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

During the current year, the company has once again continued to react to the challenging financial constraints that the sector has experienced.    

The company continues to look at its portfolio in its entirety to ensure that all pharmacy sites fit within the company’s wider strategy.                

In light of this, the company has agreed to dispose of five pharmacy contracts this year, which will complete next year. Any acquisitions going forward are to strengthen the portfolio in geographic locations in which we are already established.

The company’s hub and spoke site (Horizon) is now fully operational and continues to grow in terms of volume sent from pharmacy sites to the hub for central assembly. We are now assembling around 55% of all original repeat medication through Horizon, as well as an additional 12% of our entire prescription items as compliance trays. Approximately 66% of all work is now dispensed at the hub, creating capacity across the pharmacy network to support patients in alternative ways.

Sending more work to the Hub creates capacity and opportunities for pharmacy colleagues to deliver alternative tasks, which is in line with government requirements around providing more services within community pharmacy to create capacity elsewhere within primary care.    .    

The improved accuracy of prescription assembly using automation also prioritises patient safety. The error rate for the original pack medication programme at Horizon is 0.00083%.

The financial situation that community pharmacy continues to find itself in is proving extremely challenging. The Community Pharmacy Contractual Framework (CPCF) this year, whilst claimed as an increase, has done very little to support contractors with their commitments and the delivery of pharmacy services across England. In fact, the majority of the increase was wiped out by the increase once again in the National Living Wage, National Insurance contributions and business rates.    

The company continues to adapt to these financial challenges, and we feel that we are now making decisions internally that do not have our patients’ best interests at heart. Capital expenditure is frozen due to the lack of remuneration from government, as the company, like so many pharmacy organisations, continues to be loss making. The owners of the company are not willing to inject further funds to improve the network where this would be at a loss to themselves.        

An independent economic review undertaken this year highlighted that the shortfall in remuneration to community pharmacy for the services delivered across England now stands at more than £2 billion annually, and that over 97% of community pharmacies were funded below their full economic cost of operation.

The government’s lack of desire to address this funding crisis means that more pharmacy contractors will continue to be loss making, and this in turn throws real risk to patient continuity and support when contractors inevitably go bust. Community pharmacy plays a vital role in the primary care infrastructure, and the inadequate remuneration the sector receives casts a real shadow over a large proportion of the network’s existence.        

The company remains committed to actively working in partnership with local clinical commissioning groups in the promotion of these services.            

Prescription numbers within the business have decreased slightly this year, but this was in line with expectations around the introduction of the hub and spoke system and the inevitable teething problems this caused for both staff and patients. As these issues are now resolved, and performance throughout Horizon goes from strength to strength, we expect that by supporting colleagues with further customer service training, and ensuring we are supporting patients differently with the capacity created through reduced dispensing at pharmacy level, item numbers will increase.

The delivery of services continues to expand, and we are seeing monthly growth in this area. The challenge remains that this is very pharmacy led, and patients are still not fully aware of how community pharmacy can further support the GP network. We need to see GPs as a profession begin to signpost more Pharmacy First consultations to community pharmacy, as currently fewer than 10% of all referrals are directly from GPs.

We are confident that the company will continue to monitor its overheads diligently.

The company has also moved lender this year. This decision was taken with a view to cheaper borrowing, a fresh start, and creating the ability for the company to grow or acquire in appropriate circumstances. Whilst we are only six months into this change, it is refreshing to see the attitude our new lender has taken, and relationships continue to go from strength to strength.

Business risks

The main risks to the business are namely the reliance on the government and NHS which provide both the majority of business and control of the drug tariff prices paid, and activities of the major competitors within the locality.

Financial risks

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

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. In respect of loans these comprised loans

from the directors and loans from financial institutions. The interest rate on the loans from financial institutions was variable but the repayments were fixed. The company managed the liquidity risk by ensuring there were sufficient funds to meet the payments. No interest is currently being charged by the directors on their loan accounts. The majority of trade debtors represent amounts owed by the NHS. Other trade debtors are managed closely in respect

of credit and cash flow risk.

