Caseware UK (AP4) 2023.0.135 2023.0.135 2024-06-302024-06-302024-06-302023-07-01falsefalsefalsefalse 06033065 2023-07-01 2024-06-30 06033065 2022-01-01 2023-06-30 06033065 2024-06-30 06033065 2023-06-30 06033065 2022-01-01 06033065 1 2022-01-01 2023-06-30 06033065 d:Director2 2023-07-01 2024-06-30 06033065 d:Director3 2023-07-01 2024-06-30 06033065 d:Director4 2023-07-01 2024-06-30 06033065 d:RegisteredOffice 2023-07-01 2024-06-30 06033065 e:FurnitureFittings 2023-07-01 2024-06-30 06033065 e:OfficeEquipment 2023-07-01 2024-06-30 06033065 e:Goodwill 2023-07-01 2024-06-30 06033065 e:CopyrightsPatentsTrademarksServiceOperatingRights 2023-07-01 2024-06-30 06033065 e:CurrentFinancialInstruments 2024-06-30 06033065 e:CurrentFinancialInstruments 2023-06-30 06033065 e:Non-currentFinancialInstruments 2024-06-30 06033065 e:Non-currentFinancialInstruments 2023-06-30 06033065 e:CurrentFinancialInstruments e:WithinOneYear 2024-06-30 06033065 e:CurrentFinancialInstruments e:WithinOneYear 2023-06-30 06033065 e:ShareCapital 2024-06-30 06033065 e:ShareCapital 2023-06-30 06033065 e:ShareCapital 2022-01-01 06033065 e:OtherMiscellaneousReserve 2024-06-30 06033065 e:OtherMiscellaneousReserve 2023-06-30 06033065 e:OtherMiscellaneousReserve 2022-01-01 06033065 e:OtherMiscellaneousReserve 1 2022-01-01 2023-06-30 06033065 e:RetainedEarningsAccumulatedLosses 2023-07-01 2024-06-30 06033065 e:RetainedEarningsAccumulatedLosses 2024-06-30 06033065 e:RetainedEarningsAccumulatedLosses 2022-01-01 2023-06-30 06033065 e:RetainedEarningsAccumulatedLosses 2023-06-30 06033065 e:RetainedEarningsAccumulatedLosses 2022-01-01 06033065 e:RetainedEarningsAccumulatedLosses 1 2022-01-01 2023-06-30 06033065 d:OrdinaryShareClass1 2023-07-01 2024-06-30 06033065 d:OrdinaryShareClass1 2024-06-30 06033065 d:OrdinaryShareClass1 2023-06-30 06033065 d:FRS102 2023-07-01 2024-06-30 06033065 d:Audited 2023-07-01 2024-06-30 06033065 d:FullAccounts 2023-07-01 2024-06-30 06033065 d:PrivateLimitedCompanyLtd 2023-07-01 2024-06-30 06033065 e:Subsidiary1 2023-07-01 2024-06-30 06033065 e:Subsidiary1 1 2023-07-01 2024-06-30 06033065 d:Consolidated 2024-06-30 06033065 d:ConsolidatedGroupCompanyAccounts 2023-07-01 2024-06-30 06033065 2 2023-07-01 2024-06-30 06033065 4 2023-07-01 2024-06-30 06033065 6 2023-07-01 2024-06-30 06033065 7 2023-07-01 2024-06-30 06033065 e:ShareCapital 1 2022-01-01 2023-06-30 06033065 3 2024-06-30 06033065 3 2023-06-30 06033065 f:PoundSterling 2023-07-01 2024-06-30 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 06033065










DEXCEL-PHARMA LABORATORIES LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
COMPANY INFORMATION


Directors
A Konstantinou 
A Ridsdale 
Y Seelenfreund 




Registered number
06033065



Registered office
7 Sopwith Way
Drayton Fields Industrial Estate

Daventry

Northamptonshire

NN11 8PB




Independent auditor
MHA
Chartered Accountants & Statutory Auditor

11 Merus Court

Meridian Business Park

Leicester

LE19 1RJ





 
DEXCEL-PHARMA LABORATORIES LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 2
Directors' Report
 
