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Registration number: 08517620

Prepared for the registrar

Richard Adams Pharma Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 May 2024

 

Richard Adams Pharma Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 12

 

Richard Adams Pharma Limited

Company Information

Directors

S S Bhamra

G K Bhamra

D S Bhamra

Company secretary

G K Bhamra

Registered office

Wychwood 15 Vicarage Way
Gerrards Cross
Buckinghamshire
SL9 8AR

Accountants

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

Richard Adams Pharma Limited

(Registration number: 08517620)
Balance Sheet as at 31 May 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

4

1,772,347

3,804,825

Tangible assets

5

409,981

428,314

Investments

6

331

327

 

2,182,659

4,233,466

Current assets

 

Stocks

189,514

217,473

Debtors

7

2,589,926

1,326,194

Cash at bank and in hand

 

14,580

20,196

 

2,794,020

1,563,863

Creditors: Amounts falling due within one year

8

(3,122,623)

(2,482,286)

Net current liabilities

 

(328,603)

(918,423)

Total assets less current liabilities

 

1,854,056

3,315,043

Creditors: Amounts falling due after more than one year

8

(750,464)

(2,397,748)

Deferred tax liabilities

10

(71,333)

(75,256)

Net assets

 

1,032,259

842,039

Capital and reserves

 

Called up share capital

228

228

Share premium reserve

1,248,696

1,248,696

Retained earnings

(216,665)

(406,885)

Shareholders' funds

 

1,032,259

842,039

 

Richard Adams Pharma Limited

(Registration number: 08517620)
Balance Sheet as at 31 May 2024

For the financial year ending 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 25 February 2025 and signed on its behalf by:
 


S S Bhamra
Director

 

Richard Adams Pharma Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Wychwood 15 Vicarage Way
Gerrards Cross
Buckinghamshire
SL9 8AR
England

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's current forecasts and projections, together with the facilities available to the company, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company is reliant on the continued support of HSBC Bank, via loans of £1,081,256. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

 

Richard Adams Pharma Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings freehold

Nil

Land and buildings leasehold improvements

25% reducing balance basis

Fixtures, fittings & equipment

25% reducing balance basis

Computer equipment

Straight line over 3 years

Motor vehicles

25% reducing balance basis

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill is amortised over its useful life estimated by the directors to be 20 years.

 

Richard Adams Pharma Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

 

Richard Adams Pharma Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.


Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.


Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

 

Richard Adams Pharma Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was as follows:

The company has generated taxable losses of £138,776 to carry forward and offset against future taxable profits.

 

4

Intangible assets

Goodwill
 £

Cost

At 1 June 2023

5,577,525

Additions acquired separately

13,609

Disposals

(2,948,484)

At 31 May 2024

2,642,650

Amortisation

At 1 June 2023

1,772,699

Amortisation charge

247,934

Amortisation eliminated on disposals

(1,150,330)

At 31 May 2024

870,303

Carrying amount

At 31 May 2024

1,772,347

At 31 May 2023

3,804,825

On 7 September 2017 the company acquired the entire share capital of Parmay Chemists Limited for a total consideration of £3,357,218 including acquisition costs of £22,397. On 1 June 2018 the trade, assets and liabilities were immediately hived up into the company with the amount outstanding remaining on intercompany account, of which £1,208,736 was settled through a dividend. This resulted in an apparent over valuation of the investment in the subsidiary although there was no overall loss to the company. The Companies Act 2006 requires that where an over valuation is expected to be permanent, the investment should be written down accordingly.

The directors considered that, as there had been no overall loss to the company, such treatment would fail to give a true and fair view. The potential impairment in the value of the investment of £2,148,384 has been instead reallocated to goodwill, which is amortised over twenty years. The effect of this on the company's balance sheet of the departure from the requirements of the Companies Act 2006 is to recognise goodwill of £2,148,384 and accumulated amortisation of £211,837.
 

