ACCOUNTS - Final Accounts

Commitments under operating leases

At 31 December 2017 the Company had future minimum lease payments under non-cancellable operating leases as follows:

Caseware UK (AP4) 2016.0.181 2016.0.181 2017-12-312017-12-31The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.truetrueThe company's principal activity continues to be that of a dispensing chemist in specialised stores.false2017-01-01 03891952 2017-01-01 2017-12-31 03891952 2016-01-01 2016-12-31 03891952 2017-12-31 03891952 2016-12-31 03891952 2016-01-01 03891952 1 2017-01-01 2017-12-31 03891952 d:Director2 2017-01-01 2017-12-31 03891952 d:RegisteredOffice 2017-01-01 2017-12-31 03891952 c:Buildings c:ShortLeaseholdAssets 2017-01-01 2017-12-31 03891952 c:Buildings c:ShortLeaseholdAssets 2017-12-31 03891952 c:Buildings c:ShortLeaseholdAssets 2016-12-31 03891952 c:MotorVehicles 2017-01-01 2017-12-31 03891952 c:MotorVehicles 2017-12-31 03891952 c:MotorVehicles 2016-12-31 03891952 c:MotorVehicles c:OwnedOrFreeholdAssets 2017-01-01 2017-12-31 03891952 c:FurnitureFittings 2017-01-01 2017-12-31 03891952 c:FurnitureFittings 2017-12-31 03891952 c:FurnitureFittings 2016-12-31 03891952 c:FurnitureFittings c:OwnedOrFreeholdAssets 2017-01-01 2017-12-31 03891952 c:OfficeEquipment 2017-12-31 03891952 c:OfficeEquipment 2016-12-31 03891952 c:OfficeEquipment c:OwnedOrFreeholdAssets 2017-01-01 2017-12-31 03891952 c:ComputerEquipment 2017-01-01 2017-12-31 03891952 c:OwnedOrFreeholdAssets 2017-01-01 2017-12-31 03891952 c:Goodwill 2017-01-01 2017-12-31 03891952 c:Goodwill 2017-12-31 03891952 c:Goodwill 2016-12-31 03891952 c:CurrentFinancialInstruments 2017-12-31 03891952 c:CurrentFinancialInstruments 2016-12-31 03891952 c:Non-currentFinancialInstruments 2017-12-31 03891952 c:Non-currentFinancialInstruments 2016-12-31 03891952 c:CurrentFinancialInstruments c:WithinOneYear 2017-12-31 03891952 c:CurrentFinancialInstruments c:WithinOneYear 2016-12-31 03891952 c:Non-currentFinancialInstruments c:AfterOneYear 2017-12-31 03891952 c:Non-currentFinancialInstruments c:AfterOneYear 2016-12-31 03891952 c:ShareCapital 2017-12-31 03891952 c:ShareCapital 2016-12-31 03891952 c:ShareCapital 2016-01-01 03891952 c:RetainedEarningsAccumulatedLosses 2017-01-01 2017-12-31 03891952 c:RetainedEarningsAccumulatedLosses 2017-12-31 03891952 c:RetainedEarningsAccumulatedLosses 2016-01-01 2016-12-31 03891952 c:RetainedEarningsAccumulatedLosses 2016-12-31 03891952 c:RetainedEarningsAccumulatedLosses 2016-01-01 03891952 d:FRS102 2017-01-01 2017-12-31 03891952 d:AuditExemptWithAccountantsReport 2017-01-01 2017-12-31 03891952 d:FullAccounts 2017-01-01 2017-12-31 03891952 d:PrivateLimitedCompanyLtd 2017-01-01 2017-12-31 03891952 c:Subsidiary1 2017-01-01 2017-12-31 03891952 c:Subsidiary1 1 2017-01-01 2017-12-31 03891952 c:WithinOneYear 2017-12-31 03891952 c:WithinOneYear 2016-12-31 03891952 c:BetweenOneFiveYears 2017-12-31 03891952 c:BetweenOneFiveYears 2016-12-31 iso4217:GBP xbrli:pure

Registered number: 03891952

PHARMA-Z LIMITED

UNAUDITED

DIRECTOR'S REPORT AND FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 31 DECEMBER 2017