3 - 5
Directors' Responsibilities Statement
 
6
Independent Auditor's Report
 
7 - 11
Consolidated Statement of Comprehensive Income
 
12
Consolidated Statement of Financial Position
 
13 - 14
Company Statement of Financial Position
 
15 - 16
Consolidated Statement of Changes in Equity
 
17
Company Statement of Changes in Equity
 
18
Consolidated Statement of Cash Flows
 
19 - 20
Consolidated Analysis of Net Debt
 
21
Notes to the Financial Statements
 
22 - 42


 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

Introduction
 
The directors present their Group Strategic Report together with the audited financial statements for the period ended 30 June 2024.
The directors extended the prior accounting period from 31 December 2022 to 30 June 2023 to coincide with the same extension made to the parent company's accounting period. All amounts noted throughout these financial statements relate to the 18 month period to 30 June 2023. The current year's amounts all relate to the 12 months ended 30 June 2024.

Business review
 
The Group turnover has decreased by 22% to £21,547,541 (18 months to 30 June 2023 - 61% increase to £27,584,426). Gross profit of £7,918,713 (18 months to 30 June 2023 - £8,570,249) represents a gross profit margin of 36.7% (18 months to 30 June 2023 – 31.1%). However, this decrease is entirely due to the prior period being over 18 months.
On a pro-rata basis, turnover increased through the year as a result of the successful acquisition of a number of over the counter brands part way through the year; these higher margin products also resulted in strong gross profit margin growth. This coupled with continued growth in revenue of the over the counter product acquired in 2020. The launch of the company’s first over the counter product in 2019 continues to grow, completing the picture of a successful over the counter business throughout the year. The success from the 1st to market launch of a new generic product in 2021 also continued and was a contributing factor to increased revenue and margin.
The Group reports net assets at the year end of £29,733,306 (2023 – £22,641,437).

Principal risks and uncertainties
 
The principal risks and uncertainties that face the Group are the reliance on related party companies for the supply of product, market pricing and customer demand, although more product acquisitions are being made from external suppliers, which was the case with the brand acquisitions in the year, plus a diversified mix of product across different segments. In order to minimise these risks, the directors are in regular contact with related party companies, continually monitor the pharmaceutical market for price fluctuations and strive to actively maintain positive relationships with customers.

Financial key performance indicators
 
The directors consider that turnover, gross profit margin, and operating result are the most reliable indicators for measuring Group performance, which is consistent with the size and complexity of the business. These key performance indicators can all be derived from the Consolidated Statement of Comprehensive Income.
Both turnover (pro rata) and gross profit margin has increased as explained above. Operating result has also improved compared to the prior year. 

Page 1

 
DEXCEL-PHARMA LABORATORIES LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024


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



................................................
A Ridsdale
Director

Date: 27 March 2025

Page 2

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024

The directors present their report and the financial statements for the year ended 30 June 2024.

Principal activity

The Company continues to be a dormant holding company for the UK Group.
The Group's principal activity is to market, sell and distribute generic medicines to wholesalers, pharmacies and healthcare providers, over the counter (OTC) medications to major grocery retailers and pharmacies, as well as patented speciality products to dental healthcare professionals.

Results and dividends

The profit for the year, after taxation, amounted to £842,931 (18 months to 30 June 2023 - loss £4,146,233).

The directors do not recommend a dividend.

Directors

The directors who served during the year were:

A Konstantinou 
A Ridsdale 
Y Seelenfreund 

Future developments

Moving forward into the 2025 financial year we will be looking to further increase our product lines, assisted by the launch on a new generic product, and further investment in additional OTC and generics products will be actively pursued.

