Company Registration No. 09055550 (England and Wales)
RAJJA (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
RAJJA (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
K Rajja
S Basandrai
(Appointed 16 October 2024)
Company number
09055550
Registered office
121 Shady Lane
Great Barr
Birmingham
West Midlands
B44 9ER
Auditor
Bache Brown & Co Limited
Swinford House
Albion Street
Brierley Hill
West Midlands
DY5 3EE
Business address
5 Dwellings Lane
Quinton
Birmingham
West Midlands
B32 1RJ
RAJJA (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Income statement
7
Group statement of comprehensive income
8
Group statement of financial position
9 - 10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 34
RAJJA (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

The directors present the strategic report for the year ended 30 September 2024.

Review of the business

The groups' main activity continues to be that of wholesale and retail of pharmaceutical products but also includes nursing home provision.

Principal risks and uncertainties

Risks in the business have increased over the year with volatility in drug prices causing a deficit in reimbursement from the NHS and the failure of a new pharmacy contract to be implemented with revised funding levels. This has now been further exacerbated by the announcement of the election which in turn will delay the implication of the new contract. Details may be widely revised dependant on who is in government but there will be a further period of uncertainty.

Despite this the company has maintained its position and is still looking to growth

Development and performance

The group has continued to be profitable as indicated by the key performance indicators.

Key performance indicators

The groups turnover for the year was £42.68m (2023 - £38.24m).

 

The gross profit margin 28.4% (2023 - 26.9%) and net loss for the year before tax £75,311 (2023 - loss - £159,817).

 

At the balance sheet date net assets of the group are £8.65m (2023 - 8.96m).

Section 172 Statement
Long term results

The directors have reviewed the Group's strategy during the period and concluded that it remains appropriate to support the long term success of the company.

Interest of company's employees

Our employees are critical to the success of the Group and the directors are aware of their responsibility for ensuring that their decisions consider the interest of employees.

Our business relationships

The directors acknowledge the importance of developing the Group's business relationships with suppliers, customers and others.

The community and the enviroment

The directors are aware of the impact the Company's operations on the community and the environment. As a result of which the directors are constantly seeking professional advice and assistance in this area

On behalf of the board

K Rajja
Director
24 June 2025
RAJJA (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -

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

Results and dividends

The results for the year are set out on page 7.

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

Directors

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

K Rajja
S Basandrai
(Appointed 16 October 2024)
Research and development

Research and development expenditure is expensed in the year in which it is incurred.

 

Disabled persons

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

Employee involvement

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

 

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

 

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

Future developments

The company is continually looking for growth acquisitions and is well placed to achieve continued profitability.

Auditor

Bache Brown & Co Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

RAJJA (HOLDINGS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Statement of directors' responsibilities

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

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

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

On behalf of the board
K Rajja
Director
24 June 2025
RAJJA (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RAJJA (HOLDINGS) LIMITED
- 4 -
Opinion

We have audited the financial statements of Rajja (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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.

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

RAJJA (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RAJJA (HOLDINGS) LIMITED
- 5 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

Approach to assessing the risks of misstatement due to irregularities, including fraud

We assess the risk of material misstatement in respect of fraud by meeting with management to understand where it considered there was susceptibility to fraud.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant reporting frameworks which are likely to affect the company include FRS102, the Companies Act 2006 and the relevant tax laws. In addition we determined that there were no significant laws and regulations which have a direct effect on the amounts and disclosures in the financial statements.

Audit response to risks identified

We considered the risk of fraud through management override on controls. We also considered how management bias may impact upon performance targets.

In response we performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of any significant transactions outside the normal course of business, reviewing accounting estimates for management bias.

