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Pierre Fabre Limited
Registered number: 00986738
Annual Report
For the year ended 31 December 2025
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PIERRE FABRE LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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PIERRE FABRE LIMITED
CONTENTS
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Independent Auditors' Report
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Statement of Comprehensive Income
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Statement of Changes in Equity
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Notes to the Financial Statements
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PIERRE FABRE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
Pierre Fabre Limited is a wholly owned UK subsidiary of Pierre Fabre SA operating in the Pharmaceutical and Cosmetic Dermatology markets.
Pharmaceutical products distributed by Pierre Fabre Limited (MC) are made primarily to pharmacies within the NHS and Private hospitals for use in specialist cancer care units as well as for use in Urology and Dermatology.
Dermo-Cosmetic products distributed by Pierre Fabre Limited (DCPC) are sold to consumers primarily through independent pharmacies and pharmacy chains such as Boots, Superdrug and Lloyds. Increasingly, sales are moving online through websites such as Boots.corn but also via the health and beauty e-commerce specialists such as The Hut Group, Escentual and Amazon.
Business review and future developments
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The structural transformation of the NHS has now matured, with Integrated Care Boards (ICBs) fully operational as statutory bodies and assuming expanded commissioning responsibilities, including several specialised services delegated from NHS England. This shift has entrenched regional autonomy in funding and access decisions beyond positive NICE recommendations, resulting in greater variation in formulary adoption and particularly pathway design across England. However, relentless pressure on NHS finances and as an attempt to reduce layers of bureaucracy, NHS England will be abolished with some responsibilities being assumed by the Department of Health and Social Care (DHSC). ICBs must also reduce their budgets by 50% which is leading to the merger or clustering of ICBs for economies of scale. They will work together across a larger footprint, but remain separate organisations legally. The first mergers will take effect from April 2026. For industry, including Pierre Fabre Ltd, this means that field force strategies must increasingly align with local ICB priorities, focusing on integrated care pathways, service efficiency, and population health outcomes.
Across multiple therapy areas, new care models continue to evolve, driven by NHS England's focus on value-based care and medicines optimisation. There is sustained pressure to maximise the use of generics and biosimilars, supported by national procurement frameworks and ICB-level prescribing initiatives. These trends are reshaping service provision, pricing dynamics, and access routes, particularly in high-spend areas such as oncology.
In Q4 2025, the government announced that the VPAG 'headline' payment rate applying to newer medicines for 2026 would be 14.5%, a significant drop vs 22.9% in 2025. Pierre Fabre prescription drugs were above the threshold of £6m in 2025, therefore Pierre Fabre will be required to pay the VPAG payment discount scheme.
In May 2025, the US Administration issued an executive order to develop a "most favoured nation" (MFN) pricing framework for prescription medicines, aimed at reducing US drug expenditure by referencing prices in a basket of comparable high-income countries. The comparator group includes Canada, Denmark, France, Germany, Italy, Japan, Switzerland, and the UK, with US prices benchmarked against the second-lowest country in the basket.
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PIERRE FABRE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
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Business review and future developments (continued)
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On 3 December 2025, the UK Government announced a series of policy responses. These included an increase to the NICE cost-effectiveness threshold range to £25,000-£35,000 per QALY (from £20,000-£30,000), and confirmation that the VPAG rebate rate will not exceed 15% for a three-year period, compared with the prevailing 2025 rate of 22.9%. Consultation between the Government, NICE and NHS England on implementation of the revised NICE cost-effectiveness thresholds commenced in 01 2026, with the thresholds expected to apply from April 2026, subject to agreement on final terms.
In addition, the US confirmed that medicines exported from the UK to the US will not be subject to tariffs. UK pharmaceutical exports to the US are currently valued at approximately £6.6 billion per annum.
Collectively, these developments are expected to improve the UK pricing and reimbursement environment by reducing effective rebate exposure and increasing the likelihood of medicines meeting NICE cost-effectiveness requirements. While access challenges remain, particularly for high-cost and innovative therapies, the changes represent a significant shift in the UK policy landscape for medicines pricing.
