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Registered number: 07285506









PHARMADENT HOLDINGS LIMITED







CONSOLIDATED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
PHARMADENT HOLDINGS LIMITED
 
 
COMPANY INFORMATION


Director
B Patel 




Company secretary
H Patel



Registered number
07285506



Registered office
Old Station Road

Loughton

Essex

IG10 4PL




Independent auditors
Haslers
Chartered Accountants & Statutory Auditor

Old Station Road

Loughton

Essex

IG10 4PL





 
PHARMADENT HOLDINGS LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 2
Director's Report
 
3 - 5
Director's Responsibilities Statement
 
6
Independent Auditors' Report
 
7 - 11
Consolidated Statement of Comprehensive Income
 
12
Consolidated Balance Sheet
 
13 - 14
Company Balance Sheet
 
15
Consolidated Statement of Changes in Equity
 
16 - 17
Company Statement of Changes in Equity
 
18
Consolidated Statement of Cash Flows
 
19 - 20
Consolidated Analysis of Net Debt
 
21
Notes to the Financial Statements
 
22 - 45


 
PHARMADENT HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
The Company is the ultimate parent undertaking for the Group and its trading subsidiary companies are Pharmaceuticals Direct Limited, DHB Oral Healthcare Limited, Pharmadent Limited, Coombe KP Limited and Bemin Limited. 
The results for the year ended 31 March 2024 and financial position of the Group at this date are as shown in the annexed financial statements.

Business review
 
Across the Group the director has focused on achieving improved gross profitability and growth. Although industry trading conditions are difficult, management have focused on selling profitable lines of stock. Overall, gross profit margin for the Group has fallen to 14% from 17%.
Administrative costs have decreased when compared to the prior year as there were a number of one off expenses that are not expected to recur. This has resulted in the total profit increasing from the prior years.The Director remains satisfied with the trading levels and profitability of the Group. 
The director looks to continue with the core sales in the UK, but looks to explore the rest of Europe and the world. 

Principal risks and uncertainties
 
The principal risk identified by management are the regulatory changes within the pharmaceuticals environment, foreign currency fluctuations, price risk and with the Group's supply chain and customers. The director manages the price risk but monitoring stock levels carefully and adapting to the market. Equally the director monitors foreign currencies where applicable but the majority of transactions remain in sterling. 
The director ensures that both credit risk and cash flow are constantly managed within the Group's activities. The Group have procedures in place with new customers and credit is granted and agreed in advance and monitored on a regular basis. The liquidity of the Group is monitored closely by the Director within the Holding company on behalf of the Group when it is reviewing the core trade of the Group along with various loans and investments. 
Management understand the risk of falling behind product ranges and changes in the industry and aims to mitigate these risks. Performance is regularly reviewed at an overview level with the suppliers and principal clients. The Group continues to enhance the value of long-established clients by offering a quality service and aiming to meet their demands in a timely fashion.
The directors is aware of the Medicines and Healthcare products Regulatory Agency (MHRA) regulatory requirements that are paramount to the Group's continued activities. Tight restrictions remain in place on the import and export of goods and over counterfeit pharmaceuticals. Management are proactive in this area and consider the impact of regulatory changes and devised procedures to mitigate such risks and uncertainties.

Financial key performance indicators
 
The director considers the key performance indicators for the Group to be those that communicate the financial
performance and strength of the company as a whole, these being turnover, gross margin, and operating profit.
The director manages stock levels actively with the market to ensure gross margins are strong to manage operating profit within the Group. 

Page 1

 
PHARMADENT HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Other key performance indicators
 
The directors consider other key performance indicators for the Group being delivery and logistics of their products. More product lines require temperature controlled transports and this is closely monitored by the Group. 

Director's statement of compliance with duty to promote the success of the Group
 
Section 172 of the UK Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to the factors listed in section 172.
The Group have their own codes of conduct which lists out principles and practices which need to be followed to ensure the success of the Group is achieveable.
The Director of the Group is part of the senior management team who is also director of all the companies included in the group accounts. They have involvement and oversight of the internal operations so they can form opinions and decisions to ensure changes are made on a timely basis to ensure the success of the Group.
The Group recognises the importance of staff development and retention to the ongoing sucess of the business's.
The Group considers its supplier relationships as crucial in the sucessful running of the Group. We continue to build strong relationships with existing and new suppliers which allows us to react quickly with the market changes. 
The Group looks to build on its relationships with existing customers and generating new customers with its quality products and swift distribution. 
The Group continues to monitor and review the effect the business's have on the community and wider environment and actively and this is described more in the Carbon Reporting section. 
It is important for the Group to engage in good business to maximise Shareholder Wealth in the correct manner that promotes strong sustainable and sucessful trading. 


