Company registration number 00623420 (England and Wales)
H.I. WELDRICK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
H.I. WELDRICK LIMITED
COMPANY INFORMATION
Directors
C W J Alcock
L H Alcock
Secretary
J E Wheeler
Company number
00623420
Registered office
Mallard House
Heavens Walk
Doncaster
South Yorkshire
DN4 5HZ
Auditor
BHP LLP
Albert Works
Sidney Street
Sheffield
S1 4RG
Solicitors
Knights PLC
1, Saint Paul's Place
121 Norfolk Street
Sheffield
South Yorkshire
S1 2JF
H.I. WELDRICK LIMITED
CONTENTS
Page
Strategic report
1 - 5
Directors' report
6 - 7
Independent auditor's report
8 - 11
Statement of comprehensive income
12
Balance sheet
13
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16 - 34
H.I. WELDRICK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The directors present the strategic report for the year ended 30 April 2024.
Review of the business
HI Weldrick Ltd continues to operate in line with its mission to deliver high-quality healthcare and customer service to both the local community and the national online audience. This mission is supported by our corporate vision and values, which guide the provision of services and the development of staff across all levels of the organisation.
The Company continues to operate under the national pharmacy contract negotiated by Community Pharmacy England (CPE) with the Department of Health. However, the fixed-funding nature of this contract, alongside the absence of inflationary increases over a seven-year period, has presented significant financial challenges to the business.
Throughout the year, the Company has maintained partnerships with local NHS teams, Primary Care Networks (PCNs), and Public Health England to support and deliver additional healthcare services. We have also worked closely with the Independent Pharmacies Association (IPA) to advocate for improved long-term funding arrangements for the sector.
While the conclusion of the five-year contract has brought new funding terms for the 2024/25 and 2025/26 financial years, the increase in core funding is not considered sufficient to offset inflation, increased prescription volumes, or rising operational costs. The company must therefore continue with a managed programme of reducing operating costs while taking care not to damage the core infrastructure of the business.
The Company welcomed the introduction of the NHS Pharmacy First Service. However, low public awareness and limited integration with other healthcare providers resulted in reduced uptake. Additionally, the increased costs of delivery, including staffing and wage increases, significantly reduced the net financial benefit of the service.
Ongoing sector-wide issues—including pharmacist shortages, high locum fees, supply constraints, and medicine cost inflation—continue to place pressure on margins and are reflected in the Company’s financial results for the year.
Despite these challenges, the Company remains focused on investment in staff training, infrastructure, and operational improvements. Regular reviews of business processes and the adoption of new technology form part of a continuous improvement strategy.
The Company has also undertaken a review of its asset base and realised gains where appropriate to support cash flow and maintain operational stability.
In anticipation of legislative changes, the Company continues to develop its expertise in “Hub & Spoke” automated dispensing. With over 14 years of experience in this area, the Company is well positioned to adapt quickly to any changes, thereby supporting the long-term sustainability of its core dispensing operations.
In March 2025, the NHS confirmed The New Funding Agreement for the Pharmacy sector for the 2025/26 year as well as certain revisions to the 2024/25 funding package. From April 1st , additional funding included an increase in the Activity Charge as well as the Drug Margin. The New Funding Agreement also included additional funding under the Pharmacy Quality Scheme as well as changes to the structure of amounts payable under Pharmacy First and other Services. The new framework replaces payment levels that have been pegged at the same levels for the last seven years and therefore represents a positive step as the sector continues to face the challenges of National Living Wage inflation, National Insurance Increases and other cost pressures.
H.I. WELDRICK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Principal Risks and Uncertainties:
Financial risk management objectives and policies
The Company uses borrowings, cash and other liquid resources and various other items such as trade debtors and creditors that arise directly from its operations to raise finance for the Company’s operation.
Liquidity risk
The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The Company finances its operations through a mixture of retained earnings and bank borrowings.
Interest rate risk
The company finances its operations through a mixture of retained earnings and bank borrowings.
