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Registered number: 03884028









PHARMACEUTICALS DIRECT LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

 
PHARMACEUTICALS DIRECT LIMITED
 
 
COMPANY INFORMATION


Directors
H Patel 
B Patel 




Company secretary
H Patel



Registered number
03884028



Registered office
Old Station Road

Loughton

Essex

IG10 4PL




Independent auditors
Haslers
Chartered Accountants & Statutory Auditor

Old Station Road

Loughton

Essex

IG10 4PL





 
PHARMACEUTICALS DIRECT LIMITED
 

CONTENTS



Page
Strategic Report
 
1
Directors' Report
 
2
Directors' Responsibilities Statement
 
3
Independent Auditors' Report
 
4 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Notes to the Financial Statements
 
12 - 28


 
PHARMACEUTICALS DIRECT LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025

Introduction
 
The results for the year ended 31 March 2025 and financial position of the company at this date are as shown in
the annexed financial statements.

Business review
 
The Medicines and Healthcare Products Regulatory Agency (MHRA) continues to place strict regulations on the industry due to counterfeit and fraud cases. Tight restrictions remain in place on the import and export of goods.

Over the year the directors have continued to focus on achieving higher gross profit margins and management have implemented focused sales strategies. These strategies have resulted in a increase in turnover and gross profit margin remaining relatively consistent with a small decrease to 19.6%

The company has decreased its sales abroad, however the percentage of sales outside the UK in comparison to domestic is still low.

The directors are pleased with the results for the year and activity continues to improve.

Principal risks and uncertainties
 
The principal risk identified by management is not being in touch with the changes in the business, the regulatory pharmaceuticals environment, foreign currency fluctuations and with the company's supply chain and customers.

Management understand the risk of falling behind product ranges and changes in the industry and aims to mitigate these risks. Performance is regularly reviewed at an overview level with the suppliers and principal clients. The company continues to enhance the value of long-established clients’ by offering a quality service and aiming to meet their demands in a timely fashion.

The directors are aware of the Medicines and Healthcare products Regulatory Agency (MHRA) regulatory requirements that are paramount to the company's continued activities. Tight restrictions remain in place on the import and export of goods and over counterfeit pharmaceuticals. Management are proactive in this area and consider the impact of regulatory changes and devised procedures to mitigate such risks and uncertainties.

Financial key performance indicators
 
The directors consider the key performance indicators for this company to be those that communicate the financial performance and strength of the company as a whole, these being turnover, gross margin, and operating profit. Other non financial key performance indicators mainly focus on the turnaround time from a sales order to delivery.


This report was approved by the board on 19 December 2025 and signed on its behalf.



B Patel
Director

Page 1

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025

The directors present their report and the financial statements for the year ended 31 March 2025.

Results and dividends

The profit for the year, after taxation, amounted to £1,325,687 (2024 - £942,252).

The directors recommended the payment of a dividend of £Nil (2024: £Nil). 

Directors

The directors who served during the year were:

H Patel 
B Patel 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditorsHaslerswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 19 December 2025 and signed on its behalf.
 





B Patel
Director

Page 2

 
PHARMACEUTICALS DIRECT LIMITED
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements 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 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 3

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PHARMACEUTICALS DIRECT LIMITED
 

Opinion


We have audited the financial statements of Pharmaceuticals Direct Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 March 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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.


Page 4

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PHARMACEUTICALS DIRECT LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 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.


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 set out on page 3, 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.


Page 5

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PHARMACEUTICALS DIRECT LIMITED (CONTINUED)


Auditors' 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 Auditors' 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:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that:

• had a direct effect on the determination of material amounts and disclosures in the financial statements. These included the UK Companies Act and tax legislation etc; and

• do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. These included Medicines & Healthcare Products Regulatory Agency (MHRA).

We obtained an understanding of how the company are complying with those legal and regulatory frameworks by inquiring with the director and management. These inquiries were corroborated by a review of licences issued by the MHRA and documentation summarising any inspections that took place. This was used to assess the extent of compliance with the relevant laws and regulations. We also reviewed the controls in place for management to detect any non-compliance with regulations within the pharmaceutical industry.

