Company registration number SC309261 (Scotland)
H & K WILLIS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
H & K WILLIS LIMITED
COMPANY INFORMATION
Director
Mr K D Willis
Company number
SC309261
Registered office
1566 Dumbarton Road
Glasgow
Lanarkshire
United Kingdom
G14 9DB
Auditor
Azets Audit Services
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
Bankers
Santander UK Plc
Business Banking
301 St Vincent Street
Glasgow
G2 5NT
Solicitors
Solicitor Blackadder
53 Bothwell Street
Glasgow
G2 6TS
H & K WILLIS LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
H & K WILLIS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2025
- 1 -

The director presents the strategic report for the year ended 31 January 2025.

Review of the business

The profit for the year end 31 January 2025 before taxation was £806,050 (2024 - £587,804) with a post taxation profit of £506,441 (2024 - £353,108).

Company turnover decreased in 2025 to £11,754,509 from £11,932,707 in 2024, however gross profit increased by 6.9% (from £4,275,778 to £4,571,209).

The net assets of the company have increased from £2,025,038 at 31 January 2024 to £2,281,479 at 31 January 2025.

Principal risks and uncertainties

The director seeks to control overhead costs in order to maintain the profitability of the company.

The director continues to adopt the going concern basis of accounting in preparing the financial statements.

Financial Instruments

The company's principal financial instruments comprise bank balances, trade debtors, trade creditors and bank loans. The main purpose of these instruments is to finance the company's operations.

Bank borrowings are secured by standard security, floating charge and unlimited cross guarantees.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Key performance indicators

| Year ended 31 January 2025 | Year end 31 January 2024
Turnover | £11,754,509 | £11,932,707
Turnover increase / decrease | (1.51%) | 10.61%
Turnover per employee | £165,556 | £170,467
Gross profit margin | 38.89% | 35.83%
Net profit margin | 4.31% | 2.96%

All other key performance indicators are qualitative in nature and are assessed internally by the management team and the Board.

On behalf of the board

Mr K D Willis
Director
8 October 2025
H & K WILLIS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 JANUARY 2025
- 2 -

The director presents his annual report and financial statements for the year ended 31 January 2025.

Principal activities

The principal activity of the company continued to be that of pharmacists.

Results and dividends

The total distribution of dividends in the year to 31 January 202 5 is £250,000 (202 4 - £200,000).

Director

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

Mr K D Willis
Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

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
Mr K D Willis
Director
8 October 2025
H & K WILLIS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2025
- 3 -

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

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

- select suitable accounting policies and then apply them consistently;

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

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

The director is 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. He is 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.

H & K WILLIS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF H & K WILLIS LIMITED
- 4 -
Opinion

We have audited the financial statements of H & K Willis Limited (the 'company') for the year ended 31 January 2025 which comprise the profit and loss account, 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 31 January 2025 and of its profit for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 director's 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 director 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 director is 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 director's r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the director's report have been prepared in accordance with applicable legal requirements.

H & K WILLIS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF H & K WILLIS LIMITED
- 5 -
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 identifie d material misstatements in the strategic report or the director's r eport.

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 director's remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the director's r esponsibilities s tatement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

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.

H & K WILLIS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF H & K WILLIS LIMITED
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

- Reviewing minutes of meetings of those charged with governance;

- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Alex Webb BAcc FCCA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
8 October 2025
Chartered Accountants
Statutory Auditor
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
H & K WILLIS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2025
- 7 -
2025
2024
Notes
£
£
Turnover
3
11,754,509
11,932,707
Cost of sales
(7,183,300)
(7,656,929)
Gross profit
4,571,209
4,275,778
Administrative expenses
(3,201,715)
(3,152,435)
Other operating income
10,044
5,852
Operating profit
4
1,379,538
1,129,195
Interest payable and similar expenses
7
(573,488)
(541,391)
Profit before taxation
806,050
587,804
Tax on profit
8
(299,609)
(234,696)
Profit for the financial year
506,441
353,108

The profit and loss account has been prepared on the basis that all operations are continuing operations.