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

Key Performance Indicators

Quantitative measures in terms of business performance and profitability are important to shareholders and provide assurance as to the continuing stability of the organisation. Basic KPIs (key performance indicators) upon which the company bases financial evaluation are gross profit, EBITDA and staff costs as a percentage of turnover. There is a direct link between profitability and branch staffing levels, which is reflected in the budgeting process.

Gross profit percentage has decreased from 28.9% in 2024 to 28.2% in 2025. Staff remain the greatest asset, but also the largest cost to the company, amounting to £35.2m in 2025 and £34.1m in 2024. Staff costs as a percentage of turnover were 19.1% in 2024 and 19.7% in 2025.

Company shareholders will note that the company made a loss before tax (excluding exceptional items) of £6.6m and that earnings before interest, tax and depreciation (EBITDA) were £0.4m. In the forthcoming year the company expects continued pressure on profitability due to reductions in the overall level of government funding to pharmacies. Ongoing review of costs and branch performance, alongside moving to a hub and spoke model in the coming year, should increase performance and profitability.

The company had a net bank deficit of £5.5m and net assets of £6.3m at the year end, whilst the group had a net bank surplus, before bank loans, of £33.7m.

The business is reliant upon CPCF for 95% of it’s revenue. The key risk to the business is any changes to the contractual framework in either amount or timing which would lead to cashflow pressures or an unsustainable business model.

Engagement with employees

The company places considerable value on the involvement of its employees and has continued its previous practice of keeping them informed on matters affecting them as employees and on the various factors affecting the performance of the company. This is achieved through formal and informal meetings, internal bulletins and the company website. Employees are consulted regularly on a wide range of matters likely to affect their interests.

The company has also recently launched its Peak Pharmacy Trading Academy and is actively looking to upskill colleagues internally. The company also carries out an annual staff survey to ensure that all voices within the organisation are heard and that the management team can act on feedback received from colleagues.

Engagement with suppliers, customers and other relationships

As a provider of community pharmacy services, the Company operates in a highly regulated healthcare environment and recognises its responsibility to patients, staff, and the wider NHS.

The Directors ensure that patient safety and quality of care remain central to all business decisions. This includes maintaining robust dispensing procedures, investing in staff training, and ensuring compliance with all relevant regulatory and professional standards. The Company serves its local community by providing accessible healthcare services, including dispensing prescriptions, offering advice, and delivering NHS and private services.

The Directors consider the impact of business decisions on patients and the local community, aiming to ensure continuity of service, accessibility, and responsiveness to local healthcare needs

Non-financial and sustainability information

Energy and carbon report

The company has considered the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) when preparing this report. These recommendations encourage businesses to increase disclosure of climate-related information with an emphasis on financial disclosure. PCT Healthcare Limited supports these recommendations and is committed to disclosing relevant information, as set out below.

The company has continued to improve efficiency and minimise fuel consumption within its warehouses. The electric vehicle scheme continues for high mileage employees and will be rolled out further in future years. Reviews of van mileage are carried out regularly, with adjustments made to schedules where required.

Work has completed on the construction of a new warehouse facility, which has been fully operational from 2024. This has increased consumption in the short term as operations are currently spread across multiple warehouses. During 2024 all operations were consolidated into one building designed with energy efficient measures in mind.

The store estate has reduced during the year. The company’s upgrade programme continues to ensure that boilers, fridges, lighting and air-conditioning units, where replaced, are more efficient than previous installations. An increase in requirements for at-home patient deliveries has increased fuel usage during the year. A review of the company’s transport strategy commenced in 2024.

Our planning is designed to have a long-term beneficial impact on the company and contribute to its future success through improving quality, operating within budgetary controls and in line with our regulatory targets. this requires us to consider the long term in all of our strategic decisions at board level.

Our employees are fundamental to the success of our company. we aim to be a responsible employer in our approach to the pay and benefits our employees receive. The health, safety and well-being of our employees is one of our primary considerations in how we operate.