Development and Performance:
Payment of Creditors
We produce a bi-annual payment practices report and summary following HMRC guidelines.
Our standard term is to comply with those of our suppliers, the majority of our suppliers are;
30 days from invoice
30 days from the end of the month following invoice.
60 days from end of month
All agreements are put in place and signed in accordance with the supplier’s terms and conditions before any purchase is made. This is checked and authorised by a Senior member of the team. Trade creditor days per the financial statements are 94 days. Whilst this is the figure of trade creditor days per the financial statements, this does not give a true indication of the actual creditor days because 3 of the company’s main suppliers have set direct debit payments for the first working day of the month in reflection of the payment terms of NHSBSA.
The true creditor days figure is 31 days, as reported to HMRC in the payment practices report of May to October.
Key Performance Indicators
Qualitative measures relating to “improvement in service” are important measures of performance to the Company and the community. Quantitative measures in terms of business performance and profitability are important to shareholders and the company’s other stakeholders to provide assurance as to the continuing stability of the organisation.
Basic Key Performance Indicators (KPIs) which the Company bases financial evaluations upon are gross profit, net profit, and staff costs. The link between profitability and branch staffing levels is a key component in the budgeting process. Gross profit percentage has decreased from 28.67% in 2023 to 27.87% in 2024 as a direct result of the 5-year pharmacy NHS contract and despite all sensible cost savings, turnover has risen from £73.7m to £77.9m and actual gross profit has slightly risen from £21.1m to £21.7m in 2024.
Investments in staffing through effective recruitment, promotion, training and rewarding structures provides the Company with an effective asset but a significant cost in such a retail environment, equating to £15.1m in 2024 compared to £14.4m in 2023. Staff cost as percentage of turnover were 19.4% in 2024 and 19.5% in 2023.
The Company continues to invest resources into the development of the it’s website to grow market share strategically, the effect of this has been to generate turnover of £10.1m compared to £9.5m in 2023 and £0.9m gross profit compared to £1.5m in 2023.
Company net losses before tax were £5.4m 2024, which included £562k in income from investment properties. Other costs are not significant to the profitability of the company and are not deemed KPIs.
H.I. WELDRICK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
Analysis of performance - Carbon Reporting
Community and environment
The company’s approach is to create positive changes for the people and communities with which the Company interact. The company is committed to embracing the safeguarding of the environment.
An independent review of energy use is commissioned and undertaken on an ongoing basis.
Some of the things we have done or are starting to do are below:
Reduction in energy consumption through installation of LED lighting throughout the company
Installation of electric car charging points
Changing our company fleet to electric and reducing deliveries
Solar panels have been installed at the company’s main offices/warehousing operation and we will be looking at ways to utilise these across our branches
Within 2024 we have also finalised the ESOS3 compliance and from this take key aspects and feed them to the wider business
Reduction of the use of packaging and consumables wherever possible
Waste is recycled and cardboard compacted
Staff education and training on best practice
Looking at ways to better insulate the properties
Carbon footprint
In accordance with the streamlined energy and carbon reporting (“SECR”) guidance we report on our greenhouse gas emissions and energy usage for the year ended 30 April 2024.
The company has seen a decrease in all key ratios of greenhouse gas emissions and energy usage as can be seen from the table below, this is due to a proactive approach Weldricks take in ensuring that PCs, Lights etc are all turned off, consolidating warehouse runs.
Head office can now control some of these functions.
We’ve have been running an energy reduction project plan for the last 2 years, showing large reductions in paper and energy uses and this continues throughout this year.
Key actions taken to reduce energy consumption are included in the statement above.
| | |
| | |
| | |
| Thousand tonnes of CO2e per staff member Thousand tonnes of CO2e per branch | |
| | |
| | |
| | |
| Thousand tonnes of CO2e per staff member Thousand tonnes of CO2e per branch | |
H.I. WELDRICK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
S172 Statement
The Directors, in accordance with section 172 of the Companies Act 2006, conduct themselves in a manner that, in their judgment will promote the Company's success for the benefit of all its members. Among other things, the directors have taken into consideration the long-term implications of any decisions and;
Interests of Company employees
Fostering the Company's business connections with partners, suppliers, and others
The impact of the Company's operations on the community and environment
The Company's ability to maintain a reputation for high standards of business conduct
The need to act fairly between members of the Company
The Directors acknowledge that any decision they take will not necessarily bring about a mutually beneficial situation for all the Company's stakeholders. The Directors aim to make sure that their decisions are consistent by considering the Company's purpose, vision, and values together with its strategic priorities and having a process in place for decision making.