DCPC continues to review its sales provision to ensure it is able to respond to the key areas of future retailer growth - both on and offline - to ensure that profitability as well as overall turnover growth is maintained.
The UK Dermo-Cosmetics market is valued at £234m, and in 2025 experienced a 2.5% growth, this trend is forecast to continue as consumer demand for safe cosmetics and newness increases. Awareness and penetration of Dermo-Cosmetics is forecast to continue its growth.
Principal risks and uncertainties
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The NHS continues to operate in a highly cost constrained environment that influences decision making at every level. Recent strategic direction in the government's 10-year plan for England - Fit for the Future, highlights the gravitas of the current financial situation describing the choice for the NHS as 'reform or die'.
The three key shifts in the NHS 10-Year Plan (hospital to community, analogue to digital and sickness to prevention) must also be supported by system-wide reform which include the lowest recorded levels of staff morale. These ongoing circumstances create a difficult environment for the progressive choices that are essential for the NHS to survive.
Specific challenges associated with securing reimbursement for new medicines in the UK remain significant too. While proposed changes to NICE cost-effectiveness thresholds represent a notable policy shift, implementation details have not been finalised. NICE indicated that the revised thresholds are expected to result in approval of only 3-5 additional medicines each year, representing a small proportion of therapies seeking reimbursement. As such, the practical impact of these changes remains uncertain. Combined with ICB mergers, there continues to be a drive towards central decision making in a highly cost-constrained environment.
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PIERRE FABRE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Financial key performance indicators
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Revenue of Dermo-Cosmetic business has grown by 11.1% vs 2024 despite some out of stock due to raw material shortage.
Revenue of Pharmaceutical products has grown by 26.0% due to launch of new products in urology and dermatology and despite the increase of the Tax on Net sales (VPAG).
Pierre Fabre Ltd has got some ongoing clinical studies in oncology and has been claiming R&D tax relief related to the period 2024.
Overall, the operating margin remains strong. Launch of major new products/indications over the next few years ensures that Pierre Fabre Limited has a good outlook for the future and with less uncertainty surrounding Tax on net sales (VPAG scheme): the Government agreed to have VPAG % capped at a maximum of 15% for the next 3 years.
The Company's key financial performance indicators are sales and gross profit. Sales in the year have increased by 22% to £52.5m (2024: £43.0m). The gross margin has decreased slightly in 2025 to 38.3% due to a different product mix.
This report was approved by the board and signed on its behalf by:
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H Demirdere
Director
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PIERRE FABRE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The Directors present their report and the audited financial statements for the year ended 31 December 2025.
The profit for the year, after taxation, amounted to £1,338,896 (2024: £1,175,873).
A dividend of £1,300,000 (2024: £831,000) was paid during the year.
The Directors who served during the year and to the date of this report were:
X P M Benoist (resigned 31 March 2025)
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R Ruer (appointed 1 April 2025)
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A H Peyon (appointed 10 February 2025)
Directors' responsibilities statement
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The Directors are responsible for preparing the Strategic Report, the Directors' Report and the audited financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare audited financial statements for each financial year. Under that law the Directors have elected to prepare the audited financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the audited 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 audited financial statements, the Directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
∙prepare the audited financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the audited 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.
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PIERRE FABRE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Economic impact of global events
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UK businesses are currently facing many uncertainties caused by political, economic, social, technological, legal and environmental factors. These uncertainties have contributed to an environment where there exists a range of issues and risks, including inflation, rising interest rates, labour shortages, disrupted supply chains and new ways of working.
The Directors have carried out an assessment of the potential impact of these uncertainties on the business, including the impact of mitigation measures, and have concluded the greatest impact on the business is expected to be from the economic ripple effect on the global economy.
The Company continues to work with its partners to minimise any impacts of these events and maximise the realisation of any opportunities they may provide to the business.