H & K WILLIS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2025
- 8 -
2025
2024
£
£
Profit for the year
506,441
353,108
Other comprehensive income
-
-
Total comprehensive income for the year
506,441
353,108
H & K WILLIS LIMITED
BALANCE SHEET
AS AT 31 JANUARY 2025
31 January 2025
- 9 -
2025
2024
Notes
£
£
£
£
Fixed assets
Goodwill
10
7,293,254
7,731,338
Tangible assets
11
680,465
823,688
7,973,719
8,555,026
Current assets
Stocks
12
404,565
420,786
Debtors
13
1,890,939
1,677,745
Cash at bank and in hand
1,973,821
1,293,793
4,269,325
3,392,324
Creditors: amounts falling due within one year
14
(3,103,139)
(2,596,318)
Net current assets
1,166,186
796,006
Total assets less current liabilities
9,139,905
9,351,032
Creditors: amounts falling due after more than one year
15
(6,801,022)
(7,235,595)
Provisions for liabilities
Deferred tax liability
18
57,404
90,399
(57,404)
(90,399)
Net assets
2,281,479
2,025,038
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
21
2,281,379
2,024,938
Total equity
2,281,479
2,025,038
The financial statements were approved and signed by the director and authorised for issue on 8 October 2025
Mr K D Willis
Director
Company Registration No. SC309261
H & K WILLIS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2025
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2023
100
1,871,830
1,871,930
Year ended 31 January 2024:
Profit and total comprehensive income for the year
-
353,108
353,108
Dividends
9
-
(200,000)
(200,000)
Balance at 31 January 2024
100
2,024,938
2,025,038
Year ended 31 January 2025:
Profit and total comprehensive income for the year
-
506,441
506,441
Dividends
9
-
(250,000)
(250,000)
Balance at 31 January 2025
100
2,281,379
2,281,479
H & K WILLIS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2025
- 11 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
2,145,437
1,501,313
Interest paid
(573,488)
(541,391)
Income taxes paid
(50,000)
(171,775)
Net cash inflow from operating activities
1,521,949
788,147
Investing activities
Proceeds from disposal of tangible fixed assets
-
0
3,907
Repayment of loans
(315,017)
(49,287)
Net cash used in investing activities
(315,017)
(45,380)
Financing activities
Repayment of borrowings
-
0
(7,158,924)
Repayment of bank loans
(332,861)
7,458,566
Payment of finance leases obligations
(62,455)
(57,864)
Dividends paid
(250,000)
(200,000)
Net cash (used in)/generated from financing activities
(645,316)
41,778
Net increase in cash and cash equivalents
561,616
784,545
Cash and cash equivalents at beginning of year
1,204,554
420,009
Cash and cash equivalents at end of year
1,766,170
1,204,554
Relating to:
Cash at bank and in hand
1,973,821
1,293,793
Bank overdrafts included in creditors payable within one year
(207,651)
(89,239)
H & K WILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
- 12 -
1
Accounting policies
Company information

H & K Willis Limited is a private company limited by shares incorporated in Scotland. The registered office is 1566 Dumbarton Road, Glasgow, Lanarkshire, United Kingdom, G14 9DB.

The nature of the Company's operations and its principal activities for the year under review was that of pharmacists.

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 a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

A true t the time of approving the financial statements, t he director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he director continues 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.

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.

1.4
Intangible fixed assets - goodwill

Goodwill, being the amount paid in connection with the acquisition of businesses in 2007, 2010, 2015 and 2021, is being amortised evenly over its estimated useful life of twenty five years with a full year's charge in the first period of acquisition.

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.

H & K WILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 13 -

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% on cost
Plant and equipment
25% on cost
Fixtures and fittings
15% on cost
Motor vehicles
25% on cost

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

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
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.

