Davina Pharmacy Limited Filleted accounts for Companies House (small and micro)

DAVINA PHARMACY LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 04990110

Davina Pharmacy Limited

Filleted Unaudited Financial Statements

31 July 2019

Davina Pharmacy Limited

Statement of Financial Position

31 July 2019

	2019	2018
Note	£	£

Fixed assets

Intangible assets	5	136,000	176,000
Tangible assets	6	55,839	70,652
		-----------	-----------
		191,839	246,652

Current assets

Stocks		32,000	38,316
Debtors	7	348,556	213,383
Cash at bank and in hand		9,222	53,558
		-----------	-----------
		389,778	305,257

Creditors: amounts falling due within one year	8	224,887	239,031
		-----------	-----------
Net current assets		164,891	66,226
		-----------	-----------
Total assets less current liabilities		356,730	312,878

Provisions	( 3,980)	( 5,137)
	-----------	-----------
Net assets	352,750	307,741
	-----------	-----------

Capital and reserves

Called up share capital	100	100
Profit and loss account	352,650	307,641
	-----------	-----------
Shareholders funds	352,750	307,741
	-----------	-----------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

Davina Pharmacy Limited

Statement of Financial Position (continued)

31 July 2019

For the year ending 31 July 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

These financial statements were approved by the board of directors and authorised for issue on 15 April 2020 , and are signed on behalf of the board by:

Mr I Khan

Director

Company registration number: 04990110

Davina Pharmacy Limited

Notes to the Financial Statements

Year ended 31 July 2019

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 155 Elliott Street, Tyldesley, Manchester, M29 8FL.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease income is recognised in profit or loss on a straight line basis over the lease term. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight-line basis. Costs, including depreciation, incurred in earning the lease income are recognised as an expense. Any initial direct costs incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Goodwill	-	10% straight line

The amortisation rate has been amended to 10% from 4% in line with FRS 102.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Long leasehold property	-	20% reducing balance
Plant and machinery	-	25% reducing balance
Fixtures and fittings	-	25% reducing balance

	Equipment	-	25% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 10 (2018: 14 ).

5. Intangible assets

	Goodwill
	£
Cost
At 1 August 2018 and 31 July 2019	400,000
	-----------
Amortisation
At 1 August 2018	224,000
Charge for the year	40,000
	-----------
At 31 July 2019	264,000
	-----------
Carrying amount
At 31 July 2019	136,000
	-----------
At 31 July 2018	176,000
	-----------

6. Tangible assets

	Long leasehold property	Plant and machinery	Fixtures and fittings	Equipment	Total
	£	£	£	£	£
Cost
At 1 August 2018	133,100	4,717	110,661	35,365	283,843
Additions	–	–	–	893	893
	-----------	--------	-----------	---------	-----------
At 31 July 2019	133,100	4,717	110,661	36,258	284,736
	-----------	--------	-----------	---------	-----------
Depreciation
At 1 August 2018	89,485	3,617	88,774	31,315	213,191
Charge for the year	8,723	275	5,472	1,236	15,706
	-----------	--------	-----------	---------	-----------
At 31 July 2019	98,208	3,892	94,246	32,551	228,897
	-----------	--------	-----------	---------	-----------
Carrying amount
At 31 July 2019	34,892	825	16,415	3,707	55,839
	-----------	--------	-----------	---------	-----------
At 31 July 2018	43,615	1,100	21,887	4,050	70,652
	-----------	--------	-----------	---------	-----------

7. Debtors

	2019	2018
	£	£
Trade debtors	190,273	195,988
Amounts owed by group undertakings and undertakings in which the company has a participating interest	144,703	–
Other debtors	13,580	17,395
	-----------	-----------
	348,556	213,383
	-----------	-----------

8. Creditors: amounts falling due within one year

	2019	2018
	£	£
Trade creditors	199,408	201,410
Amounts owed to group undertakings and undertakings in which the company has a participating interest	–	12,000
Corporation tax	13,823	10,747
Social security and other taxes	756	3,116
Other creditors	10,900	11,758
	-----------	-----------
	224,887	239,031
	-----------	-----------

9. Related party transactions

Cloud Healthcare Limited , a company controlled by the directors of the Company, holds 100% of the Company's issued share capital. Cloud Healthcare Limited is therefore the controlling party of the Company. There were no dividends declared during the year. In the prior year, the previous directors received £20,000 by way of dividends. At the year end, the Company owed Mr A Mehta, a previous director, £8,400 (2018: £8,400) as disclosed in Creditors. In Debtors, as at 31 July 2019, there is a balance of £ 144,703 owed by Cloud Healthcare Limited to the Company. At the end of the prior year, in Creditors, there was a balance of £ 12,000 owed by the Company to Cloud Healthcare Limited. No further transactions occurred which are required to be disclosed under FRS 102.