PHARMA-Z LIMITED

COMPANY INFORMATION

Director	D M Whyatt


Registered number	03891952


Registered office	Dove House Farm
	Dove House Lane
	Potter Heigham
	Norfolk
	NR29 5LJ


Accountants	MA Partners LLP
	Chartered Accountants
	7 The Close
	Norwich
	Norfolk
	NR1 4DJ

PHARMA-Z LIMITED

CONTENTS

	Page
Director's report	1
Accountants' report	2
Balance sheet	3 - 4
Statement of changes in equity	5
Notes to the financial statements	6 - 13

PHARMA-Z LIMITED

DIRECTOR'S REPORT

FOR THE YEAR ENDED 31 DECEMBER 2017

The director presents her report and the financial statements for the year ended 31 December 2017.

Principal activity

Director

The director who served during the year was:

D M Whyatt

This report was approved by the board on 21 September 2018 and signed on its behalf.

D M Whyatt

Director

Page 1

PHARMA-Z LIMITED

CHARTERED ACCOUNTANTS' REPORT TO THE DIRECTOR ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF PHARMA-Z LIMITED
FOR THE YEAR ENDED 31 DECEMBER 2017

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Pharma-Z Limited for the year ended 31 December 2017 which comprise the Balance sheet, the Statement of changes in equity and the related notes from the Company accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/ members/regulations-standards-and-guidance/.

This report is made solely to the director of Pharma-Z Limited in accordance with the terms of our engagement letter dated 20 July 2015. Our work has been undertaken solely to prepare for your approval the financial statements of Pharma-Z Limited and state those matters that we have agreed to state to the director of Pharma-Z Limited in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Pharma-Z Limited and its director for our work or for this report.

It is your duty to ensure that Pharma-Z Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit or loss of Pharma-Z Limited. You consider that Pharma-Z Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or review of the financial statements of Pharma-Z Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

MA Partners LLP

Chartered Accountants

7 The Close

Norwich

Norfolk

NR1 4DJ

21 September 2018

Page 2

PHARMA-Z LIMITED

REGISTERED NUMBER: 03891952

BALANCE SHEET

AS AT 31 DECEMBER 2017

		2017		2016
Note		£		£

Fixed assets
Intangible assets	4		199,890		307,170
Tangible assets	5		89,246		96,002
Investments	6		950,139		950,139
			1,239,275		1,353,311
Current assets
Stocks		477,949		464,768
Debtors: amounts falling due within one year	7	777,386		777,847
Bank & cash balances		769,187		439,945
		2,024,522		1,682,560
Creditors: amounts falling due within one year	8	(1,339,649)		(895,693)
Net current assets			684,873		786,867
Total assets less current liabilities			1,924,148		2,140,178
Creditors: amounts falling due after more than one year	9		(979,691)		(1,207,942)
Provisions for liabilities
Deferred tax			(3,344)		(5,682)
Net assets			941,113		926,554

Capital and reserves
Called up share capital	2	2
Profit and loss account	941,111	926,552
	941,113	926,554

The director considers that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.

The director acknowledges her responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

Page 3

PHARMA-Z LIMITED

REGISTERED NUMBER: 03891952

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2017

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

The Company has opted not to file the profit and loss account in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 21 September 2018.

D M Whyatt

Director

Page 4

PHARMA-Z LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2017

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 January 2016	2	994,663	994,665
Comprehensive income for the year
Profit for the year	-	63,889	63,889
Dividends: Equity capital	-	(132,000)	(132,000)

At 1 January 2017	2	926,552	926,554
Comprehensive income for the year
Profit for the year	-	114,559	114,559
Dividends: Equity capital	-	(100,000)	(100,000)
At 31 December 2017	2	941,111	941,113

The notes on pages 6 to 13 form part of these financial statements.

Page 5

PHARMA-Z LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

1.	General information

Pharma-Z Limited is a private company limited by shares. It is both incorporated and domiciled in England and Wales. The address of its registered office is Dove House Farm, Dove House Lane, Potter Heigham, Norfolk NR29 5LJ.
The company's principal activity is that of dispensing, retail and wholesale pharmacy. Its principal place of business is Norwich, UK.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

2.2

Turnover

Turnover is derived from the sale of retail and wholesale pharmaceuticals. Revenue is recognised when goods are despatched or made available for collection. All revenue is stated net of value added tax.