This report was approved by the board on 7 January 2025 and signed on its behalf.



B Patel
Director

Page 2

 
PHARMADENT HOLDINGS LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The director presents his report and the financial statements for the year ended 31 March 2024.

Results and dividends

The profit for the year, after taxation and minority interests, amounted to £970,260 (2023 - £545,944).

No dividends were issued during the year by the entity (2023: £Nil).
The group has paid dividends to Non Controlling Interests (outside the Group) that amount to £364,350 (2023: £343,000).
There are elements of the Director's report that have been included in the Strategic report. 

Director

The director who served during the year was:

B Patel 

Future developments

The directors continue to seek and build relationships with overseas customers.

Engagement with suppliers, customers and others

The Director acknowledges that the long term success of the group is dependent on the way it works with several important stakeholders. Key stakeholders are considered in their decision making and in doing so ensure that the directors' duty is discharged under section 172 of the Companies Act.

Page 3

 
PHARMADENT HOLDINGS LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Greenhouse gas emissions, energy consumption and energy efficiency action

Carbon Neutral Britain was engaged by the Group in order to measure and calculate the organisations total carbon footprint for 2023/2024, with the purpose of offsetting and becoming Carbon Neutral. The Group looks to review, manage and monitor ways to reduce its energy efficiency moving forward. 
The parent company falls below the threshold to report. 
As a specialist in the procurement, storage and distribution of pharmaceutical and healthcare products, it was identified that the main emissions were to occur from companyowned/leased vehicles and the mileage accumulated within the reporting period. Due to the impact of COVID-19 a number of staff worked from home and continue to do so, of which the energy usage from home was also calculated. This is more relevant for the comparative period. 
Scope 1 refers to Direct Emissions and Scope 2 being Indirect. 

The Group's greenhouse gas emissions and energy consumption for the year are…

The period covered by this report is 1 January 2023 to 31 December 2023.

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Page 4

 
PHARMADENT HOLDINGS LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

For the comparative period (March 2023 accounts). The total was 27,280.32 kg CO2e for Scope 1 and 35,456.22 kg CO2e for Scope 2. 
The total carbon footprint for March 2024 accounts was 70.61 tCO2e and for March 2023 accounts this was 62.74 tCO2e. The main driver behind this change was the comparative year had a significant amount of working from home. Based on these totals, the estimated kWH comparison for March 2024 accounts would be 251,000 kWH with the comparative year for March 2023 accounts being 167,500 kWH. 
Intensity Ratio
                                                                                       2024                             2023
Total tonnes of CO2 per employee (Scope 1)                     0.326                            0.462
Total tonnes of CO2 per employee (Scope 2)                     0.913                            0.601
Methodology used in calculation of disclosures
The Group's greenhouse gas emissions and energy consumption for the year are as per the table above. The methodology used to calculate this is GHG Protocol.

Disclosure of information to auditors

The director at the time when this Director's Report is approved has confirmed that:
 
so far as  is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

 has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsHaslerswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 7 January 2025 and signed on its behalf.
 





B Patel
Director

Page 5

 
PHARMADENT HOLDINGS LIMITED
 
 
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024

The director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:

select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Page 6

 
PHARMADENT HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PHARMADENT HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of Pharmadent Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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's affairs as at 31 March 2024 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 director's 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 or 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 director with respect to going concern are described in the relevant sections of this report.


Page 7

 
PHARMADENT HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PHARMADENT HOLDINGS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The director is responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


Opinion 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the 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 Director's Report.