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved enquiries with management around actual and potential claims. Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

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

RAJJA (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RAJJA (HOLDINGS) LIMITED
- 6 -
Ian Richard Baker (Senior Statutory Auditor)
For and on behalf of Bache Brown & Co Limited
24 June 2025
Chartered Certified Accountants
Statutory Auditor
Swinford House
Albion Street
Brierley Hill
West Midlands
DY5 3EE
RAJJA (HOLDINGS) LIMITED
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
42,676,853
38,244,311
Cost of sales
(30,563,946)
(27,973,751)
Gross profit
12,112,907
10,270,560
Administrative expenses
(11,639,908)
(10,207,375)
Other operating income
284,216
291,757
Operating profit
4
757,215
354,942
Interest receivable and similar income
7
(11,443)
23,905
Interest payable and similar expenses
8
(821,083)
(538,664)
Loss before taxation
(75,311)
(159,817)
Tax on loss
9
(187,026)
(234,965)
Loss for the financial year
(262,337)
(394,782)
Loss for the financial year is attributable to:
- Owners of the parent company
(262,388)
(315,101)
- Non-controlling interests
51
(79,681)
(262,337)
(394,782)

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

The notes on pages 16 to 34 form part of these financial statements.

RAJJA (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
£
£
Loss for the year
(262,337)
(394,782)
Other comprehensive income
-
-
Total comprehensive income for the year
(262,337)
(394,782)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(262,388)
(315,101)
- Non-controlling interests
51
(79,681)
(262,337)
(394,782)

The notes on pages 16 to 34 form part of these financial statements.

RAJJA (HOLDINGS) LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
9,129,468
10,257,780
Negative goodwill
10
(43,523)
-
0
Net goodwill
9,085,945
10,257,780
Tangible assets
11
5,849,709
6,136,918
Investments
12
11,000
11,000
14,946,654
16,405,698
Current assets
Stocks
17
3,427,037
2,967,101
Debtors
18
6,510,781
4,632,088
Cash at bank and in hand
1,018,090
669,334
10,955,908
8,268,523
Creditors: amounts falling due within one year
19
(10,170,871)
(11,128,970)
Net current assets/(liabilities)
785,037
(2,860,447)
Total assets less current liabilities
15,731,691
13,545,251
Creditors: amounts falling due after more than one year
20
(6,850,846)
(4,345,571)
Provisions for liabilities
Deferred tax liability
23
230,281
243,256
(230,281)
(243,256)
Net assets
8,650,564
8,956,424
Capital and reserves
Called up share capital
26
1,120
1,000
Revaluation reserve
27
233,070
233,070
Profit and loss reserves
8,304,589
8,500,720
Equity attributable to owners of the parent company
8,538,779
8,734,790
Non-controlling interests
111,785
221,634
8,650,564
8,956,424

The notes on pages 16 to 34 form part of these financial statements.

RAJJA (HOLDINGS) LIMITED
GROUP STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
30 SEPTEMBER 2024
30 September 2024
- 10 -
The financial statements were approved by the board of directors and authorised for issue on 24 June 2025 and are signed on its behalf by:
24 June 2025
K Rajja
Director
Company registration number 09055550 (England and Wales)
RAJJA (HOLDINGS) LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024
30 September 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
2,182,939
2,182,819
Current assets
Debtors
18
402,037
402,037
Creditors: amounts falling due within one year
19
(2,582,369)
(2,582,369)
Net current liabilities
(2,180,332)
(2,180,332)
Net assets
2,607
2,487
Capital and reserves
Called up share capital
26
1,120
1,000
Profit and loss reserves
1,487
1,487
Total equity
2,607
2,487

The notes on pages 16 to 34 form part of these financial statements.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2023 - £0 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 24 June 2025 and are signed on its behalf by:
24 June 2025
K Rajja
Director
Company registration number 09055550 (England and Wales)
RAJJA (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
Share capital
Revaluation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 October 2022
1,000
-
0
8,815,821
8,816,821
301,315
9,118,136
Year ended 30 September 2023:
Loss and total comprehensive income
-
-
(315,101)
(315,101)
(79,681)
(394,782)
Other movements
-
233,070
-
233,070
-
233,070
Balance at 30 September 2023
1,000
233,070
8,500,720
8,734,790
221,634
8,956,424
Year ended 30 September 2024:
Loss and total comprehensive income
-
-
(262,388)
(262,388)
51
(262,337)
Issue of share capital
26
120
-
-
120
-
120
Purchase of shares in subsidiary from non-controlling interest
-
-
66,257
66,257
(109,900)
(43,643)
Balance at 30 September 2024
1,120
233,070
8,304,589
8,538,779
111,785
8,650,564

The notes on pages 16 to 34 form part of these financial statements.

