Company registration number 03393503 (England and Wales)
BRISTOL LABORATORIES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
BRISTOL LABORATORIES LIMITED
CONTENTS
Page
Strategic report
2 - 4
Directors' report
5 - 7
Directors' responsibilities statement
8
Independent auditor's report
9 - 11
Statement of comprehensive income
12
Statement of financial position
13
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16 - 33
BRISTOL LABORATORIES LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr T Ramachandran
Ms P Ramachandran
Secretary
Mr S Nair
Company number
03393503
Registered office
Unit 3 Canalside
Northbridge Road
Berkhamsted
Hertfordshire
HP4 1EG
Auditor
King & King
Chartered Accountants & Statutory Auditors
Fifth Floor Watson House
54-60 Baker Street
London
W1U 7BU
BRISTOL LABORATORIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

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

Review of the business

 

The company’s financial performance decline in financial year ended 31 March 2024 was primarily driven by challenging market conditions, leading to lower turnover and reduced profitability.

 

Compared to the previous financial year, turnover declined from £70.02m to £66.78m, while gross profit dropped from £12.28m to £10.09m. A sharp rise in administrative expenses significantly impacted operating profit, which fell from £6.21m to £1.83m. As a result, profit before tax plummeted from £5.48m to £0.90m, leading to a net profit decline from £5.97m to £0.86m.

 

The company has focussed on increasing the production from its UK facilities, and consequently reducing its level of imported finished goods. This has ensured greater reliability of supply of product to the UK market, at the same time generating opportunities for increased sales from new product launches. Export business has remained consistent throughout the year, and is an area of enhanced focus for the company, leveraging the UK manufactured and regulated quality proposition to identified overseas markets. The outlook for the forthcoming year is looking very bright.

As at 31 March 2024, the company had net current assets of £4.67m (2023 : £4.76m) and net assets of £29.07m (2023 : £27.69m) which demonstrates strong short term and long term liquidity position.

The directors have identified the following Key Performance Indicators to explain the circumstances of the company during the year under report.

 

                         2024         2023

                         £'000         £'000

 

Revenue                    66,783        70,023

Operating profit/ (loss)                  1,829     6,216

Gross ooperating margin (%)             15.12         17.54

Trade debtor days                 57          75    

Trade creditor days                 201     176

 

Revenue

Revenue measures our ability to maximise value from our current product portfolio and focus to generate revenue from new products with positive contribution or make decision to stop non-viable products.

 

Operating profit

Operating profit measures our ability to grow revenue and maintain quality while delivering efficiencies and ensuring cost control.    

 

The directors also use non-financial performance indicators. These include customer satisfaction reports and staff feedback reports.

Principal risks and uncertainties

The principal financial risks to which the company is exposed are those of liquidity, market conditions, interest rates, foreign currency exchange rates, employment shortages and credit availability. Each of these are managed in accordance with Board-approved policies. These policies are set out below.

Liquidity risk

The company manages liquidity by maintaining access to a number of sources of short-term and medium-term funding at a level which is considered sufficient to meet its anticipated funding requirements. Specifically, the company uses confidential sales ledger financing and medium-term bank finance to manage its liquidity needs. The directors continue to review the company’s ongoing liquidity risks regularly.

Interest rate risk

The majority of the company’s borrowings are currently at floating rates.

BRISTOL LABORATORIES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

Credit risk

The company is at risk of exposure to financial losses should a counterparty fail to meet its obligations as and when they fall due. The company derives a significant proportion of its revenue from sales to large companies and multinationals. The failure of any such company to honour its debts could materially impact the company’s results. The company has taken necessary insurances to minimise such risks as the arise and credit limits are set and managed appropriately, based upon credit checks reviewed and approved for each customer. For its export business the company seeks pro-forma, pre-export settlement and/or Letters of Credit.

Economic, market and price risk

The company’s performance is directly impacted by the economic environment. The company operates in highly competitive markets – significant product innovations, technical and scientific advances or the intensification of price competition could all adversely affect the company’s results.

The company continues to invest in research and development in order to ensure the introduction of both new generic formulations and improved production processes, and to allow the company to be at the forefront of its chosen markets. Furthermore, the company continually analyses its operating costs to ensure it remains competitive.