The Directors have made an assessment in preparing the financial statements as to whether the Company is a going concern. After reviewing the Company's forecasts and projections, including cash flow forecasts, as well as transfer pricing to ensure a fixed profit margin, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company has also received a group letter of support from its ultimate parent company and therefore adopts the going concern basis in preparing its financial statements.
Qualifying third party indemnity provisions
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The Company has made qualifying third party indemnity provisions for the benefit of its Directors which were made during the year and remain in force at the date of this report. No claim or notice of claim in respect of these indemnities has been received in the year.
Matters covered in the Strategic Report
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The mandatory disclosures in relation to the principal risks and uncertainties and the future developments of the Company are considered by the Directors to be of strategic importance. These have therefore been included in the Strategic Report.
Provision of information to the auditor
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Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the Directors is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the Directors has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Post balance sheet events
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There have been no significant events affecting the Company since the year end.
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PIERRE FABRE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The auditors, Forvis Mazars LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf by:
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H Demirdere
Director
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PIERRE FABRE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PIERRE FABRE LIMITED
Opinion
We have audited the financial statements of Pierre Fabre Limited (the ‘Company’) for the year ended 31 December 2025 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
∙give a true and fair view of the state of the Company’s affairs as at 31 December 2025 and of its profit for the year then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the "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.
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PIERRE FABRE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PIERRE FABRE LIMITED
Other information (continued)
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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In 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 and the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of Directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 intend either to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
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PIERRE FABRE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PIERRE FABRE LIMITED
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. 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.
Based on our understanding of the Company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: health and safety regulation, anti-money laundering regulation, medical regulation issued by the MHRA, PMCPA, UK Department of Health and Social Care and the European Clinical Trials Directive.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
∙Inquiring of management and, where appropriate, those charged with governance, as to whether the Company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
∙Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
∙Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
∙Considering the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.
In addition, we evaluated the Directors' and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of mangement override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition (which we pinpointed to the accuracy assertion for revenue rebates), and significant one-off or unusual transactions.
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PIERRE FABRE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PIERRE FABRE LIMITED
Auditor's responsibilities for the audit of the financial statements (continued)
Our audit procedures in relation to fraud included but were not limited to:
∙Making enquiries of the Directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
∙Gaining an understanding of the internal controls established to mitigate risks related to fraud;
∙Discussing amongst the engagement team the risks of fraud; and
∙Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of the audit 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.
Julie Breakell (Senior Statutory Auditor)
for and on behalf of Forvis Mazars LLP
Chartered Accountants and Statutory Auditor
5th Floor, Merck House
Seldown Lane
Poole
Dorset
BH15 1TW
24 March 2026
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PIERRE FABRE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial year
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The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.
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The notes on pages 14 to 31 form part of these financial statements.
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PIERRE FABRE LIMITED
REGISTERED NUMBER: 00986738
BALANCE SHEET
AS AT 31 DECEMBER 2025
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Debtors: amounts falling due after more than one year
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Debtors: amounts falling due within one year
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Cash and cash equivalents
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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H Demirdere
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The notes on pages 14 to 31 form part of these financial statements.
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PIERRE FABRE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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The notes on pages 14 to 31 form part of these financial statements.
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PIERRE FABRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Pierre Fabre Limited is a private company limited by shares, incorporated in the United Kingdom, registration number 00986738. The address of its registered office is 1 Fleet Place, London, EC4M 7WS, and its principal place of business is 250 Longwater Ave, Green Park, Reading, RG2 6GB.
The principal activity of the Company is the sale of pharmaceutical and cosmetic dermatology products.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The Company is itself a subsidiary company and it is exempt from the requirement to prepare group accounts by virtue of section 401 of the Companies Act 2006. These financial statements therefore present information about the Company as an individual undertaking and not about its group.
The financial statements have been presented in Pounds Sterling as this is the currency of the primary economic environment in which the Company operates and is rounded to the nearest pound.