Stakeholder engagement
The Company’s ability to drive value creation is dependent on considering our stakeholders in key business decisions. Direct engagement by Directors, receiving reports and updates from members of management who engage such groups, and coverage in our board papers of relevant stakeholder interests are some of the methods used by the Directors to understand the respective interest of such stakeholder groups. The Company's key stakeholders are the following, according to the directors:
Workers
The Company's enduring viability rests on the efforts and commitment of our staff. A strong culture and an effective people strategy are what the Directors recognise as the foundations for the successful implementation of the Company's strategy.
Regular talks and updates from Directors keep employees up to date on progress and direction. Newsletters and management briefings are supported by these updates. Key business meetings are attended by the Directors throughout the year, including weekly meetings. Employees can raise any concerns in confidence through an employee whistleblowing policy.
Personal development, pay and benefits are some of the key focuses of the Directors.
Suppliers
It is important to the Company's long-term success that the Directors are briefed on supplier feedback and issues on a regular basis. The Directors strive to balance the benefit of maintaining these strong relationships with the need to ensure the desired quality and service for our customers. Our Company purchasing function is the primary conduit for interaction with suppliers, key areas of focus include supply chain innovation, product development, health and safety, and sustainability.
H.I. WELDRICK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -
Communities
The Directors support initiatives aimed at lessening the negative effects of our activities on the environment and engages with the communities where we operate. Key areas of focus include how we can support local causes and issues, create opportunities to recruit and develop local people, and help look after the environment. The Company works with local charities to raise funds and awareness of various issues. The Directors receive reports of key issues and themes from local communities.
Government and Regulations
Through trade organisations, industry consultations, forums, and meetings, we communicate our views to policy makers relevant to our business. Compliance with laws and regulations, health and safety, and product safety are the main areas of focus. The Directors keep abreast of new legal and regulatory developments and take them into consideration when contemplating future actions.
Investors
Our shareholders and lenders serve as vital sources of capital and funding for the Company to achieve its objectives. Investor participation in the decision-making process includes representation on the Company Board. The organisation engages in frank discussions with all stakeholders through regular meetings and virtual calls that cover a broad range of issues including, financial performance, planning, future prospects, and corporate governance.
C W J Alcock
Director
28 July 2025
H.I. WELDRICK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 6 -
The directors present their annual report and financial statements for the year ended 30 April 2024.
Principal activities
The principal activity of the company continued to be that of the provision of local pharmaceutical services.
Results and dividends
The results for the year are set out on page 12.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
C W J Alcock
L H Alcock
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company places considerable value on the involvement of its employees and communicates clearly and openly on a personal and two-way basis, sharing information and ideas. Employees are continually kept informed of matters affecting them as employees and of various factors affecting the performance of the company. This is achieved through formal and informal meetings and newsletters. Employee representatives are consulted regularly in a wide range of maters affecting their current and future interests.