Foreign currency risk

The company operates foreign currency accounts and use spot buy/sell mechanism to manage and protect against foreign currency risks. An element of natural hedge is enjoyed as income from export sales partially offset the cost of imported raw materials.

Section 172 (1) Statement
Quality values

The emphasis on quality has always been, and continues to be, the foundation for everything we do at Bristol Laboratories. We always keep in mind the patients whom we serve and who use our medicines, thus maintaining a focus on living up to our ‘Quality Values’ every day. This focus helps us to ensure the highest standards and assures our healthcare partners that each of our products produced is of the utmost quality. Regulatory compliance is the starting point for all of our quality processes. These processes meet the latest international requirements at each stage of production, from sourcing raw materials, manufacturing, through to finished products and distribution.

Employee's trainning and development

To achieve our ambitious goals, we require people who are committed and prepared to embrace our corporate philosophy. We offer plenty of opportunities for career advancement and skill improvement. Training at Bristol Laboratories is a continuous process, and whilst basic job training is given, people with a commitment and an aptitude for challenges are selected for training for growth and higher responsibilities.

Slavery and Human trafficking statement

We have a zero tolerance to slavery in all its forms and are committed to implementing business practices that do not allow any form of slavery to take place, whether internally or as part of our supply chain. Our supply chain includes procurements of raw materials, packing materials, chemicals for testing finished pharmaceutical products, and machinery to produce the finished pharmaceutical goods. We carry out an annual review of our Anti-Slavery Policy to determine whether it may be improved for better understanding and applicability.

Product development

The in-house development of products is a key focus area for us, and we invest considerable resources in the development of new products. Research and development is an integral part of the group’s business. In determination of exploring new product opportunities, the company has invested, and is committed to continuing to invest in the research and development activities. Our Research and Development laboratory is manned by a group of highly skilled scientists and dedicated analytical experts, constantly engaged in formulating sustained release products, effervescent products, semi-solids, liquids and other new drug delivery systems. The company continues to work towards achieving a large and promising development pipeline. The company continues to develop niche products with unique drug delivery systems, such as modified and slow release, in its expanded testing laboratory, and it is anticipated that this will continue to have material impact on the growth of the company. To ensure that quality and consistency are maintained in the product development process, our scientists and technicians have the latest technical, monitoring and analytical tools at their disposal. The team is constantly engaged in investigating new ideas to improve efficiencies in existing processes to control costs, developing new capabilities and adding to our portfolio of generic products.

BRISTOL LABORATORIES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Supplier relationships

Our suppliers play a pivotal role to our business, in which we use the highest quality raw materials in our productions, and which are delivered to us promptly. Our suppliers keep us informed of any supply chain challenges, and notwithstanding the consequences of the global pandemic we have maintained strong relationships with our key suppliers. We are regularly in contact with our suppliers thereby ensuring our purchasing department retain an open relationship, and our suppliers are always aware of our ongoing requirements.

Customer relationships

Our customers are kept up to date with business achievements, future strategy and ongoing business activities and product developments, with a view to nurturing long term partnerships. Our objective is to provide the best level of customer service, fulfilling our customer’s sales order lists and ensuring that the products are of the highest quality standards, and are delivered in accordance to the customers’ requirements. Our staff and management continuously work hard to ensure we can offer competitive prices for our products to our customers.

This report was approved by the board of directors and signed on behalf of the board by:

 

Mr T Ramachandran
Director
13 March 2025
BRISTOL LABORATORIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -

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

Principal activities

The principal activity of the company continued to be that of pharmaceutical company engaged in the development, manufacture, marketing and distribution of generic medicines in the UK, Europe and rest of the world.

 

The company offers a wide range of high-quality medicines to the healthcare sector in the UK, that optimises cost efficiencies whilst ensuring reliable supply.

Our strong and extensive customer base, developed through consistency of quality in products and services, has ensured sustained growth that continues to drive our ambition to become a significant global supplier.

Results and dividends

The results for the year are set out on page 12.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr T Ramachandran
Ms P Ramachandran

Political Donations

During the year, the company made a political donation of £10,000 to the Conservative Party.

Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Market value of land and buildings

Current market value of the company's interests in land and buildings are disclosed in Note 11.

Research and development

Research and development activities continue to be a high priority with the development of new products and maintaining the technological excellence of existing products.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The company's policy is to consult and discuss with employees, through union, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

BRISTOL LABORATORIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
Post reporting date events

Post reporting date events have disclosed in Note 28.

Future developments

There are no significant future developments anticipated, aside from changes in the supply chain.

Auditor

The auditor King & King Chartered Accountants & Statutory Auditors is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

Bristol Laboratories Limited’s environmental performance information is presented in accordance with the Streamlined Energy and Carbon Reporting (“SECR”) Policy. The table below represents Bristol Laboratories Limited’s energy use and greenhouse gas (GHG) emissions from electricity and fuel for the annual reporting period 01 April 2023 to 31 March 2024. The scope of the reporting includes all UK operations.

 

 

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
5,087,064
6,270,905
- Electricity purchased
7,794,432
8,043,539
- Fuel consumed for transport
250,072
957,687
13,131,568
15,272,131
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
931.00
1,145.00
- Fuel consumed for owned transport
59.00
232.00
990.00
1,377.00
Scope 2 - indirect emissions
- Electricity purchased
1,614.00
1,555.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
-
-
Total gross emissions
2,604.00
2,932.00
Intensity ratio
Intensity ratio tonne CO2e per employee
4.65
5.21
Quantification and reporting methodology

We have followed the HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2021 UK Government’s Conversion Factors for Company Reporting.

BRISTOL LABORATORIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.

Measures taken to improve energy efficiency

Bristol Laboratories Limited’s strategy is to reduce its GHG emissions through improving energy efficiency to reduce consumption and by purchasing electricity from renewable sources. In 2021, Bristol Laboratories Limited made a conscious decision to purchase its UK electricity using REGO-backed renewable energy contracts. This purchasing covers all UK businesses and will reduce the total CO2e impacts. To improve energy efficiency, Bristol Laboratories Limited have made operational improvements across three asset areas (1) Buildings (2) Industrial Processes (3) Transport. These improvements include; upgrading HVAC and AHU systems, reducing manually operated controls and improving lighting. During the year enhancements have been made to our internal expenses system so that we can accurately capture, report and review emissions from differing vehicle types used by employees for business purposes.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Going concern

The company generated a profit before tax of £0.90m (2023: £5.47m) during the year and balance sheet showed net assets of £29.07m (2023: 27.69m) at the year end. The company's forecasts and projections, taking into account a severe but plausible change in trading performance shows that the company should be able to operate within the level of it current facilities. At the time of approving the financial statements, the directors are of the opinion that the company has adequate resources to continue in operational existence for the foreseeable future on the understanding that the company has the on-going support from its bankers who are providing facilities to the company and sales financing to manage liquidity. Thus, the directors have adopted the going concern basis of accounting in preparing the financial statements.

On behalf of the board
Mr T Ramachandran
Director
13 March 2025
BRISTOL LABORATORIES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

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

BRISTOL LABORATORIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BRISTOL LABORATORIES LIMITED
- 9 -
Opinion

We have audited the financial statements of Bristol Laboratories Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

BRISTOL LABORATORIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BRISTOL LABORATORIES LIMITED (CONTINUED)
- 10 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine 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 directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

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

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

 

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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

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

We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by making enquires of management, those charged with governance. We utilised internal and external information to corroborate these enquiries and to perform a fraud risk assessment for the company. We considered the risk of fraud to be significant within the areas of the recognition of revenue. Audit procedures performed by the engagement team included:

BRISTOL LABORATORIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BRISTOL LABORATORIES LIMITED (CONTINUED)
- 11 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's 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.

