Consolidated Financial Statements
For the year ended 30 April 2025
Registered number: NI684576
Company Information
Contents
Group strategic report
For the year ended 30 April 2025
The directors present their strategic report for the year ended 30 April 2025.
Dividends of £Nil were declared during the year (2024: £Nil). The directors are satisfied with the results for the year under review, which were achieved by maximising core efficiencies despite ongoing funding challenges within the pharmacy sector.
The Group uses various basic financial instruments these include loans, cash and various items, such as trade debtors and trade creditors that arise from its operations. The main purpose of these financial instruments is to raise finance for the Group's operations.
The existence of these financial instruments exposes the Group to a number of financial risks, which are described in more detail below.
The directors consider that the principal risks and uncertainties faced by the Group are in the following categories:
Competition Risk:
The directors of the Group manage competition risk through close attention to customer service levels and product innovation.
Financial Risk:
The Group has budgetary and financial reporting procedures, supported by appropriate key performance indicators to manage credit, liquidity and other financial risk.
People in our business:
The continued success of the business has been achieved by the people working in it. There are many long serving members of staff and the relatively low turnover of personnel reflects the general policy of providing good terms and conditions of employment while dealing with staff as well as other stakeholders in the business, in a fair and consistent manner. Their continued loyalty and hard work is much appreciated.
The existence of these financial instruments exposes the Group to a number of financial risks, which are described in more detail below.
The directors consider that the principal risks and uncertainties faced by the Group are in the following categories:
Competition Risk:
The directors of the Group manage competition risk through close attention to customer service levels and product innovation.
Financial Risk:
The Group has budgetary and financial reporting procedures, supported by appropriate key performance indicators to manage credit, liquidity and other financial risk.
People in our business:
The continued success of the business has been achieved by the people working in it. There are many long serving members of staff and the relatively low turnover of personnel reflects the general policy of providing good terms and conditions of employment while dealing with staff as well as other stakeholders in the business, in a fair and consistent manner. Their continued loyalty and hard work is much appreciated.
Key performance indicators used by management include group turnover which has increased from £94.2m to £96.9m and gross profit margin which has increased from 31.9% to 33.7% during the year. The Group has net current assets of £28,640,097 (2024: £24,436,313).
Page 1
Group strategic report (continued)
For the year ended 30 April 2025
From the perspective of the Directors, the matters for consideration under section 172 of the Companies Act 2006 (“s172”) have been considered to an appropriate extent by the Group. Such consideration is included in the statements set out below, noting the Directors’ duty under s172 to act in good faith to promote the success of the Group for the benefit of its shareholders but having regard amongst other matters to the following:
∙the likely consequences of any decision in the long term;
∙the interests of the Group’s employees;
∙the need to foster the Group’s business relationships with customers and others;
∙the impact of the Group’s operations on the community and the environment;
∙the desirability of the Group maintaining a reputation for high standards of business conduct; and
∙the need to act fairly as between members of the Group.
For the Group, compliance is one of the cornerstone values and forms the basis for all decisions and activities. It is the key to integrity in conducting business. The Directors are committed to ensuring that all business is carried out in full accordance with the law as well as internal rules and principles.
The Board of Directors of the Group, both individually and together, confirmed that they have acted in the way they consider, in good faith, would be most likely to promote success of the Group for the benefit of its members as a whole (having regard to the stakeholders and matters set out in Section 172(1) (a-f) of the Act) in the decisions taken during the year ended 30 April 2025. The following paragraphs summarise how the directors fulfil their duties:
The Board of Directors of the Group, both individually and together, confirmed that they have acted in the way they consider, in good faith, would be most likely to promote success of the Group for the benefit of its members as a whole (having regard to the stakeholders and matters set out in Section 172(1) (a-f) of the Act) in the decisions taken during the year ended 30 April 2025. The following paragraphs summarise how the directors fulfil their duties:
∙As the Board of Directors, our intention is to behave responsibly and ensure that management operate the business in a responsible manner.
∙As the Board of Directors, we are committed to openly engage with our shareholders. It is important to us that shareholders understand our strategy and objectives, so these must be clearly communicated, feedback heard and issues or questions raised properly considered.
∙As our services provided grow, our risk environment also becomes more complex. It is therefore, important that we effectively identify, evaluate, manage and mitigate the risks the Group faces. For details of our principal risks and uncertainties, please see previous paragraphs of our company strategic report.
