £790k (2023: £45k). The company generated a loss before tax of £2.0m (2023: £135k) and a loss after tax of £1.7m (2023: £232k).

Total net assets decreased by £1,743k from £1,627k net assets to £115k net liabilities, reflecting the loss after tax for the year. Net current liabilities increased by £1,191k to £3,688k. Total bank loans increased by £1,177k to £13,135k. The company continues to fully service all loans.

Based on the company's financial forecasts, as well as the support of related companies, its director shareholders and its bankers, the directors consider the business to still be well positioned to meet the principal risks and uncertainties detailed below. Accordingly, in the opinion of the directors, it is therefore appropriate to prepare the accounts on a going concern basis.

KEY PERFORMANCE INDICATORS

SKF. Lo (Chemists) Limited (Registered number: 04423982)

Strategic Report
for the Year Ended 31 March 2024

We consider that our key financial performance indicators are those that communicate the financial performance of the company, these being turnover, operating profit, profits before taxation and EBITDA.

ON BEHALF OF THE DIRECTORS:





Director


18 December 2024

SKF. Lo (Chemists) Limited (Registered number: 04423982)

Directors' Report
for the Year Ended 31 March 2024

The directors present their report and the financial statements of the company for the year ended 31 March 2024.

PRINCIPAL ACTIVITY
The principal activity of the Company in the year under review was that of dispensing chemists.

DIVIDENDS
The total distribution of dividends for the year ended 31 March 2024 will be £1,000.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report.

Mr S K F Lo
Mr K K K Lo
Mr J Lo
Mr C G Lo

DISCLOSURE IN THE STRATEGIC REPORT
The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. This includes information that would have been included in the business review and the principal risks and uncertainties.

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to:

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

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

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

SKF. Lo (Chemists) Limited (Registered number: 04423982)

Directors' Report
for the Year Ended 31 March 2024


AUDITORS
The auditors, Harris & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE DIRECTORS:





Mr S K F Lo - Director


18 December 2024

Independent Auditors' Report to the Members of
SKF. Lo (Chemists) Limited

Opinion
We have audited the financial statements of SKF. Lo (Chemists) Limited (the 'Company') for the year ended 31 March 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the Company's affairs as at 31 March 2024 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

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

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Independent Auditors' Report to the Members of
SKF. Lo (Chemists) Limited


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

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

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

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

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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

- Enquiring of management, including obtaining and reviewing supporting documentation, concerning
the company's policies and procedures relating to:

-
Identifying, evaluating and complying with laws and regulations and whether they were aware of
any instances of non-compliance;

-
Detecting and responding to the risks of fraud and whether they have knowledge of any actual,
suspected or alleged fraud;

-
The internal controls established to mitigate risk related to fraud or non-compliance with laws &
regulations;
- Obtaining an understanding of the legal and regulatory frameworks that the company operates in,
focusing on those laws and regulations that had a direct effect on the financial statements or that had a
fundamental effect on the operations of the company. The key laws and regulations we considered in
this context included the UK Companies Act, tax legislation, data protection, anti bribery, employment
and health and safety regulations and the Medicine Act.

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 Auditors' Report.

Independent Auditors' Report to the Members of
SKF. Lo (Chemists) Limited


Audit response to risks identified
Our procedures to respond to risks identified included the following:

- Reviewing the financial statement disclosures and testing to supporting documentation to assess
compliance with relevant laws and regulations;
- Enquiring of management concerning actual and potential litigation and claims;
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate
risk of material misstatement due to fraud; and
- In addressing the risk of fraud through management override of controls, testing the appropriateness
of journal entries and other adjustments; assessing the judgements used in accounting estimates to
assess whether these may be indicative of potential bias; and evaluating the business rationale of any
significant transactions that are unusual or outside the normal course of business.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Tom Garner CA CTA (Senior Statutory Auditor)
for and on behalf of Harris & Co Limited
Chartered Accountants & Statutory Auditor
Marland House
13 Huddersfield Road
Barnsley
South Yorkshire
S70 2LW