2.3

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Profit and loss account on a straight line basis over the lease term.

2.4

Interest income

Interest income is recognised in the Profit and loss account using the effective interest method.

2.5

Finance costs

Finance costs are charged to the Profit and loss account 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.

2.6

Borrowing costs

All borrowing costs are recognised in the Profit and loss account in the year in which they are incurred.

Page 6

PHARMA-Z LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

2.Accounting policies (continued)

2.7

Pensions

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 and loss account 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.

2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Profit and loss account, 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.

2.9

Intangible assets

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Profit and loss account over its useful economic life of ten years.

2.10

Tangible fixed assets

Tangible fixed assets under the cost model 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.

Page 7

PHARMA-Z LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

2.Accounting policies (continued)

2.10

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on both a straight line and reducing balance basis.

Depreciation is provided on the following basis:

S/Term Leasehold Property	-	10% straight line
Motor vehicles	-	20% straight line
Fixtures & fittings	-	25% reducing balance
Computer equipment	-	33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Profit and loss account.

2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.12

Stocks

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 on a first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.

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 profit or loss.

2.13

Debtors

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.

2.14

Cash and cash equivalents

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.

2.15

Creditors

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.

Page 8

PHARMA-Z LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

2.Accounting policies (continued)

2.16

Financial instruments

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 and loans to related parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Employees

The average monthly number of employees, including directors, during the year was 44 (2016 - 43).

4.	Intangible assets

		Goodwill
		£
	Cost
	At 1 January 2017	2,132,799
	At 31 December 2017	2,132,799
	Amortisation
	At 1 January 2017	1,825,629
	Charge for the year	107,280
	At 31 December 2017	1,932,909
	Net book value
	At 31 December 2017	199,890
	At 31 December 2016	307,170

Page 9

PHARMA-Z LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

5.	Tangible fixed assets

	S/Term Leasehold Property	Motor vehicles	Fixtures & fittings	Office equipment	Total
	£	£	£	£	£
Cost or valuation
At 1 January 2017	166,244	29,925	109,707	11,772	317,648
Additions	11,322	-	1,012	-	12,334
At 31 December 2017	177,566	29,925	110,719	11,772	329,982
Depreciation
At 1 January 2017	84,186	27,588	99,731	10,140	221,645
Charge for the year on owned assets	13,316	2,337	2,747	691	19,091
At 31 December 2017	97,502	29,925	102,478	10,831	240,736
Net book value
At 31 December 2017	80,064	-	8,241	941	89,246
At 31 December 2016	82,058	2,337	9,976	1,631	96,002

Page 10

PHARMA-Z LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

6.	Fixed asset investments

		Investments in subsidiary companies
		£
	Cost
	At 1 January 2017 and 31 December 2017	950,139

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Class of shares	Holding	Principal activity

Hamblin's Pharmacy Limited

Ordinary

100%

Dispensing, retail and wholesale pharmacy

Debtors

					2017	2016
					£	£

Trade debtors	647,330	611,151
Other debtors	114,566	152,756
Prepayments and accrued income	15,490	13,940
	777,386	777,847

Page 11

PHARMA-Z LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

8.	Creditors: Amounts falling due within one year
		2017	2016
		£	£

Bank loans	228,251	226,470
Trade creditors	653,416	609,210
Corporation tax	30,786	22,392
Other taxation and social security	19,404	21,526
Other creditors	394,685	3,001
Accruals and deferred income	13,107	13,094
	1,339,649	895,693

9.	Creditors: Amounts falling due after more than one year
		2017	2016
		£	£

Bank loans	979,691	1,207,942
	979,691	1,207,942

Bank loans of £1,207,943 (2016: £1,434,412) are secured by way of legal charges and a debenture against the Company's assets and its leasehold properties.

Not later than 1 year	61,600	60,000
Later than 1 year and not later than 5 years	141,600	197,083
	203,200	257,083

11.	Related party transactions
	At the year end the Company owed £392,913 (2016: was owed £76,284) to its subsidiary. This loan is interest free, has no set date for repayment and is included in creditors: amounts falling due within one year in note 8 to the financial statements.

Page 12

PHARMA-Z LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

12.	Post balance sheet events

On 1 January 2018 the Company's subsidiary, Hamblin's Pharmacy Limited, was hived up into Pharma-Z Limited.

Page 13