 

Richard Adams Pharma Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

 

5

Tangible assets

Freehold land and buildings
£

Leasehold property improvements
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost

At 1 June 2023

400,000

28,179

370,639

13,230

812,048

Additions

-

-

10,691

-

10,691

Disposals

-

-

(28,331)

(13,230)

(41,561)

At 31 May 2024

400,000

28,179

352,999

-

781,178

Depreciation

At 1 June 2023

-

23,561

350,256

9,917

383,734

Charge for the year

-

1,155

17,033

622

18,810

Eliminated on disposal

-

-

(20,808)

(10,539)

(31,347)

At 31 May 2024

-

24,716

346,481

-

371,197

Carrying amount

At 31 May 2024

400,000

3,463

6,518

-

409,981

At 31 May 2023

400,000

4,618

20,383

3,313

428,314

The freehold property was last valued by an independent valuer on 23 November 2016. The directors are of the opinion that the market value of the property has not significantly changed since the last valuation. The historical cost of the property is £117,998.

 

Richard Adams Pharma Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

 

6

Investments

2024
£

2023
£

Investments in subsidiaries

331

327

Subsidiaries

£

Cost

At 1 June 2023

327

Additions

5

Disposals

(1)

At 31 May 2024

331

Carrying amount

At 31 May 2024

331

At 31 May 2023

327

 

7

Debtors

Note

2024
£

2023
£

Trade debtors

 

323,146

496,191

Prepayments

 

76,888

68,997

Other debtors

11

2,189,892

761,006

 

2,589,926

1,326,194

 

8

Creditors

Note

2024
 £

2023
 £

Due within one year

 

Loans and borrowings

9

561,624

440,567

Trade creditors

 

1,223,548

803,188

Amounts due to related parties

11

314,618

76,495

Social security and other taxes

 

35,427

15,303

Outstanding defined contribution pension costs

 

3,061

2,154

Other creditors

 

845,303

971,762

Accrued expenses

 

44,826

61,362

Corporation tax liability

94,216

111,455

 

3,122,623

2,482,286

Note

2024
£

2023
£

Due after one year

 

Loans and borrowings

9

750,464

2,397,748

 

Richard Adams Pharma Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

 

9

Loans and borrowings

Current loans and borrowings

2024
£

2023
£

Bank borrowings

330,792

330,792

Bank overdrafts

111,554

-

Other borrowings

119,278

109,775

561,624

440,567

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

750,464

2,397,748

Bank loans and overdrafts are secured over the company assets.

 

 

10

Deferred tax

Deferred tax assets and liabilities

2024

Liability
£

Capital allowances in excess of depreciation

2,219

Revaluation of property, plant and equipment

69,114

71,333

2023

Liability
£

Capital allowances in excess of depreciation

6,142

Revaluation of property, plant and equipment

69,114

75,256

 

Richard Adams Pharma Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

 

11

Related party transactions

Key management personnel

Summary of transactions with key management

Key management personnel are considered to be the directors of the company.

As at the balance sheet date, the company owed the directors £119,278 (2023: £109,775). There are no fixed repayment terms and no interest is charged on the loan.

 

Summary of transactions with subsidiaries

Carecamp Limited
(Subsidiary of Richard Adams Pharma Limited)
As at the balance sheet date the company owed £314,618 (2023 - £76,495) to Carecamp Limited. There are no fixed repayment terms and no interest is changed.
 

Summary of transactions with other related parties

Solidgain Developments Limited
(A company which shares common directors with Richard Adams Pharma Limited)
At the balance sheet date the company was owed £728,050 (2023: £524,327) from Solidgain Developments Limited. This amount is included in other debtors. There are no fixed repayment terms and no interest is charged.

GKB Investments Limited
(A company which shares common directors with Richard Adams Pharma Limited)
At the balance sheet date the company was owed £120,262 (2023: £160,754) from GKB Investments Limited. This amount is included in other debtors. There are no fixed repayment terms and no interest is charged.

Parmay (Fulham) Limited
(A company which shares common directors with Richard Adams Pharma Limited)
At the balance sheet date the company was owed £1,221,479 (2023: £nil) from Parmay Fulham Limited. This amount is included in other debtors. There are no fixed repayment terms and no interest is charged.