∙Our employees are vital to the services provided by the Group. We aim to be a responsible employer in our approach to the pay and benefits for our employees. For our business to succeed, we need to manage our employees’ performance and develop talent while ensuring the company operates as efficiently as possible. The health and safety of our employees is very important to us.
∙In order to grow our business, we need to develop and maintain strong business relationships. We value all of our suppliers and customers.
This report was approved by the board on 10 December 2025 and signed on its behalf.
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Directors' report
For the year ended 30 April 2025
The directors present their report and the financial statements for the year ended 30 April 2025.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements 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;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £3,446,744 (2024 - £423,562).
Dividends of £Nil were declared during the year (2024: £Nil).
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Directors' report (continued)
For the year ended 30 April 2025
The directors who served during the year were:
The directors intend to continue the management policies of innovation and development.
During the year, the policy of providing employees with information about the Group continued through internal media methods in which employees have also been encouraged to present their suggestions and views on the Group’s performance. Regular meetings are held between local management and employees to allow a free flow of information and ideas.
Our strategy prioritises growth and expansion of services. We continue to target new customers into the Group. To do this, we have developed and nurtured strong customer relationships.
We value all of our suppliers and have multi-year contracts in place with a number of our key suppliers.
We value all of our suppliers and have multi-year contracts in place with a number of our key suppliers.
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Directors' report (continued)
For the year ended 30 April 2025
Intensity measurement
We have chosen the metric gross global scope 1 and 2 emissions in tonnes of CO2e per £m sales revenue as this is a common business metric for our industry sector.
Energy efficient action
In the period covered by the report the Group has installed further LED lighting and replaced air conditioning systems which is expected to result in further savings in energy over the next number of years. We also set targets, increased awareness and are actively involving staff in reducing energy consumption. These actions were top recommendations from our 2021 ESOS Audit.
Methodologies used
We have followed the 2023 UK government environmental reporting guidance and we have used 2023 UK Government's GHG conversion factors for company reporting.
We have chosen the metric gross global scope 1 and 2 emissions in tonnes of CO2e per £m sales revenue as this is a common business metric for our industry sector.
Energy efficient action
In the period covered by the report the Group has installed further LED lighting and replaced air conditioning systems which is expected to result in further savings in energy over the next number of years. We also set targets, increased awareness and are actively involving staff in reducing energy consumption. These actions were top recommendations from our 2021 ESOS Audit.
Methodologies used
We have followed the 2023 UK government environmental reporting guidance and we have used 2023 UK Government's GHG conversion factors for company reporting.
Under Schedule 7.1A of 'Large and Medium-Sized Companies and Groups (Accounting and Reporting) Regulations 2008', the Group has elected to disclose the following directors' report information in the Strategic Report:
∙Principal activity and Business review;
∙Principal risks and uncertainites;
∙Financial key performance indicators; and
∙S172 Reporting.
Page 5
Directors' report (continued)
For the year ended 30 April 2025
There have been no significant events affecting the Group since the year end.
The auditors, Grant Thornton (NI) LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 10 December 2025 and signed on its behalf.
Page 6
Independent auditors' report to the members of Gordons Chemists Holdings (Northern Ireland) Ltd
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 'Responsibilities of the auditor for the audit of the financial statements' section of our report. We are independent of the Group and Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, namely the FRC's Ethical Standard and the ethical pronouncements established by Chartered Accountants Ireland, applied as determined to be appropriate in the circumstances of the entity. 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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from the date 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.
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Independent auditors' report to the members of Gordons Chemists Holdings (Northern Ireland) Ltd (continued)
Other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' report thereon, including the Directors' report and the Strategic Report. The directors are responsible for the other information. Our opinion on the financial statements does not cover the information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies in the financial statements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:
∙the information given in the Directors' report and the Strategic Report for the year for which the financial statements are prepared is consistent with the financial statements, and
∙the Directors' report and the Strategic Report have been prepared in accordance with applicable legal requirements.
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Independent auditors' report to the members of Gordons Chemists Holdings (Northern Ireland) Ltd (continued)
Based on our understanding of the Group and industry, we identified that the principal risks of non-compliance with laws and regulations related to compliance with Data Privacy laws, Healthy and Safety laws and Employment law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006 and applicable tax laws. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risks of override of contols), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and management bias through judgements and assumptions in significant accounting estimates, in particular in relation to significant one-off or unusual transactions.