We discussed among the audit engagement team including relevant internal tax specialists, regarding the opportunities and incentives, including management override of controls, that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. We also communicated the applicable laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. 

As a result of performing the above, we identified the greatest potential for fraud in the following areas, and our specific procedures performed to address it are described below:

The principal risks related to inappropriate journal entries to impact the profit for the year and management bias in accounting estimates.

Procedures performed to address these were as follows:

• Walkthrough testing was carried out to identify and assess the design effectiveness of controls, management have in place to prevent and detect fraud, including known of suspected instances or non-compliance with laws and regulations and fraud, 

• Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process, 

• Using analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud,

 
Page 6

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PHARMACEUTICALS DIRECT LIMITED (CONTINUED)


• Assessing the appropriateness of significant accounting estimates such as stock provisions and challenging any significant assumptions or judgements made by management that were indicative of potential bias.

• Enquiring of management as to actual and potential litigation or claims and instances of non-compliance with laws and regulations,

• Reviewing revenue recognition policies and general policies in relation to cut-off. We assessed the accuracy and completeness of the management’s estimates through developing a detailed understanding of the agreements in place and performing detailed substantive testing which included reviewing a sample delivery notes and sales invoices.

• We cannot perform testing of all manual journal entries posted throughout the year, as the system does not allow generating a comprehensive report of journals for the period. Instead, this testing was incorporated on all material balance sheet and profit and loss items, focusing on entries with unusual account combinations and specific defined descriptions.

• Evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business. 


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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 7

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PHARMACEUTICALS DIRECT LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





Matthew Wells ACA (Senior Statutory Auditor)
  
for and on behalf of
Haslers
 
Chartered Accountants
Statutory Auditor
  
Old Station Road
Loughton
Essex
IG10 4PL

19 December 2025
Page 8

 
PHARMACEUTICALS DIRECT LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025

2025
2024
Note
£
£

  

Turnover
 4 
25,193,894
33,644,545

Cost of sales
  
(20,268,652)
(28,726,948)

Gross profit
  
4,925,242
4,917,597

Administrative expenses
  
(3,376,852)
(3,645,379)

Operating profit
 5 
1,548,390
1,272,218

Income from fixed assets investments
  
91,000
-

Interest payable and similar expenses
 10 
(48,730)
(6,376)

Profit before tax
  
1,590,660
1,265,842

Tax on profit
 11 
(264,973)
(323,590)

Profit for the financial year
  
1,325,687
942,252

There were no recognised gains and losses for 2025 or 2024 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 12 to 28 form part of these financial statements.

Page 9

 
PHARMACEUTICALS DIRECT LIMITED
REGISTERED NUMBER: 03884028

BALANCE SHEET
AS AT 31 MARCH 2025

2025
2024
Note
£
£

Fixed assets
  

Intangible assets
 12 
-
1,676

Tangible assets
 13 
314,713
241,212

Investments
 14 
15,782,624
15,775,609

  
16,097,337
16,018,497

Current assets
  

Stocks
 15 
6,588,600
4,905,610

Debtors: amounts falling due within one year
 16 
26,809,228
27,572,229

Cash at bank and in hand
 17 
94,731
211,706

  
33,492,559
32,689,545

Creditors: amounts falling due within one year
 18 
(7,931,925)
(8,375,758)

Net current assets
  
 
 
25,560,634
 
 
24,313,787

Total assets less current liabilities
  
41,657,971
40,332,284

Provisions for liabilities
  

Deferred tax
 19 
(4,684,416)
(4,684,416)

  
 
 
(4,684,416)
 
 
(4,684,416)

Net assets
  
36,973,555
35,647,868


Capital and reserves
  

Called up share capital 
 20 
2,079,700
2,079,700

Share based payment reserve
 21 
69,300
69,300

Profit and loss account
 21 
34,824,555
33,498,868

  
36,973,555
35,647,868


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 December 2025.


B Patel
Director

The notes on pages 12 to 28 form part of these financial statements.