Milankumar Patel (Senior Statutory Auditor)
For and on behalf of King & King Chartered Accountants, Statutory Auditor
Chartered Accountants
5th Floor, Watson House
54-60 Baker Street
London
W1U 7BU
13 March 2025
BRISTOL LABORATORIES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
2024
2023
Notes
£
£
Turnover
3
66,782,846
70,023,117
Cost of sales
(56,704,581)
(57,764,893)
Gross profit
10,078,265
12,258,224
Administrative expenses
(12,332,405)
(7,964,851)
Other operating income
4,083,391
1,923,265
Operating profit
4
1,829,251
6,216,638
Interest receivable and similar income
2,741
-
0
Interest payable and similar expenses
8
(931,787)
(738,611)
Profit before taxation
900,205
5,478,027
Tax on profit
9
(39,663)
492,594
Profit for the financial year
860,542
5,970,621
Other comprehensive income
Revaluation of tangible fixed assets
513,075
7,165,854
Total comprehensive income for the year
1,373,617
13,136,475

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

BRISTOL LABORATORIES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2024
31 March 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
351,814
-
0
Tangible assets
11
25,139,390
25,399,955
Investment property
12
328,909
328,909
Investments
13
346,563
346,563
26,166,676
26,075,427
Current assets
Stocks
16
25,066,751
25,782,404
Debtors
17
15,491,905
20,609,942
Cash at bank and in hand
515,934
450,003
41,074,590
46,842,349
Creditors: amounts falling due within one year
18
(36,400,318)
(42,081,174)
Net current assets
4,674,272
4,761,175
Total assets less current liabilities
30,840,948
30,836,602
Creditors: amounts falling due after more than one year
19
(1,769,593)
(2,171,669)
Provisions for liabilities
Deferred tax liability
22
-
0
967,195
-
(967,195)
Net assets
29,071,355
27,697,738
Capital and reserves
Called up share capital
24
100,000
100,000
Revaluation reserve
7,678,929
7,165,854
Profit and loss reserves
21,292,426
20,431,884
Total equity
29,071,355
27,697,738
The financial statements were approved by the board of directors and authorised for issue on 13 March 2025 and are signed on its behalf by:
Mr  T  Ramachandran
Director
Company registration number 03393503 (England and Wales)
BRISTOL LABORATORIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2022
100,000
-
0
14,461,263
14,561,263
Year ended 31 March 2023:
Profit
-
-
5,970,621
5,970,621
Other comprehensive income:
Revaluation of tangible fixed assets
-
7,165,854
-
7,165,854
Total comprehensive income
-
7,165,854
5,970,621
13,136,475
Balance at 31 March 2023
100,000
7,165,854
20,431,884
27,697,738
Year ended 31 March 2024:
Profit
-
-
860,542
860,542
Other comprehensive income:
Revaluation of tangible fixed assets
-
513,075
-
513,075
Total comprehensive income
-
513,075
860,542
1,373,617
Balance at 31 March 2024
100,000
7,678,929
21,292,426
29,071,355
BRISTOL LABORATORIES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
32
7,673,772
(1,970,029)
Interest paid
(931,787)
(738,611)
Net cash inflow/(outflow) from operating activities
6,741,985
(2,708,640)
Investing activities
Purchase of intangible assets
(380,143)
-
0
Purchase of tangible fixed assets
(710,438)
(281,055)
Proceeds from disposal of tangible fixed assets
102,608
1,869,627
Interest received
2,741
-
0
Net cash (used in)/generated from investing activities
(985,232)
1,588,572
Financing activities
Repayment of borrowings
(1,386,113)
(219,985)
Repayment of bank loans
(124,538)
(4,420,173)
Payment of finance leases obligations
(400,000)
1,666,667
Net cash used in financing activities
(1,910,651)
(2,973,491)
Net increase/(decrease) in cash and cash equivalents
3,846,102
(4,093,559)
Cash and cash equivalents at beginning of year
(10,816,926)
(6,723,367)
Cash and cash equivalents at end of year
(6,970,824)
(10,816,926)
Relating to:
Cash at bank and in hand
515,934
450,003
Bank overdrafts included in creditors payable within one year
(7,486,758)
(11,266,929)
BRISTOL LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
1
Accounting policies
Company information

Bristol Laboratories Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 3 Canalside, Northbridge Road, Berkhamsted, HERTS, HP4 1EG.

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.

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, modified to include the revaluation of freehold and leasehold properties and to include investment properties at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

Bristol Laboratories Limited is a wholly owned subsidiary of Bristol Laboratories Group Limited and the results of Bristol Laboratories Limited are included in the consolidated financial statements of Bristol Laboratories Group Limited which are publicly available from Companies House.

