MD Romsey Ltd - Period Ending 2020-06-30
MD Romsey Ltd - Period Ending 2020-06-30
Registration number:
MD Romsey Ltd
(formerly
for the Year Ended 30 June 2020
MD Romsey Ltd
(formerly
Contents
Company Information |
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Accountants' Report |
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Balance Sheet |
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Notes to the Unaudited Financial Statements |
MD Romsey Ltd
(formerly
Company Information
Directors |
Mr Mark Hunter Dobson Mrs Danielle Dobson |
Registered office |
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Accountants |
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Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
MD Romsey Ltd
for the Year Ended 30 June 2020
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of MD Romsey Ltd for the year ended 30 June 2020 as set out on pages 3 to 9 from the company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants of Scotland, we are subject to its ethical and other professional requirements which are detailed at http://www.icas.org.uk/accountspreparationguidance.
This report is made solely to you, in accordance with the terms of our engagement. Our work has been undertaken solely to prepare for your approval the financial information of MD Romsey Ltd and state those matters that we have agreed to state to you in this report in accordance with the requirements of the Institute of Chartered Accountants of Scotland as detailed at http://www.icas.org.uk/accountspreparationguidance. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors, as a body, for our work or for this report.
It is your duty to ensure that MD Romsey Ltd has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of MD Romsey Ltd. You consider that MD Romsey Ltd is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the accounts of MD Romsey Ltd. 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 accounts.
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Chartered Accountants
Edinburgh
Lothian
EH9 3DP
MD Romsey Ltd
(formerly
(Registration number: 08111262)
Balance Sheet as at 30 June 2020
Note |
2020 |
2019 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
- |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
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Total equity |
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For the financial year ending 30 June 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
• |
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• |
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
.........................................
Director
MD Romsey Ltd
(formerly
Notes to the Unaudited Financial Statements for the Year Ended 30 June 2020
General information |
The company is a private company limited by share capital, incorporated in England.
The company was formerly known as Rushport (Romsey) Limited.
The address of its principal place of business and registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention.
The presentation currency is sterling.
Going concern
The financial statements have been prepared on the going concern basis. The directors consider this appropriate as the company is supported by the increasing value of its licence and it continues to meet its day to day commitments from working capital and existing financial arrangements as they fall due. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
Revenue recognition
Turnover represents the fair value of the consideration received or receivable for the sale of pharmaceutical products, excluding value added tax and net of discounts allowed, recognised when goods are despatched or provided to customers.
Tax
The tax expense for the period comprises current tax and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less accumulated depreciation and subsequent accumulated impairment losses.
MD Romsey Ltd
(formerly
Notes to the Unaudited Financial Statements for the Year Ended 30 June 2020
Depreciation
Depreciation is charged so as to write off the cost less residual value of assets over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Leasehold property improvements |
5% per annum straight line |
Plant and equipment |
10% per annum straight line |
Office equipment |
20% per annum straight line |
Fixtures and fittings |
10% per annum straight line |
Motor vehicles |
25% per annum straight line |
Intangible assets
The company's intangible assets comprise licence fees paid to obtain permission to operate the company's original pharmacy and on the aquisition of a second pharmacy.
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost over their useful life as follows:
Asset class |
Amortisation method and rate |
Pharmacy licences |
10% per annum straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items, and comprise pharmaceutical products for resale.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
MD Romsey Ltd
(formerly
Notes to the Unaudited Financial Statements for the Year Ended 30 June 2020
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
The company operates a defined contribution plan which is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Taxation |
Analysis of the tax charge/(credit) on the profit/(loss) for the year was s follows: |
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2020 |
2019 |
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£ |
£ |
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UK Corporation tax |
40,121 |
6,546 |
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Deferred tax |
710 |
(708) |
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40,831 |
5,838 |
MD Romsey Ltd
(formerly
Notes to the Unaudited Financial Statements for the Year Ended 30 June 2020
Intangible assets |
Other intangible assets |
Total |
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Cost or valuation |
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At 1 July 2019 |
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Additions acquired separately |
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At 30 June 2020 |
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Amortisation |
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At 1 July 2019 |
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Amortisation charge |
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At 30 June 2020 |
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Carrying amount |
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At 30 June 2020 |
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At 30 June 2019 |
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Tangible assets |
Leasehold property improvements |
Furniture, fittings and equipment |
Motor vehicles |
Total |
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Cost or valuation |
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At 1 July 2019 |
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Additions |
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- |
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At 30 June 2020 |
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Depreciation |
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At 1 July 2019 |
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Charge for the year |
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- |
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At 30 June 2020 |
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Carrying amount |
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At 30 June 2020 |
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- |
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At 30 June 2019 |
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- |
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Stocks |
2020 |
2019 |
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Pharmaceutical goods |
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MD Romsey Ltd
(formerly
Notes to the Unaudited Financial Statements for the Year Ended 30 June 2020
Debtors |
2020 |
2019 |
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Trade debtors |
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Prepayments |
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Other debtors |
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Other debtors include a loan of £128,876 to its parent company, MD Salisbury Ltd. This loan is repayable over 6 years and interest is charged at 3% per annum.
Creditors |
Creditors: amounts falling due within one year
Note |
2020 |
2019 |
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Due within one year |
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Loans and borrowings |
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- |
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Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Creditors: amounts falling due after more than one year
Note |
2020 |
2019 |
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Due after one year |
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Loans and borrowings |
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- |
Provision for Liabilities |
2020 |
2019 |
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£ |
£ |
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Deferred tax |
3,397 |
2,687 |
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Deferred tax |
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Balance at |
30 June 2019 |
2,687 |
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Charge/(credit) to P&L during the year |
710 |
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Balance at |
30 June 2020 |
3,397 |
MD Romsey Ltd
(formerly
Notes to the Unaudited Financial Statements for the Year Ended 30 June 2020
Share capital |
Allotted, called up and fully paid shares
2020 |
2019 |
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No. |
£ |
No. |
£ |
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60 |
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60 |
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40 |
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40 |
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Lease commitments |
2020 |
2019 |
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£ |
£ |
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Within one year |
36,283 |
10,233 |
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Between 1-5 years |
121,027 |
18,438 |
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After more than 5 years |
22,000 |
- |
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179,310 |
28,671 |
Loans and borrowings |
2020 |
2019 |
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Non-current loans and borrowings |
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Hire purchase creditor |
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- |
2020 |
2019 |
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Current loans and borrowings |
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Hire purchase creditor |
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- |
Contingent liability |
The company has provided a cross guarantee and fixed and floating charge over its business and leasehold property in favour of Barclays Security Trustee Limited to secure sums owed to Barclays Group by its parent company MD Salisbury Ltd. At 30 June 2020 balances owed to Barclays Group amounted to £878,677 (2019 - Nil).