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Independent auditors' report to the members of Gordons Chemists Holdings (Northern Ireland) Ltd (continued)
In response to these principal risks, our audit procedures included but were not limited to:
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.
for and on behalf of
Chartered Accountants &
Statutory Auditors
Date:
Page 10
Consolidated statement of comprehensive income
For the year ended 30 April 2025
Page 11
Consolidated balance sheet
As at 30 April 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 10 December 2025.
The notes on pages 18 to 34 form part of these financial statements.
Page 12
Company balance sheet
As at 30 April 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 10 December 2025 .
The notes on pages 18 to 34 form part of these financial statements.
Page 13
Consolidated statement of changes in equity
For the year ended 30 April 2025
Consolidated statement of changes in equity
For the year ended 30 April 2024
Page 14
Company statement of changes in equity
For the year ended 30 April 2025
Company statement of changes in equity
For the year ended 30 April 2024
Page 15
Consolidated statement of cash flows
For the year ended 30 April 2025
Page 16
Consolidated Analysis of Net Debt
For the year ended 30 April 2025
Page 17
Notes to the financial statements
For the year ended 30 April 2025
Gordons Chemists Holdings (Northern Ireland) Ltd is a private company, limited by shares, and incorporated in Northern Ireland. The registered office is 74 Scarva Road, Banbridge, BT32 3QD.
2.Accounting policies
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.
Page 18
Notes to the financial statements
For the year ended 30 April 2025
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Page 19
Notes to the financial statements
For the year ended 30 April 2025
2.Accounting policies (continued)
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.
Page 20
Notes to the financial statements
For the year ended 30 April 2025
2.Accounting policies (continued)
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of comprehensive income over its useful economic life.
The directors are of the opinion that the goodwill has a maximum useful life of 9 years.
At each reporting date the Company assesses whether there is any indication of impairment. If such impairment exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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Notes to the financial statements
For the year ended 30 April 2025
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line and reducing balance methods..
Depreciation is provided on the following basis:
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 disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Page 22
Notes to the financial statements
For the year ended 30 April 2025
2.Accounting policies (continued)
Page 23
Notes to the financial statements
For the year ended 30 April 2025
2.Accounting policies (continued)
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right shortterm loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Investments in non-derivative instruments that are equity to the issuer are measured:
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
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Notes to the financial statements
For the year ended 30 April 2025
a) Determining and reassessing the residual value and useful economic lives of tangible assets
The annual depreciation charge for tangibles assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on future investments, economic utilisation and physical condition of the assets. At each reporting date, fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the Consolidated Statement of comprehensive income. If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss be recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in Consolidated Statement of comprehensive income.
b) Carrying value of stock
Stock represents goods for resale and is measured at the lower of cost and net realisable value. Net realisable value is the estimated selling prices in the ordinary course of business, less the estimated costs necessary to make the sale. The future realisation of these inventories may be affected by future technology or other market driven changes that may reduce future selling prices.
c) Carrying value of goodwill
The Group establishes a reliable estimate of the useful life of goodwill arising on business combinations. This estimate is based on a variety of factors such as expected use of the acquired business, the expected useful life of the cash generating units to which the goodwill is attributed to, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses.
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Notes to the financial statements
For the year ended 30 April 2025
All turnover arose within the United Kingdom and the entire turnover is attributable to the Group's principal activity.
Page 26
Notes to the financial statements
For the year ended 30 April 2025
Page 27
Notes to the financial statements
For the year ended 30 April 2025
9.Taxation (continued)
There were no factors that may affect future tax charges.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £NIL (2024 - £NIL).
Page 28
Notes to the financial statements
For the year ended 30 April 2025
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Page 29
Notes to the financial statements
For the year ended 30 April 2025
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Page 30
Notes to the financial statements
For the year ended 30 April 2025
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Page 31
Notes to the financial statements
For the year ended 30 April 2025
Page 32
Notes to the financial statements
For the year ended 30 April 2025
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Called up share capital
Merger Reserve
Profit and loss account
Page 33
Notes to the financial statements
For the year ended 30 April 2025
The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The cost of contributions in the period was £331,786 (2024: £310,817). At the year end, there is £79,251 (2024: £78,251) accrued in respect of pension contributions.
Page 34