We have nothing to report in respect of the following matters in relation to which 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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 8

 
PHARMADENT HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PHARMADENT HOLDINGS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Director's Responsibilities Statement set out on page 6, the director is 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 director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the director is 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 director either intends to liquidate the Group or the parent 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that:
•  had a direct effect on the determination of material amounts and disclosures in the financial statements.    These include but are not limited to the Companies Act 2006, GDPR, employment and Health & Safety    legislation and tax legislation, and 
•  do not have a direct effect on the financial statements but compliance with which may be fundamental to   the company’s ability to operate or to avoid a material penalty. These include operational and     employment laws and regulations including the Medicines & Healthcare Products Regulatory Agency    (MHRA). health and safety regulations, environmental regulations and GDPR. 
We obtained an understanding of how the group are complying with those legal and regulatory frameworks by inquiring with the director and management. These inquiries were corroborated by a review of licences issued by the MHRA and documentation summarising any inspections that took place. This was used to assess the extent of compliance with the relevant laws and regulations. We also reviewed the controls in place for management to detect any non-compliance with regulations within the pharmaceutical industry. 
We discussed among the audit engagement team including relevant internal tax specialists, regarding the opportunities and incentives, including management override of controls, that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. We also communicated the applicable laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. 
The risk of management override of controls is the area where the financial statements were most susceptible to material misstatement due to fraud. In addition, the key principal risks related to the existence of inappropriate journal entries to impact the profit for the year and management bias in accounting estimates. 
 
Page 9

 
PHARMADENT HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PHARMADENT HOLDINGS LIMITED (CONTINUED)



Procedures performed to address these were as follows:
• Walkthrough testing was carried out to identify and assess the design effectiveness of controls,     management have in place to prevent and detect fraud, including known of suspected instances or non-   compliance with laws and regulations and fraud, 
• Understanding how those charged with governance considered and addressed the potential for override of  controls or other inappropriate influence over the financial reporting process, 
• Using analytical procedures to identify any unusual or unexpected relationships that may indicate risks of   material misstatements due to fraud, 
• Assessing the appropriateness of accounting estimates, such as stock provisions, and challenging any    significant assumptions or judgements made by management, 
• Incorporating testing of manual journal entries that were posted throughout the year. In particular, we    focused on material journal entries, journal entries posted with unusual account combinations, as well as   journal entries crediting revenue or cash. These were scrutinised for evidence of unusual entries, 
• Selecting specific revenue transactions based on risk criteria and obtaining supporting documentation    including sales invoice to ensure revenue was appropriately recorded,  
• Reviewing specific cost of sale transactions based on risk criteria and reviewing invoice documentation to   ensure the expense was appropriately recorded, 
• Evaluated 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.


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.


Page 10

 
PHARMADENT HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PHARMADENT HOLDINGS LIMITED (CONTINUED)


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 2006Our 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.





Matthew Wells ACA  (Senior Statutory Auditor)
  
for and on behalf of
Haslers
 
Chartered Accountants
Statutory Auditor
  
Old Station Road
Loughton
Essex
IG10 4PL

7 January 2025
Page 11

 
PHARMADENT HOLDINGS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 4 
41,941,626
39,297,315

Cost of sales
  
(36,054,775)
(32,596,452)

Gross profit
  
5,886,851
6,700,863

Administrative expenses
  
(4,274,446)
(5,826,598)

Operating profit
 5 
1,612,405
874,265

Income from fixed assets investments
  
-
200,000

Interest receivable and similar income
 10 
534,771
334,732

Interest payable and similar expenses
 11 
(609,730)
(391,994)

Profit before taxation
  
1,537,446
1,017,003

Tax on profit
 12 
(455,247)
(396,991)

Profit for the financial year
  
1,082,199
620,012

Profit for the year attributable to:
  

Non-controlling interests
  
111,939
74,068

Owners of the parent Company
  
970,260
545,944

  
1,082,199
620,012

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 22 to 45 form part of these financial statements.

Page 12

 
PHARMADENT HOLDINGS LIMITED
REGISTERED NUMBER: 07285506

CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2024

As restated
2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 14 
1,680
54,608

Tangible assets
 15 
243,180
303,476

Investments
 16 
716,816
716,816

Investment property
 17 
-
465,000

  
961,676
1,539,900

Current assets
  

Stocks
 18 
10,262,929
11,198,644

Debtors: amounts falling due within one year
 19 
36,495,188
35,106,784

Cash at bank and in hand
 20 
373,151
4,263,153

  
47,131,268
50,568,581

Creditors: amounts falling due within one year
 21 
(18,596,255)
(23,290,821)

Net current assets
  
 
 
28,535,013
 
 
27,277,760

Total assets less current liabilities
  
29,496,689
28,817,660

Creditors: amounts falling due after more than one year
 22 
-
(52,749)