Page 3

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Financial risk management objectives and policies

The UK based director regularly reviews the financial risks associated with the Group. Group operations are primarily financed on extended payment terms provided by related party companies. The Group does not use forward currency contracts or enter into hedging arrangements.
The UK based director monitors the exposure of the Group to price risk, credit risk, liquidity risk and cash flow risk. 
Price risk
The Group is exposed to price risk in that it operates within a fluctuating sales market. The directors continually monitor the market prices and make related decisions based on data and experience. 
Credit risk
The risk of financial loss due to counterparty’s failure to honour its obligations arises principally in relation to transactions where the Group provides goods or services on deferred credit terms. Group policies are aimed at minimising such losses, and require that deferred terms are granted only to customers who demonstrate an appropriate payment history and satisfy creditworthiness procedures. Individual exposures are monitored with customers subject to credit limits to ensure that the Group's exposure to bad debts is not significant.
Liquidity risk and cash flow risk
The Group aims to mitigate liquidity risk and cash flow risk by managing cash generation by its operations and applying debtor collection targets. The Group also benefits from extended credit terms with related party suppliers. 

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware, and

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

Post balance sheet events

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

Auditor

The auditor, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 4

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

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





................................................
A Ridsdale
Director

Date: 27 March 2025

7 Sopwith Way
Drayton Fields Industrial Estate
Daventry
Northamptonshire
NN11 8PB

Page 5

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the 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 the Group and of the profit or loss of the Group for that period.

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

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

make judgements and accounting estimates that are reasonable and prudent; and


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

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

Page 6

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DEXCEL-PHARMA LABORATORIES LIMITED
 

Opinion


We have audited the financial statements of Dexcel-Pharma Laboratories Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 30 June 2024 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the 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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Page 7

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DEXCEL-PHARMA LABORATORIES LIMITED (CONTINUED)


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 ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the 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:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 8

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DEXCEL-PHARMA LABORATORIES LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 6, 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 9

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DEXCEL-PHARMA LABORATORIES LIMITED (CONTINUED)


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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
 
Enquiry of management and those charged with governance around actual, potential or suspected litigation, claims, non-compliance with applicable laws and regulations and fraud;
 
Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;

Performing audit work over the risk of management override, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
 
Reviewing the financial statements disclosures and testing these to supporting documentation to assess compliance with applicable laws and regulations; and 
 
Discussions amongst the engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators of fraud.

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


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our 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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.


Page 10

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DEXCEL-PHARMA LABORATORIES LIMITED (CONTINUED)





Shelley Harvey FCCA (Senior Statutory Auditor)
  
for and on behalf of
MHA, Statutory Auditor
 
Leicester,
United Kingdom

Date: 27/03/2025
 

MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
Page 11

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024

Year ended
30 June
18 months ended
30 June
2024
2023
Note
£
£

  

Turnover
 4 
21,547,541
27,584,426

Cost of sales
  
(13,628,827)
(19,014,177)

Gross profit
  
7,918,714
8,570,249

Distribution costs
  
(1,765,013)
(1,981,725)

Administrative expenses
  
(4,937,945)
(4,599,749)

Exceptional administrative expenses
  
-
(5,613,954)

Operating profit/(loss)
 5 
1,215,756
(3,625,179)

Interest receivable and similar income
 9 
93,045
221

Profit/(loss) before taxation
  
1,308,801
(3,624,958)

Tax on profit/(loss)
 10 
(465,870)
(521,275)

Profit/(loss) for the financial year
  
842,931
(4,146,233)

  

Total comprehensive income for the year
  
842,931
(4,146,233)

Profit/(loss) for the year attributable to:
  

Owners of the parent Company
  
842,931
(4,146,233)

  
842,931
(4,146,233)

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

The notes on pages 22 to 42 form part of these financial statements.

