Gluco RX Limited - Limited company accounts 18.2

REGISTERED NUMBER: 07513682 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 March 2019

for

Gluco RX Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

P Khiroya

N Nathwani

Mrs V Khiroya

Mrs P Nathwani

REGISTERED OFFICE:

1C Henley Business Park

Pirbright Road

Guildford

Surrey

GU3 2DX

REGISTERED NUMBER:

07513682 (England and Wales)

AUDITORS:

NSO Associates LLP

Statutory Auditors

75 Springfield Road

Chelmsford

Essex

CM2 6JB

The directors present their strategic report of the company and the group for the year ended 31 March 2019.

REVIEW OF BUSINESS

GlucoRX is a leading UK healthcare company in diabetes management, devoted to launching technologies to support

and save NHS money and improve patient care. The subsidiary company, Inside Biometrics International Limited,

undertakes research and development activity.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing GlucoRx relate to the highly competitive market place in which the company

operates. Technological advances from competitors may also threaten market share.

STRATEGY

The company's vision is to be the number one diabetic product and service provider to both the patient and the NHS in

the UK, and expand products and services worldwide.

BUSINESS ENVIRONMENT

GlucoRx operates in a highly competitive healthcare market in the UK. The company continues to provide quality

products, offering the NHS significant cost savings without compromising on quality. The success of GlucoRx is

attributed to synergy with NHS practices so that savings achieved are re-invested into the care of the local population.

We continue to get our message to more CCGs.

RESULTS AND PERFORMANCE

The results of the group for the year to 31 March 2019 show a profit on ordinary activities before tax of £9,802,963

(2018: £9,959,507). This reflects the planned growth in business activity during 2018/19.

FUTURE DEVELOPMENTS

The group is well placed for further business growth, including strategic acquisitions. In response to known business

risks and uncertainties GlucoRX will continue to expand its portfolio of diabetes products and services. The group has a

pipeline of products and related diabetes products developed and being developed to strengthen the company's position

in the diabetes market.

The Directors remain confident of continuing the current trend of strong business growth.

ON BEHALF OF THE BOARD:

P Khiroya - Director

18 December 2019

The directors present their report with the financial statements of the company and the group for the year ended

31 March 2019.

DIVIDENDS

Interim dividends totalling 16.68p per share were paid during the year. The directors recommend that no final dividend

be paid.

The total distribution of dividends for the year ended 31 March 2019 will be £ 494,979 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2018 to the date of this report.

P Khiroya

N Nathwani

Mrs V Khiroya

Mrs P Nathwani

Other changes in directors holding office are as follows:

C Chapman ceased to be a director after 31 March 2019 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial

statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors

have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the

company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the

directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the

company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable

steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have

taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the

group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

P Khiroya - Director

18 December 2019

Opinion

We have audited the financial statements of Gluco RX Limited (the 'parent company') and its subsidiaries (the 'group')

for the year ended 31 March 2019 which comprise the Consolidated Income Statement, Consolidated Other

Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in

Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated

Cash Flow Statement, 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 Financial Reporting Standard 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 group's and of the parent company affairs as at 31 March 2019 and of the group's 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 Auditors' responsibilities for the audit of the

financial statements section of our report. We are independent of the group 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group

Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the

Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in

the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the

Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you

if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 Statement of Directors' Responsibilities set out on page three, 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 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 group's and the parent 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 either intend to liquidate the group or the parent company or to cease

operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

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 Report of the Auditors.

Use of our 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 a Report of the Auditors 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.

Elaine Anne Oddie (Senior Statutory Auditor)

for and on behalf of NSO Associates LLP

Statutory Auditors

75 Springfield Road

Chelmsford

Essex

CM2 6JB

19 December 2019

31,225,593

TURNOVER

34,798,624

17,085,260

Cost of sales

21,263,238

14,140,333

GROSS PROFIT

13,535,386

4,732,045

Administrative expenses

3,947,426

9,408,288

OPERATING PROFIT

4

9,587,960

161,226

Interest receivable and similar income

215,003

9,569,514

9,802,963

7

Interest payable and similar expenses

5

-

9,569,507

PROFIT BEFORE TAXATION

9,802,963

854,038

Tax on profit

6

1,445,756

8,715,469

PROFIT FOR THE FINANCIAL YEAR

8,357,207

Profit attributable to:

8,715,469

Owners of the parent

8,357,207

8,715,469

PROFIT FOR THE YEAR

8,357,207

OTHER COMPREHENSIVE INCOME

(80,925

)

Purchase of own shares

-

-

Income tax relating to other comprehensive income

-

(80,925

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

8,634,544

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

8,357,207

Total comprehensive income attributable to:

8,634,544

Owners of the parent

8,357,207

FIXED ASSETS

54,167

Intangible assets

9

-

213,567

Tangible assets

10

162,575

-

Investments

11

-

267,734

162,575

CURRENT ASSETS

3,654,445

Stocks

12

2,923,889

5,544,432

Debtors

13

6,244,715

3,394,413

Investments

14

5,698,327

19,006,296

Cash at bank and in hand

25,849,410

31,599,586

40,716,341

CREDITORS

3,938,017

Amounts falling due within one year

15

5,087,385

27,661,569

NET CURRENT ASSETS

35,628,956

27,929,303

TOTAL ASSETS LESS CURRENT LIABILITIES

35,791,531

CAPITAL AND RESERVES

29,675

Called up share capital

16

29,675

325

Capital redemption reserve

17

325

27,899,303

Retained earnings

17

35,761,531

27,929,303

SHAREHOLDERS' FUNDS

35,791,531

The financial statements were approved by the Board of Directors on 18 December 2019 and were signed on its behalf

by:

P Khiroya - Director

FIXED ASSETS

-

Intangible assets

9

-

-

Tangible assets

10

-

1,630,064

Investments

11

-

1,630,064

-

CURRENT ASSETS

3,578,813

Stocks

12

2,896,982

5,544,232

Debtors

13

6,175,800

3,394,413

Investments

14

5,698,327

18,891,994

Cash at bank and in hand

25,819,017

31,409,452

40,590,126

CREDITORS

3,860,596

Amounts falling due within one year

15

5,030,974

27,548,856

NET CURRENT ASSETS

35,559,152

29,178,920

TOTAL ASSETS LESS CURRENT LIABILITIES

35,559,152

CAPITAL AND RESERVES

29,675

Called up share capital

16

29,675

325

Capital redemption reserve

17

325

29,148,920

Retained earnings

17

35,529,152

29,178,920

SHAREHOLDERS' FUNDS

35,559,152

9,965,086

Company's profit for the financial year

6,875,211

The financial statements were approved by the Board of Directors on 18 December 2019 and were signed on its behalf by:

P Khiroya - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2017

30,000

19,512,569

-

19,542,569

Changes in equity

Issue of share capital

(325

)

-

-

(325

)

Dividends

-

(247,485

)

-

(247,485

)

Total comprehensive income

-

8,634,219

325

8,634,544

Balance at 31 March 2018

29,675

27,899,303

325

27,929,303

Changes in equity

Dividends

-

(494,979

)

-

(494,979

)

Total comprehensive income

-

8,357,207

-

8,357,207

Balance at 31 March 2019

29,675

35,761,531

325

35,791,531

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2017

30,000

19,512,569

-

19,542,569

Changes in equity

Issue of share capital

(325

)

-

-

(325

)

Dividends

-

(247,485

)

-

(247,485

)

Total comprehensive income

-

9,883,836

325

9,884,161

Balance at 31 March 2018

29,675

29,148,920

325

29,178,920

Changes in equity

Dividends

-

(494,979

)

-

(494,979

)

Total comprehensive income

-

6,875,211

-

6,875,211

Balance at 31 March 2019

29,675

35,529,152

325

35,559,152

Cash flows from operating activities

8,198,202

Cash generated from operations

1

9,377,832

(7

)

Interest paid

-

(1,200,000

)

Tax paid

(934,881

)

6,998,195

Net cash from operating activities

8,442,951

Cash flows from investing activities

(54,167

)

Purchase of intangible fixed assets

-

(266,959

)

Purchase of tangible fixed assets

(3,000

)

-

Sale of tangible fixed assets

500

(3,586,716

)

Purchase of current asset investments

(1,317,361

)

161,226

Interest received

215,003

(3,746,616

)

Net cash from investing activities

(1,104,858

)

Cash flows from financing activities

(325

)

Share issue

-

(80,925

)

Share buyback

-

(247,485

)

Equity dividends paid

(494,979

)

(328,735

)

Net cash from financing activities

(494,979

)

2,922,844

Increase in cash and cash equivalents

6,843,114

16,083,452

Cash and cash equivalents at beginning of year

2

19,006,296

19,006,296

Cash and cash equivalents at end of year

2

25,849,410

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.3.19

31.3.18

£

£

Profit before taxation

9,802,963

9,569,507

Depreciation charges

53,992

53,392

(Profit)/loss on disposal of fixed assets

(500

)

2,376

(Gain)/loss on revaluation of fixed assets

(932,386

)

192,303

Finance costs

-

7

Finance income

(215,003

)

(161,226

)

8,709,066

9,656,359

Decrease/(increase) in stocks

730,556

(2,448,793

)

(Increase)/decrease in trade and other debtors

(700,283

)

178,022

Increase in trade and other creditors

638,493

812,614

Cash generated from operations

9,377,832

8,198,202

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these

Balance Sheet amounts:

Year ended 31 March 2019

31.3.19

1.4.18

£

£

Cash and cash equivalents

25,849,410

19,006,296

Year ended 31 March 2018

31.3.18

1.4.17

£

£

Cash and cash equivalents

19,006,296

16,083,452

1.	STATUTORY INFORMATION

Gluco RX Limited 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 General 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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.

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

50% on cost

Computer equipment

-

33% on cost

Stocks

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

moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme

are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

31.3.19

31.3.18

£

£

Wages and salaries

2,328,460

2,139,612

Social security costs

221,360

230,612

Other pension costs

29,530

9,459

2,579,350

2,379,683

The average number of employees during the year was as follows:

31.3.19

31.3.18

Directors

3

3

Sales

19

18

Administration

7

7

Healthcare

1

3

Research & development

23

29

53

60

31.3.19

31.3.18

£

£

Directors' remuneration

503,601

415,713

Information regarding the highest paid director is as follows:

31.3.19

31.3.18

£

£

Emoluments etc

195,000

150,000

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.3.19

31.3.18

£

£

Depreciation - owned assets

53,992

53,392

(Profit)/loss on disposal of fixed assets

(500

)

2,376

Auditors' remuneration

8,430

6,600

Foreign exchange differences

(8,211

)

320,640

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.19

31.3.18

£

£

Bank interest

-

7