18 December 2024

SKF. Lo (Chemists) Limited (Registered number: 04423982)

Statement of Comprehensive
Income
for the Year Ended 31 March 2024

2024 2023
Notes £    £   

TURNOVER 29,437,133 16,682,448

Cost of sales 21,542,362 12,115,083
GROSS PROFIT 7,894,771 4,567,365

Administrative expenses 9,187,057 4,716,899
(1,292,286 ) (149,534 )

Other operating income 4 61,853 59,691
OPERATING LOSS 7 (1,230,433 ) (89,843 )

Interest receivable and similar income 9,975 60
(1,220,458 ) (89,783 )

Interest payable and similar expenses 8 789,808 45,198
LOSS BEFORE TAXATION (2,010,266 ) (134,981 )

Tax on loss 9 (268,152 ) 96,990
LOSS FOR THE FINANCIAL YEAR (1,742,114 ) (231,971 )

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE LOSS FOR
THE YEAR

(1,742,114

)

(231,971

)

SKF. Lo (Chemists) Limited (Registered number: 04423982)

Balance Sheet
31 March 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 14,073,654 12,528,883
Tangible assets 12 2,511,414 2,403,264
Investment property 13 660,861 1,105,790
17,245,929 16,037,937

CURRENT ASSETS
Stocks 14 1,809,713 1,679,635
Debtors 15 4,661,575 3,530,489
Cash at bank and in hand 78,228 913,781
6,549,516 6,123,905
CREDITORS
Amounts falling due within one year 16 10,237,186 8,620,907
NET CURRENT LIABILITIES (3,687,670 ) (2,497,002 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

13,558,259

13,540,935

CREDITORS
Amounts falling due after more than one
year

17

(13,673,788

)

(11,645,198

)

PROVISIONS FOR LIABILITIES 21 - (268,152 )
NET (LIABILITIES)/ASSETS (115,529 ) 1,627,585

CAPITAL AND RESERVES
Called up share capital 22 1 1
Undistributable reserves 68,122 68,122
Retained earnings (183,652 ) 1,559,462
SHAREHOLDERS' FUNDS (115,529 ) 1,627,585

The financial statements were approved by the Board of Directors and authorised for issue on 18 December 2024 and were signed on its behalf by:





Mr S K F Lo - Director


SKF. Lo (Chemists) Limited (Registered number: 04423982)

Statement of Changes in Equity
for the Year Ended 31 March 2024

Called up
share Retained Undistributable Total
capital earnings reserves equity
£    £    £    £   
Balance at 1 April 2022 1 1,793,433 68,122 1,861,556

Changes in equity
Dividends - (2,000 ) - (2,000 )
Total comprehensive loss - (231,971 ) - (231,971 )
Balance at 31 March 2023 1 1,559,462 68,122 1,627,585

Changes in equity
Dividends - (1,000 ) - (1,000 )
Total comprehensive loss - (1,742,114 ) - (1,742,114 )
Balance at 31 March 2024 1 (183,652 ) 68,122 (115,529 )

SKF. Lo (Chemists) Limited (Registered number: 04423982)

Cash Flow Statement
for the Year Ended 31 March 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (562,073 ) (1,738,758 )
Interest paid (789,808 ) (45,198 )
Tax paid 97,191 (222,380 )
Net cash from operating activities (1,254,690 ) (2,006,336 )

Cash flows from investing activities
Purchase of intangible fixed assets (2,872,910 ) (7,558,181 )
Purchase of tangible fixed assets (405,317 ) (1,290,835 )
Sale of intangible fixed assets 509,999 378,267
Sale of tangible fixed assets 396,462 7,300
Sale of investment property 444,929 -
Interest received 9,975 60
Net cash from investing activities (1,916,862 ) (8,463,389 )

Cash flows from financing activities
New loans in year 1,878,987 11,979,175
Loan repayments in year (701,717 ) (1,009,415 )
Amount introduced by directors 974,226 345,837
Amount withdrawn by directors - (139,752 )
Equity dividends paid (1,000 ) (2,000 )
Net cash from financing activities 2,150,496 11,173,845