Auditor
The auditor, BHP LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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 company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
H.I. WELDRICK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
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.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
C W J Alcock
Director
28 July 2025
H.I. WELDRICK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF H.I. WELDRICK LIMITED
- 8 -
Opinion
We have audited the financial statements of H.I. Weldrick limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 April 2024 and of its 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
H.I. WELDRICK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF H.I. WELDRICK LIMITED (CONTINUED)
- 9 -
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 and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
H.I. WELDRICK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF H.I. WELDRICK LIMITED (CONTINUED)
- 10 -
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
To address the risk of fraud through management bias and override of controls, we:
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
H.I. WELDRICK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF H.I. WELDRICK LIMITED (CONTINUED)
- 11 -
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Terri Pierpoint (Senior Statutory Auditor)
For and on behalf of BHP LLP, Statutory Auditor
Chartered Accountants
Albert Works
Sidney Street
Sheffield
S1 4RG
28 July 2025
H.I. WELDRICK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
2024
2023
as restated
Notes
£
£
Turnover
3
77,932,450
73,709,594
Cost of sales
(56,210,926)
(52,575,740)
Gross profit
21,721,524
21,133,854
Administrative expenses
(26,933,615)
(24,230,501)
Other operating income
835,840
706,982
Operating loss
4
(4,376,251)
(2,389,665)
Interest receivable and similar income
8
76,067
78,084
Interest payable and similar expenses
9
(463,925)
(183,232)
Amounts written off investments
10
(610,092)
-
Fair value gains and losses on investment properties
15
328,591
Loss before taxation
(5,374,201)
(2,166,222)
Tax on loss
11
650,000
62,806
Loss for the financial year
(4,724,201)
(2,103,416)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
H.I. WELDRICK LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 13 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
13
9,827,797
8,920,463
Tangible assets
14
3,631,974
4,149,965
Investment property
15
6,143,110
6,141,160
Investments
16
431,295
881,388
20,034,176
20,092,976
Current assets
Stocks
18
5,148,210
5,495,984
Debtors
19
8,270,208
8,064,967
Cash at bank and in hand
35,576
17,436
13,453,994
13,578,387
Creditors: amounts falling due within one year
20
(18,475,752)
(15,613,960)
Net current liabilities
(5,021,758)
(2,035,573)
Total assets less current liabilities
15,012,418
18,057,403
Creditors: amounts falling due after more than one year
21
(3,982,205)
(1,652,989)
Provisions for liabilities
Deferred tax liability
24
650,000
-
(650,000)
Net assets
11,030,213
15,754,414
Capital and reserves
Called up share capital
26
16,000
16,000
Revaluation reserve
765,149
765,149
Profit and loss reserves
10,249,064
14,973,265
Total equity
11,030,213
15,754,414
The financial statements were approved by the board of directors and authorised for issue on 28 July 2025 and are signed on its behalf by:
C W J Alcock
Director
Company registration number 00623420 (England and Wales)
H.I. WELDRICK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
As restated for the period ended 30 April 2023:
Balance at 1 May 2022
16,000
436,558
17,405,272
17,857,830
Year ended 30 April 2023:
Loss and total comprehensive income
-
-
(2,103,416)
(2,103,416)
Other movements
-
328,591
(328,591)
-
Balance at 30 April 2023
16,000
765,149
14,973,265
15,754,414
Year ended 30 April 2024:
Loss and total comprehensive income
-
-
(4,724,201)
(4,724,201)
Balance at 30 April 2024
16,000
765,149
10,249,064
11,030,213
H.I. WELDRICK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
31
(1,699,553)
(4,329,810)
Interest paid
(463,925)
(183,232)
Income taxes refunded
49,746
518
Net cash outflow from operating activities
(2,113,732)
(4,512,524)
Investing activities
Purchase of intangible assets
(2,090,770)
(464,230)
Purchase of tangible fixed assets
(205,020)
(753,249)
Proceeds from disposal of tangible fixed assets
69,925
Purchase of investment property
(1,950)
(13,644)
Purchase of investments
(159,999)
Interest received
76,067
78,084
Net cash used in investing activities
(2,311,747)
(1,153,038)
Financing activities
Proceeds from new bank loans
3,343,928
Repayment of bank loans
(728,335)
(135,633)
Additions of finance lease assets
243,453
Payment of finance leases obligations
(152,888)
(143,503)
Net cash generated from/(used in) financing activities
2,462,705
(35,683)
Net decrease in cash and cash equivalents
(1,962,774)
(5,701,245)
Cash and cash equivalents at beginning of year
(809,224)
4,892,021
Cash and cash equivalents at end of year
(2,771,998)
(809,224)
Relating to:
Cash at bank and in hand
35,576
17,436
Bank overdrafts included in creditors payable within one year
(2,807,574)
(826,660)
H.I. WELDRICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
1
Accounting policies
Company information
H.I. Weldrick limited is a private company limited by shares incorporated in England and Wales. The registered office is Mallard House, Heavens Walk, Doncaster, South Yorkshire, DN4 5HZ.