Provisions for liabilities
  

Deferred taxation
 25 
(492)
(563)

  
 
 
(492)
 
 
(563)

Net assets
  
29,496,197
28,764,348

Page 13

 
PHARMADENT HOLDINGS LIMITED
REGISTERED NUMBER: 07285506
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024

As restated
2024
2023
Note
£
£

Capital and reserves
  

Called up share capital 
 26 
2,079,702
2,079,702

Merger reserve
 27 
12,957,850
12,957,850

Share based payment reserve
 27 
69,300
69,300

Other reserves
 27 
(11,147,291)
(11,147,291)

Profit and loss account
 27 
24,215,282
23,245,022

Equity attributable to owners of the parent Company
  
28,174,843
27,204,583

Non-controlling interests
  
1,321,354
1,559,765

  
29,496,197
28,764,348


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 7 January 2025.




B Patel
Director

The notes on pages 22 to 45 form part of these financial statements.

Page 14

 
PHARMADENT HOLDINGS LIMITED
REGISTERED NUMBER: 07285506

COMPANY BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 16 
3,818,676
3,818,676

  
3,818,676
3,818,676

Current assets
  

Debtors: amounts falling due within one year
 19 
28,104,549
26,532,449

Cash at bank and in hand
 20 
40,634
3,518,984

  
28,145,183
30,051,433

Creditors: amounts falling due within one year
 21 
(28,211,876)
(30,699,584)

Net current liabilities
  
 
 
(66,693)
 
 
(648,151)

Total assets less current liabilities
  
3,751,983
3,170,525

  

  

Net assets excluding pension asset
  
3,751,983
3,170,525

Net assets
  
3,751,983
3,170,525


Capital and reserves
  

Called up share capital 
 26 
2,079,702
2,079,702

Capital redemption reserve
 27 
1,950,300
1,950,300

Profit and loss account brought forward
  
(859,477)
377,453

Profit/(loss) for the year
  
581,458
(1,236,930)

Profit and loss account carried forward
  
(278,019)
(859,477)

  
3,751,983
3,170,525


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 7 January 2025.


B Patel
Director

The notes on pages 22 to 45 form part of these financial statements.

Page 15
 

 
PHARMADENT HOLDINGS LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024



Called up share capital
Merger reserve
Share based payment reserve
Other reserves
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity


£
£
£
£
£
£
£
£


At 1 April 2023 (Restated)
2,079,702
12,957,850
69,300
(11,147,291)
23,245,022
27,204,583
1,559,765
28,764,348



Comprehensive income for the year


Profit for the year
-
-
-
-
970,260
970,260
111,939
1,082,199

Total comprehensive income for the year
-
-
-
-
970,260
970,260
111,939
1,082,199



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
-
-
-
(350,350)
(350,350)



At 31 March 2024
2,079,702
12,957,850
69,300
(11,147,291)
24,215,282
28,174,843
1,321,354
29,496,197



The notes on pages 22 to 45 form part of these financial statements.

Page 16

 

 
PHARMADENT HOLDINGS LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023



Called up share capital
Merger reserve
Share based payment reserve
Other reserves
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity


£
£
£
£
£
£
£
£


At 1 April 2022
2,079,702
12,957,850
69,300
(11,147,291)
22,699,078
26,658,639
1,828,697
28,487,336



Comprehensive income for the year


Profit for the year
-
-
-
-
545,944
545,944
74,068
620,012

Total comprehensive income for the year
-
-
-
-
545,944
545,944
74,068
620,012



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
-
-
-
(343,000)
(343,000)



At 31 March 2023 (Restated)
2,079,702
12,957,850
69,300
(11,147,291)
23,245,022
27,204,583
1,559,765
28,764,348



The notes on pages 22 to 45 form part of these financial statements.

Page 17
 
PHARMADENT HOLDINGS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Merger reserve
Profit and loss account
Total equity

£
£
£
£

At 1 April 2023
2,079,702
1,950,300
(859,477)
3,170,525


Comprehensive income for the year

Profit for the year
-
-
581,458
581,458
Total comprehensive income for the year
-
-
581,458
581,458


At 31 March 2024
2,079,702
1,950,300
(278,019)
3,751,983



COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Merger reserve
Profit and loss account
Total equity

£
£
£
£

At 1 April 2022
2,079,702
1,950,300
377,453
4,407,455


Comprehensive income for the year

Loss for the year
-
-
(1,236,930)
(1,236,930)
Total comprehensive income for the year
-
-
(1,236,930)
(1,236,930)


At 31 March 2023
2,079,702
1,950,300
(859,477)
3,170,525


The notes on pages 22 to 45 form part of these financial statements.