1.2
Going concern

The companytrue generated a profit before tax of £0.90m (2023 - £5.47m) during the year and balance sheet showed net assets of £29.07 (2023 - £27.69) at the year end. The company's forecasts and projections, taking into account a severe but plausible change in trading performance shows that the company should be able to operate within the level of it current facilities. At the time of approving the financial statements, the directors are of the opinion that the company has adequate resources to continue in operational existence for the foreseeable future on the understanding that the company has the on-going support from its bankers who are providing facilities to the company and sales financing to manage liquidity. Thus, the directors have adopted the going concern basis of accounting in preparing the financial statements.

BRISTOL LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 

The company manufactures, markets and distributes generic medicines. Revenue from sale of these products is recognised on point of delivery to the customers.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation 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:

Licences
20% straight line
1.6
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.

Land is not depreciated. 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:

Freehold land & buildings
2% straight line
Leasehold land & buildings
2% straight line
Plant and equipment
15% reducing balance
Fixtures and fittings
25% reducing balance
Motor vehicles
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 the statement of comprehensive income.

 

The assets residual values and useful lives are reviewed and adjusted if appropriate at the end of each reporting period. The effect of any change is accounted for prospectively.

1.7
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

BRISTOL LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.8
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in profit or loss. Transaction costs are expensed to profit or loss as incurred.

Subsidiaries

 

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

 

Investment in a subsidiary company is held at cost less accumulated impairment loss.

Associates

 

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investment in an associate company is held at cost less accumulated impairment loss.

1.9
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Stocks are recognised as an expense in the period in which the related revenue is recognised. Cost is determined on the first in, first out (FIFO) method. 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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

BRISTOL LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -

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 the statement of comprehensive income. Reversals of impairment losses are also recognised in the statement of comprehensive income.

1.11
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.

1.12
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.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

BRISTOL LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.13
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.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

BRISTOL LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 21 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of comprehensive income 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 statement of comprehensive income, 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.

1.15
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 inventory or non-current 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.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
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 statement of financial position 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.

Rentals payable under operating leases, including any lease incentives received, are charged to the statement of comprehensive income 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.

BRISTOL LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 22 -
1.18
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 are included in the statement of comprehensive income for the period.

2
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 amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Inventories impairments and provisions

Inventories are valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete inventories. Calculation of these estimates require judgements to be made, which include forecasting consumer demand, competitive and economic environment and inventory loss trends. This is regularly reviewed by the management on a regular basis.

Useful lives of property, plant and equipments

Management reviews the useful lives of property, plant and equipments on a regular basis. Any changes in estimates may affect the carrying amounts of the respective property, plant and equipment with a corresponding effect on the related depreciation charge.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Bad Debt Provisioning

An allowance for bad debts is made when collection of the full amount is no longer probable. Bad debts are written off when identified. The trade receivables balance is assessed at the end of each reporting period whether there is objective evidence of impairment and recognises a bad debt allowance if such evidence arises.

Impairment Reviews

In performing their impairment tests the directors have determined that the business unit represents the smallest identifiable group of assets that generate independent cash flows. In determining the Value in Use for comparison with the carrying amount of these assets management have estimated the future cash flows over the remaining useful life of these assets. In determining these cash flows the directors have used an implicit average growth rate which represents their best estimate of the expected future performance of the business. Expected future cash flows have been discounted using the company's estimated incremental borrowing rate. The result of these impairment tests have shown no impairment is required. As part of their ongoing review of the carrying amounts and useful lives of these assets management will continue to monitor these assets and the Value In Use to determine whether further impairment charges will be required in the future.