Page 12

 
DEXCEL-PHARMA LABORATORIES LIMITED
REGISTERED NUMBER: 06033065

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 13 
18,003,481
5,887,002

Tangible assets
 14 
31,244
26,418

Investments
 15 
-
6,751,061

  
18,034,725
12,664,481

Current assets
  

Stocks
 16 
8,274,264
8,286,461

Debtors: amounts falling due within one year
 18 
7,254,981
4,889,168

Cash at bank and in hand
 19 
2,468,266
3,260,073

  
17,997,511
16,435,702

Creditors: amounts falling due within one year
 20 
(6,185,568)
(6,458,746)

Net current assets
  
 
 
11,811,943
 
 
9,976,956

Total assets less current liabilities
  
29,846,668
22,641,437

Provisions for liabilities
  

Deferred taxation
 21 
(113,361)
-

  
 
 
(113,361)
 
 
-

Net assets
  
29,733,307
22,641,437


Capital and reserves
  

Called up share capital 
 22 
2
2

Other reserves
  
38,613,954
32,365,015

Profit and loss account
  
(8,880,649)
(9,723,580)

  
29,733,307
22,641,437


Page 13

 
DEXCEL-PHARMA LABORATORIES LIMITED
REGISTERED NUMBER: 06033065
    
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 JUNE 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



................................................
A Ridsdale
Director

Date: 27 March 2025

The notes on pages 22 to 42 form part of these financial statements.

Page 14

 
DEXCEL-PHARMA LABORATORIES LIMITED
REGISTERED NUMBER: 06033065

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 15 
2
6,751,063

  
2
6,751,063

Current assets
  

Debtors: amounts falling due after more than one year
 17 
6,751,061
-

Debtors: amounts falling due within one year
 18 
457,512
458,598

Cash at bank and in hand
 19 
75,217
63,327

  
7,283,790
521,925

Creditors: amounts falling due within one year
 20 
(235,670)
(168,357)

Net current assets
  
 
 
7,048,120
 
 
353,568

Total assets less current liabilities
  
7,048,122
7,104,631

  

  

Net assets
  
7,048,122
7,104,631


Capital and reserves
  

Called up share capital 
 22 
2
2

Other reserves
  
12,365,015
12,365,015

Profit and loss account
  
(5,316,895)
(5,260,386)

  
7,048,122
7,104,631


Page 15

 
DEXCEL-PHARMA LABORATORIES LIMITED
REGISTERED NUMBER: 06033065
    
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 JUNE 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


................................................
A Ridsdale
Director

Date: 27 March 2025

The notes on pages 22 to 42 form part of these financial statements.

Page 16

 
DEXCEL-PHARMA LABORATORIES LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024


Called up share capital
Other reserves
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£


At 1 January 2022
2
20,000,000
(5,577,347)
14,422,655
14,422,655


Comprehensive income for the period

Loss for the period
-
-
(4,146,233)
(4,146,233)
(4,146,233)

Capital contribution
-
12,365,015
-
12,365,015
12,365,015



At 1 July 2023
2
32,365,015
(9,723,580)
22,641,437
22,641,437


Comprehensive income for the year

Profit for the year
-
-
842,931
842,931
842,931


Contributions by and distributions to owners

Capital contributions
-
13,000,000
-
13,000,000
13,000,000

Repayment of capital contributions
-
(6,751,061)
-
(6,751,061)
(6,751,061)


At 30 June 2024
2
38,613,954
(8,880,649)
29,733,307
29,733,307


The notes on pages 22 to 42 form part of these financial statements.

Other reserves
Other reserves represents capital contributions of the international group to support the trading activities within the UK.
Profit and loss account
Includes all current and prior period retained profits and losses. All amounts are distributable.

Page 17

 
DEXCEL-PHARMA LABORATORIES LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024


Called up share capital
Other reserves
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
2
-
359,591
359,593


Comprehensive income for the period

Loss for the period
-
-
(5,619,977)
(5,619,977)

Capital contribution
-
12,365,015
-
12,365,015



At 1 July 2023
2
12,365,015
(5,260,386)
7,104,631


Comprehensive income for the period

Loss for the year
-
-
(56,509)
(56,509)


At 30 June 2024
2
12,365,015
(5,316,895)
7,048,122


The notes on pages 22 to 42 form part of these financial statements.