Page 18

 
PHARMADENT HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
1,082,199
620,012

Adjustments for:

Amortisation of intangible assets
52,930
97,366

Depreciation of tangible assets
60,297
82,833

Profit on disposal of tangible assets
(80,302)
(304,845)

Interest paid
609,730
391,993

Interest received
(534,771)
(534,732)

Taxation charge
455,247
396,991

Decrease/(increase) in stocks
935,712
(208,789)

(Increase) in debtors
(1,388,327)
(1,150,497)

(Decrease)/increase in creditors
(1,221,920)
6,045,845

Corporation tax (paid)
(1,275,361)
(1,488,729)

Net cash generated from operating activities

(1,304,566)
3,947,448


Cash flows from investing activities

Purchase of intangible fixed assets
-
(656)

Purchase of tangible fixed assets
-
(96,945)

Sale of tangible fixed assets
-
851,982

Purchase of investment properties
(288,186)
-

Sale of investment properties
753,186
-

Sale of unlisted and other investments
-
149,950

Interest received
534,771
334,732

Dividends received
-
200,000

Net cash from investing activities

999,771
1,439,063

Cash flows from financing activities

Repayment of loans
(4,524,185)
(862,256)

Movements on invoice discounting
2,014,446
-

Interest paid
(609,730)
(391,993)

Dividends paid to non-controlling interests
(350,350)
(343,000)

Net cash used in financing activities
(3,469,819)
(1,597,249)
Page 19

 
PHARMADENT HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024


2024
2023

£
£



Net (decrease)/increase in cash and cash equivalents
(3,774,614)
3,789,262

Cash and cash equivalents at beginning of year
4,147,683
358,421

Cash and cash equivalents at the end of year
373,069
4,147,683


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
373,151
4,263,153

Bank overdrafts
(82)
(115,470)

373,069
4,147,683


The notes on pages 22 to 45 form part of these financial statements.


Page 20

 
PHARMADENT HOLDINGS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2024




At 1 April 2023
Cash flows
At 31 March 2024
£

£

£

Cash at bank and in hand

4,263,153

(3,890,002)

373,151

Bank overdrafts

(115,470)

115,388

(82)

Debt due after 1 year

(52,749)

52,749

-

Debt due within 1 year

(5,383,271)

5,383,271

-


(1,288,337)
1,661,406
373,069

The notes on pages 22 to 45 form part of these financial statements.

Page 21

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

Pharmadent Holdings Limited is a private company, limited by shares in England and Wales, registration number 07285506.  The registered office is Old Station Road, Loughton, Essex, IG10 4PL.  The principal activities of the group is that of wholesale of pharmaceutical products, suppliers of dental requisites and investment property and development. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 April 2014.

Therefore, the Group continues to recognise a merger reserve which arose on a past business combination that was accounted for as a merger in accordance with UK GAAP as applied at that time.

The parent company has taken advantage of the disclosure exemption not to disclose a company cash flow statement. 

Page 22

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of pharmaceutical & dental products
Revenue is recognised when the products are dispatched from the warehouse. 
Rental Income
Revenue is recognised by matching to the period that it relates. 

Page 23

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 24

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
The goodwill within the accounts has been fully amortised. 

 The estimated useful lives range as follows:

Trademarks
-
3
years

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 25

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the below basis.

Depreciation is provided on the following basis:

Plant and machinery
-
25%
reducing balance
Motor vehicles
-
25%
reducing balance
Fixtures and fittings
-
25%
reducing balance
Office equipment
-
25%
reducing balance
Computer equipment
-
25%
reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Investment property

Investment property is carried at fair value determined annually by the director and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

Page 26

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.15

Associates and joint ventures

An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control.

An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Balance Sheet, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition.
Any premium on acquisition is dealt with in accordance with the goodwill policy.