BRISTOL LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of generic medicines
66,782,846
70,023,117
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
59,591,218
60,957,730
Rest of the world
7,191,628
9,065,387
66,782,846
70,023,117
2024
2023
£
£
Other revenue
Interest income
2,741
-
Dividend income
1,816,617
921,461
Research & development tax credit
2,173,914
1,001,804
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Research and development costs
67,476
63,043
Depreciation of owned tangible fixed assets
1,076,947
1,227,014
Depreciation of tangible fixed assets held under finance leases
304,522
306,617
Amortisation of intangible assets
28,329
-
Operating lease charges
878,989
923,829
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
45,000
40,000
For other services
Taxation compliance services
10,000
10,000
All other non-audit services
30,000
10,000
40,000
20,000
BRISTOL LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
6
Employees

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

2024
2023
Number
Number
Production staff
463
414
Administrative staff
47
45
Management staff
21
18
Total
531
477

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
17,759,879
16,476,771
Social security costs
1,552,156
1,498,218
Pension costs
299,001
244,574
19,611,036
18,219,563

Included in wages and salaries are payments to temporary agency staff.

7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
571,129
535,747

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
360,000
360,000
BRISTOL LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
898,352
623,851
Other interest
33,435
114,760
931,787
738,611
9
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
39,663
(492,594)

The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
900,205
5,478,027
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
225,051
1,040,825
Tax effect of expenses that are not deductible in determining taxable profit
9,521
60,578
Gains not taxable
-
0
(631,470)
Unutilised tax losses carried forward
224,681
(415,135)
Permanent capital allowances in excess of depreciation
(2,354)
120,280
Dividend income
(454,229)
(175,078)
Deferred tax
36,993
(492,594)
Taxation charge/(credit) for the year
39,663
(492,594)

In the Budget 2020, the government announced that the corporation tax main rate (for all profits except ring

fence profits) for the years starting 1 April 2020 and 2021 would remain at 19%. In the Spring Budget 2021,

the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% (rather

than remaining at 19%, as previously enacted). This new law was substantively enacted on 24 May 2021.

 

In the Autumn Statement in November 2022, the government confirmed the increase in corporation tax rate to

25% from April 2023.

BRISTOL LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
10
Intangible fixed assets
Licences
£
Cost
At 1 April 2023
156,259
Additions - internally developed
380,143
At 31 March 2024
536,402
Amortisation and impairment
At 1 April 2023
156,259
Amortisation charged for the year
28,329
At 31 March 2024
184,588
Carrying amount
At 31 March 2024
351,814
At 31 March 2023
-
0

More information on impairment movements in the year is given in note .

11
Tangible fixed assets
Freehold land & buildings
Leasehold land & buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 April 2023
16,340,000
2,790,000
27,334,717
1,346,083
452,331
48,263,131
Additions
19,712
-
0
340,527
96,482
253,716
710,437
Disposals
-
0
-
0
(195,223)
-
0
(37,138)
(232,361)
Revaluation
170,288
-
0
-
0
-
0
-
0
170,288
At 31 March 2024
16,530,000
2,790,000
27,480,021
1,442,565
668,909
48,911,495
Depreciation and impairment
At 1 April 2023
-
0
-
0
21,261,081
1,247,505
354,590
22,863,176
Depreciation charged in the year
327,194
15,593
946,461
33,172
59,049
1,381,469
Eliminated in respect of disposals
-
0
-
0
(125,274)
-
0
(4,479)
(129,753)
Revaluation
(327,194)
(15,593)
-
0
-
0
-
0
(342,787)
At 31 March 2024
-
0
-
0
22,082,268
1,280,677
409,160
23,772,105
Carrying amount
At 31 March 2024
16,530,000
2,790,000
5,397,753
161,888
259,749
25,139,390
At 31 March 2023
16,340,000
2,790,000
6,073,636
98,578
97,741
25,399,955
BRISTOL LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
11
Tangible fixed assets
(Continued)
- 27 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and equipment
1,686,692
1,737,498

Freehold land and buildings with a carrying amount of £ 16,530,000 (2023 - £16,340,000 ) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

The company adopted the revaluation model to measure the freehold and leasehold land and buildings with effect from 31 March 2023. Freehold land and buildings with a carrying amount of £10,674,612 and leasehold land and buildings with a carrying amount of £995,032 were revalued at 31 March 2024 by Brown & Lee Commercial Surveyors LLP, independent valuers not connected with the company on the basis of market value. The valuation are in line with the 31 March 2024.