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 investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company is exempt from the requirement to prepare consolidated financial statements as all of its subsidiaries are permitted to be excluded by virtue of section 405 of the Companies Act 2006.
1.2
Going concern
At the time of approving the financial stataments, the directors have performed a review of the company's projections and cash flow, considering macro-economic factors such as inflation and interest rates. Additionally, the directors have reviewed the current financial performance of the company and how this is likely to perform, using reasonable assumptions, over the next three years, in light of the new NHS Framework arrangements as well as the progress being made on Project Generation, Weldrick's Profit Improvement Programme. true
The directors also recognise that the company owns a substantial property portfolio which means the company is well positioned to liquidate such assets should the business need to raise cash.
Considering the possible outcomes the directors have concluded that the business would remain a going concern and thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
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.
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.
Revenue from providing services is recognised in the accounting period in which the services are rendered.
H.I. WELDRICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 ranges from 10 to 25 years.
The useful life of goodwill is a departure from the FRS 102 regulations which state that the useful life of goodwill shall not exceed 10 years. The accounting policy adopted is necessary for the financial statements to give a true and fair view. Amortisation is assessed on a branch by branch level in line with the industry standard and is provided in line with the length of any lease entered into.
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.
1.5
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.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% straight line
Leasehold land and buildings
over the term of the lease or 5 years where no lease exists
Fixtures and fittings and office equipment
15% reducing balance and 12-25% straight line
Motor vehicles
20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.7
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
H.I. WELDRICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials.
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.
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
H.I. WELDRICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
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 company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
H.I. WELDRICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
1.12
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
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 profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
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 balance sheet 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 leases 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.
H.I. WELDRICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements, estimates and assumptions have the most significant effect on amounts recognised in the financial statements.
Depreciation, useful lives and residual values of property, plant and equipment
The company estimates the useful lives and residual values of property, plant and equipment in order to calculate depreciation charges. Changes in these estimates could result in amends being required to annual depreciation charges in the statement of comprehensive income and the carrying values of property, plant and equipment.
Amortisation, useful lives and residual values of intangible assets
The company estimates the useful lives and residual values of intangible assets in order to calculate amortisation charges. Changes in these estimates could result in amends being required to annual amortisation charges in the statement of comprehensive income and the carrying values of intangible fixed assets.
Revenue recognition
Within the NHS framework agreement, payments made by the NHS to Pharmacy businesses are subject to potential future adjustments or ‘clawbacks’ based on the NHS view of drug prices and margins made by the sector. The company’s directors feel that they have taken all steps necessary to accurately recognise revenue and the potential impact of future clawbacks for the 2023/24 period.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Goodwill impairment assessment
As part of the year end procedures we analyse goodwill and whether we feel there are potential indicators for an impairment. We take in to account the current NBV of goodwill as a multiple of profits in the year and after the year end and compare what the market value of the business would potentially be worth by reference to market guidance from independent valuers. This calculation is carried out each year.
3
Turnover and other revenue
All turnover in the current and prior year arose within the United Kingdom from the company's principal activity which is the supply of pharmaceutical goods.