Other reserves
Other reserves represents capital contributions of the international group to support the trading activities within the UK.
Profit and loss account
Includes all current and prior period retained profits and losses. All amounts are distributable.

Page 18

 
DEXCEL-PHARMA LABORATORIES LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
842,931
(4,146,233)

Adjustments for:

Amortisation of intangible assets
1,875,961
1,755,165

Depreciation of tangible assets
15,032
31,066

Impairments of investments
-
5,613,954

Loss on disposal of tangible assets
124,560
-

Interest received
(93,045)
(221)

Taxation charge
465,870
521,275

Decrease/(increase) in stocks
12,197
(1,825,863)

Increase in debtors
(1,910,666)
(1,112,935)

Decrease in amounts owed by groups
1,086
-

(Decrease)/increase in creditors
(595,112)
1,421,233

Increase/(decrease) in amounts owed to groups
794,803
(1,374,033)

Corporation tax (paid)/received
(1,281,611)
47,165

Net cash generated from operating activities

252,006
930,573


Cash flows from investing activities

Purchase of intangible fixed assets
(18,000,000)
-

Sale of intangible assets
3,883,000
-

Purchase of tangible fixed assets
(19,858)
(24,334)

Purchase of unlisted and other investments
-
(12,365,015)

Sale of unlisted and other investments
6,751,061
-

Interest received
93,045
221

Net cash from investing activities

(7,292,752)
(12,389,128)
Page 19

 
DEXCEL-PHARMA LABORATORIES LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024


2024
2023

£
£



Cash flows from financing activities

Capital contribution
13,000,000
12,365,015

Repayment of capital notes
(6,751,061)
-

Net cash used in financing activities
6,248,939
12,365,015

Net (decrease)/increase in cash and cash equivalents
(791,807)
906,460

Cash and cash equivalents at beginning of year
3,260,073
2,353,613

Cash and cash equivalents at the end of year
2,468,266
3,260,073


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,468,266
3,260,073

2,468,266
3,260,073


The notes on pages 22 to 42 form part of these financial statements.

Page 20

 
DEXCEL-PHARMA LABORATORIES LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2024




At 1 July 2023
Cash flows
At 30 June 2024
£

£

£

Cash at bank and in hand

3,260,073

(791,807)

2,468,266


3,260,073
(791,807)
2,468,266

The notes on pages 22 to 42 form part of these financial statements.

Page 21

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.


General information

Dexcel-Pharma Laboratories Limited is a private company, limited by shares, which is registered in England and Wales, registration number 06033065. The registered office is 7 Sopwith Way, Drayton Fields Industrial Estate, Daventry, Northamptonshire, NN11 8PB.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

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

The following principal accounting policies have been applied:

  
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The Group is profitable, excluding the exceptional items, and continues to be profitable post year end, as well as holding a strong working capital position. The Company itself does not trade and incurs minimal expenditure with minimum financial commitments outside of group balances. Based on the continued profitability and working capital position, the directors consider the Company and Group have the ability to continue as a going concern for the next 12 months and therefore these financial statements have been prepared on a going concern basis. No material uncertainty in relation to going concern has been identified. 

Page 22

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.4

Revenue

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

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.5

Interest income

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

 
2.6

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is British Pound Sterling (£).

Transactions and balances

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

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

Page 23

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.7

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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

 
2.8

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

Page 24

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.9

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Goodwill
-
10
years
Licences
-
10
years

 
2.10

Tangible fixed assets

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

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures and fittings
-
20% straight line basis per annum
Equipment
-
25-33% straight line basis per annum

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

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

Page 25

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.13

Debtors

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

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

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

 
2.15

Creditors

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

 
2.16

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date.

 
2.17

Provisions for liabilities

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

Page 26

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.18

Pensions

Defined contribution pension plan

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

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

Page 27

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.19

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at transaction price net of transaction costs and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date. 
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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.
 

