Company Registration No. SC432684 (Scotland)
DEANS PHARMACEUTICALS LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2020
PAGES FOR FILING WITH REGISTRAR
DEANS PHARMACEUTICALS LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
DEANS PHARMACEUTICALS LTD
BALANCE SHEET
AS AT 30 NOVEMBER 2020
30 November 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
3
724,286
845,000
Tangible assets
4
121,920
160,621
Investments
5
5,117,451
5,117,451
5,963,657
6,123,072
Current assets
Stocks
85,039
104,438
Debtors
6
480,326
487,826
Cash at bank and in hand
457,610
149,244
1,022,975
741,508
Creditors: amounts falling due within one year
7
(760,819)
(718,776)
Net current assets
262,156
22,732
Total assets less current liabilities
6,225,813
6,145,804
Creditors: amounts falling due after more than one year
8
(3,943,795)
(4,209,499)
Provisions for liabilities
(7,103)
(9,469)
Net assets
2,274,915
1,926,836
Capital and reserves
Called up share capital
9
2
2
Profit and loss reserves
2,274,913
1,926,834
Total equity
2,274,915
1,926,836
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 30 November 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
DEANS PHARMACEUTICALS LTD
BALANCE SHEET (CONTINUED)
AS AT 30 NOVEMBER 2020
30 November 2020
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 30 August 2021 and are signed on its behalf by:
Mr Arif Hanif
Director
Company Registration No. SC432684
DEANS PHARMACEUTICALS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2020
- 3 -
1
Accounting policies
Company information
Deans Pharmaceuticals Ltd is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
1st Floor, 133 Finnieston Street, Glasgow, G3 8HB.
1.1
Accounting convention
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover
comprises revenue recognised by the company in respect of pharmaceutical services provided during the year, exclusive of Value Added Tax and trade discounts.
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years. Following a review for the period ended 30 November 2020 it was concluded the remaining estimated useful life was 7 years and the amortisation rate has been adjusted to reflect this. This revision was made as a result of changing demographic of customers, advancements in technology and sales processes.
1.4
Tangible fixed assets
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:
Shop development
5% straight line
Fixtures, fittings & equipment
16.67% - 20% straight line
Motor vehicles
25% straight line
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
.
1.5
Fixed asset investments
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.
DEANS PHARMACEUTICALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2020
1
Accounting policies
(Continued)
- 4 -
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.
1.6
Stocks
Stocks
are valued at the lower of cost and net realisable value.
1.7
Cash at bank and in hand
Cash at bank and in hand
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.
1.8
Financial instruments
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current 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
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.
DEANS PHARMACEUTICALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2020
1
Accounting policies
(Continued)
- 5 -
1.10
Employee benefits
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
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 lease
s
asset are consumed.
1.13
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred
. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 21(2019 - 19
).
3
Intangible fixed assets
Goodwill
£
Cost
At 1 December 2019 and 30 November 2020
1,300,000
Amortisation and impairment
At 1 December 2019
455,000
Amortisation charged for the year
120,714
At 30 November 2020
575,714
Carrying amount
At 30 November 2020
724,286
At 30 November 2019
845,000
DEANS PHARMACEUTICALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2020
3
Intangible fixed assets
(Continued)
- 6 -
As detailed in the accounting policy the estimated useful life of the goodwill was revised in the period under review. The previous amortisation rate would have amortised £65,000 in the year under review.
4
Tangible fixed assets
Shop development
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 December 2019
100,857
208,220
12,680
321,757
Additions
12,453
12,453
At 30 November 2020
100,857
208,220
25,133
334,210
Depreciation and impairment
At 1 December 2019
34,589
117,832
8,715
161,136
Depreciation charged in the year
5,043
41,644
4,467
51,154
At 30 November 2020
39,632
159,476
13,182
212,290
Carrying amount
At 30 November 2020
61,225
48,744
11,951
121,920
At 30 November 2019
66,268
90,388
3,965
160,621
5
Fixed asset investments
2020
2019
£
£
Investments
5,117,451
5,117,451
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 December 2019 & 30 November 2020
5,117,451
Carrying amount
At 30 November 2020
5,117,451
At 30 November 2019
5,117,451
DEANS PHARMACEUTICALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2020
- 7 -
6
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
418,739
435,479
Other debtors
61,587
52,347
480,326
487,826
7
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans
243,130
235,222
Trade creditors
258,320
243,419
Corporation tax
16,182
21,313
Other taxation and social security
6,255
5,663
Other creditors
236,932
213,159
760,819
718,776
Bank loans are secured by a floating charge over the assets of the company granted to Bank of Scotland plc.
8
Creditors: amounts falling due after more than one year
2020
2019
£
£
Bank loans and overdrafts
3,929,128
4,180,166
Other creditors
14,667
29,333
3,943,795
4,209,499
Bank loans are secured by a floating charge over the assets of the company granted to Bank of Scotland plc.
Amounts included above which fall due after five years are as follows:
Payable by instalments
273,471
319,168
DEANS PHARMACEUTICALS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2020
- 8 -
9
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
2 Ordinary shares of £1 each
2
2