 
2.16

Stocks

Trading stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.
Property stock is held at cost less impairment. 
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

Page 27

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.20

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.21

Financial instruments

Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
Page 28

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.21
Financial instruments (continued)


If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

Page 29

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In applying the Company's accounting policies, the director is required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities.  The director's judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable.  Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.
The estimates and underlying assumptions are reviewed on an ongoing basis.  Revisions to the 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.
Impairment of debtors - The Group reviews and assesses debtors frequently. When assessing impairment of these amounts, management considers factors including the ageing profile and historical experience. 
Stock Valuation & Provision - The group reviews its stock levels frequently. When assessing Stock provisions, management considers the remaining life of product lines and stock obsolescence with slow moving stock. 


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Sale of pharmaceutical products
32,931,630
30,477,762

Sale of dental requisites
8,748,849
8,599,850

Rental income
261,147
219,703

41,941,626
39,297,315


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
38,562,376
35,835,846

Rest of Europe
2,616,601
2,578,972

Rest of the world
762,649
882,497

41,941,626
39,297,315


Page 30

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange losses / (gains)
29,273
26,236

Other operating lease rentals
55,828
27,999


6.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors and their associates:


2024
2023
£
£

Fees payable to the Company's auditors and their associates in respect of:

The auditing of accounts of associates of the Company
43,625
42,825

Taxation compliance services
8,725
8,400


7.


Employees

Staff costs, including director's remuneration, were as follows:


Group
Group
2024
2023
£
£


Wages and salaries
2,442,746
2,313,466

Social security costs
182,896
187,576

Cost of defined contribution scheme
22,903
23,890

2,648,545
2,524,932


The average monthly number of employees, including the director, during the year was as follows:



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Directors
2
2
1
1



Employees
55
57
-
-

57
59
1
1

Page 31

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

8.


Director's remuneration

2024
2023
£
£

Director's emoluments
46,122
41,044

46,122
41,044


There are no directors pension benefits accruing for either 2024 or 2023. 


9.


Income from investments

2024
2023
£
£





Dividends received from unlisted investments
-
(200,000)

-
(200,000)



10.


Interest receivable

2024
2023
£
£


Other interest receivable
534,771
334,732

534,771
334,732


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
341,899
210,984

Other loan interest payable
-
4,934

Loans from group undertakings
263,883
-

Other interest payable
3,948
176,076

609,730
391,994

Page 32

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
403,327
440,668

Adjustments in respect of previous periods
51,428
(43,240)


Total current tax
454,755
397,428

Deferred tax


Origination and reversal of timing differences
492
(437)

Total deferred tax
492
(437)


Taxation on profit on ordinary activities
455,247
396,991

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,537,446
1,017,004


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
384,362
193,231

Effects of:


Capital allowances for year in excess of depreciation
7,252
-

Adjustments to tax charge in respect of prior periods
51,428
-

Dividends from UK companies
(87,663)
(38,000)

Unrelieved tax losses carried forward
26,381
278,918

Other differences leading to an increase (decrease) in the tax charge
73,487
(37,158)

Total tax charge for the year
455,247
396,991



Page 33

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
12.Taxation (continued)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent Company for the year was £581,458 (2023 - loss £1,236,930).


14.


Intangible assets

Group and Company





Trademarks
Goodwill
Total

£
£
£



Cost


At 1 April 2023
564,706
1,347,355
1,912,061



At 31 March 2024

564,706
1,347,355
1,912,061



Amortisation


At 1 April 2023
510,099
1,347,355
1,857,454


Charge for the year on owned assets
52,930
-
52,930



At 31 March 2024

563,029
1,347,355
1,910,384



Net book value



At 31 March 2024
1,677
-
1,677



At 31 March 2023
54,608
-
54,608



Page 34

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

15.


Tangible fixed assets

Group






Plant and machinery
Motor vehicles
Fixtures and fittings
Office equipment
Computer equipment

£
£
£
£
£



Cost or valuation


At 1 April 2023
165,833
255,285
4,819
543,473
16,109



At 31 March 2024

165,833
255,285
4,819
543,473
16,109



Depreciation


At 1 April 2023
81,332
136,964
3,916
444,055
15,776


Charge for the year on owned assets
7,814
27,115
430
24,854
83



At 31 March 2024

89,146
164,079
4,346
468,909
15,859



Net book value



At 31 March 2024
76,687
91,206
473
74,564
250



At 31 March 2023
84,501
118,321
903
99,418
333
Page 35

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

           15.Tangible fixed assets (continued)


Total

£



Cost or valuation


At 1 April 2023
985,519



At 31 March 2024

985,519



Depreciation


At 1 April 2023
682,043


Charge for the year on owned assets
60,296



At 31 March 2024

742,339



Net book value



At 31 March 2024
243,180



At 31 March 2023
303,476

Page 36

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

16.