 
2.20

Operating leases: the Group as lessee

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

 
2.21

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

Page 28

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
i) Useful economic lives of intangible fixed assets
The directors consider that the useful economic life of the goodwill included within these financial statements cannot be reliably measured. As a result, the directors have adopted the maximum useful economic life allowed under FRS 102. See note 13 for the carrying amount of goodwill, and note 2.9 for the useful ecomonic life.
The annual amortisation charge for intangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on future investments and economic utilisation. See note 14 for the carrying amount of the intangible fixed assets and, see note 2.9 for the useful economic lives of each class of assets.
ii) Useful economic lives of tangible fixed assets
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 15 for the carrying amount of the tangible fixed assets, and note 2.10 for the useful economic lives for each class of assets.
iii) Stock provisioning
The Group continues to sell and distribute generic medicines and is exposed to changes in market prices. As a result it is necessary to consider the recoverability of the cost of stocks and the associated provisioning required. When calculating the stocks provision, management considers the nature and condition of the stocks, as well as applying assumptions around anticipated saleability of the goods. See note 16 for the carrying amount of stocks.
iv) Impairment of debtors
The Group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 17 for the net carrying amount of the debtors.
iv) Impairment of investments
Investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, and are not publicly traded are measured at cost less impairment. The Group reviews the cost of investments held and considers whether there is any indication of impairment based on the expected future benefit of the instrument. Where an impairment is identified it is recognised in profit or loss.

Page 29

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

4.


Turnover

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


Year ended
30 June
18 months ended
30 June
2024
2023
£
£

Sale of goods
21,547,541
27,584,426

21,547,541
27,584,426


Analysis of turnover by country of destination:

Year ended
30 June
18 months ended
30 June
2024
2023
£
£

United Kingdom
20,882,543
26,910,857

Rest of Europe
527,728
530,651

Rest of the World
137,270
142,918

21,547,541
27,584,426



5.


Operating profit/(loss)

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

Year ended
30 June
18 months ended
30 June
2024
2023
£
£

Depreciation of tangible fixed assets
15,032
31,066

Amortisation of intangible assets, including goodwill
1,875,961
1,755,165

Exchange differences
59,810
42,427

Other operating lease rentals
32,614
52,905

Defined contribution pension costs
73,055
98,452

Page 30

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

6.


Auditor's remuneration

During the year, the Group obtained the following services from the Company's auditor:


Year ended
30 June
18 months ended
30 June
2024
2023
£
£

Fees payable to the Group's auditor and its associates for the audit of the Group's annual financial statements
7,500
25,000

Fees payable to the Group's auditor and its associates in respect of:

Audit of subsidiaries
25,000
35,000

Taxation compliance services
5,000
5,000

All other services
11,000
17,000


7.


Employees

Staff costs, including directors' remuneration, were as follows:


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


Wages and salaries
1,427,199
1,822,359
-
-

Social security costs
146,485
190,013
-
-

Amounts paid to third parties in respect of directors' services
22,535
47,514
3,607
5,411

Cost of defined contribution scheme
73,055
98,452
-
-

1,669,274
2,158,338
3,607
5,411


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


      Year ended
        30 June
   18 months ended
         30 June
        2024
        2023
            No.
            No.







Sales
3
3



Administrative
12
11



Management
7
7

22
21

Page 31

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

8.


Directors' remuneration

Year ended
30 June
18 months ended
30 June
2024
2023
£
£

Directors' emoluments
200,811
173,834

Group contributions to defined contribution pension schemes
10,279
12,117

Amounts paid to third parties in respect of directors' services
22,535
47,514

233,625
233,465


During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £200,811 (2023 - £173,834).
The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £22,535 (2023: £12,117).


9.


Interest receivable

Year ended
30 June
18 months ended
30 June
2024
2023
£
£


Other interest receivable
93,045
221

93,045
221

Page 32

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

10.


