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Registered number: 03818717
Whitworth Chemists Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 27 March 2024
A Wigglesworth & Company Ltd
Armstrong House
First Avenue
Doncaster
DN9 3GA
Contents
Page
Company Information 1
Strategic Report 2—3
Directors' Report 4—5
Independent Auditor's Report 6—9
Profit and Loss Account 10
Statement of Comprehensive Income 11
Balance Sheet 12—13
Statement of Changes in Equity 14
Statement of Cash Flows 15
Notes to the Statement of Cash Flows 16
Notes to the Financial Statements 17—25
Page 1
Company Information
Directors Mrs Sally Vernon
Mrs Dorothy Bradley
Mr Richard Bradley
Secretary Mrs Dorothy Bradley
Company Number 03818717
Registered Office 2c Atkinsons Way
Foxhills Industrial Estate
Scunthorpe
DN15 8QJ
Accountants A Wigglesworth & Company Ltd
Armstrong House
First Avenue
Doncaster
DN9 3GA
Page 1
Page 2
Strategic Report
The directors present their strategic report for the year ended 27 March 2024.
Review of the Business
Whitworth Chemists Ltd is a family-owned chain of independent community pharmacies in the North of England. Despite its relatively small number of pharmacies spread over a large geographical area, Whitworth has been recognised within the pharmacy industry for the innovative way it operates, as demonstrated by numerous industry special commendations and awards won in the past.
2023-24 was a challenging year, with the results showing a reduction of turnover of 7% and increase in running costs which resulted in a loss for the financial year. The increased pressure of the Pharmacy contract funding frozen with no provision to take inflationary increases built into it and with all operating costs continuing to increase has its toll on the industry as a whole. 
It was during 2023-24 that the shareholders took the difficult decision to sell the company (either as whole or individual pharmacies). The company appointed Christies & Co as its specialist business advisor and the company was put on the market November 2023.
Principal Risks and Uncertainties
The key risks to the business and the industry, include:
- Strains on purchasing margins, due to continued government pressure in category M pricing, thereby reducing the net ingredient cost for drugs dispensed and manufacturers increasing the cost of drugs/medicines.
- The reduction in the fees paid to pharmacies associated with the day-to-day duties of serving patients, despite the rise in both staff and establishment costs associated with the increase in prescription volumes.
- The high volume of concession prices causes additional instability, pressure on cash flow and hyperinflated costs.
The key uncertainties to the business and the industry, include:
- The uncertainty of the five-year NHS contractual; framework coming to an end with no indication of any new contractual agreements in place, for 'year six' or thereafter.
- The announcement of additional clinical services being commissioned in community pharmacies without addressing the chronic underfunding.
- Certain service income streams are still to be finalised and published and as such are difficult to prepare for within our pharmacies.
- The future of Electronic Transfer of Prescriptions and the continued 'direction of prescriptions' associated with the implementation thereof, especially in wholly mail order and internet pharmacy contractors with GPs as shareholders of said pharmacies.
We minimise the risk of the above by having excellent relationships with our suppliers, focussing on cash management and tight control over our controllable costs. We also invest in staff training to keep teams motivated and engaged with any new challenges they may face. Strong leadership also ensures that we stay abreast of any changes strategically and align the business in such a way as to have minimum effect and maximum gain from recent changes to the NHS.
Key Performance Indicators
The board considers that our key performance indicators are those that demonstrate the financial performance and strength of the company which include Gross Margin, growth of the number of items dispensed, growth in professional services income etc. when compared to the rest of the pharmacy industry.
The company continually assesses its performance on a variety of KPI's which allow the company to evaluate its financial position and effectiveness of the strategies set by the board of directors.
Turnover in the year decreased by 7% to £28.7m (vs 2023: £31m)
...CONTINUED
Page 2
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Key Performance Indicators - continued
Gross profit margin 28% (vs 2023: 29%)
Additional Matters 2
On behalf of the board
Mr Richard Bradley
Director
02/06/2025
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Directors' Report
The directors present their report and the financial statements for the year ended 27 March 2024.