Page 10

 
PHARMACEUTICALS DIRECT LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025


Called up share capital
Share based payment reserve
Profit and loss account
Total equity

£
£
£
£

At 1 April 2024
2,079,700
69,300
33,498,868
35,647,868


Comprehensive income for the year

Profit for the year
-
-
1,325,687
1,325,687


At 31 March 2025
2,079,700
69,300
34,824,555
36,973,555



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Share based payment reserve
Profit and loss account
Total equity

£
£
£
£

At 1 April 2023
2,079,700
69,300
32,556,616
34,705,616


Comprehensive income for the year

Profit for the year
-
-
942,252
942,252


At 31 March 2024
2,079,700
69,300
33,498,868
35,647,868


The notes on pages 12 to 28 form part of these financial statements.

Page 11

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

1.


General information

Pharmaceuticals Direct Limited is a private company, limited by shares, domiciled in England and Wales,
registration number 03884028. The registered office is Old Station Road, Loughton, Essex, IG10 4PL. The
principal activity of the company continued to be that of wholesale of pharmaceutical goods.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Pharmadent Holdings Limited as at 31 March 2025 and these financial statements may be obtained from Companies House.

 
2.3

Revenue

Revenue from the sale of the dental products is recognised at a fair value, when the stock leaves the companies warehouse, excluding discounts, rebates, value added tax and other sales taxes. At this point the Company considers that the significant risks and rewards of ownership have been
transferred to the buyer.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 12

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.6

Pensions

Defined contribution pension plan

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 payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.8

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 13

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.9

Tangible fixed assets

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Plant and machinery
-
10%
reducing balance
Motor vehicles
-
25%
reducing balance
Office equipment
-
25%
reducing balance
Computer equipment
-
25%
reducing balance

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.

 
2.10

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

Page 14

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. basis. 

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.16

Financial instruments

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 
Page 15

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)


2.16
Financial instruments (continued)


Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic 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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

Page 16

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In applying the Company's accounting policies, the director is required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The director's judgements, 
estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.

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, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

The director does not believe that there have been judgements (apart from those involving estimates) made in the process of applying the above accounting policies that have had a significant effect on amounts recognised in the financial statements.

Stock Valuation & Provision - The group reviews its stock levels frequently. When assessing stock provisions, management considers the remaining life of product lines and stock obsolescence with slow moving stock.


4.


Turnover

Analysis of turnover by country of destination:

2025
2024
£
£

United Kingdom
23,974,245
30,448,551

Rest of Europe
1,035,030
2,535,514

Rest of the world
184,619
660,480

25,193,894
33,644,545


Page 17

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

5.


Operating profit

The operating profit is stated after charging:

2025
2024
£
£

Exchange differences
13,225
36,854

Other operating lease rentals
56,664
55,828


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2025
2024
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
21,480
20,650

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2025
2024
£
£

Wages and salaries
1,540,395
1,669,652

Social security costs
99,018
118,373

Cost of defined contribution scheme
11,261
12,611

1,650,674
1,800,636


The average monthly number of employees, including the directors, during the year was as follows:


        2025
        2024
            No.
            No.







Sales and Administration
26
22

Page 18

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

8.


Directors' remuneration

2025
2024
£
£

Directors' emoluments
47,281
46,122

47,281
46,122



9.


Income from investments

2025
2024
£
£





Dividends received from unlisted investments
(91,000)
-

(91,000)
-



10.


Interest payable and similar expenses

2025
2024
£
£


Bank interest payable
-
6,376

Other interest payable
48,730
-

48,730
6,376

Page 19

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

11.


Taxation


2025
2024
£
£

Corporation tax


Current tax on profits for the year
364,202
323,590

Adjustments in respect of previous periods
(99,229)
-


264,973
323,590


Total current tax
264,973
323,590

Deferred tax

Total deferred tax
-
-


264,973
323,590

Factors affecting tax charge for the year

The tax assessed for the year is the same as (2024 - the same as) the standard rate of corporation tax in the UK of 25% (2024 - 25%) as set out below:

2025
2024
£
£


Profit on ordinary activities before tax
1,590,660
1,265,842


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
374,332
316,461

Effects of:


Capital allowances for year in excess of depreciation
(9,953)
7,252

Prior Year Tax charge correction
(99,229)
-

Other differences leading to an increase (decrease) in the tax charge
(177)
(123)

Total tax charge for the year
264,973
323,590


Factors that may affect future tax charges

There are no factors that may affect future tax charges.