Taxation


Year ended
30 June
18 months ended
30 June
2024
2023
£
£

Corporation tax


Current tax on profits/loss for the year
352,509
472,869

Adjustments in respect of previous periods
-
48,406


352,509
521,275


Total current tax
352,509
521,275

Deferred tax


Origination and reversal of timing differences
113,361
-

Total deferred tax
113,361
-


Taxation on profit on ordinary activities
465,870
521,275
Page 33

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year/period

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

Year ended
30 June
18 months ended
30 June
2024
2023
£
£


Profit/(loss) on ordinary activities before tax
1,308,801
(3,624,958)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
327,200
(906,240)

Effects of:


Non-tax deductible amortisation of goodwill and impairment
142,888
214,331

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
-
1,403,489

Capital allowances for year/period in excess of depreciation
177,733
(3,983)

Utilisation of tax losses
-
(122,929)

Non-qualifying profit/loss on disposal
31,140
-

Adjustments to tax charge in respect of prior periods
-
48,406

Changes in provisions leading to an increase (decrease) in the tax charge
113,362
177

Adjustment for change in UK tax rate during the period leading to a decrease in the tax charge
-
(111,976)

Other differences leading to an increase (decrease) in the tax charge
(326,453)
-

Total tax charge for the year/period
465,870
521,275


Factors that may affect future tax charges

From 1 April 2023, the Corporation Tax main rate was increased to 25% for profits over £250,000. A small profits rate has also been introduced for profits of £50,000 or less, charging Corporation Tax at 19%. Profits between £50,000 and £250,000 will be taxed at the main rate reduced by a marginal relief providing a gradual increase in the effective Corporation Tax rate. 

Page 34

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

11.


Exceptional items

Year ended
30 June
18 months ended
30 June
2024
2023
£
£


Impairment of investments
-
5,613,954

-
5,613,954

In the prior period, the Group and Company established and invested in a new US entity, Dexcel Pharma Inc. (DPI). DPI acquired two pharmaceutical US entities (LLC's). The percentage of shares held was subsequently diluted, via a share issue in the US entities to other related group companies. The impairment of the investment was recognised as an exceptional item in the Statement of Comprehensive Income.
During the year, the investment has been sold in full to other related group companies. 


12.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The loss after tax of the parent Company for the year/period was £56,509 (2023 - loss £5,619,977).

Page 35

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

13.


Intangible assets

Group





Development expenditure
Licences
Goodwill
Total

£
£
£
£



Cost


At 1 July 2023
98,917
6,011,200
5,715,507
11,825,624


Additions
-
18,000,000
-
18,000,000


Disposals
(98,917)
(3,908,643)
-
(4,007,560)



At 30 June 2024

-
20,102,557
5,715,507
25,818,064



Amortisation


At 1 July 2023
-
1,604,346
4,334,276
5,938,622


Charge for the year on owned assets
-
1,304,410
571,551
1,875,961



At 30 June 2024

-
2,908,756
4,905,827
7,814,583



Net book value



At 30 June 2024
-
17,193,801
809,680
18,003,481



At 30 June 2023
98,917
4,406,854
1,381,231
5,887,002



Page 36

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

14.


Tangible fixed assets

Group






Fixtures and fittings
Equipment
Total

£
£
£



Cost 


At 1 July 2023
113,058
176,182
289,240


Additions
11,305
8,553
19,858



At 30 June 2024

124,363
184,735
309,098



Depreciation


At 1 July 2023
109,263
153,559
262,822


Charge for the year on owned assets
1,844
13,188
15,032



At 30 June 2024

111,107
166,747
277,854



Net book value



At 30 June 2024
13,256
17,988
31,244



At 30 June 2023
3,795
22,623
26,418

Page 37

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

15.