1.7
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 & K WILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 14 -
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, 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 paymen ts 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. A m ounts 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 s ubsequently 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 th r ough 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.

H & K WILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

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

1.8
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.

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 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.

1.9
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.

1.10
Retirement benefits

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

1.11
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.

H & K WILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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

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

2025
2024
£
£
Turnover analysed by class of business
NHS
11,413,158
11,444,367
Counter
341,351
325,986
Sundry
-
162,354
11,754,509
11,932,707
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
11,754,509
11,932,707
4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
15,500
12,500
Depreciation of owned tangible fixed assets
96,915
121,262
Depreciation of tangible fixed assets held under finance leases
46,308
46,307
Profit on disposal of tangible fixed assets
-
(1,693)
Amortisation of intangible assets
438,084
438,084
5
Employees

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

2025
2024
Number
Number
Pharmacy staff
71
70
H & K WILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
5
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
1,996,698
1,924,679
Social security costs
401
426
Pension costs
34,383
31,311
2,031,482
1,956,416
6
Director's remuneration
2025
2024
£
£
Remuneration for qualifying services
12,000
12,000
7
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
553,207
526,499
Other interest on financial liabilities
11,943
1,963
565,150
528,462
Other finance costs:
Interest on finance leases and hire purchase contracts
8,338
12,929
573,488
541,391
8
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
333,149
272,632
Adjustments in respect of prior periods
(545)
-
0
Total current tax
332,604
272,632
Deferred tax
Origination and reversal of timing differences
(32,995)
(37,936)
Total tax charge
299,609
234,696
H & K WILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
8
Taxation
(Continued)
- 18 -

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

2025
2024
£
£
Profit before taxation
806,050
587,804
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 24.03%)
201,513
141,249
Tax effect of expenses that are not deductible in determining taxable profit
98,642
94,918
Change in unrecognised deferred tax assets
-
0
(1,471)
Adjustments in respect of prior years
(545)
-
0
Deferred tax adjustments in respect of prior years
(1)
-
0
Taxation charge for the year
299,609
234,696
9
Dividends
2025
2024
2025
2024
Per share
Per share
Total
Total
£
£
£
£
Ordinary "A" shares
Interim paid
2,500.00
2,000.00
125,000
100,000
Ordinary "B" shares
Interim paid
2,500.00
2,000.00
125,000
100,000
Total dividends
Interim paid
250,000
200,000
H & K WILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 19 -
10
Intangible fixed assets
Goodwill
£
Cost
At 1 February 2024 and 31 January 2025
13,188,886
Amortisation and impairment
At 1 February 2024
5,457,548
Amortisation charged for the year
438,084
At 31 January 2025
5,895,632
Carrying amount
At 31 January 2025
7,293,254
At 31 January 2024
7,731,338
11
Tangible fixed assets
Freehold Land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 February 2024 and 31 January 2025
574,384
377,140
924,895
80,076
1,956,495
Depreciation and impairment
At 1 February 2024
107,184
292,907
667,140
65,576
1,132,807
Depreciation charged in the year
11,488
49,041
68,194
14,500
143,223
At 31 January 2025
118,672
341,948
735,334
80,076
1,276,030
Carrying amount
At 31 January 2025
455,712
35,192
189,561
-
0
680,465
At 31 January 2024
467,200
84,233
257,755
14,500
823,688

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

2025
2024
£
£
Plant and equipment
31,808
78,112
12
Stocks
2025
2024
£
£
Finished goods and goods for resale
404,565
420,786
H & K WILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 20 -
13
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
932,149
1,077,196
Other debtors
906,926
550,279
Prepayments and accrued income
51,864
50,270
1,890,939
1,677,745
14
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Bank loans and overdrafts
16
567,670
391,562
Obligations under finance leases
17
44,016
62,455
Trade creditors
1,362,151
1,531,897
Corporation tax
550,984
268,380
Other taxation and social security
38,814
34,841
Other creditors
466,798
266,797
Accruals and deferred income
72,706
40,386
3,103,139
2,596,318
15
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Bank loans and overdrafts
16
6,765,686
7,156,243
Obligations under finance leases
17
35,336
79,352
6,801,022
7,235,595
16
Loans and overdrafts
2025
2024
£
£
Bank loans
7,125,705
7,458,566
Bank overdrafts
207,651
89,239
7,333,356
7,547,805
Payable within one year
567,670
391,562
Payable after one year
6,765,686
7,156,243
H & K WILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
16
Loans and overdrafts
(Continued)
- 21 -