(Decrease)/increase in cash and cash equivalents (1,021,056 ) 704,120
Cash and cash equivalents at
beginning of year

2

913,781

209,661

Cash and cash equivalents at end of
year

2

(107,275

)

913,781

SKF. Lo (Chemists) Limited (Registered number: 04423982)

Notes to the Cash Flow Statement
for the Year Ended 31 March 2024

1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
Loss before taxation (2,010,266 ) (134,981 )
Depreciation charges 1,266,653 633,178
Profit on disposal of fixed assets (547,808 ) (371,889 )
Finance costs 789,808 45,198
Finance income (9,975 ) (60 )
(511,588 ) 171,446
Increase in stocks (130,078 ) (896,002 )
Increase in trade and other debtors (1,228,277 ) (1,453,707 )
Increase in trade and other creditors 1,307,870 439,505
Cash generated from operations (562,073 ) (1,738,758 )

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 March 2024
31/3/24 1/4/23
£    £   
Cash and cash equivalents 78,228 913,781
Bank overdrafts (185,503 ) -
(107,275 ) 913,781
Year ended 31 March 2023
31/3/23 1/4/22
£    £   
Cash and cash equivalents 913,781 209,661


3. ANALYSIS OF CHANGES IN NET DEBT

At 1/4/23 Cash flow At 31/3/24
£    £    £   
Net cash
Cash at bank and in hand 913,781 (835,553 ) 78,228
Bank overdrafts - (185,503 ) (185,503 )
913,781 (1,021,056 ) (107,275 )
Debt
Debts falling due within 1 year (629,424 ) (122,907 ) (752,331 )
Debts falling due after 1 year (11,328,660 ) (1,054,364 ) (12,383,024 )
(11,958,084 ) (1,177,271 ) (13,135,355 )
Total (11,044,303 ) (2,198,327 ) (13,242,630 )

SKF. Lo (Chemists) Limited (Registered number: 04423982)

Notes to the Financial Statements
for the Year Ended 31 March 2024

1. STATUTORY INFORMATION

SKF. Lo (Chemists) 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 Company Information page.

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

2. STATEMENT OF COMPLIANCE

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

3. ACCOUNTING POLICIES

Company information and basis of preparing the financial statements
These financial statements have been prepared under the historical cost convention and in compliance with FRS 102, 'The Financial Standard Applicable in the UK and the Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets.

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

Going concern
Based on the company's financial forecasts, as well as the support of related companies, its director shareholders and its bankers, the directors consider that the company has adequate resources to continue to trade for at least 12 months from the date of signing these financial statements. Accordingly, in the opinion of the directors, it is therefore appropriate to prepare the accounts on a going concern basis.

Significant judgements and estimates
No significant judgements or estimates have had to be made by management in preparing these financial statements other than as described in the following accounting policies.

Turnover
Turnover represents amounts earned on goods and services provided during the year and derives from the provision of goods and services falling within the company's ordinary activities. 100% of the company's turnover results from activities in the United Kingdom.

Pharmacy licences
Pharmacy licences are initially measured at cost. After initial recognition, pharmacy licence assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset. Pharmacy licence assets are tested for impairment when there is an indication that the carrying amount may not be recoverable.

Amortisation is calculated as follows:

Pharmacy licenses- straight line over 20 and 10 years

SKF. Lo (Chemists) Limited (Registered number: 04423982)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

3. ACCOUNTING POLICIES - continued

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.
Freehold property - 2% on cost straight line
Long leasehold - Over the life of the lease straight line
Fixtures and fittings - 25% on reducing balance and 15% on reducing balance
Motor vehicles - 25% on reducing balance

All fixed assets are initially recorded at cost.

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

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

Cost is calculated using the first in, first out method.