Fixed asset investments

Group





Investments in associates
Listed investments
Unlisted investments
Total

£
£
£
£



Cost or valuation


At 1 April 2023
710,000
25,010
1,021
736,031



At 31 March 2024

710,000
25,010
1,021
736,031



Impairment


At 1 April 2023
-
19,215
-
19,215



At 31 March 2024

-
19,215
-
19,215



Net book value



At 31 March 2024
710,000
5,795
1,021
716,816



At 31 March 2023
710,000
5,795
1,021
716,816

Page 37

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Company





Investments in subsidiary companies
Investments in associates
Unlisted investments
Total

£
£
£
£



Cost or valuation


At 1 April 2023
3,109,626
710,000
50
3,819,676



At 31 March 2024

3,109,626
710,000
50
3,819,676



Impairment


At 1 April 2023
1,000
-
-
1,000



At 31 March 2024

1,000
-
-
1,000



Net book value



At 31 March 2024
3,108,626
710,000
50
3,818,676



At 31 March 2023
3,108,626
710,000
50
3,818,676


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Pharmaceuticals Direct Limited
Ordinary
100%
DHB Oral Healthcare Limited
Ordinary
51%
Coombe KP Limited
Ordinary
100%
Pharmadent Limited
Ordinary
100%
Bemin Limited
Ordinary
100%

Page 38

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Subsidiary undertakings (continued)

The aggregate of the share capital and reserves as at 31 March 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Pharmaceuticals Direct Limited
35,647,868
942,252

DHB Oral Healthcare Limited
2,696,582
228,447

Coombe KP Limited
(380,113)
(369,406)

Pharmadent Limited
1,137,388
10,267

Bemin Limited
96,224
83,229


17.


Investment property

Group


Freehold investment property

£





At 1 April 2023
465,000


Additions at cost
288,186


Disposals
(753,186)



At 31 March 2024
-











Page 39

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

18.


Stocks

Group
Group
2024
2023
£
£

Work in progress (property stock)
3,166,400
3,166,400

Goods for resale
7,096,529
8,032,244

10,262,929
11,198,644


The difference between purchase price or production cost of stocks and their replacement cost is not material.


19.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors excluding factored debts
5,481
2,653
-
-

Factored debts
5,482,399
6,067,125
-
-

Amounts owed by group undertakings
-
-
856,726
983,478

Other debtors
30,909,933
28,987,199
27,247,823
25,548,971

Prepayments and accrued income
97,375
49,807
-
-

36,495,188
35,106,784
28,104,549
26,532,449


The group has gross factored debts of £5,482,399 (2023: £6,067,125)
The group has made no contribution to the Company's Employee Benefit Trust (EBT). At the year end the EBT had outstanding loan of £1,500,000 (2023: £1,500,000) which are included in other debtors.


20.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
373,151
4,263,153
40,634
3,518,984

Less: bank overdrafts
(82)
(115,470)
-
-

373,069
4,147,683
40,634
3,518,984


Page 40

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

21.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank overdrafts
82
115,470
-
-

Bank loans
-
4,471,435
-
-

Trade creditors
3,799,596
3,684,822
-
-

Amounts owed to group undertakings
-
-
20,634,047
21,497,831

Corporation tax
902,444
1,802,716
-
3,678

Other taxation and social security
452,311
380,712
-
-

Proceeds of factored debts
2,014,446
-
-
-

Other creditors
11,237,942
12,072,059
7,571,829
9,192,076

Accruals and deferred income
189,434
763,607
6,000
5,999

18,596,255
23,290,821
28,211,876
30,699,584



22.


Creditors: Amounts falling due after more than one year

Group
Group
2024
2023
£
£

Bank loans
-
52,749

-
52,749




Page 41

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

23.


