| Farah Chemists Limited |
| Notes to the Accounts |
| for the year ended 31 October 2025 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard) and the Companies Act 2006 as applicable to companies subject to the small companies regime. The company has taken advantage of the exemption under S399 of the Companies Act 2006 not to prepare consolidated accounts on the basis the group of which this is the parent qualifies as a small group. As a consequence the financial statements present information about the individual entity and not about its group. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Intangible fixed assets |
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Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets aquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Freehold buildings |
Straight line over 50 years |
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Leasehold land and buildings |
Straight line over 100 year lease |
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Fixtures, fittings, tools and equipment |
15% reducing balance |
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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Cash and cash equivalents |
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Cash and cash equivalents are basic financial instruments and include cash in hand and deposits held at call with banks. |
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Financial instruments |
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The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues' of FRS 102 to all its financial instruments. Financial instruments are recognised 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. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Equity instruments |
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Equity instruments issued by the company are recorded at the fair value of 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. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Employee benefits |
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The costs of short-term employee benefits are recognised as a liability and an expense. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments. |
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| 2 |
Employees |
2025 |
|
2024 |
| Number |
Number |
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Average number of persons employed by the company |
48 |
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47 |
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| 3 |
Intangible fixed assets |
£ |
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Goodwill: |
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Cost |
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At 1 November 2024 |
6,747,917 |
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Disposals |
(949,500) |
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At 31 October 2025 |
5,798,417 |
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Amortisation |
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At 1 November 2024 |
2,714,233 |
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Provided during the year |
20,660 |
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At 31 October 2025 |
2,734,893 |
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Net book value |
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At 31 October 2025 |
3,063,524 |
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At 31 October 2024 |
4,033,684 |
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| 4 |
Tangible fixed assets |
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Land and buildings (inc Leasehold) |
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Plant and machinery etc |
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Motor vehicles |
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Total |
| £ |
£ |
£ |
£ |
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Cost |
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At 1 November 2024 |
1,237,278 |
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712,115 |
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241,231 |
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2,190,624 |
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Additions |
- |
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47,186 |
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63,494 |
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110,680 |
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Disposals |
- |
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(92,530) |
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- |
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(92,530) |
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At 31 October 2025 |
1,237,278 |
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666,771 |
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304,725 |
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2,208,774 |
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Depreciation |
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At 1 November 2024 |
116,442 |
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416,688 |
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85,449 |
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618,579 |
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Charge for the year |
23,963 |
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51,392 |
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54,818 |
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130,173 |
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On disposals |
- |
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(65,076) |
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- |
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(65,076) |
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At 31 October 2025 |
140,405 |
|
403,004 |
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140,267 |
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683,676 |
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Net book value |
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At 31 October 2025 |
1,096,873 |
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263,767 |
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164,458 |
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1,525,098 |
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At 31 October 2024 |
1,120,836 |
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295,427 |
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155,782 |
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1,572,045 |
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| 5 |
Debtors |
2025 |
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2024 |
| £ |
£ |
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Trade debtors |
537,627 |
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516,225 |
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ISAA global holdings |
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532,606 |
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- |
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Other debtors |
116,055 |
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95,844 |
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1,186,288 |
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612,069 |
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| 6 |
Creditors: amounts falling due within one year |
2025 |
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2024 |
| £ |
£ |
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Bank loans and overdrafts |
265,782 |
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194,859 |
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ISAA global holdings |
- |
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22,690 |
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Obligations under finance lease and hire purchase contracts |
19,687 |
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29,531 |
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Trade creditors |
128,126 |
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286,851 |
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Taxation and social security costs |
94,030 |
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114,476 |
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Other creditors |
211,997 |
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213,833 |
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719,622 |
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862,240 |
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A first legal charge from Farah Chemists Limited over the leasehold land and buildings at 132-136 Elswick Road, Elswick, Newcastle upon Tyne NE4 6SL. An all moneys joint and several guarantee from Mr Shakeel Ahmed & Mr Mohammed Mushtaq Ahmed for a principal amount of £1,200,000 plus interest and other costs as detailed in the guarantee together with such other security as the Bank may from time to time hold in respect of the debts and liabilities of the guarantors to the Bank. A first legal charge dated 02/03/2023 from Farah Chemists Limited over the leasehold land and buildings at Burnopfield Pharmacy, Cedar Crescent, Burnopfield, Newcastle upon Tyne, NE16 6HU. An unlimited debenture dated 02/03/2023 from Farah Chemists Limited. An omnibus guarantee and set off agreement dated 02/03/2023 among the Bank and Farah Chemists Limited and ISAA Holdings Limited together with such other security as the Bank may from time to time hold in respect of the debts and liabilities of any guarantor to the Bank. |
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| 7 |
Creditors: amounts falling due after one year |
2025 |
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2024 |
| £ |
£ |
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Bank loans |
4,065,300 |
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4,223,532 |
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Obligations under finance lease and hire purchase contracts |
100,561 |
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115,974 |
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4,165,861 |
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4,339,506 |
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A first legal charge from Farah Chemists Limited over the leasehold land and buildings at 132-136 Elswick Road, Elswick, Newcastle upon Tyne NE4 6SL. An all moneys joint and several guarantee from Mr Shakeel Ahmed & Mr Mohammed Mushtaq Ahmed for a principal amount of £1,200,000 plus interest and other costs as detailed in the guarantee together with such other security as the Bank may from time to time hold in respect of the debts and liabilities of the guarantors to the Bank. A first legal charge dated 02/03/2023 from Farah Chemists Limited over the leasehold land and buildings at Burnopfield Pharmacy, Cedar Crescent, Burnopfield, Newcastle upon Tyne, NE16 6HU. An unlimited debenture dated 02/03/2023 from Farah Chemists Limited. An omnibus guarantee and set off agreement dated 02/03/2023 among the Bank and Farah Chemists Limited and ISAA Holdings Limited together with such other security as the Bank may from time to time hold in respect of the debts and liabilities of any guarantor to the Bank. |
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| 8 |
Related party transactions |
2025 |
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2024 |
| £ |
£ |
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The following amounts were outstanding at the reporting end date: |
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Amounts due to related parties |
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ISAA Global Holdings |
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- |
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22,690 |
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Directors |
182,415 |
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204,402 |
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The following amounts were outstanding at the reporting end date: |
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Amounts due from related parties |
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ISAA Global Holdings |
532,606 |
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- |
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| 9 |
Parent company |
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The ultimate controlling party is ISAA Holdings Limited, registered office 136 Armstrong Road, Newcastle upon Tyne NE4 8PR, due to it's ownership of the entire issued share capital. |
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| 10 |
Other information |
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Farah Chemists Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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136 Armstrong Road |
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Newcastle upon Tyne |
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Tyne & Wear |
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NE4 8PR |