Page 20

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

12.


Intangible assets




Trademarks

£



Cost


At 1 April 2024
564,705



At 31 March 2025

564,705



Amortisation


At 1 April 2024
563,029


Charge for the year on owned assets
1,676



At 31 March 2025

564,705



Net book value



At 31 March 2025
-



At 31 March 2024
1,676



Page 21

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

13.


Tangible fixed assets





Plant and machinery
Motor vehicles
Office equipment
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 April 2024
140,189
255,285
543,473
16,109
955,056


Additions
81,721
-
54,296
-
136,017



At 31 March 2025

221,910
255,285
597,769
16,109
1,091,073



Depreciation


At 1 April 2024
64,997
164,079
468,909
15,859
713,844


Charge for the year on owned assets
11,013
22,801
28,640
62
62,516



At 31 March 2025

76,010
186,880
497,549
15,921
776,360



Net book value



At 31 March 2025
145,900
68,405
100,220
188
314,713



At 31 March 2024
75,192
91,206
74,564
250
241,212

Page 22

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

14.


Fixed asset investments





Investments in subsidiary companies
Listed investments
Unlisted investments
Other fixed asset investments
Total

£
£
£
£
£



Cost or valuation


At 1 April 2024
100
25,010
971
15,847,082
15,873,163



At 31 March 2025

100
25,010
971
15,847,082
15,873,163



Impairment


At 1 April 2024
-
19,215
-
78,339
97,554


Reversal of impairment losses
-
(7,015)
-
-
(7,015)



At 31 March 2025

-
12,200
-
78,339
90,539



Net book value



At 31 March 2025
100
12,810
971
15,768,743
15,782,624



At 31 March 2024
100
5,795
971
15,768,743
15,775,609


Listed investments


The fair value of the listed investments at 31 March 2025 was £12,810 (2024 - £5,795).



15.


Stocks

2025
2024
£
£

Finished goods and goods for resale
6,588,600
4,905,610

6,588,600
4,905,610


Page 23

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

16.


Debtors

2025
2024
£
£


Factored debts
3,721,005
4,791,941

Amounts owed by group undertakings
18,858,869
19,521,341

Other debtors
4,186,582
3,226,750

Prepayments and accrued income
42,772
32,197

26,809,228
27,572,229






The company has gross factored debts of £3,721,005 (2024: £4,791,941).

The company has made no contribution to the Company's Employee Benefit Trust (EBT). At the year end the EBT had outstanding loans of £1,500,000 (2024: £1,500,000) which are included in other debtors.


17.


Cash and cash equivalents

2025
2024
£
£

Cash at bank and in hand
94,731
211,706

94,731
211,706


Page 24

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

18.


Creditors: Amounts falling due within one year

2025
2024
£
£

Trade creditors
3,141,722
1,780,307

Amounts owed to group undertakings
1,267,906
2,628,658

Corporation tax
741,311
826,475

Other taxation and social security
29,897
393,316

Proceeds of factored debts
1,477,093
1,767,601

Other creditors
858,568
849,318

Accruals and deferred income
415,428
130,083

7,931,925
8,375,758


The bank borrowings are secured by a fixed and floating charge over assets of the company and by a personal guarantee up to £500,000 by B Patel, a director of the company. In addition, there is a cross guarantee between the company and fellow subsidiaries DHB Oral Healthcare Limited, Coombe KP Limited, and K P Pharma Limited, companies in which the director B Patel has a beneficial interest.

Page 25

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

19.


Deferred taxation




2025


£






At beginning of year
(4,684,416)



At end of year
(4,684,416)

The provision for deferred taxation is made up as follows:

2025
2024
£
£


Deferred tax on SIP contribution
(4,684,416)
(4,684,416)

(4,684,416)
(4,684,416)


20.