RAJJA (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
1,000
1,487
2,487
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
-
-
0
Balance at 30 September 2023
1,000
1,487
2,487
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
-
0
Issue of share capital
26
120
-
120
Balance at 30 September 2024
1,120
1,487
2,607

The notes on pages 16 to 34 form part of these financial statements.

RAJJA (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
314,869
1,987,051
Interest paid
(821,083)
(538,664)
Income taxes (paid)/refunded
(748,667)
11,855
Net cash (outflow)/inflow from operating activities
(1,254,881)
1,460,242
Investing activities
Purchase of intangible assets
-
(595,000)
Purchase of tangible fixed assets
(111,891)
(257,158)
Proceeds from disposal of tangible fixed assets
6,851
15,083
Interest received
(11,443)
23,905
Net cash used in investing activities
(116,483)
(813,170)
Financing activities
Repayment of borrowings
(19,999)
(23,294)
Repayment of bank loans
1,610,250
(339,681)
Payment of finance leases obligations
(134,498)
(86,049)
Net cash generated from/(used in) financing activities
1,455,753
(449,024)
Net increase in cash and cash equivalents
84,389
198,048
Cash and cash equivalents at beginning of year
(457,331)
(655,379)
Cash and cash equivalents at end of year
(372,943)
(457,331)
Relating to:
Cash at bank and in hand
1,018,090
669,334
Bank overdrafts included in creditors payable within one year
(1,391,033)
(1,126,665)

The notes on pages 16 to 34 form part of these financial statements.

RAJJA (HOLDINGS) LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0

The notes on pages 16 to 34 form part of these financial statements.

RAJJA (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
1
Accounting policies
Company information

Rajja (Holdings) Limited (“the company”) is a limited company domiciled and incorporated in England and Wales. The registered office is 121 Shady Lane, Great Barr, Birmingham, West Midlands, B44 9ER.

 

The group consists of Rajja (Holdings) Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Rajja (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

RAJJA (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -

Investments in joint ventures and associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

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

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 to 20 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

RAJJA (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 18 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Freehold
2% straight line basis;
Land and buildings Leasehold
Over the terms of the lease;
Fixtures, fittings & equipment
25% / 10% reducing balance basis;
Computer equipment
4% straight line basis.
Motor vehicles
25% reducing balance basis.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

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

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

RAJJA (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 19 -

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

 

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

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

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

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

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

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

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

RAJJA (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 20 -
Impairment of financial assets

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

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

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

Derecognition of financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

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

RAJJA (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 21 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

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

1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

RAJJA (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 22 -
1.18
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

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

 

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

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Retail pharmacy
35,868,041
33,523,084
Nursing residential care
6,808,812
4,721,227
42,676,853
38,244,311
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
42,676,853
38,244,311
2024
2023
£
£
Other revenue
Interest income
(11,443)
23,905
Grants received
167,834
175,987
RAJJA (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(167,834)
(175,987)
Depreciation of owned tangible fixed assets
385,449
299,165
Depreciation of tangible fixed assets held under finance leases
97,260
142,486
Profit on disposal of tangible fixed assets
(2,487)
(14,220)
Amortisation of intangible assets
1,128,312
1,111,940
Operating lease charges
633,711
601,727
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
26,000
26,360
For other services
All other non-audit services
5,000
4,000
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administration
5
5
-
-
Sales
277
234
-
-
Nursing and carers
203
158
-
-
Total
485
397
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
7,790,722
6,226,108
-
0
-
0
Social security costs
531,706
259,048
-
-
Pension costs
122,337
75,924
-
0
-
0
8,444,765
6,561,080
-
0
-
0
RAJJA (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
(11,443)
23,905
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
(11,443)
23,905
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
802,987
484,594
Other interest on financial liabilities
(36,000)
-
766,987
484,594
Other finance costs:
Interest on finance leases and hire purchase contracts
36,175
19,321
Other interest
17,921
34,749
Total finance costs
821,083
538,664
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
200,001
210,551
Adjustments in respect of prior periods
-
0
(3,945)
Total current tax
200,001
206,606
Deferred tax
Origination and reversal of timing differences
(12,975)
28,359
Total tax charge
187,026
234,965
RAJJA (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
9
Taxation
(Continued)
- 25 -