Principal Activity
The company's principal activity continues to be that of retail pharmacists.
Dividends
The directors recommend that no final dividends be paid.
The total distribution of dividends for the period ended 31 March 2024 will be £46,500.
Directors
The directors who held office during the year were as follows:
Mrs Sally Vernon
Mrs Dorothy Bradley
Mr Richard Bradley
Mr Jan Badenhorst Resigned 01/04/2024
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' 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, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', 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 the financial statements the directors are required to:
  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Directors' Report is approved: 
  • so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Independent Auditors
The auditors, A Wigglesworth and Company Ltd, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board
Mr Richard Bradley
Director
02/06/2025
Page 5
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Independent Auditor's Report
Opinion
We have audited the financial statements of Whitworth Chemists Limited for the year ended 27 March 2024 which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes of Equity, Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
  • give a true and fair view of the state of the company's affairs as at 27 March 2024 and of its profit/(loss) 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 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 entity's ability to continue as a going concern for a period of at least 12 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. In connection with our audit of the financial statements, 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 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.
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Opinions 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the Strategic Report and 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 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:
  • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
  • the financial statements are not in agreement with the accounting records or 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.
Responsibilities of Directors
As explained more fully in the Directors' Responsibilities Statement set out on page 4—5, 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.
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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: 
The company is subject to laws and regulations that directly and indirectly affect the financial statements. Based on our understanding of the company and the environment it operates within, we determined that the laws and regulations which were most significant included FRS 102, Companies Act 2006 and Health and Safety regulations. We considered the extent to which non-compliance with these laws and regulations might have a material effect on the financial statements, including how fraud might occur. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate journal entries to improve the company's result for the period, and management bias in key accounting estimates.
Audit procedures performed by the engagement team included:
 - Discussions with management and those responsible for legal compliance procedures within the company to obtain an understanding of the legal and regulatory framework applicable to the company and how the company complies with that framework, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;
 - Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud and non-compliance with laws and regulations;
 - Challenging assumptions and judgements made by management in their significant accounting estimates;
 - Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or posted by senior management.
There are inherent limitations in the audit procedures described above and the more removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website 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 that 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.
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Page 9
Arthur Wigglesworth FCA (Senior Statutory Auditor)
for and on behalf of A Wigglesworth and Company Ltd , Statutory Auditor
02/06/2025
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Profit and Loss Account
2024 2023
Notes £ £
TURNOVER 28,685,797 30,971,014
Cost of sales (20,661,768 ) (22,123,943 )
GROSS PROFIT 8,024,029 8,847,071
Administrative expenses (10,694,357 ) (10,142,792 )
Other operating income 2,111 6,218
OPERATING LOSS 4 (2,668,217 ) (1,289,503 )
Exceptional items - (165,000)
Profit on disposal of fixed assets - 720
Other interest receivable and similar income 9 24 4,755
Interest payable and similar charges 10 (633,221 ) (312,686 )
LOSS BEFORE TAXATION (3,301,414 ) (1,761,714 )
Tax on Loss 11 13,321 228,802
LOSS AFTER TAXATION BEING LOSS FOR THE FINANCIAL YEAR (3,288,093 ) (1,532,912 )
The notes on pages 16 to 25 form part of these financial statements.