The following principal accounting policies have been applied:
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Financial Reporting Standard 102 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).
This information is included in the consolidated financial statements of Pierre Fabre SA as at 31 December 2025 and these financial statements may be obtained from 45 Place Abel Gance, 92654 Boulogne, France.
The Directors have made an assessment in preparing the financial statements as to whether the Company is a going concern. After reviewing the Company's forecasts and projections, including cash flow forecasts, as well as transfer pricing to ensure a fixed profit margin, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company has also received a group letter of support from its ultimate parent company and therefore adopts the going concern basis in preparing its financial statements.
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PIERRE FABRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentation currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, net of discounts and rebates, and excluding value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:
Sale of goods
Turnover from the sale of goods is recognised when performance obligations are satisified, which is, on delivery.
Rentals paid under operating leases are charged to the profit or loss on a straight-line basis over the lease term.
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
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PIERRE FABRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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Interest receivable and similar income
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Interest income is recognised in the profit or loss using the effective interest method.
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Interest payable and similar expenses
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Finance costs are charged to the profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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PIERRE FABRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Amortisation is included in ‘administrative expenses’ in the Statement of Comprehensive Income.
Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful life.
Depreciation is provided on the following basis:
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Short term leasehold property
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Over the term of the lease
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3 to 5 years straight line
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Depreciation is included in ‘administrative expenses’ in the Statement of Comprehensive Income.
Investments held as fixed assets are shown at cost less provision for impairment.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income.
- 17 -
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PIERRE FABRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Cash pooling is included in intercompany receivables. This is an arrangment where funds are centralised in the French entity and interest is generated on consolidated funds.
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Creditors: amounts falling due within one year
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Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to the profit or loss.
- 18 -
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PIERRE FABRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit or loss.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
Debt factoring involves receiving cash in advance using the Company's trade debtors as security for cash flow purposes. This is a short-term arrangement, of which the Company is required to repay these amounts when received from their customers. The full amount of the available invoices are recognised within trade debtors in the Balance Sheet. The amounts advanced from the third party are recognised as a financial liability as well as amounts received from customers which are to be repaid to the third party.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
- 19 -
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PIERRE FABRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Distribution costs are based on sales staff costs, marketing, delivery and transportation of goods and warehousing. Cost of sales is the cost of products and movements relating to stock. Admin encompasses salary costs of administrative personnel, rent, rates, insurance etc. of buildings and professional fees.
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Judgements in applying accounting policies and key sources of estimation uncertainty
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In the preparation of the 2025 financial statements, it is the responsibility of the Directors to make informed judgements and estimates in the provision of liabilities and expenses.
Pierre Fabre Limited, acknowledges the requirements of this disclosure. As such the Directors of Pierre Fabre Limited can clarify the key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date of 31 December 2025:
Stock provisioning
Monthly monitoring of stock lines is carried out in order to manage stock which has an expiry date of less than 1 year. All stock held within 1 year of expiry is fully provided for.
Dilapidation accrual
Included within accruals are dilapidation costs of £217,380 (2024: £198,500) based upon the estimated price of restoring the premises to their original condition at the end of the lease term in 2026.
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An analysis of turnover by class of business is as follows:
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Dermo-cosmetics and personal care
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Analysis of turnover by country of destination:
- 20 -
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PIERRE FABRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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The operating profit is stated after charging/(crediting):
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Depreciation of tangible fixed assets
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Other operating lease rentals
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Defined contribution pension cost
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During the year, the Company obtained the following services from the Company's auditors and their associates:
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Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
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Fees payable to the Company's auditor in respect of:
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All non-audit services not included above
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- 21 -
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PIERRE FABRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Staff costs, including Directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the Directors, during the year was as follows:
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Admin and general management
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Company contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to 1 Directors (2024: 1) in respect of defined contribution pension schemes.
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The highest paid Director received remuneration of £325,596 (2024: £290,718).
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The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £21,495 (2024: £20,869).