We aim to act responsibly and fairly in how we engage with suppliers. the company has oversight of the procurement processes and receives regular updates on any matters of significance. the company is very much focused on its customers, and the directors commit considerable time, effort and resources into understanding and responding to the needs of customers. the directors also seek to build strong relationships with other stakeholders in the areas where we operate.

As a pharmaceutical company, the directors understand the impact of the company's operations on the businesses it serves and the environment, and attribute performance to behaving as a responsible business.

The director's intention is to behave responsibly and ensure that management operates in a responsible manner, operating within the high standards of conduct and good governance required for a business in our sector. all of our people are expected to act within the regulatory framework dictated by our sector. Our reputation is important and the reputational impact of decisions made by the directors are always considered.

As a company, our intention is to behave responsibly toward our shareholders and to trat them fairly and equally, so they too may benefit from the company's success.

S172 (1) of the Companies Act 2006 requires directors of the company to act in a way which they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard to the interests of the stakeholders, including customers, suppliers and the wider community in which it operates. In doing this, section 172 requires each director to have regard to the above matters.

On behalf of the board

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

The principal activity of the company continued to be that of retail pharmacy.

The results for the year are set out on page 12.

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:

The Company is committed to providing equal opportunities to all employees and applicants for employment and aims to ensure that individuals are treated fairly and without discrimination. The Company gives full and fair consideration to applications for employment from disabled persons, having regard to their particular aptitudes and abilities.

Where an existing employee becomes disabled, it is the Company’s policy to continue their employment wherever practicable. Appropriate measures are taken to provide suitable training, adjustments, and support to enable the individual to carry out their role or, where necessary, to undertake alternative duties within the business.

The Company also seeks to ensure that the training, career development, and promotion of disabled persons are, as far as possible, identical to those of other employees.

Information on matters of concern to employees is given through internal bulletins and a website which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance. Arrangements exist to consult and discuss with employees on matters likely to affect their interests.

The company aims to act responsibly and fairly in how it engages with suppliers and customers and has policies in place for entering and maintaining relationships to ensure that it treats all suppliers and customers fairly.

Subsequent to the year end, the Company completed the disposal of three trading branches in April for total consideration of £2.1m. As these transactions took place after the reporting date, they are treated as non‑adjusting post balance sheet events and are not reflected in the financial statements for the year.

In June 2026, the Company also acquired three subsidiary entities from a third party. Each entity comprises a trading branch which is expected to be integrated into the Company during the financial year. As the acquisitions occurred after the reporting date, they are likewise treated as non‑adjusting post balance sheet events.

The Directors consider that these events are indicative of the Company’s ongoing strategic development but do not affect the financial position at the reporting date.

The company will continue to evolve as we see fit to work within the sector. There is still not visibility of the next CPCF, and therefore the focus of the company is to ensure continuity of service to patients until we have foresight of what the next contract will look like. The company will continue to explore its Hub and Spoke offering for the estate and ensure that we are maximising the ability of assembling prescriptions at our central hub, creating capacity with the pharmacy teams to focus on alternative tasks, and developing further services. The company has set ambitious but achievable timescales to ensure that the entire estate can unlock the benefits of an automated Hub & Spoke system within 6 months of going live (in April 2024) to leave value added task time in branch to promote services. The desire of NHSE is to migrate more work away from the GP network, and community Pharmacy is to play a part in supporting with this work – It is therefore imperative that we free up time from dispensing at a local level to support withn this.

The ability for the company to have better visibility on its purchases from Wholesalers needs to be unlocked with the central assembly of prescriptions, as this improves cash flow, as well as reducing risk across the estate.

The company will continue to develop colleagues internally to ensure that we are promoting opportunities both internally, as well as creating a better patient experience.