Financial instruments
The company has adopted the provisions set out in sections 11 and 12 of FRS 102 in the recognition and measurement of financial instruments. All financial instruments are initially measured at the original transaction price, less associated costs. For subsequent measurement, basic financial instruments are measured at amortised cost in accordance with section 11 of FRS 102. Other financial instruments that are not considered basic and that are material to the financial statements are measured at fair value through profit or loss in accordance with section 12 of FRS 102.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

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

SKF. Lo (Chemists) Limited (Registered number: 04423982)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

4. OTHER OPERATING INCOME
2024 2023
£    £   
Rents received 59,423 59,691
Sundry income 2,430 -
61,853 59,691

5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 5,288,344 2,764,381
Social security costs 401,266 206,724
Other pension costs 86,201 44,442
5,775,811 3,015,547

The average number of employees during the year was as follows:
2024 2023

Administration staff 275 160

6. DIRECTORS' EMOLUMENTS
2024 2023
£    £   
Directors' remuneration 153,412 101,583

7. OPERATING LOSS

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

2024 2023
£    £   
Depreciation - owned assets 279,841 133,263
Profit on disposal of fixed assets (547,808 ) (371,889 )
Pharmacy licences amortisation 986,812 499,915
Auditors remuneration - audit
of the financial statements 13,250 12,550
Auditors' remuneration for non audit work 5,500 5,250

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank interest 789,808 45,198

SKF. Lo (Chemists) Limited (Registered number: 04423982)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

9. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax - (95,686 )

Deferred tax (268,152 ) 192,676
Tax on loss (268,152 ) 96,990

Reconciliation of total tax (credit)/charge 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:

2024 2023
£    £   
Loss before tax (2,010,266 ) (134,981 )
Loss multiplied by the standard rate of corporation tax in the UK of
19% (2023 - 19%)

(381,951

)

(25,646

)

Effects of:
Expenses not deductible for tax purposes 1,555 1,010
Capital allowances in excess of depreciation - (68,086 )
Depreciation in excess of capital allowances 177,441 -
(Profit)/Loss on disposal of fixed assets (104,084 ) (70,659 )
Chargeable gain on disposal of pharmacy - 67,695
Chargeable gain on disposal of investment property 65,999 -
Tax losses carried forward 241,040 -
Deferred tax (268,152 ) 192,676
Total tax (credit)/charge (268,152 ) 96,990

10. DIVIDENDS
2024 2023
£    £   
Interim 1,000 2,000

SKF. Lo (Chemists) Limited (Registered number: 04423982)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

11. INTANGIBLE FIXED ASSETS
Pharmacy
licences
£   
COST
At 1 April 2023 21,640,318
Additions 2,872,910
Disposals (352,338 )
At 31 March 2024 24,160,890
AMORTISATION
At 1 April 2023 9,111,435
Amortisation for year 986,812
Eliminated on disposal (11,011 )
At 31 March 2024 10,087,236
NET BOOK VALUE
At 31 March 2024 14,073,654
At 31 March 2023 12,528,883

12. TANGIBLE FIXED ASSETS
Fixtures
Freehold Long and Motor
property leasehold fittings vehicles Totals
£    £    £    £    £   
COST
At 1 April 2023 1,332,222 467,919 1,600,582 36,666 3,437,389
Additions 6,407 42,250 356,660 - 405,317
Disposals - - (18,175 ) (11,003 ) (29,178 )
At 31 March 2024 1,338,629 510,169 1,939,067 25,663 3,813,528
DEPRECIATION
At 1 April 2023 215,771 253,713 536,627 28,014 1,034,125
Charge for year 30,819 22,427 224,687 1,908 279,841
Eliminated on disposal - - (2,527 ) (9,325 ) (11,852 )
At 31 March 2024 246,590 276,140 758,787 20,597 1,302,114
NET BOOK VALUE
At 31 March 2024 1,092,039 234,029 1,180,280 5,066 2,511,414
At 31 March 2023 1,116,451 214,206 1,063,955 8,652 2,403,264

SKF. Lo (Chemists) Limited (Registered number: 04423982)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

13. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 April 2023 1,105,790
Disposals (444,929 )
At 31 March 2024 660,861
NET BOOK VALUE
At 31 March 2024 660,861
At 31 March 2023 1,105,790

The investment properties were valued at £660,000 (2023: £1,105,790) on 7 August 2024 by Andrew Corbett, of Smiths Chartered Surveyors, an independent Chartered Surveyor and member of the Royal Institute of Chartered Surveyors, based on the value as a single transfer as an investment property with the assured shorthold tenancy agreements in place. The historical cost of the investment property is £756,947 (2023: £1,201,876).