2024
2023
£
£
Other significant revenue
Rental income
562,309
509,327
H.I. WELDRICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
4
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange gains
(90,000)
Depreciation of owned tangible fixed assets
617,023
508,233
Loss on disposal of tangible fixed assets
36,063
28,179
Amortisation of intangible assets
1,183,436
1,058,123
Operating lease charges
1,289,980
1,242,854
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
37,850
29,300
For other services
Taxation compliance services
5,695
5,530
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales
640
628
Administration
93
99
Directors
2
3
Total
735
730
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
13,667,778
12,998,148
Social security costs
1,005,331
979,121
Pension costs
439,565
407,301
15,112,674
14,384,570
H.I. WELDRICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
386,973
393,225
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
334,676
284,619
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
76,067
78,084
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
76,067
78,084
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
461,137
168,845
Other finance costs:
Interest on finance leases and hire purchase contracts
2,788
14,387
463,925
183,232
10
Fair value losses on investment properties
2024
2023
£
£
Impairment losses on investments
(610,092)
-
H.I. WELDRICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(82,728)
Adjustments in respect of prior periods
(49,578)
Total current tax
(132,306)
Deferred tax
Origination and reversal of timing differences
(650,000)
69,500
Total tax credit
(650,000)
(62,806)
The actual credit 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
(5,374,201)
(2,166,222)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
(1,343,550)
(422,197)
Tax effect of expenses that are not deductible in determining taxable profit
284,403
6,975
Tax effect of income not taxable in determining taxable profit
(64,109)
Change in unrecognised deferred tax assets
264,991
66,496
Adjustments in respect of prior years
79,873
Permanent capital allowances in excess of depreciation
311,408
241,611
Research and development tax credit
(146,154)
Other permanent differences
816
255
Deferred tax adjustments in respect of prior years
(168,517)
Adjustments to brought forward values
(178)
Chargeable gains/(losses)
60,377
Remeasurement of deferred tax
(1,496)
614
Group income
1,945
Surrender of tax losses for research and development tax credit refund
113,631
Taxation credit for the year
(650,000)
(62,806)
H.I. WELDRICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 25 -
12
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2024
2023
Notes
£
£
In respect of:
Investments in joint ventures
16
610,092
-
Recognised in:
Amounts written off investments
610,092
-
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
13
Intangible fixed assets
Goodwill
£
Cost
At 1 May 2023
28,675,871
Additions
2,090,770
At 30 April 2024
30,766,641
Amortisation and impairment
At 1 May 2023
19,755,408
Amortisation charged for the year
1,183,436
At 30 April 2024
20,938,844
Carrying amount
At 30 April 2024
9,827,797
At 30 April 2023
8,920,463
More information on impairment movements in the year is given in note 12.
H.I. WELDRICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 26 -
14
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Fixtures and fittings and office equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
2,026,016
2,909,236
4,932,776
529,452
10,397,480
Additions
76,309
128,711
205,020
Disposals
(1,707)
(230,830)
(674,855)
(173,000)
(1,080,392)
At 30 April 2024
2,024,309
2,754,715
4,386,632
356,452
9,522,108
Depreciation and impairment
At 1 May 2023
380,595
2,100,354
3,450,477
316,089
6,247,515
Depreciation charged in the year
40,378
162,615
369,838
44,192
617,023
Eliminated in respect of disposals
(785)
(230,830)
(642,801)
(99,988)
(974,404)
At 30 April 2024
420,188
2,032,139
3,177,514
260,293
5,890,134
Carrying amount
At 30 April 2024
1,604,121
722,576
1,209,118
96,159
3,631,974
At 30 April 2023
1,645,421
808,882
1,482,299
213,363
4,149,965
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Fixtures and fittings and office equipment
15,549
231,999
Motor vehicles
73,013
15,549
305,012
15
Investment property
2024
£
Fair value
At 1 May 2023
6,141,160
Additions through external acquisition
1,950
At 30 April 2024
6,143,110
The 'fair value' valuation of the investment properties was carried out on 8th March 2023 by Hornbeam Real Estate Limited, an independent firm of chartered surveyors, in accordance with the RICS handbook.
If the investment properties were held at historic cost method, their total value would be £5,365,530 (2023: £5,363,580).