BK Plus Audit Limited resigned as auditors of the company under Section 516 of the Companies Act 2006 ("the Act"). The Directors can confirm that none of the reasons for BK Plus Audit ceasing to hold office and no matters connected with their ceasing to hold office need to be brought to the attention of members or creditors of the company.

BHP LLP were subsequently appointed as auditors from 17 November 2025 under Section 485 of the Act.

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.

The company has continued to improve efficiency and minimise fuel consumption within its warehouses.

Energy consumption and associated carbon emissions have been calculated in line with the GHG Protocol, using site-level energy data and the UK Government’s published conversion factors. For reporting periods spanning multiple calendar years, a blended approach has been applied to the factors to reflect the fraction of the period in each year. Fugitive emissions have been excluded from this report due to poor data availability and negligible impact. The figures for the previous reporting period have been restated due to significant divestments and closures across the portfolio.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.

During the year, we have continued with our rollout of LED lighting and electrical upgrades across the estate to deliver a reduction in emissions. We are now nearing the end of this programme which will continue in to 2026. We have also moved energy brokers to TRUE energy, who are engaged to assist us with identifying further opportunities.

The prior year energy and carbon report comparative figures have been restated from those previously reported. The comparative information presented in the current year has been updated to ensure consistency with the methodology and is considered accurate.

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 PCT Healthcare Limited (the 'company') for the year ended 30 November 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 November 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 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

• 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; and

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

regulations.

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

Ÿ

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

• tested journal entries to identify unusual transactions;

• 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

• discussions with senior management regarding relevant regulations and reviewing the company’s legal and

professional fees.

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 director’s and other management and the inspection of regulatory and legal correspondence.

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 notes on pages 15 to 31 form part of these financial statements.

PCT Healthcare Limited is a private company limited by shares incorporated in England and Wales. The registered office is 11 Manchester Road, Walkden, Manchester, M28 3NS.

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. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

The financial statements of the company are consolidated in the financial statements of PCT Healthcare (Holdings) Limited. These consolidated financial statements are available from its registered office, 11 Manchester Road, Walkden, Manchester, M28 3NS.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

In assessing whether the going concern basis of accounting is appropriate, the directors have considered the company’s financial performance, liquidity position and forecasts for a period of at least twelve months from the date of approval of the financial statements. The company has incurred significant losses in the current and prior years and reported net current liabilities at the balance sheet date, reflecting the challenging funding environment within the community pharmacy sector and continued pressure on government reimbursement levels. The company is reliant on overdraft facilities and the timely collection of trade debtors, primarily from the NHS, giving rise to liquidity risk. This risk is monitored closely through regular cash flow forecasting, cost control measures and ongoing management of working capital. The directors have also had regard to the continued support of the company’s banking facilities and the company’s ability to manage expenditure and branch performance. Having considered these matters, the directors are satisfied that the company has adequate resources to continue in operational existence for the foreseeable future and therefore continue to adopt the going concern basis of accounting.

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts.

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, 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.

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated impairment losses. Goodwill is amortised over its useful life, which shall not exceed 10 years if a reliable estimate of the useful life cannot be made.

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.

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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

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, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in 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, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future 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.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

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.

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 have had the most significant effect on amounts recognised in the financial statements.

The company estimates the useful lives and residual values of plant, fixtures and equipment in order to calculate depreciation charges. Charges in these estimates could result in changes being required to annual depreciation charges in the profit and loss account and the carrying values of plant, fixtures and equipment.

The company estimates the useful lives and residual values of intangible assets in order to calculate amortisation charges. Changes in these estimates could result in changes being required to annual amortisation charges in the profit and loss account and the carrying values of intangible assets.

The company is subject to review of certain income which may result in clawback of revenues by the department of health. In the directors' view, there was an increase in the provision required in the current year.

Goodwill arising from the acquisition of branches is highly material to the financial statements and therefore represents a key source of estimation uncertainty. Management performs an annual impairment review of all goodwill, allocating it to individual branches and assessing recoverability based on branch‑level profitability using management accounts. These management accounts are reviewed monthly by senior leadership and compared against prior periods to monitor performance. The impairment assessment requires judgement in determining whether current and historic performance remains indicative of future cash‑generating ability, particularly in light of recent losses. Management considers that goodwill is appropriately stated at the balance sheet date.

