The directors present the strategic report for the year ended 30 April 2025.

HI Weldrick Ltd continues to operate in line with its mission to deliver high-quality healthcare and customer service to both the local community and the national online audience. This mission is supported by our corporate vision and values, which guide the provision of services and the development of staff across all levels of the organisation.

The Company operates under the national pharmacy contractual framework negotiated by Community Pharmacy England (CPE) with the Department of Health and Social Care (DHSC) and NHS England. However, the fixed-funding nature of this framework—combined with the absence of inflationary uplifts over a prolonged period—has presented significant financial challenges to the business and the wider community pharmacy sector.

Throughout the year, the Company has maintained strong strategic partnerships with local NHS teams, ICBs, CPSY Primary Care Networks (PCNs), and Public Health England to support and deliver additional healthcare services.

The new funding settlement for 2024/25 and 2025/26 announced towards the end of 24/25 introduced a range of positive changes—including a modest uplift to core funding, write-offs of historic margin over-delivery, and increases to both the Single Activity Fee (SAF) and the allowed medicines margin

Under the new framework:

• Baseline funding rises to £3.073 billion in 2025/26, with a further £215 million allocated for Pharmacy First and Primary Care Recovery Plan services, bringing total sector funding to £3.48 billion.

• The Single Activity Fee increases to £1.46 per item from April 2025.

• The Pharmacy Quality Scheme (PQS) is reintroduced, alongside revisions to the structure and remuneration of Pharmacy First and other advanced services.

Although these developments represent a step forward, the funding uplift remains modest relative to inflationary pressures, workforce costs, and prescription volume growth. Consequently, the Company continues to operate within a managed cost-control programme while protecting its core service capacity and infrastructure.

Public awareness of community pharmacy services—including Pharmacy First—remains limited, and the continued lack of full integration with other healthcare providers continues to restrict uptake nationally. Despite this, the Company continues to perform ahead of national averages in the delivery of clinical services, demonstrating the dedication and professionalism of our teams. However, the increasing costs associated with service delivery, particularly in relation to wages and workforce investment, continue to erode the net financial benefits achieved.

While sector-wide issues persist—including medicines price volatility, supply disruption, and the ongoing complexity of margin clawback mechanisms—there are signs of gradual stabilisation. Pharmacist and locum availability has improved compared with prior years, although costs remain elevated. The Company has refined its management accounting practices to separately recognise ‘fee-based’ and ‘margin-based’ income, allowing for a more prudent approach to managing potential clawbacks and maintaining financial transparency.

Despite these sectoral and operational challenges, the Company’s internal restructuring together with its transformation initiative, ‘Project Generation’, continues to deliver tangible results. Through targeted efficiency measures and service development, performance during 2024/25 showed a marked improvement over 2023/24, and early indications for 2025/26 suggest further positive progress.

The Company remains committed to staff development, infrastructure, and technology investments to enhance operational resilience. Continuous improvement reviews and process optimisation form part of an ongoing efficiency strategy. Where appropriate, asset reviews have been undertaken, realising gains to support cash flow and operational stability.

The risk environment surrounding UK Pharmacy, in respect of future Minimum wage legislation, inflationary pressures in general and the lack of clarity surrounding future pharmacy funding highlights a continued need for the business to drive for sales growth alongside greater operational efficiency and productivity.

The company continues to use Operating EBITDA as its primary Profitability KPI and manages cash through Working Capital and Short Term Cash Flow Forecasts and KPIs. Through its Project Generation initiative and a structured approach towards simplification and systemisation, management believe that the company is well placed to deliver profitable growth over the next 2 to 3 years.

The company utilises a range of KPIs to ensure that actions are taken to manage business performance, drive towards improved financial results and profitable growth. Branch margins and profitability, gross margins across retail and web sales, overall Ebitda, contribution per salary cost £, Supply chain improvements and wage costs all feature in managements structured approach to performance management.

Gross profit has increased from 27.87% in 2024 to 29.40% in 2025 as a result of headcount reduction, changes made to the Web shipping operations and Margin improvement across the web and retail offering. Sales reduced from £77.9m to 76.4m.