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

2024
2023
£
£
Loss before taxation
(75,311)
(159,817)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
(18,828)
(39,954)
Tax effect of expenses that are not deductible in determining taxable profit
158,980
32,129
Tax effect of income not taxable in determining taxable profit
(114,058)
-
0
Tax effect of utilisation of tax losses not previously recognised
(90,376)
(12,223)
Unutilised tax losses carried forward
-
0
100,745
Change in unrecognised deferred tax assets
(5,620)
-
0
Adjustments in respect of prior years
-
0
(3,945)
Effect of change in corporation tax rate
-
(41,303)
Group relief
-
0
(57,543)
Depreciation on assets not qualifying for tax allowances
10,856
14,171
Amortisation on assets not qualifying for tax allowances
246,072
242,888
Taxation charge
187,026
234,965
10
Intangible fixed assets
Group
Goodwill
Negative goodwill
Total
£
£
£
Cost
At 1 October 2023
21,707,300
-
0
21,707,300
Additions
-
0
(43,523)
(43,523)
At 30 September 2024
21,707,300
(43,523)
21,663,777
Amortisation and impairment
At 1 October 2023
11,449,520
-
0
11,449,520
Amortisation charged for the year
1,128,312
-
0
1,128,312
At 30 September 2024
12,577,832
-
0
12,577,832
Carrying amount
At 30 September 2024
9,129,468
(43,523)
9,085,945
At 30 September 2023
10,257,780
-
0
10,257,780
The company had no intangible fixed assets at 30 September 2024 or 30 September 2023.
RAJJA (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 26 -
11
Tangible fixed assets
Group
Land and buildings Freehold
Land and buildings Leasehold
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 October 2023
4,996,326
773,831
2,225,772
10,624
434,417
8,440,970
Additions
-
0
-
0
56,701
-
0
143,163
199,864
Disposals
-
0
-
0
-
0
-
0
(60,392)
(60,392)
At 30 September 2024
4,996,326
773,831
2,282,473
10,624
517,188
8,580,442
Depreciation and impairment
At 1 October 2023
243,562
423,048
1,465,670
897
170,875
2,304,052
Depreciation charged in the year
77,606
81,480
211,568
425
111,630
482,709
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(56,028)
(56,028)
At 30 September 2024
321,168
504,528
1,677,238
1,322
226,477
2,730,733
Carrying amount
At 30 September 2024
4,675,158
269,303
605,235
9,302
290,711
5,849,709
At 30 September 2023
4,752,764
350,783
760,102
9,727
263,542
6,136,918
The company had no tangible fixed assets at 30 September 2024 or 30 September 2023.

The carrying value of land and buildings comprises:

Group
Company
2024
2023
2024
2023
£
£
£
£
Short leasehold
269,303
350,780
-
0
-
0

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Fixtures, fittings & equipment
89,115
186,375
-
0
-
0
Motor vehicles
-
0
231,426
-
0
-
0
89,115
417,801
-
-
RAJJA (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
11
Tangible fixed assets
(Continued)
- 27 -

Included in the accounts are revaluation of Land and buildings owned by subsidiary companies . The valuations were done by Christie & Co , independent valuers not connected with the company on the basis of market value. The revaluations resulted in a revaluation reserve of £233,070 as disclosed in note 27.

