WELLWAY PHARMACY LIMITED


Directors	Dr C Marr
	Dr A Blair
	Dr S Hinchliffe
	Mrs S L Williams
	Dr S Renner
	Dr J Manship
	Mr S S Kullar
	Dr K Sreekissoon
	Dr C E Phipps


Registered Address	The Surgery
	Wellway
	Morpeth
	NE61 1BJ


Registered Number	03020162 (England and Wales)

Notes to the Financial Statements
for the year ended 31 March 2025

1.	Accounting policies

	Statutory information
	The company is a private company limited by shares and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

	Statement of compliance
	The financial statements have been prepared in compliance with FRS 102 Section 1A as it applies to the financial statements for the period and there were no material departures from the reporting standard.

	Basis of preparation
	The financial statements have been prepared under the historical cost convention on a going concern basis unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

	Functional and presentation currency
	The financial statements are presented in sterling and this is the functional currency of the company.

	Turnover policy
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services. Turnover from the sale of goods and services is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually at the point of sale and the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred in respect of the transactions can be measured reliably.

Turnover policy

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services.

Turnover from the sale of goods and services is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually at the point of sale and the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred in respect of the transactions can be measured reliably.

	Operating leases
	Where, substantially, all the risks and rewards of ownership of the asset do not transfer from the lessor to the company, the lease is treated as an operating lease. Rentals payable under operating leases are charged to the Income Statement on a straight-line basis over the period of the lease.

	Employee benefits
	The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further obligation. Contributions to defined contribution plans are expensed in the period to which they relate. Amounts not paid are shown in accruals in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

Employee benefits

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

Contributions to defined contribution plans are expensed in the period to which they relate.  Amounts not paid are shown in accruals in the Statement of Financial Position.  The assets of the plan are held separately from the company in independently administered funds.

	Current taxation
	The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Current taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.

Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

	Deferred tax
	Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

Deferred tax

Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. 

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

	Intangible assets
	Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows: Goodwill - 10% straight line

	Tangible fixed assets and depreciation
	Tangible fixed assets are initally recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. The assets residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement. Depreciation is provided on all tangible fixed assets as follows:

Tangible fixed assets and depreciation

Tangible fixed assets are initally recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
The assets residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement.

Depreciation is provided on all tangible fixed assets as follows:


		Reducing balance (%)
	Fixtures and fittings	15
	Vehicles	25
	Office Equipment	25

	Stocks and work in progress
	Stocks are valued at the lower of cost and estimated selling price (less any associated costs to enable such sales to complete). Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

	Financial instruments
	A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

	Government grants or assistance
	Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

Government grants or assistance

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

Government grants are recognised using the accrual model and the performance model.

Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.

Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

2.	Average number of employees


		2025		2024
	Average number of employees during the year	20		21

3.	Intangible assets

	Goodwill	Total
	£	£
Cost or valuation
At 01 April 24	450,000	450,000
At 31 March 25	450,000	450,000
Amortisation and impairment
At 01 April 24	441,986	441,986
Charge for year	8,014	8,014
At 31 March 25	450,000	450,000
Net book value
At 31 March 25	-	-
At 31 March 24	8,014	8,014

4.	Tangible fixed assets

	Vehicles	Fixtures & fittings	Office Equipment	Total
	£	£	£	£
Cost or valuation
At 01 April 24	21,198	70,809	14,693	106,700
Additions	-	-	1,596	1,596
At 31 March 25	21,198	70,809	16,289	108,296
Depreciation and impairment
At 01 April 24	3,533	48,632	7,241	59,406
Charge for year	4,416	3,327	2,102	9,845
At 31 March 25	7,949	51,959	9,343	69,251
Net book value
At 31 March 25	13,249	18,850	6,946	39,045
At 31 March 24	17,665	22,177	7,452	47,294

5.	Stocks

	2025	2024
	£	£
Finished goods	66,323	97,711
Total	66,323	97,711

6.	Debtors: amounts due within one year

	2025	2024
	£	£
Trade debtors / trade receivables	305,509	341,183
Other debtors	20,724	49,957
Prepayments and accrued income	6,601	10,002
Total	332,834	401,142

7.	Creditors: amounts due within one year

	2025	2024
	£	£
Trade creditors / trade payables	229,779	236,945
Bank borrowings and overdrafts	5,697	19,007
Taxation and social security	21,538	30,574
Other creditors	136,667	161,749
Accrued liabilities and deferred income	42,591	5,000
Total	436,272	453,275

8.	Creditors: amounts due after one year

	2025	2024
	£	£
Bank borrowings and overdrafts	6,172	11,869
Total	6,172	11,869

9.	Provisions for liabilities

	2025	2024
	£	£
Net deferred tax liability (asset)	9,761	11,823
Total	9,761	11,823

10.	Other commitments
	At 31 March 2025 the company had future minimum lease payments under non-cancellable operating leases of £372,840 (31 March 2024: £403,910).

	Notes	2025		2024
		£	£	£	£
Fixed assets
Intangible assets	3		-		8,014
Tangible assets	4		39,045		47,294
			39,045		55,308
Current assets
Stocks	5	66,323		97,711
Debtors	6	332,834		401,142
Cash at bank and on hand		198,719		161,126
		597,876		659,979
Creditors amounts falling due within one year	7	(436,272)		(453,275)
Net current assets (liabilities)			161,604		206,704
Total assets less current liabilities			200,649		262,012
Creditors amounts falling due after one year	8		(6,172)		(11,869)
Provisions for liabilities	9		(9,761)		(11,823)
Net assets			184,716		238,320
Capital and reserves
Called up share capital			420		420
Profit and loss account			184,296		237,900
Shareholders' funds			184,716		238,320