Loans


Group
Group
2024
2023
£
£

Amounts falling due within one year

Bank loans
-
4,471,435


-
4,471,435

Amounts falling due 1-2 years

Bank loans
-
52,749


-
52,749

-
4,524,184


The total bank borrowings of £Nil (2023: £4,524,184) are secured by a charge over the property of the group, by a fixed and floating charge over all property and assets of the group and a personal guarantee up to £500,000 by B Patel, the director of the company.


24.


Financial instruments

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
373,151
4,263,153
40,634
3,518,984




Financial assets measured at fair value through profit or loss comprise cash at bank. 

Page 42

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

25.


Deferred taxation


Group



2024


£






At beginning of year
(563)


Charged to profit or loss
71



At end of year
(492)

Company


2024






At end of year
-
The provision for deferred taxation is made up as follows:

Group
Group
2024
2023
£
£

Accelerated capital allowances
(492)
(563)

(492)
(563)

Page 43

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

26.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



2,000,000 (2023 - 2,000,000) 'A' Redeemable Preference shares of £1.000 each shares of £1.000 each
2,000,000
2,000,000
52,913 (2023 - 52,913) Ordinary shares of £0.010 each shares of £0.010 each
529
529
779,477 (2023 - 779,477) Ordinary A share of £0.010 each shares of £0.010 each
7,795
7,795
802,087 (2023 - 802,087) Ordinary B shares of £0.010 each shares of £0.010 each
8,021
8,021
1,365,523 (2023 - 1,365,523) Ordinary C shares of £0.010 each shares of £0.010 each
13,655
13,655
300,000 (2023 - 300,000) Ordinary D shares of £0.010 each shares of £0.010 each
3,000
3,000
16,345,000 (2023 - 16,345,000) Ordinary E shares of £0.001 each shares of £0.001 each
16,345
16,345
30,355,000 (2023 - 30,355,000) Ordinary F shares of £0.001 each shares of £0.001 each
30,355
30,355
1 (2023 - 1) Ordinary G shares of £1.000 share of £1.000
1
1
1 (2023 - 1) Ordinary H shares of £1.000 share of £1.000
1
1

2,079,702

2,079,702



27.


Reserves

Share based payment reserve

The share based payment reserve represents the cumulative effect of the share based payment charges.

Other reserves

Other reserves represent the value of shares held by Pharmaceuticals Direct Limited Share Incentive Plan (SIP) less associated deferred tax. 

Merger Reserve

The merger reserves represents the difference between the nominal value of share issues and the net assets of the subsidiaries acquired

Profit and loss account

The profit and loss accounts represents cumulative profits and losses net of dividends and other adjustments. 

Page 44

 
PHARMADENT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

28.


Share-based payments

The Pharmaceuticals Direct Limited Share Incentive Plan (SIP) was established in March 2005 to reward employees with shares in the company.
On 30 March 2010, 417,351 Ordinary A shares of 0.1p each were granted
On 21 April 2010, 362,126 Ordinary A shares of 0.1p each were granted
The terms of the grant of the shares were as follows:
1. The share calculation is calculated on an equal basis across all employees
2. The vesting period is five years
3. Shares will not be given to employees at the end of the vesting period if the employee is no longer in relevant employment. 
In accordance with FRS 102, the value of the share is expensed through the profit and loss account over the vesting period of five years.  £nil (2023: £nil) was charged to the profit and loss in the current year. 


29.


Prior year adjustment

A prior year adjustment has been posted to reclassify the NCI dividend (£343,000) for the year ended 31 March 2023. This has increased the equity attributable to owners of parent Company and decreased the NCI by the same value.


30.


Pension commitments

The group operates a defined contributions pension scheme.  The assets of the scheme are held separately from those of the Group in an independently administered fund.  The pension cost charge represents contributions payable by the group to the fund and amounted to £22,903 (2023: £23,890).  At 31 March 2024, the balance owing to the pension scheme was £6,823 (2023: £6,319).


31.


Related party transactions

Total remuneration paid to key management personnel was £46,122 (2023: £41,044).  At the year-end the following amounts were due from/(to) the following related parties.  These amounts are interest free and have no fixed repayments date:


2024
2023
£
£

Entities with common control or influence
18,247,023
14,736,224
Entities in the Group not 100% owned
(867,319)
(2,316,790)
Key management personnel
-
(911,836)
17,379,704
11,507,598


32.


Controlling party

The ultimate controlling party is B Patel, by virtue of his majority shareholding in the company. 

Page 45