Land and buildings and equipment are carried at valuation. If these were measured using the cost model, the carrying amounts would have been £1,366,930,being cost £1,812,749 less depreciation £445,819.

 

12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
2,182,889
2,182,769
Investments in associates
14
11,000
11,000
-
0
-
0
Investments in joint ventures
15
-
0
-
0
50
50
11,000
11,000
2,182,939
2,182,819
Movements in fixed asset investments
Group
Shares in associates
£
Cost or valuation
At 1 October 2023 and 30 September 2024
11,000
Carrying amount
At 30 September 2024
11,000
At 30 September 2023
11,000
RAJJA (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
12
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in subsidiaries and joint ventures
£
Cost or valuation
At 1 October 2023
2,182,819
Additions
120
At 30 September 2024
2,182,939
Carrying amount
At 30 September 2024
2,182,939
At 30 September 2023
2,182,819
13
Subsidiaries

Details of the company's subsidiaries at 30 September 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Dafen Holdings Limited
England
Ordinary
0
100.00
Dafen Pharmacy Limited
England
Ordinary
0
100.00
DDL 62 Limited
England
Ordinary
75.00
-
Dhaliwal Limited
England
Ordinary
0
100.00
Hurstway Limited
England
Ordinary
100.00
-
M W Phillips (Hawthorn) Limited
England
Ordinary
0
100.00
M W Phillips Limited
England
Ordinary
0
100.00
Michael W Phillips (Sutton Coldfield) Limited
England
Ordinary
0
100.00
Premier Pharmacy Limited
England
Ordinary
0
100.00
Rajja Limited
England
Ordinary
100.00
-
SR Bailey Limited
England
Ordinary
0
100.00
R M Pharmaceutical (Holdings) Limited
England
Ordinary
0
100.00
Sieve Limited
England
Ordinary
0
100.00
Cole Valley Care Limited
England
Ordinary
100.00
-
Pepperhall Limited
England
Ordinary
75.00
-
14
Associates

Details of associates at 30 September 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Premier Midlands Limited
England
Ordinary
28.89
RAJJA (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 29 -
15
Joint ventures

Details of joint ventures at 30 September 2024 are as follows:

Name of undertaking
Registered office
Interest
% Held
held
Direct
Ansonco4 Limited
England
Ordinary
50.00
16
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
5,703,891
3,974,514
402,037
402,037
Carrying amount of financial liabilities
Measured at fair value through profit or loss
Measured at amortised cost
16,550,350
14,434,763
2,582,369
2,582,369

Financial assets represent trade debtors, group loans and other debtors.

 

Financial liabilities consist of trade creditors, group loans and other creditors.

17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
3,427,037
2,967,101
-
0
-
0
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,581,268
3,080,270
1
1
Amounts owed by group undertakings
1
-
-
-
Amounts owed by undertakings in which the company has a participating interest
669,636
605,333
402,036
402,036
Other debtors
858,790
659,517
-
0
-
0
Prepayments and accrued income
401,086
286,968
-
0
-
0
6,510,781
4,632,088
402,037
402,037
RAJJA (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 30 -
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
2,252,944
2,931,347
-
0
-
0
Obligations under finance leases
22
117,107
122,356
-
0
-
0
Other borrowings
21
6,471
20,000
-
0
-
0
Payments received on account
26,439
35,129
-
0
-
0
Trade creditors
6,192,392
5,972,303
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
2,562,308
2,562,308
Corporation tax payable
209,595
758,261
-
0
-
0
Other taxation and social security
261,772
191,537
-
-
Government grants
24
-
0
89,980
-
0
-
0
Other creditors
460,422
488,100
20,061
20,061
Accruals and deferred income
643,729
519,957
-
0
-
0
10,170,871
11,128,970
2,582,369
2,582,369
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
6,578,098
4,025,077
-
0
-
0
Obligations under finance leases
22
272,748
314,024
-
0
-
0
Other borrowings
21
-
0
6,470
-
0
-
0
6,850,846
4,345,571
-
-
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
213,846
-
-
21
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
7,440,009
5,829,759
-
0
-
0
Bank overdrafts
1,391,033
1,126,665
-
0
-
0
Other loans
6,471
26,470
-
0
-
0
8,837,513
6,982,894
-
-
Payable within one year
2,259,415
2,951,347
-
0
-
0
Payable after one year
6,578,098
4,031,547
-
0
-
0
RAJJA (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
21
Loans and overdrafts
(Continued)
- 31 -

