Company registration number SC139471 (Scotland)
EDINBURGH PHARMACEUTICAL PROCESSES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
PAGES FOR FILING WITH REGISTRAR
EDINBURGH PHARMACEUTICAL PROCESSES LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
EDINBURGH PHARMACEUTICAL PROCESSES LIMITED
BALANCE SHEET
- 1 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,357,629
1,303,682
Current assets
Stocks
420,000
415,000
Debtors
4
281,658
334,260
Cash at bank and in hand
53,189
29,218
754,847
778,478
Creditors: amounts falling due within one year
5
(439,446)
(332,791)
Net current assets
315,401
445,687
Total assets less current liabilities
1,673,030
1,749,369
Creditors: amounts falling due after more than one year
6
(140,342)
(236,967)
Provisions for liabilities
(161,635)
(155,059)
Net assets
1,371,053
1,357,343
Capital and reserves
Called up share capital
8
100
100
Revaluation reserve
7
282,024
282,024
Profit and loss reserves
1,088,929
1,075,219
Total equity
1,371,053
1,357,343
EDINBURGH PHARMACEUTICAL PROCESSES LIMITED
BALANCE SHEET (CONTINUED)
- 2 -
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 27 January 2025 and are signed on its behalf by:
J Stuart
Director
Company Registration No. SC139471
EDINBURGH PHARMACEUTICAL PROCESSES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
1
Accounting policies
Company information
Edinburgh Pharmaceutical Processes Limited is a private company limited by shares incorporated in Scotland. The registered office is EPP Enviromental Centre, (40) Bush Estate, Bush Loan, Penicuik, Midlothian, United Kingdom, EH26 0PH.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. This has been modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The director has considered a period of at least twelve months from the date on which these financial statements have been signed and having considered all information available to them, believe it appropriate to prepare the financial statements on a going concern basis. The director is satisfied that it has adequate resources to continue to operate for the foreseeable future.true
1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.
Profit is recognised on work in progress if the final outcome can be assessed with reasonable certainty by including in the profit and loss account turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
25% reducing balance
Fixtures, fittings & equipment
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
EDINBURGH PHARMACEUTICAL PROCESSES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 4 -
Land and buildings are reviewed annually for impairment and the director is of the opinion that their useful economic life and residual values are such that any depreciation would not be material.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Classification of 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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
EDINBURGH PHARMACEUTICAL PROCESSES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 5 -
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
EDINBURGH PHARMACEUTICAL PROCESSES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 6 -
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.15
When a material error or misstatement is identified this is disclosed in the accounts as a prior period adjustment.(see Note 9).
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
21
20
3
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost or valuation
At 1 June 2023
1,096,648
1,150,609
176,659
2,423,916
Additions
32,342
75,321
22,933
130,596
Disposals
(10,735)
(10,735)
At 31 May 2024
1,128,990
1,215,195
199,592
2,543,777
Depreciation and impairment
At 1 June 2023
965,988
154,246
1,120,234
Depreciation charged in the year
63,497
5,604
69,101
Eliminated in respect of disposals
(3,187)
(3,187)
At 31 May 2024
1,026,298
159,850
1,186,148
Carrying amount
At 31 May 2024
1,128,990
188,897
39,742
1,357,629
At 31 May 2023
1,096,648
184,621
22,413
1,303,682
EDINBURGH PHARMACEUTICAL PROCESSES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
3
Tangible fixed assets
(Continued)
- 7 -
The freehold property was revalued at £1,000,000 by Andrew Reilly Associates Ltd on 11 May 2020 assuming vacant possession. With expenditure incurred on the building since this date the director believes that the property has a current market value of £1,128,990.
The revaluation surplus is disclosed in Note 7.
If revalued assets were stated on a historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2024
2023
£
£
Cost
740,905
708,562
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
127,530
161,321
Other debtors
154,128
172,939
281,658
334,260
5
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
76,870
74,303
Trade creditors
180,976
67,675
Corporation tax
7,183
3,839
Other taxation and social security
21,311
16,586
Other creditors
153,106
170,388
439,446
332,791
Hire purchase liabilities included in other creditors of £21,229 (2023- £24,071) are secured over the assets to which they relate.
Bank loans represent amounts due on two bank loans. One bank loan of £33,236 (2023 - £32,159) is secured over the freehold property of the company.
The second bank loan of £43,634 (2023 - £42,145) is secured by a guarantee from the UK Government under the Coronavirus Business Interruption Loan Scheme.
EDINBURGH PHARMACEUTICAL PROCESSES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
6
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans
89,716
165,111
Other creditors
50,626
71,856
140,342
236,967
Hire purchase liabilities included in other creditors of £50,626 (2023 - £71,856) are secured over the assets to which they relate.
Bank loans represent amounts due on two bank loans. The first bank loan of £118,367 (2022 - £147,737) is secured over the freehold property of the company.
The CBIL bank loan of £46,744 (2022 - £92,986) is secured by a guarantee from the UK Government under the Coronavirus Business Interruption Loan Scheme.
7
Revaluation reserve
2024
2023
£
£
At the beginning of the year
282,024
388,085
Prior year adjustment
(106,061)
At the beginning and end of the year
282,024
282,024
8
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of 1p each
5,000
5,000
50
50
B Ordinary shares of 1p each
4,500
4,500
45
45
C Ordinary shares of 1p each
500
500
5
5
10,000
10,000
100
100
EDINBURGH PHARMACEUTICAL PROCESSES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
9
Prior period adjustment
Reconciliation of changes in equity
1 June
31 May
2022
2023
Notes
£
£
Adjustments to prior year
Deferred tax on revalued asset
1
(106,061)
(106,061)
Equity as previously reported
1,443,978
1,463,404
Equity as adjusted
1,337,917
1,357,343
Notes to reconciliation
1
The prior period adjustment relates to deferred tax was not correctly recognised on a revalued asset in prior periods. The directors are of the opinion that this adjustment should be shown as a prior period adjustment.