Freehold land and buildings and leasehold land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts are as follows :-

Freehold land & buildings
Leasehold land & building
2024
2023
2024
2023
£
£
£
£
Cost
14,595,107
14,575,396
1,135,243
1,135,243
Accumulated depreciation
(3,920,495)
(3,628,987)
(140,211)
(117,506)
Carrying value
10,674,612
10,946,409
995,032
1,017,737
12
Investment property
2024
£
Fair value
At 1 April 2023 and 31 March 2024
328,909

Investment properties are freehold properties. The directors valuation of the properties are not materially different from the market values as disclosed on the balance sheet.

13
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
14
344,381
344,381
Investments in associates
15
2,182
2,182
346,563
346,563
BRISTOL LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Brilpharma Private Limited
India
Ordinary shares
100.00
Brilpharma S.L.
Spain
Ordinary shares
70.00
15
Associates

Details of the company's associates at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Brill Engines S.L.
Spain
Ordinary
40.00
Brill International S.L.
Spain
Ordinary
40.00
16
Stocks
2024
2023
£
£
Raw materials and consumables
9,137,480
12,165,809
Work in progress
2,023,235
2,971,519
Finished goods and goods for resale
13,906,036
10,645,076
25,066,751
25,782,404

Stocks are stated after an impairment allowance made for expired goods amounting to £2,413,757 (2023 : £4,070,517 ).

 

17
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
12,307,943
16,915,185
Amounts owed by group undertakings
593,910
578,687
Other debtors
1,420,626
1,093,578
Prepayments and accrued income
716,495
562,704
15,038,974
19,150,154
Deferred tax asset (note 22)
452,931
1,459,788
15,491,905
20,609,942

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

BRISTOL LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
18
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
21
7,611,296
11,513,929
Obligations under finance leases
20
400,000
400,000
Other borrowings
21
1,429,777
2,815,890
Trade creditors
18,616,404
20,164,702
Amounts owed to group undertakings
-
0
167,836
Taxation and social security
1,379,904
1,967,388
Other creditors
5,945,893
3,989,159
Accruals and deferred income
1,017,044
1,062,270
36,400,318
42,081,174

The bank loans and overdrafts include bank overdrafts obtained from Praetura Commercial Finance Limited are secured by way of fixed charge over all credit balances held. Included in bank overdrafts are amounts advanced in respect of sales discounting which is secured by way of fixed charge on book debts.

 

The bank loans and overdrafts include commercial property loan obtained from Investec (Channel Islands) Limited are secured by way of fixed charge over the property or the undertaking of the company. The loans are repayable over 60 months with an interest of 3.90% per annum.

 

Obligations under finance lease includes the three sale and lease back facilities obtained from The Praetura Asset Finance Limited over 60 months with equal monthly capital repayments. This finance lease was obtained on 19 May 2022.

 

Other borrowings include £815,890 (2023: £815,890) loan from the Company's Pension Scheme for 5 years bearing interest at an annual rate of 4% and £613,887 (2023: Nil) loan from BRL Holdings Ltd.

 

Other creditors include £5,909,148 (2023: £3,909,148) loan from the director Mr T Ramachandran and which is unsecured, repayable on demand and is non-interest bearing.

 

Amounts due to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

19
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
21
902,926
905,002
Obligations under finance leases
20
866,667
1,266,667
1,769,593
2,171,669

 

 

BRISTOL LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
20
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
508,278
508,250
In two to five years
1,101,268
1,609,460
1,609,546
2,117,710
Less: future finance charges
(342,879)
(451,043)
1,266,667
1,666,667

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Loans and overdrafts
2024
2023
£
£
Bank loans
1,027,464
1,152,002
Bank overdrafts
7,486,758
11,266,929
Other loans
1,429,777
2,815,890
9,943,999
15,234,821
Payable within one year
9,041,073
14,329,819
Payable after one year
902,926
905,002

The bank loans and overdrafts include commercial property loan obtained from Investec (Channel Islands) Limited are secured by way of fixed charge over the property or the undertaking of the company. The loans are repayable over 60 months with an interest of 3.90% per annum.