H.I. WELDRICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 27 -
16
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
17
293
293
Investments in joint ventures
380,092
220,093
Unlisted investments
50,910
661,002
431,295
881,388
Movements in fixed asset investments
Shares in subsidiaries and joint ventures
Other investments
Total
£
£
£
Cost or valuation
At 1 May 2023
220,386
661,002
881,388
Adjustment - prior year
159,999
-
159,999
At 30 April 2024
380,385
661,002
1,041,387
Impairment
At 1 May 2023
-
-
-
Impairment losses
-
610,092
610,092
At 30 April 2024
-
610,092
610,092
Carrying amount
At 30 April 2024
380,385
50,910
431,295
At 30 April 2023
220,386
661,002
881,388
17
Subsidiaries
Details of the company's subsidiaries at 30 April 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Weldricks Pharmacy Limited
England
Dormant
Ordinary
100.00
Kian's Limited
England
Dormant
Ordinary
100.00
H.I. WELDRICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 28 -
18
Stocks
2024
2023
£
£
Finished goods and goods for resale
5,148,210
5,495,984
19
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
6,068,552
5,100,685
Corporation tax recoverable
82,042
132,306
Other debtors
1,704,470
2,534,003
Prepayments and accrued income
415,144
297,973
8,270,208
8,064,967
There has been a prior period adjustment to reduce other debtors by £664,190. See note 32.
20
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
22
3,265,241
1,046,640
Obligations under finance leases
23
48,691
152,889
Trade creditors
11,207,709
11,293,902
Amounts owed to group undertakings
191
Corporation tax
518
Other taxation and social security
262,966
242,423
Other creditors
3,300,271
2,769,902
Accruals and deferred income
390,874
107,495
18,475,752
15,613,960
For details of bank loan and overdraft security, see note 22.
For details of finance lease security, see note 23.
21
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
22
3,899,584
1,521,678
Obligations under finance leases
23
82,621
131,311
3,982,205
1,652,989
H.I. WELDRICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
21
Creditors: amounts falling due after more than one year
(Continued)
- 29 -
For details of bank loan and overdraft security, see note 22.
For details of finance lease security, see note 23.
22
Loans and overdrafts
2024
2023
£
£
Bank loans
4,357,251
1,741,658
Bank overdrafts
2,807,574
826,660
7,164,825
2,568,318
Payable within one year
3,265,241
1,046,640
Payable after one year
3,899,584
1,521,678
The bank loans are secured by fixed charges and debentures over the following properties:
- Leedale House, Railway Court, Doncaster, DN4 5FB
- Unit 3b, White Rose Park, Doncaster, DN4 5FB
There is also an unlimited guarantee given by a related party and a floating charge over all the property and undertaking of the company.
Interest on bank loans is charged at 2.20% over base rate. Loans are repayable over a period of 5 to 10 years from the drawdown date.
23
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
48,691
152,889
In two to five years
82,621
131,311
131,312
284,200
Finance lease payments represent rentals payable by the company for certain items of fixtures, fittings and office equipment. 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 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Obligations under finance leases are secured over the assets to which they relate.
H.I. WELDRICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 30 -
24
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
-
788,000
Tax losses
-
(311,000)
Short term timing differences
-
(15,000)
Capital gains/losses
-
188,000
-
650,000
2024
Movements in the year:
£
Liability at 1 May 2023
650,000
Credit to profit or loss
(650,000)
Liability at 30 April 2024
-
25
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
439,565
407,301
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
26
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
8,000
8,000
8,000
8,000
Ordinary B shares of £1 each
8,000
8,000
8,000
8,000
16,000
16,000
16,000
16,000
Ordinary A shares are full voting shares, entitled to return of capital on winding up.
Ordinary B shares are non voting income shares, entitled to their nominal value on winding up.
H.I. WELDRICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 31 -
27
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
672,688
785,166
Between two and five years
2,600,413
2,617,293
In over five years
2,045,792
2,936,237
5,318,893
6,338,696
28
Events after the reporting date
In May 2024, the business disposed of a property at Middlebank in Doncaster. Following this a ‘Sale and Rentback’ arrangement was completed on the Barnburgh Pharmacy building in April 2025.