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Statement of Comprehensive Income
2024 2023
£ £
LOSS FOR THE FINANCIAL YEAR (3,288,093 ) (1,532,912 )
OTHER COMPREHENSIVE INCOME FOR THE YEAR - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR (3,288,093 ) (1,532,912 )
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Balance Sheet
Registered number: 03818717
2024 2023
Notes £ £ £ £
FIXED ASSETS
Intangible Assets 12 12,956,900 13,258,224
Tangible Assets 13 1,573,673 1,683,589
14,530,573 14,941,813
CURRENT ASSETS
Stocks 14 1,777,489 2,481,043
Debtors 15 3,858,290 4,135,768
Cash at bank and in hand 90,404 37,343
5,726,183 6,654,154
Creditors: Amounts Falling Due Within One Year 16 (13,681,035 ) (10,598,244 )
NET CURRENT ASSETS (LIABILITIES) (7,954,852 ) (3,944,090 )
TOTAL ASSETS LESS CURRENT LIABILITIES 6,575,721 10,997,723
Creditors: Amounts Falling Due After More Than One Year 17 - (1,072,848 )
PROVISIONS FOR LIABILITIES
Deferred Taxation 20 - (14,561 )
NET ASSETS 6,575,721 9,910,314
CAPITAL AND RESERVES
Called up share capital 21 1,375,050 1,375,050
Profit and Loss Account 5,200,671 8,535,264
SHAREHOLDERS' FUNDS 6,575,721 9,910,314
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On behalf of the board
Mr Richard Bradley
Director
02/06/2025
The notes on pages 16 to 25 form part of these financial statements.
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Statement of Changes in Equity
Share Capital Profit and Loss Account Total
£ £ £
As at 1 April 2022 1,375,050 10,513,413 11,888,463
Loss for the year and total comprehensive income - (1,532,912 ) (1,532,912)
Dividends paid - (445,237) (445,237)
As at 31 March 2023 and 1 April 2023 1,375,050 8,535,264 9,910,314
Loss for the year and total comprehensive income - (3,288,093 ) (3,288,093)
Dividends paid - (46,500) (46,500)
As at 27 March 2024 1,375,050 5,200,671 6,575,721
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Statement of Cash Flows
2024 2023
Notes £ £
Cash flows from operating activities
Net cash (used in)/generated from operations 1 (7,095,270 ) 1,612,964
Interest paid (633,221 ) (141,987 )
Tax paid (175,503 ) (233,215 )
Further item of operating activities 1 - (3,957,273)
Net cash used in operating activities (7,903,994 ) (2,719,511 )
Cash flows from investing activities
Proceeds from disposal of tangible assets - 720
Interest received 24 4,755
Net cash generated from investing activities 24 5,475
Cash flows from financing activities
Equity dividends paid (46,500 ) (445,237 )
Proceeds from new bank borrowings 2,482,664 3,999,890
Repayment of bank borrowings - (804,597 )
Repayment of finance leases (64,066 ) (48,315 )
Amount introduced by directors - 167,045
Amount withdrawn by directors (19,769) (4,755)
Net cash generated from financing activities 2,352,329 2,864,031
(Decrease)/increase in cash and cash equivalents (5,551,641 ) 149,995
Cash and cash equivalents at beginning of year 2 (99,298 ) (249,293 )
Cash and cash equivalents at end of year 2 (5,650,939 ) (99,298 )
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Notes to the Statement of Cash Flows
1. Reconciliation of loss for the financial year to cash (used in)/generated from operations
2024 2023
£ £
Loss for the financial year (3,288,093 ) (1,532,912 )
Adjustments for:
Tax on loss (13,321 ) (228,802 )
Interest expense 633,221 312,686
Interest income (24 ) (4,755 )
Amortisation of intangible assets 301,324 301,323
Depreciation of tangible assets 109,916 118,648
Profit on disposal of tangible assets - (720)
Movements in working capital:
Decrease/(increase) in stocks 703,554 (31,218 )
Decrease/(increase) in trade and other debtors 248,459 (877,298 )
(Decrease)/increase in trade and other creditors (5,790,306 ) 3,721,012
Intercompany loan write off - (165,000)
Net cash (used in)/generated from operations (7,095,270 ) 1,612,964
2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
2024 2023
£ £
Cash at bank and in hand 90,404 37,343
Overdraft facilities repayable on demand (5,741,343 ) (136,641 )
Cash and cash equivalents as stated in the Statement of Cash Flows (5,650,939) (99,298)
3. Analysis of changes in net debt
As at 1 April 2023 Cash flows As at 27 March 2024
£ £ £
Cash at bank and in hand 37,343 53,061 90,404
Overdraft facilities repayable on demand (136,641) (5,604,702) (5,741,343)
Cash and cash equivalents (99,298 ) (5,551,641) (5,650,939 )
Finance leases (71,044) 64,066 (6,978)
Debts falling due within one year (756,257 ) (3,532,783) (4,289,040 )
Debts falling due after more than one year (1,050,119) 1,050,119 -
(1,976,718) (7,970,239) (9,946,957)
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Notes to the Financial Statements
1. General Information
Whitworth Chemists Limited is a private company, limited by shares, incorporated in England & Wales, registered number 03818717 . The registered office is 2c Atkinsons Way, Foxhills Industrial Estate, Scunthorpe, DN15 8QJ.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
2.2. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
2.3. Intangible Fixed Assets and Amortisation - Goodwill
Goodwill arises on the purchase of retail pharmacies.
