Neon Healthcare Ltd - Accounts to registrar (filleted) - small 18.2

NEON HEALTHCARE LTD

Financial Statements

for the Year Ended 31 March 2021

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Directors:

N M Foster

A J W Jenkins

S P Knightley

Registered office:

8 The Chase John Tate Road

Foxholes Business Park

Hertford

Hertfordshire

SG13 7NN

Registered number:

06844351 (England and Wales)

Auditors:

Haines Watts

Chartered Accountants and Statutory Auditor

178 Buckingham Avenue

Slough

Berkshire

SL1 4RD

Fixed assets

Tangible assets

4

142,763

10,602

Current assets

Stocks

10,309,171

879,401

Debtors

5

7,389,882

803,659

Cash at bank

1,054,022

837,567

18,753,075

2,520,627

Creditors

Amounts falling due within one year

6

17,224,609

1,337,027

Net current assets

1,528,466

1,183,600

Total assets less current liabilities

1,671,229

1,194,202

Creditors

Amounts falling due after more than one year

7

(500,000

)

(513,370

)

Provisions for liabilities

(23,332

)

-

Net assets

1,147,897

680,832

Capital and reserves

Called up share capital

1,000

1,000

Retained earnings

9

1,146,897

679,832

Shareholders' funds

1,147,897

680,832

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 23 December 2021 and were signed on its behalf by:

N M Foster - Director

1.	Statutory information

Neon Healthcare Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in sterling which is the functional currency of the company and rounded to the nearest pound.

In the previous accounting period, the directors were satisfied that the company met the requirements for an audit exemption under section 477 of the Companies Act 2006 and therefore the comparative information has not been audited.

Going Concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Although the COVID-19 pandemic did present some challenges for the business, overall it did not have a negative impact on the entity and the directors do not expect any such negative impact in the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Within these financial statements the stock provision is considered to be a key accounting estimate.

Stock provisions are reviewed on an annual basis and all short-dated stock is fully provided for. Products become short-dated six months before the corresponding batch expiry date, except sterile products which become short-dated three months before the corresponding batch expiry date. In exceptional circumstances, due to patient needs and if there is not an alternate medicine available, a product may be sold past the six-month short date period, but before the corresponding batch expiry date. Such exceptional circumstances are documented and approved by the Quality Assurance team. Whilst every attempt is made to ensure that the stock provisions are as accurate as possible, there remain a risk that the provisions do not match the ultimate unrealised value of stock held.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

20% on cost

Fixtures and fittings

-

25% on cost

Computer equipment

-

25% on cost

Tangible fixed assets are stated at cost less depreciation.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the company's cash management.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

3.	Employees and directors

The average number of employees during the year was 8 (2020 - 6 ) .

4.	Tangible fixed assets

Fixtures

Improvements

and

Computer

to property

fittings

equipment

Totals

£

£

£

£

Cost

At 1 April 2020

-

5,554

11,627

17,181

Additions

121,013

520

15,712

137,245

At 31 March 2021

121,013

6,074

27,339

154,426

Depreciation

At 1 April 2020

-

2,037

4,542

6,579

Charge for year

-

1,397

3,687

5,084

At 31 March 2021

-

3,434

8,229

11,663

Net book value

At 31 March 2021

121,013

2,640

19,110

142,763

At 31 March 2020

-

3,517

7,085

10,602

5.

Debtors: amounts falling due within one year

2021

2020

£

£

Trade debtors

6,439,560

757,169

Other debtors

710,469

15,605

Tax

16,914

-

Prepayments and accrued income

222,939

30,885

7,389,882

803,659

6.

Creditors: amounts falling due within one year

2021

2020

£

£

Bank loans and overdrafts

-

162

Trade creditors

11,541,190

507,649

Tax

-

14,443

Social security and other taxes

251,660

87,251

Other creditors

4,624,655

684,037

Directors' loan accounts

106,630

-

Accrued expenses

700,474

43,485

17,224,609

1,337,027

7.

Creditors: amounts falling due after more than one year

2021

2020

£

£

Other creditors

-

13,370

Directors' loan accounts

500,000

500,000

500,000

513,370

The loan from the director is secured over the assets of the company and interest is being charged at 4% per annum.

8.	Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:

2021

2020

£

£

Within one year

24,164

-

Between one and five years

225,836

-

250,000

-

9.

Reserves

Retained

earnings

£

At 1 April 2020

679,832

Profit for the year

567,065

Dividends

(100,000

)

At 31 March 2021

1,146,897

10.	Disclosure under Section 444(5B) of the Companies Act 2006

The Auditors' Report was qualified on the following basis:

Basis for qualified opinion

We were not appointed as auditor of the company until after 31 March 2021 and thus did not observe the counting of physical stock at the end of the 2020 or 2021 financial period. We have been able to satisfy ourselves by alternative means over the stock quantities held at 31 March 2021, however we have not been able to gain comfort over the stock quantities held at the 31 March 2020. Consequently we are unable to determine whether this balance is materially correct.

Jane Wills (Senior Statutory Auditor)

for and on behalf of Haines Watts

11.	Related party disclosures

The balance due from the company to the directors at year end was £606,630 (2020: £513,370).

During the year the company paid dividends of £100,000 (2020 - £80,000) to the directors.

12.	Ultimate controlling party

The ultimate controlling party is considered to be A Jenkins by virtue of his majority shareholding.