Salary costs increased to £15.3m from £15.1m but this has to be seen in light of high levels of wage inflation in respect of the National Living Wage.

Company net income/(losses) reduced to £(2.9)m in 2025 compared to £(4.7)m in 2024. Operating losses reduced from a loss of £(4.4m) in 2024 to £(2.4m) in 2025.

The Directors, in accordance with section 172 of the Companies Act 2006, conduct themselves in a manner that, in their judgment will promote the Company's success for the benefit of all its members. Among other things, the directors have taken into consideration the long-term implications of any decisions and;

Interests of Company employees

• Fostering the Company's business connections with partners, suppliers, and others

• The impact of the Company's operations on the community and environment

• The Company's ability to maintain a reputation for high standards of business conduct

• The need to act fairly between members of the Company

The Directors acknowledge that any decision they take will not necessarily bring about a mutually beneficial situation for all the Company's stakeholders. The Directors aim to make sure that their decisions are consistent by considering the Company's purpose, vision, and values together with its strategic priorities and having a process in place for decision making.

Stakeholder engagement

The Company’s ability to drive value creation is dependent on considering our stakeholders in key business decisions. Direct engagement by Directors, receiving reports and updates from members of management who engage such groups, and coverage in our board papers of relevant stakeholder interests are some of the methods used by the Directors to understand the respective interest of such stakeholder groups. The Company's key stakeholders are the following, according to the directors:

Workers

The Company's enduring viability rests on the efforts and commitment of our staff. A strong culture and an effective people strategy are what the Directors recognise as the foundations for the successful implementation of the Company's strategy. Regular talks and updates from Directors keep employees up to date on progress and direction. Newsletters and management briefings are supported by these updates. Key business meetings are attended by the Directors throughout the year, including weekly meetings. Employees can raise any concerns in confidence through an employee whistleblowing policy.

Personal development, pay and benefits are some of the key focuses of the Directors.

Suppliers

It is important to the Company's long-term success that the Directors are briefed on supplier feedback and issues on a regular basis. The Directors strive to balance the benefit of maintaining these strong relationships with the need to ensure the desired quality and service for our customers. Our Company purchasing function is the primary conduit for interaction with suppliers, key areas of focus include supply chain innovation, product development, health and safety, and sustainability.

On behalf of the board

The directors present their annual report and financial statements for the year ended 30 April 2025.

The principal activity of the company continued to be that of the provision of local pharmaceutical services.

The results for the year are set out on page 11.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

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

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The company places considerable value on the involvement of its employees and communicates clearly and openly on a personal and two-way basis, sharing information and ideas. Employees are continually kept informed of matters affecting them as employees and of various factors affecting the performance of the company. This is achieved through formal and informal meetings and newsletters. Employee representatives are consulted regularly in a wide range of maters affecting their current and future interests.

Sumer Auditco Limited were appointed as auditor to the company following BHP LLP becoming part of the Sumer Group on 31 December 2025, which required a change in audit firm to comply with applicable regulatory requirements.

In accordance with section 487(2) of the Companies Act 2006, Sumer Auditco Limited are deemed to be reappointed annually.

Community and environment   

The company’s approach is to create positive changes for the people and communities with which the Company interact. The company is committed to embracing the safeguarding of the environment. 

An independent review of energy use is commissioned and undertaken on an ongoing basis. 

Some of the things we have done or are starting to do are below:  

• Reduction in energy consumption through installation of LED lighting throughout the company 

• Solar panels have been installed at the company’s main offices/warehousing operation and we will be looking at ways to utilise these across our branches 

• Within 2024 we finalised the ESOS3 compliance and from this we’ve taken key aspects and fed them to the wider business

• Reduction of the use of packaging and consumables wherever possible 

• Waste is recycled and cardboard compacted. 

• Staff education and training on best practice 

• Looking at ways to better insulate the properties 

• Installation of Smart meters across the estate to better understand the numbers and where more efficiencies can be made

Carbon footprint 

In accordance with the streamlined energy and carbon reporting (“SECR”) guidance we report on our greenhouse gas emissions and energy usage for the year ended 30 April 2025. 