It is initially recognised as an an asset at cost and subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is provided so as to write off the cost less any estimated residual value over its useful life, 50 years, on a straight line basis.
2.4. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Freehold 2% straight line
Leasehold Over the term of the lease
Motor Vehicles 25% straight line
Fixtures & Fittings 10% straight line
Computer Equipment 33% straight line
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2.5. Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.
2.6. Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.
2.7. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.8. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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.
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2.8. Taxation - continued
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.
3. Other Operating Income
2024 2023
£ £
Rental income 1,358 1,871
Other operating income 753 4,347
2,111 6,218
4. Operating Loss
The operating loss is stated after charging:
2024 2023
£ £
Depreciation of tangible fixed assets 109,916 118,648
Amortisation of intangible fixed assets 301,324 301,323
5. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2024 2023
£ £
Audit Services
Audit of the company's financial statements 26,100 26,840
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6. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2024 2023
£ £
Wages and salaries 5,733,198 5,706,860
Social security costs 455,628 451,553
Other pension costs 93,655 184,081
6,282,481 6,342,494
7. Average Number of Employees
Average number of employees, including directors, during the year was: 283 (2023: 301)
283 301
8. Directors' remuneration
2024 2023
£ £
Emoluments 135,792 103,171
9. Interest Receivable and Similar Income
2024 2023
£ £
Bank interest receivable 24 -
Director's loan interest - 4,755
24 4,755
10. Interest Payable and Similar Charges
2024 2023
£ £
Bank loans and overdrafts 495,229 135,472
Factoring charges 131,475 170,699
Finance charges payable under finance leases and hire purchase contracts 6,517 6,515
633,221 312,686
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11. Tax on Profit
The tax credit on the loss for the year was as follows:
Tax Rate 2024 2023
2024 2023 £ £
Current tax
UK Corporation Tax 25.0% 19.0% - (160,857 )
Prior period adjustment 1,240 (12,059 )
1,240 (172,916 )
Deferred Tax
Deferred taxation (14,561 ) (55,886 )
Total tax charge for the period (13,321 ) (228,802 )
The actual credit for the year can be reconciled to the expected credit for the year based on the loss and the standard rate of corporation tax as follows:
2024 2023
£ £
Profit before tax (3,301,414) (1,761,714)
Tax on profit at 25% (UK standard rate) - (334,726 )
Expenses not deductible for tax purposes - 31,350
Tax losses utilised - 66,100
Capital allowances - 76,419
Prior period adjustment 1,240 (12,059 )
Deferred tax from unrecognised tax loss or credit (14,561 ) (55,886 )
Total tax charge for the period (13,321) (228,802)
12. Intangible Assets
Goodwill
£
Cost
As at 1 April 2023 15,066,163
As at 27 March 2024 15,066,163
Amortisation
As at 1 April 2023 1,807,939
Provided during the period 301,324
As at 27 March 2024 2,109,263
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Net Book Value
As at 27 March 2024 12,956,900
As at 1 April 2023 13,258,224
13. Tangible Assets
Land & Property
Freehold Leasehold Motor Vehicles Fixtures & Fittings
£ £ £ £
Cost
As at 1 April 2023 990,095 1,132,423 43,921 1,763,502