 

The bank overdrafts obtained from Praetura Commercial Finance Limited are secured by way of fixed charge over all credit balances held. Included in bank overdrafts are amounts advanced in respect of sales discounting which is secured by way of fixed charge on book debts. These loans are over 36 months with equal monthly capital repayments with interest. The interest charged at 2.95% over the Bank of England base rate. This loan was obtained on 19 May 2022.

Other borrowings include £815,890 (2023: £815,890) loan from the Company's Pension Scheme for 5 years bearing interest at an annual rate of 4%.

 

Other borrowings include a loan of £613,887 (2023: £ Nil) from BRL Holding Ltd.

BRISTOL LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
-
967,195
(611,438)
-
Tax losses
-
-
1,064,369
1,459,788
-
967,195
452,931
1,459,788
2024
Movements in the year:
£
Asset at 1 April 2023
(492,593)
Charge to profit or loss
39,662
Asset at 31 March 2024
(452,931)

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

 

23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
299,001
244,574

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

At the balance sheet date the total amount payable to the pension fund amounted to £87,631 (2023: £67,315), which is included in current liabilities under other creditors.

24
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

BRISTOL LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
25
Financial commitments, guarantees and contingent liabilities

The company did not have any other financial commitments, guarantees or contingent liabilities at year end other than those disclosed under contingencies.

 

The company has bank guarantees, bonds and indemnities of £40,000 (2023: £40,000).

26
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
680,846
811,140
Between two and five years
1,637,793
1,926,559
In over five years
3,232,133
3,614,604
5,550,772
6,352,303

Amounts recognised in profit or loss as an expense during the period in respect of operating lease arrangements for the year amounts to £ 878,989 (2023: £923,829 ).

 

The company had no other off-balance sheet arrangements.

27
Capital commitments

The company did not have any other capital commitments, guarantees or contingent liabilities at year end other than those disclosed under contingencies.

28
Events after the reporting date

There were no events or transactions occurred after the reporting date except the below that require adjustment or disclosure in the financial statements.

 

On 10 June 2024, Bristol Laboratories Ltd partially divested its investment in Brillpharma S.L. by disposing of a 29% equity stake for £6.7m, reducing its controlling interest from 70% to 49%, which would result in a reclassification from a subsidiary to an associate.

29
Related party transactions
Transactions with related parties

The company has taken exemptions under the sections of Financial Reporting Standards of FRS102 “The Financial Standards and applicable in the UK and Republic of Ireland not to disclose related party transactions with wholly owned members of the Bristol Laboratories Group Limited.

30
Directors' transactions

Other creditors include £5,909,148 (2023: £3,909,148 ) loan from the director Mr T Ramachandran which is repayable on demand and is non-interest bearing.

31
Ultimate controlling party
BRISTOL LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
31
Ultimate controlling party
(Continued)
- 33 -

The company is a 100% subsidiary of Bristol Laboratories Group Ltd, a company incorporated in England.

 

The consolidated financial statements are publicly available at the Companies House, Crown Way, Cardiff, CF14 3UZ.

 

The ultimate controlling party are the Trustees of the T Ramachandran Trust.

 

32
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit after taxation
860,542
5,970,621
Adjustments for:
Taxation charged/(credited)
39,663
(492,594)
Finance costs
931,787
738,611
Investment income
(2,741)
-
0
Amortisation and impairment of intangible assets
28,329
308,099
Depreciation and impairment of tangible fixed assets
1,381,469
1,533,631
Movements in working capital:
Decrease/(increase) in stocks
715,653
(1,371,185)
Decrease/(increase) in debtors
4,111,180
(2,195,084)
Decrease in creditors
(392,110)
(6,462,128)
Cash generated from/(absorbed by) operations
7,673,772
(1,970,029)
33
Analysis of changes in net debt
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
450,003
65,931
515,934
Bank overdrafts
(11,266,929)
3,780,171
(7,486,758)
(10,816,926)
3,846,102
(6,970,824)
Borrowings excluding overdrafts
(3,967,892)
1,510,651
(2,457,241)
Obligations under finance leases
(1,666,667)
400,000
(1,266,667)
(16,451,485)
5,756,753
(10,694,732)
BRISTOL LABORATORIES LIMITED
MANAGEMENT INFORMATION
FOR THE YEAR ENDED 31 MARCH 2024
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