In June 2025, the Company sold one of its Investment Properties at Railway Court Doncaster and a Pharmacy was sold in July 2025. The asset sale programme has enabled the business to streamline operations and dispose of certain non-core activities whilst repaying all outstanding bank loans and improving cash flow. The asset sale programme delivered £4m cash in total.
29
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
851,634
1,097,415
H.I. WELDRICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
29
Related party transactions
(Continued)
- 32 -
During the year, the company rented premises from L H Alcock, a director of the company. Rentals were charged totaling £110,533 (2023: £149,244).
During the year, the company rented premises from the SIPP of C W J Alcock, a director of the company. Rentals were charged totaling £7,500 (2023: £7,500).
During the year, the company rented premises from Raw Carrots, a company with mutual directorship. Rentals were charged totalling £58,000 (2023: £58,000).
During the year, the company rented premises from the SIPP of J Alcock, the spouse of a director. Rentals were charged totaling £19,137 (2023: £19,137).
Included within other debtors is a loan amount of £652,285 (2023: £656,454) owed from Medicine Chest Limited, a company in which H.I. Weldricks is a shareholder. The trading balance at the year-end owed from Medicine Chest is £2,593 (2023: £2,593). During the year, purchases of £11,520 (2023: £3,127) were made from Medicine Chest Limited.
During the year, purchases of £133,056 (2023: £112,164) were made from Stocklink Limited, a company of which a member of Key Management Personnel is a director and shareholder. The trading balance owed to Stocklink Limited at the year-end was £11,848 (2023: £9,240).
Included within other creditors are amounts due to the following directors: L H Alcock £696 (2023: £119,531) and C W J Alcock £456,389 (2023: £1,057,938).
Assets owned by Raw Carrots Limited, a company where a Key Management Personnel is a director and shareholder, were used as collateral against a loan held by the company.
During the year, a member of Key Management Personnel loaned to H.I. Weldrick Ltd £1,300,000 on a short-term basis of three months for the acquisition of two branches. Interest was charged at a rate of base rate plus 2%. This was repaid in full in the year ended 30 April 2024.
30
Ultimate controlling party
The company is controlled by C W J Alcock due to his majority shareholding in the company.
H.I. WELDRICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 33 -
31
Cash absorbed by operations
2024
2023
£
£
Loss after taxation
(4,724,201)
(2,103,416)
Adjustments for:
Taxation credited
(650,000)
(62,806)
Finance costs
463,925
183,232
Investment income
(76,067)
(78,084)
Loss on disposal of tangible fixed assets
36,063
28,179
Fair value gain on investment properties
(328,591)
Amortisation and impairment of intangible assets
1,183,436
1,058,123
Depreciation and impairment of tangible fixed assets
617,023
508,233
Other gains and losses
610,092
-
Movements in working capital:
Decrease/(increase) in stocks
347,774
(281,770)
Increase in debtors
(255,505)
(1,195,941)
Increase/(decrease) in creditors
747,907
(2,056,970)
Cash absorbed by operations
(1,699,553)
(4,329,811)
32
Analysis of changes in net debt
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
17,436
18,140
35,576
Bank overdrafts
(826,660)
(1,980,914)
(2,807,574)
(809,224)
(1,962,774)
(2,771,998)
Borrowings excluding overdrafts
(1,741,658)
(2,615,593)
(4,357,251)
Obligations under finance leases
(284,200)
152,888
(131,312)
(2,835,082)
(4,425,479)
(7,260,561)
33
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 30 Apr 2023
£
£
£
Current assets
Debtors due within one year
8,729,157
(664,190)
8,064,967
Capital and reserves
Profit and loss reserves
15,637,455
(664,190)
14,973,265
H.I. WELDRICK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
33
Prior period adjustment
(Continued)
- 34 -
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 30 April 2023
£
£
£
Turnover
74,373,784
(664,190)
73,709,594
Loss for the financial period
(1,439,226)
(664,190)
(2,103,416)
In the period, it was noted that a debtor included as part of revenue in 2023 was in excess of monies which were to be received. This has been restated in the financial statements.
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