The bank loans are secured on first legal charge over company's freehold properties and Omnibus guarantee and set off agreement. Finance leases and hire purchase contracts are secured on the individual assets.

The bank borrowings are payable by instalments over various terms and the period of the loans outstanding at the balance sheet date range from 2 to 16 years.

 

The rate of interest on these loans varies between 2% - 2.5% above bank base rates or LIBOR.

22
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
151,961
152,652
-
0
-
0
In two to five years
327,053
378,323
-
0
-
0
479,014
530,975
-
-
Less: future finance charges
(89,159)
(94,595)
-
0
-
0
389,855
436,380
-
0
-
0

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

23
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Group
£
£
Advanced capital allowances
230,281
243,256
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
243,256
-
Credit to profit or loss
(12,975)
-
Liability at 30 September 2024
230,281
-
RAJJA (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
23
Deferred taxation
(Continued)
- 32 -
24
Government grants
Group
Company
2024
2023
2024
2023
£
£
£
£
Arising from government grants
-
89,980
-
-
25
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
122,337
75,924

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

26
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of of £1 each
1,000
1,000
1,120
1,000
27
Revaluation reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
233,070
-
0
-
0
-
0
Other movements
-
233,070
-
-
At the end of the year
233,070
233,070
-
0
-
RAJJA (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 33 -
28
Operating lease commitments
Lessee

The operating leases represent leases to third parties for rental of pharmacies and have varying lease terms and renewal dates.

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
426,819
432,486
-
-
Between two and five years
1,368,063
1,308,633
-
-
In over five years
1,755,430
1,881,681
-
-
3,550,312
3,622,800
-
-
29
Related party transactions
Transactions with related parties

K Rajja a director of the parent company and subsidiaries, received rental income of £25,000 (2023- £25,000) in respect of commercial property owned by him and occupied by the company.

30
Controlling party

The company is controlled by K Rajja by virtue of holding the majority of the company's share capital.

31
Cash generated from group operations
2024
2023
£
£
Loss for the year after tax
(262,337)
(394,782)
Adjustments for:
Taxation charged
187,026
234,965
Finance costs
821,083
538,664
Investment income
11,443
(23,905)
Gain on disposal of tangible fixed assets
(2,487)
(14,220)
Amortisation and impairment of intangible assets
1,128,312
1,111,940
Depreciation and impairment of tangible fixed assets
482,709
441,651
Movements in working capital:
Increase in stocks
(459,936)
(613,240)
Increase in debtors
(1,878,693)
(743,330)
Increase in creditors
377,728
1,539,309
Decrease in deferred income
(89,980)
(90,000)
Cash generated from operations
314,869
1,987,051
RAJJA (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 34 -
32
Cash absorbed by operations - company
2024
2023
£
£
Profit for the year after tax
-
-
Cash absorbed by operations
-
-
33
Analysis of changes in net debt - group
1 October 2023
Cash flows
New finance leases
30 September 2024
£
£
£
£
Cash at bank and in hand
669,334
348,756
-
1,018,090
Bank overdrafts
(1,126,665)
(264,368)
-
(1,391,033)
(457,331)
84,388
-
(372,943)
Borrowings excluding overdrafts
(5,856,229)
(1,590,251)
-
(7,446,480)
Obligations under finance leases
(436,380)
134,498
(87,973)
(389,855)
(6,749,940)
(1,371,365)
(87,973)
(8,209,278)
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