As at 27 March 2024 990,095 1,132,423 43,921 1,763,502
Depreciation
As at 1 April 2023 276,496 479,024 17,385 1,482,164
Provided during the period 19,802 16,028 10,981 54,388
As at 27 March 2024 296,298 495,052 28,366 1,536,552
Net Book Value
As at 27 March 2024 693,797 637,371 15,555 226,950
As at 1 April 2023 713,599 653,399 26,536 281,338
Computer Equipment Total
£ £
Cost
As at 1 April 2023 500,946 4,430,887
As at 27 March 2024 500,946 4,430,887
Depreciation
As at 1 April 2023 492,229 2,747,298
Provided during the period 8,717 109,916
As at 27 March 2024 500,946 2,857,214
Net Book Value
As at 27 March 2024 - 1,573,673
As at 1 April 2023 8,717 1,683,589
14. Stocks
2024 2023
£ £
Stock 1,777,489 2,481,043
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15. Debtors
2024 2023
£ £
Due within one year
Trade debtors 2,608,628 2,954,162
Prepayments and accrued income 360,104 422,373
Other debtors 11,477 26,085
Corporation tax recoverable assets 171,000 -
VAT 704,812 530,860
Amounts owed by other participating interests 2,269 2,269
3,858,290 3,935,749
Due after more than one year
Corporation tax recoverable assets - 200,019
3,858,290 4,135,768
16. Creditors: Amounts Falling Due Within One Year
2024 2023
£ £
Net obligations under finance lease and hire purchase contracts 6,978 48,315
Trade creditors 3,156,241 4,129,557
Bank loans and overdrafts 10,030,383 892,898
Corporation tax - 203,282
Other taxes and social security 116,286 99,967
Other creditors 606 21,319
Trade finance - 3,999,890
Accruals and deferred income 361,498 1,174,204
Directors' loan accounts 9,043 28,812
13,681,035 10,598,244
17. Creditors: Amounts Falling Due After More Than One Year
2024 2023
£ £
Net obligations under finance lease and hire purchase contracts - 22,729
Bank loans - 1,050,119
- 1,072,848
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Of the creditors the following amounts are secured.
2024 2023
£ £
Net obligations under finance lease and hire purchase contracts 6,978 71,044
Bank loans and overdrafts 10,030,383 1,943,017
Other loans - 3,999,890
The bank overdraft, bank loans and trade finance are secured by legal charges over the company's freehold and leasehold properties and their respective associated assets.
18. Loans
An analysis of the maturity of loans is given below:
2024 2023
£ £
Amounts falling due within one year or on demand:
Bank loans 4,289,040 756,257
2024 2023
£ £
Amounts falling due between one and five years:
Bank loans - 1,050,119
19. Obligations Under Finance Leases and Hire Purchase
2024 2023
£ £
The future minimum finance lease payments are as follows:
Not later than one year 6,978 48,315
Later than one year and not later than five years - 22,729
6,978 71,044
6,978 71,044
20. Deferred Taxation
The provision for deferred tax is made up as follows:
2024 2023
£ £
Other timing differences - 14,561
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21. Share Capital
2024 2023
Allotted, called up and fully paid £ £
1,375,000 Ordinary Shares of £ 1.00 each 1,375,000 1,375,000
25 Ordinary A shares of £ 1.00 each 25 25
25 Ordinary B shares of £ 1.00 each 25 25
1,375,050 1,375,050
22. Pension Commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the charge to profit or loss in respect of defined contribution schemes was £93,655 (2023: £184,081).
At the balance sheet date contributions of £NIL were due to the fund and are included in creditors.
23. Dividends
2024 2023
£ £
On equity shares:
Final dividend paid 46,500 445,237
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