The company has seen a decrease in all key ratios of greenhouse gas emissions and energy usage as can be seen from the table below, this is due to a proactive approach Weldricks takes in ensuring that PCs, Lights etc are all turned off, consolidating warehouse runs.

Head office can now control some of these functions. 

We’ve have been running an energy reduction project plan for the last 3 years, showing large reductions in paper and energy uses and this continues throughout this year.

Key actions taken to reduce energy consumption are included in the statement above.

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of H.I. Weldrick limited (the 'company') for the year ended 30 April 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 30 April 2025 and of its loss for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the pharmaceutical trade;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company;

• we assessed the extent of compliance with the laws and regulations considered above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• using audit data analytical software, identified higher risk transactions (including journals);

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• reading the minutes of meetings of those charged with governance;

• enquiring of management as to actual and potential litigation and claims; and

• reviewing correspondence with HMRC, relevant regulators (which was deemed to be the Health and Safety Executive) and the Company’s legal advisors;

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

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

H.I. Weldrick limited is a private company limited by shares incorporated in England and Wales. The registered office is Mallard House, Heavens Walk, Doncaster, South Yorkshire, DN4 5HZ.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is exempt from the requirement to prepare consolidated financial statements as all of its subsidiaries are permitted to be excluded by virtue of section 405 of the Companies Act 2006.

At the time of approving the financial statements, the directors have performed a review of the company's current financial performance and future profitability and cash flow based on certain assumptions and considering macro-economic factors such as inflation and interest rates. The company has modelled various potential scenarios based on likely future developments in the NHS Framework Agreement, future wage inflation, in addition to the likely impact of improvements made through Weldrick's profit improvement programme, Project Generation.true

The directors have also considered future risk and note the company's positive position in light of the continued support from the Alcock family through the loan structure and the company's property portfolio which offers short term liquidity options should the need arise.

Considering all reasonable scenarios and factors, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from providing services is recognised in the accounting period in which the services are rendered.

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which ranges from 10 to 25 years.

The useful life of goodwill is a departure from the FRS 102 regulations which state that the useful life of goodwill shall not exceed 10 years. The accounting policy adopted is necessary for the financial statements to give a true and fair view. Amortisation is assessed on a branch by branch level in line with the industry standard and is provided in line with the length of any lease entered into.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements, estimates and assumptions have the most significant effect on amounts recognised in the financial statements.

Management has made critical judgements in determining the useful economic lives of property, plant, and equipment. These judgements affect the depreciation charges recognised in the statement of comprehensive income and the carrying amounts of assets in the balance sheet.

Management considers factors such as:

• The expected usage of the asset based on operational requirements.

• Historical experience with similar assets.

• Manufacturer guidance and industry norms.

• The impact of technological changes and potential obsolescence.

While these estimates are based on the best information available, actual useful lives may differ from those estimated, which could result in material adjustments to depreciation expense and asset carrying values in future periods.

The company’s intangible assets comprise goodwill arising on the acquisition of pharmacy branches. In determining the amortisation period, residual value, and useful economic lives of these assets, management has exercised significant judgement.

Key considerations include:

• Market Dynamics: Expected longevity of customer relationships and prescription volumes within the local community.

• Industry Norms: Historical performance of similar pharmacy acquisitions and sector-specific guidance.

Management currently amortises goodwill over a period considered to reflect the expected benefit from the acquired business, based on these factors. Residual values are assumed to be nil, as the assets are not expected to have a realisable value at the end of their useful life. These estimates are reviewed annually and adjusted if there is evidence of impairment or changes in underlying assumptions.

Within the NHS framework agreement, payments made by the NHS to Pharmacy businesses are subject to potential future adjustments or ‘clawbacks’ based on the NHS view of drug prices and margins made by the sector. The company’s directors feel that they have taken all steps necessary to accurately recognise revenue and the potential impact of future clawbacks for the 2024/25 period.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

As part of the year end procedures we analyse goodwill and whether we feel there are potential indicators for an impairment. We take into account the current NBV of goodwill as a multiple of profits in the year, and after the year end, and compare what the market value of the business would potentially be worth by reference to market guidance from independent valuers. This calculation is carried out each year.