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The remaining Directors are remunerated by other group companies.
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- 22 -
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PIERRE FABRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Interest receivable and similar income
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Intercompany interest receivable
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Interest payable and similar expenses
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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Adjustments in respect of prior periods
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- 23 -
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PIERRE FABRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
12.Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than (2024 -higher than) the standard rate of corporation tax in the UK of25% (2024:25%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 -25%)
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Expenses not deductible for tax purposes
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Adjustments to tax charge in respect of prior periods
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Adjustments to tax charge in respect of previous periods - deferred tax
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Total tax charge for the year
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There are no factors that may affect future tax charges.
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- 24 -
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PIERRE FABRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 25 -
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PIERRE FABRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Short Term Leasehold Property
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- 26 -
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PIERRE FABRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Investments in subsidiary companies
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The following was a subsidiary undertaking of the Company:
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Concept Pharmaceuticals (International) Limited
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One Fleet House, London, United Kingdom, EC4M 7WS
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Finished goods and goods for resale
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Stocks are stated net of provision for impairment of £150,103 (2024: £417,064).
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- 27 -
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PIERRE FABRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Due after more than one year
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Amounts owed by group undertakings
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Prepayments and accrued income
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Other debtors due after more than one year relates to a rental deposit.
Trade debtors are stated net of provision for impairment of £Nil (2024: £Nil).
Cash pooling balances included within amounts owed by group undertakings generates interest receivable at market rates. The amounts owed at the year end are unsecured and repayable on demand.
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Cash and cash equivalents
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- 28 -
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PIERRE FABRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Creditors: amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
Included within financial liabilities is a short-term working capital facility of £2,233,240 that is secured against £4,649,257 of trade debtors of the Company and £2,300,405 relates to amounts repayable to the factor. The fee payable refers to the rates above benchmarks of SONIA for GBP and EURIBOR for EUR and is included within interest payable.
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Charged to the Statement of Comprehensive Income
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The asset for deferred taxation is made up as follows:
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Fixed asset timing differences
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Short term timing differences
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- 29 -
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PIERRE FABRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Allotted, called up and fully paid
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846,667 (2024: 846,667) Ordinary shares of £1 each
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The Company has one class of ordinary shares; each carried one voting right per share but no right to fixed income.
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Profit & loss account
The reserve comprises of the cumulative profits and losses of the Company.
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Financial assets measured at fair value through the Statement of Comprehensive Income
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Financial assets that are debt instruments measured at amortised cost
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Financial liabilities measured at amortised cost
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Financial assets measured at amortised cost comprise trade debtors, other debtors and amounts owed by group undertakings.
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Financial liabilities measured at amortised cost comprise trade creditors, financial liabilities, accruals and amounts owed to group undertakings.
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- 30 -
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PIERRE FABRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amount to £404,254 (2024: £402,277). Contributions totalling £56,781 (2024: £59,615) were payable at the reporting date and included within other taxation and social security.
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Operating lease commitments
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At 31 December 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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The Company has taken advantage of the exemption in Financial Reporting Standard 102, section 33, from the requirement to disclose transactions with group companies on the grounds that consolidated financial statements are prepared by the ultimate parent company.
All Directors and certain senior employees who have authority and responsibility for planning, directing and controlling the activities of the Company are considered to be key management personnel. Total remuneration in respect of these individuals, including the Directors, is £1,592,593 (2024: £1,927,119). Of this £83,735 (2024: £83,735) is recharged to Pierre Fabre SA and £26,202 (2024: £Nil) is recharged to the Nordics.
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Post balance sheet events
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There have been no significant events affecting the Company since the year end.
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Ultimate parent undertaking and controlling party
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The ultimate parent company and the parent company of the smallest and largest group to include the Company in its consolidated financial statements is Pierre Fabre SA, a company incorporated in France.
Copies of its consolidated financial statements are available from 45 Place Abel Gance, 92654 Boulogne, France.
- 31 -
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