The hire purchase creditor is secured over the asset to which it relates.

Bank borrowings are secured by standard security, floating charge and unlimited cross guarantees.

17
Finance lease obligations
2025
2024
Future minimum lease payments due under finance leases:
£
£
Within one year
44,016
62,455
In two to five years
35,336
79,352
79,352
141,807

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

18
Deferred taxation

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

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
58,083
90,399
Other timing differences
(679)
-
57,404
90,399
2025
Movements in the year:
£
Liability at 1 February 2024
90,399
Credit to profit or loss
(32,995)
Liability at 31 January 2025
57,404
H & K WILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 22 -
19
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
34,383
31,311

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.

20
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary "A" shares of £1 each
50
50
50
50
Ordinary "B" shares of £1 each
50
50
50
50
100
100
100
100
21
Profit and loss reserves
2025
2024
£
£
At the beginning of the year
2,024,938
1,871,830
Profit for the year
506,441
353,108
Dividends declared and paid in the year
(250,000)
(200,000)
At the end of the year
2,281,379
2,024,938
22
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2025
2024
£
£
Aggregate compensation
141,948
185,137

All directors and certain senior employees who have authority and responsibility for planning, directing and controlling the activities of the company are considered to be key management personnel. Total remuneration in respect of these individuals is £141,948 (202 4 - £1 85,137).

Transactions with related parties

During the year the company entered into the following transactions with related parties:

H & K WILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
22
Related party transactions
(Continued)
- 23 -

The following amounts were outstanding at the reporting end date:

2025
2024
Amounts due from related parties
£
£
Other related parties
188,502
144,539

Other debtors includes a balance due from Knightswood Healthcare Limited of £153,973 (2024 - £144,539), and a balance of £34,529 (2024 - £nil) due from CJK Healthcare Limited. The director of H&K Willis Limited is also a director and shareholder of both Knightswood Heathcare Limited and od CJK Heathcare Limited.

23
Directors' transactions

During the year the director benefited from a loan from the company on which interest was charged. The balance outstanding as at the 31st January 202 5 amounted to £607,369 (202 4 - £292,352).

24
Ultimate controlling party

The company is jointly controlled by the director and a shareholder.

25
Cash generated from operations
2025
2024
£
£
Profit for the year after tax
506,441
353,108
Adjustments for:
Taxation charged
299,609
234,696
Finance costs
573,488
541,391
Gain on disposal of tangible fixed assets
-
(1,693)
Amortisation and impairment of intangible assets
438,084
438,084
Depreciation and impairment of tangible fixed assets
143,223
167,569
Movements in working capital:
Decrease/(increase) in stocks
16,221
(5,858)
Decrease/(increase) in debtors
101,823
(210,474)
Increase/(decrease) in creditors
66,548
(15,510)
Cash generated from operations
2,145,437
1,501,313
H & K WILLIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 24 -
26
Analysis of changes in net debt
1 February 2024
Cash flows
31 January 2025
£
£
£
Cash at bank and in hand
1,293,793
680,028
1,973,821
Bank overdrafts
(89,239)
(118,412)
(207,651)
1,204,554
561,616
1,766,170
Borrowings excluding overdrafts
(7,458,566)
332,861
(7,125,705)
Obligations under finance leases
(141,807)
62,455
(79,352)
(6,395,819)
956,932
(5,438,887)
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