Fixed asset investments

Group





Unlisted investments

£





At 1 July 2023
6,751,061


Disposals
(6,751,061)



At 30 June 2024
-






Net book value



At 30 June 2024
-



At 30 June 2023
6,751,061

Company





Investments in subsidiary companies
Unlisted investments
Total

£
£
£



Cost or valuation


At 1 July 2023
2
6,751,061
6,751,063


Disposals
-
(6,751,061)
(6,751,061)



At 30 June 2024
2
-
2






Net book value



At 30 June 2024
2
-
2



At 30 June 2023
2
6,751,061
6,751,063

Page 38

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Dexcel-Pharma Limited
7 Sopwith Way, Drayton Fields Industrial Estate, Daventry, Northamptonshire, NN11 8PB.
Marketing, selling and distribution of generic and patented speciality products.
Ordinary
100%

Dexcel-Pharma Limited is incorporated in England and Wales.


16.


Stocks

Group
Group
2024
2023
£
£

Finished goods
8,274,264
8,286,461

8,274,264
8,286,461


An impairment (reversal)/provision relating to slow-moving and obsolete stock of (£280,664) (2023 - £561,803) was written off to cost of sales during the year.


17.


Debtors due after more than one year

Company
Company
2024
2023
£
£


Amounts owed by group undertaking
6,751,061
-

6,751,061
-

Page 39

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

18.


Debtors due within one year

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


Trade debtors
5,929,755
4,153,129
-
-

Amounts owed by group undertakings
457,239
458,325
457,239
458,325

Other debtors
456,506
273
273
273

Prepayments and accrued income
411,481
277,441
-
-

7,254,981
4,889,168
457,512
458,598



19.


Cash and cash equivalents

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

Cash at bank and in hand
2,468,266
3,260,073
75,217
63,327

2,468,266
3,260,073
75,217
63,327



20.


Creditors: Amounts falling due within one year

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

Trade creditors
987,543
708,440
12,165
-

Amounts owed to group undertakings
3,541,595
2,746,792
213,755
158,607

Corporation tax
-
472,869
-
-

Other taxation and social security
868,698
601,477
-
-

Other creditors
26,630
23,903
-
-

Accruals and deferred income
761,102
1,905,265
9,750
9,750

6,185,568
6,458,746
235,670
168,357


Page 40

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

21.


Deferred taxation


Group



2024


£






Charged to profit or loss
(113,361)



At end of year
(113,361)

Group
2024
£

Accelerated capital allowances
(113,361)

(113,361)


22.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



2 (2023 - 2) Ordinary shares of £1.00 each
2
2

Each Ordinary share has equal voting and distribution rights, including repayment of capital in the event of winding up.



23.


Pension commitments

The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £73,055 (2023 - £98,452). Contributions totalling £16,494 (2023 - £15,011) were payable to the fund at the reporting date.

Page 41

 
DEXCEL-PHARMA LABORATORIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

24.


Commitments under operating leases

At 30 June 2024 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Not later than 1 year
37,000
37,000

Later than 1 year and not later than 5 years
64,750
101,750

101,750
138,750

25.


Related party transactions

The Company has taken advantage of the exemption available under FRS 102 33. 1A not to disclose transactions with wholly owned subsidiaries of the Group.
During the period key management personnel were paid remuneration totalling £308,500 (2023 - £208,395).
Transactions and balances with other related parties are as follows:


2024
2023
£
£

Sales to other related parties
3,883,000
1,893
Purchases from other related parties
12,257,512
20,227,081
Balances due from other related parties
457,239
458,325
Balances due to other related parties
3,541,595
2,746,792

Sales to other related parties include the sale of intangible fixed assets to other related parties.
Purchases from related parties include the supply of products and recharge of administrative expenses and fixed assets.
The amounts owed by and due to related parties have been accounted for on a net basis in line with normal group trading arrangements. 


26.


Controlling party

The Group is a wholly owned subsidiary of Dexcel PT Israel Limited, a company incorporated in Israel. The ultimate parent company is Dexcel PT Holdings Limited. Dexcel PT Holdings Limited is a new company incorporated in Israel. D Oren is the ultimate controlling party by virtue of holding a controlling interest in Dexcel PT Holdings Limited.

Page 42