Fair value at 31 March 2024 is represented by:
£   
Valuation in 2024 660,861

14. STOCKS
2024 2023
£    £   
Finished goods 1,809,713 1,679,635

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 2,307,394 1,721,057
Other debtors 1,694,098 1,176,237
Tax - 97,191
VAT 355,490 343,631
Prepayments and accrued income 304,593 192,373
4,661,575 3,530,489

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 18) 937,834 629,424
Trade creditors 2,824,505 2,220,412
Social security and other taxes 98,555 57,060
Other creditors 6,243,468 5,636,488
Accruals and deferred income 132,824 77,523
10,237,186 8,620,907

SKF. Lo (Chemists) Limited (Registered number: 04423982)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank loans (see note 18) 12,383,024 11,328,660
Directors' loan accounts 1,290,764 316,538
13,673,788 11,645,198

18. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 185,503 -
Bank loans 752,331 629,424
937,834 629,424

Amounts falling due between one and two years:
Bank loans - 1-2 years 795,226 668,521

Amounts falling due between two and five years:
Bank loans - 2-5 years 10,840,812 2,197,424

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more than 5 years
by instalments 746,986 8,462,715
746,986 8,462,715

19. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 380,149 273,235
Between one and five years 1,171,695 852,317
In more than five years 1,141,723 820,084
2,693,567 1,945,636

SKF. Lo (Chemists) Limited (Registered number: 04423982)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

20. SECURED DEBTS

The bank loans and overdraft are secured by a first legal charge over the freehold and leasehold property of the business, a debenture including a first fixed charge over the present and future assets of the company, a first floating charge over all assets and undertakings both present and future, and a limited guarantee given by Lo's Pharmacy Limited.

The bank loans and overdraft are also secured by a personal guarantee from Mr S K F Lo which is supported by a first legal charge over freehold properties held by Mr S K F Lo.

The bank loans are repayable for periods up to ten years and carry annual interest rates of 1.55% - 1.67% above the Bank of England Base Rate.

21. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax
Accelerated capital allowances - 268,152

Deferred
tax
£   
Balance at 1 April 2023 268,152
Credit to Statement of Comprehensive Income during year (268,152 )
Accelerated capital allowances
Balance at 31 March 2024 -

22. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
1 Ordinary £1 1 1

23. CONTINGENT LIABILITIES

The company has entered into a multilateral guarantee arrangement in respect of the bank borrowings of Lo's Pharmacy Limited, a related party. At 31 March 2024 the company's liability under these arrangements was £96,481 (2023: nil).

24. CAPITAL COMMITMENTS
2024 2023
£    £   
Contracted but not provided for in the
financial statements 141,548 -

SKF. Lo (Chemists) Limited (Registered number: 04423982)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

25. RELATED PARTY DISCLOSURES

The company traded with an entity under common control, during the year. SKF. Lo (Chemists) Limited sold goods and services amounting to £41,207 (2023: £37,526) and purchased goods and services amounting to £214,477 (2023: £112,397) from this entity. Included in other creditors is a loan balance due to this entity of £6,221,964 (2023: £5,622,671).

The company also incurs costs on behalf of entities over which the entity has control or significant influence. Included in other debtors are loan balances due to SKF. Lo (Chemists) Limited of £1,632,300 (2023: £597,713).

During the year the company paid rent to a director of £54,992 (2023: £52,075). At the balance sheet date SKF. Lo (Chemists) Limited owed a director £1,290,764 (2023 £316,538).

26. ULTIMATE CONTROLLING PARTY

The controlling party is Mr S K F Lo.