All turnover in the current and prior year arose within the United Kingdom from the company's principal activity which is the supply of pharmaceutical goods.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2024 - 0).

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

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:

The 'fair value' valuation of the investment properties was carried out on 8th March 2023 by Hornbeam Real Estate Limited, an independent firm of chartered surveyors, in accordance with the RICS handbook.

If the investment properties were held at historic cost method, their total value would be £4,893,123 (2024: £5,363,580).

Details of the company's subsidiaries at 30 April 2025 are as follows:

The bank loans are secured by fixed charges and debentures over the following properties:

- Leedale House, Railway Court, Doncaster, DN4 5FB

- Unit 3b, White Rose Park, Doncaster, DN4 5FB

There is also an unlimited guarantee given by a related party and a floating charge over all the property and undertaking of the company.

Interest on bank loans is charged at 2.20% over base rate. Loans are repayable over a period of 5 to 10 years from the drawdown date.

Finance lease payments represent rentals payable by the company for certain items of fixtures, fittings and office equipment. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Obligations under finance leases are secured over the assets to which they relate.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Ordinary A shares are full voting shares, entitled to return of capital on winding up.

Ordinary B shares are non voting income shares, entitled to their nominal value on winding up.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The operating leases represent leases of properties to third parties. The leases are negotiated over terms of 6 months to 10 years.There are no options in place for either party to extend the lease terms.

The remuneration of key management personnel is as follows.

During the year, the company rented premises from L H Alcock, a director of the company. Rentals were charged totaling £110,532 (2024: £110,533).

During the year, the company rented premises from the SSAS of C W J Alcock, a director of the company. Rentals were charged totaling £84,842 (2024: £nil).

During the year, the company rented premises from Raw Carrots, a company with mutual directorship. Rentals were charged totaling £63,000 (2024: £58,000). Included within other creditors is a loan amount due of £212,177 (2024:£nil)

Included within other debtors is a loan amount of £562,808 (2024: £652,285) owed from Medicine Chest Limited, a company in which H.I. Weldricks is a shareholder. The trading balance at the year-end owed from Medicine Chest is £nil (2024: £2,593). During the year, purchases of £55,296 (2024: £11,520) were made from Medicine Chest Limited.

During the year, purchases of £194,197 (2024: £133,056) were made from Stocklink Limited, a company of which a member of Key Management Personnel is a director and shareholder. The trading balance owed to Stocklink Limited at the year-end was £24,786 (2024: £11,848). During the year, sales of £372 were made to Stocklink Limited and the trade debtor balance outstanding at the year-end was £372 (2024: £nil).

During the year, purchases of £7,812 (2024: £nil) were made from Raw Carrots Limited, a company of which a member of Key Management Personnel is a director and shareholder. The other creditor balance owed to Raw Carrots Limited at the year-end was £212,641 (2024: £nil).

Included within other creditors are amounts due to the following directors and their related parties: L H Alcock £72,849 (2024: £696), C W J Alcock £1,660,051 (2024: £456,389), and siblings of C Alcock £1,693,084 (2024: £1,662,804).

Assets owned by Raw Carrots Limited, a company where a Key Management Personnel is a director and shareholder, were used as collateral against a loan held by the company.

During the prior year, a member of Key Management Personnel loaned to H.I. Weldrick Ltd £1,300,000 on a short-term basis of three months for the acquisition of two branches. Interest was charged at a rate of base rate plus 2%. This was repaid in full in the year ended 30 April 2025.

In the prior year, the company rented premises from the SIPP of C W J Alcock, a director of the company. Rentals were charged totaling £nil (2024: £7,500).

In the prior year, the company rented premises from the SIPP of J Alcock, the spouse of a director. Rentals were charged totaling £nil (2024: £19,137).

The company is controlled by C W J Alcock due to his majority shareholding in the company.

On 6th June 2025, the company disposed of the Lodgemoor pharmacy branch including inventory and certain assets for a sum of £625k.

On 1st July 2025, the company disposed of the property assets, Units 4a to 4e at the Railway Court location for £2.6m.