Share capital

2025
2024
£
£
Allotted, called up and fully paid



52,913 (2024 - 52,913) Ordinary shares of £0.010 each
529
529
779,477 (2024 - 779,477) Ordinary A shares of £0.010 each
7,795
7,795
802,087 (2024 - 802,087) Ordinary B shares of £0.010 each
8,021
8,021
1,365,523 (2024 - 1,365,523) Ordinary C shares of £0.010 each
13,655
13,655
300,000 (2024 - 300,000) Ordinary D shares of £0.010 each
3,000
3,000
16,345,000 (2024 - 16,345,000) Ordinary E shares of £0.001 each
16,345
16,345
30,355,000 (2024 - 30,355,000) Ordinary F shares of £0.001 each
30,355
30,355
2,000,000 (2024 - 2,000,000) 3% 'A' Redeemable Preference shares of £1.000 each
2,000,000
2,000,000

2,079,700

2,079,700


Page 26

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

20.Share capital (continued)

The non-cumulative 'A' redeemable preference shares may be redeemed at the company's request at par at any time, in whole or in part, upon giving the shareholders not less than 1 months written notice.

The non-cumulative 'A' redeemable preference shares carry a right to a non-cumulative dividend of 3% of their nominal value per annum, payable on 2 February next after their issue, but at the complete discretion of the company and to be only paid if the financial position of the company, in the view of the directors and in law, permits it. The dividend will accrue daily pro rata for the annual period from the date of issue until the payment date, or inclusive of the redemption date, but shall not be payable unless the company, at its absolute discretion deems it to be so on 2 February each year.

In order to ensure that the non-cumulative 'A' ordinary shares would be entitled to at least 10% of the profits available for distribution, on the assumption that all the available profits were distributed, then whenever a dividend is to be paid, due account is to be taken in either deciding to pay a dividend on the redeemable preference shares or in scaling back the dividend as appropriate.

The preference shares carry no voting rights.

On liquidation, the issued non-cumulative 'A' redeemable preference shares shall be redeemed in preference to any distribution made on the Ordinary shares, save that if there are any Ordinary A shares in issue, the Ordinary A shares shall first receive an additional distribution, which shall equate to the Ordinary A shares receiving at least 10% of the total assets available for distribution to all the shareholders including the redeemable preference shares.

The rights attaching to each other class of share, being Ordinary shares of 1p, Ordinary A shares of 1p, Ordinary B shares of 1p, Ordinary C shares of 1p, Ordinary D shares of 1p, Ordinary E shares of 0.1p, Ordinary F shares of 0.1p will rank pari passu in all respects, irrespective of their nominal value, apart from the rights of pre-emption on transfer that will apply to the Ordinary A or C shares as set out in the Articles.


21.


Reserves

Share based payment reserve

The share based payment reserve represents the cumulative effect of the share based payment charges during the vesting period of awarded shares.

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments


22.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £11,261 (2024: £12,611). At 31 March 2025, the balance owing to the pension scheme was £2,436 (2024: £2,259).

Page 27

 
PHARMACEUTICALS DIRECT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

23.


Commitments under operating leases

At 31 March 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2025
2024
£
£


Not later than 1 year
9,184
9,184

Later than 1 year and not later than 5 years
7,653
16,837

16,837
26,021


24.


Related party transactions

During the year transactions with the following related parties occurred:

Included in other creditors is a loan of £450,000 (2024: £440,000) owing to the PDL Pension Scheme.

During the year the company made sales of £473,701 (2024: £985,911) to other related parties.

During the year the company made purchases of £982,130 (2024: £1,109,747) from other related parties.

At the year end the following amounts were due from/(to) the related parties:


2025
2024
£
£

Other related parties
3,390,211
2,028,794
3,390,211
2,028,794


25.


Controlling party

At the year-end, the ultimate parent company is Pharmadent Holdings Limited, a company registered in England and Wales.

The ultimate controlling party is B Patel, by virtue of his significant shareholding and directorship of the parent company.

 
Page 28