Exceptional items recognised in the current and prior year relate to the write‑off of irrecoverable intercompany balances arising from historic trading and funding transactions between group entities. In each year, following a thorough review of the recoverability of these balances, the Directors concluded that there was no realistic prospect of recovery, having regard to the financial position and future prospects of the counterparty entities. Accordingly, the balances were written off in full in the respective years.

Note 31 details the impact on the comparative profit and loss account and equity figures previously reported.

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

Their aggregate remuneration comprised:

As total directors' remuneration was less than £200,000 in the both years, no disclosure is provided in relation to the highest paid director.

The actual (credit)/charge 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:

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

The bank overdraft is secured by a fixed and floating charge over the assets of the company.

The NHS Reimbursement provision is to cover clawback of over-reimbursement received in previous financial years.

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

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

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.

Merger reserve

This reserve represents the premium arising on each share issued as part of a reorganisation on 15 March 2021.

Profit and loss reserves

This reserve records retained earnings and accumulated losses.

The bank loan entered into with HSBC on behalf of PCT Healthcare (Holdings) Limited and its subsidiary undertakings had an outstanding balance of £27,500,000 at the reporting date (2024: £31,284,813). As PCT Healthcare (Properties) Limited is a member of the group, the associated debenture is also secured against the assets of that company.

The company's bankers hold an inter-company guarantee between the following group companies: PCT Healthcare (Holdings) Limited, PCT Healthcare Limited, P & A J Cattee (Wholesale) Limited, PCT Healthcare (Properties) Limited.

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:

Amounts contracted for but not provided in the financial statements:

Three branch disposals were completed at the end of April for total consideration of £2.1m. As these transactions occurred after the reporting date, they are treated as non‑adjusting post balance sheet events under FRS 102 Section 32. Accordingly, no adjustment has been made to the financial statements.

In June 2026, the Company acquired three subsidiaries from a third party. Each entity comprises a trading branch which is expected to be transferred (hived up) into the Company during the financial year. As the acquisition took place after the reporting date, it is treated as a non‑adjusting post balance sheet event.

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

The Company has applied the exemption available to group companies preparing consolidated financial statements and, accordingly, has not disclosed transactions with wholly owned subsidiaries.

During the year, the Company made purchases of £652,576 (2024: £1,307,462) from a company under common control. At 30 November 2025, amounts due to this company totalled £146,826 (2024: £185,310).

Amounts due to entities under common ownership at 30 November 2025 were £1,109,580 and £13,721,930 (2024: £1,404,295 and £14,054,119). These balances are interest free.

The Company occupied premises owned by entities under common control. Total rent paid in respect of these properties during the year amounted to £30,000 (2024: £31,500).

During the year, expenses of £752 were incurred in respect of gifts purchased on behalf of a related party under common control.

During the year, the Company made purchases of £61,093,043 (2024: £44,381,317) and sales of £14,161,144 (2024: £2,698,761) with fellow subsidiaries of the ultimate controlling party. At the year end, balances of £12,403,415 (2024: £10,025,379) were due to these entities.

The company is a subsidiary of PCT Healthcare (Holdings) Limited, a company registered in England and Wales, which is regarded by the directors as the company’s immediate and ultimate controlling party.

During the year, the Company identified a prior period error relating to the accounting treatment of certain intercompany balances. These balances had not been fully impaired in prior periods, however following a detailed review undertaken during the year, the Directors concluded that the balances were irrecoverable and should have been written off in earlier financial periods.

Accordingly, a prior year adjustment has been recognised to write off the irrecoverable intercompany balances. The comparative figures have been restated to reflect this adjustment, as if the balances had been written off in the period to which they relate.

Comparative figures have been restated accordingly, and the financial statements are presented as if the error had not occurred.