Peter Williams (Withnell Pharmacy) Limited - Period Ending 2021-06-30

Peter Williams (Withnell Pharmacy) Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Unaudited Financial Statements	3 to 11

Peter Williams (Withnell Pharmacy) Limited

Company Information

Director

Mr P A Williams

Company secretary

Mr B Whitfield

Registered office

3 Pall Mall Pleasington Blackburn Lancashire BB2 6QD

Accountants

Bertram Burrows Limited Chartered Accountants 10 Grange Road West Kirby Wirral CH48 4HA

Peter Williams (Withnell Pharmacy) Limited

(Registration number: 03704688)
Balance Sheet as at 30 June 2021

	Note	2021 £	2020 £
Fixed assets
Tangible assets	5	10,850	20,649
Current assets
Stocks	6	41,997	41,355
Debtors	7	159,212	141,266
Cash at bank and in hand		19,649	40,245
		220,858	222,866
Creditors: Amounts falling due within one year	8	(146,239)	(156,916)
Net current assets		74,619	65,950
Total assets less current liabilities		85,469	86,599
Creditors: Amounts falling due after more than one year	8	(78,782)	(83,285)
Provisions for liabilities		(1,763)	(3,344)
Net assets/(liabilities)		4,924	(30)
Capital and reserves
Called up share capital	9	2	2
Profit and loss account		4,922	(32)
Shareholders' funds/(deficit)		4,924	(30)

For the financial year ending 30 June 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The director acknowledges his 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 on 8 December 2021
 

......................................... Mr P A Williams Director

Peter Williams (Withnell Pharmacy) Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2021

1	General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
3 Pall Mall
Pleasington
Blackburn
Lancashire
BB2 6QD

These financial statements were authorised for issue by the director on 8 December 2021.

2	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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

Basis of preparation

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Revenue recognition

Turnover is recognised at the fair value of the consideration received or receivable for goods and services
provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair
value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the
goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be
measured reliably, it is probable that the economic benefits associated with the transaction will flow to the
entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Peter Williams (Withnell Pharmacy) Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2021

Foreign currency transactions and balances

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Tax

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Tangible assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Asset class	Depreciation method and rate
Land and buildings	Straight line - 10%
Plant and machinery	Reducing balance - 20%
Motor vehicles	Straight line - 20%

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Peter Williams (Withnell Pharmacy) Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2021

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Peter Williams (Withnell Pharmacy) Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2021

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of
stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Peter Williams (Withnell Pharmacy) Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2021

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Defined contribution pension obligation

A defined contribution plan 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.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

3	Staff numbers

The average number of persons employed by the company (including the director) during the year, was 9 (2020 - 9).

Peter Williams (Withnell Pharmacy) Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2021

4	Intangible assets

	Goodwill  £	Total £
Cost or valuation
At 1 July 2020	176,183	176,183
At 30 June 2021	176,183	176,183
Amortisation
At 1 July 2020	176,183	176,183
At 30 June 2021	176,183	176,183
Carrying amount
At 30 June 2021	-	-

5	Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Motor vehicles  £	Total £
Cost or valuation
At 1 July 2020	26,067	89,111	59,670	174,848
Additions	-	1,149	-	1,149
At 30 June 2021	26,067	90,260	59,670	175,997
Depreciation
At 1 July 2020	21,319	87,740	45,140	154,199
Charge for the year	1,726	504	8,718	10,948
At 30 June 2021	23,045	88,244	53,858	165,147
Carrying amount
At 30 June 2021	3,022	2,016	5,812	10,850
At 30 June 2020	4,748	1,371	14,530	20,649

Included within the net book value of land and buildings above is £3,022 (2020 - £4,748) in respect of long leasehold land and buildings.
 

6

Stocks

	2021 £	2020 £
Other inventories	41,997	41,355

Peter Williams (Withnell Pharmacy) Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2021

7

Debtors

	2021 £	2020 £
Trade debtors	79,708	77,193
Prepayments	1,938	2,220
Other debtors	77,566	61,853
	159,212	141,266

Other debtors incudes an amount of £33,667 (2020: £33,667) from RXPharma Limited, a company controlled by Mr P A Williams.

8

Creditors

Creditors: amounts falling due within one year

	Note	2021 £	2020 £
Due within one year
Loans and borrowings	10	26,607	41,087
Trade creditors		73,196	69,335
Taxation and social security		3,015	4,778
Accruals and deferred income		8,178	7,081
Other creditors		35,243	34,635
		146,239	156,916

Included within other creditors is £4,595 (2020: £18,057 ) in respect of a hire purchase agreement which is secured on the asset to which it relates.

Bank borrowing is secured by a fixed and floating charge over the assets of the company.

Included within trade creditors are balances of £46,391 (2020: £40,640 ) which are secured on the assets of the company.

Creditors: amounts falling due after more than one year

	Note	2021 £	2020 £
Due after one year
Loans and borrowings	10	78,782	83,285

Included within other creditors is £8,815 (2020: £nil) in respect of a hire purchase agreement which is secured on the asset to which it relates.

Peter Williams (Withnell Pharmacy) Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2021

9	Share capital

Allotted, called up and fully paid shares

	2021		2020
	No.	£	No.	£
Ordinary shares of £1 each	2	2	2	2

10	Loans and borrowings

	2021 £	2020 £
Non-current loans and borrowings
Hire purchase contracts	8,815	-
Other borrowings	69,967	83,285
	78,782	83,285

	2021 £	2020 £
Current loans and borrowings
Hire purchase contracts	4,595	18,057
Other borrowings	22,012	23,030
	26,607	41,087

11	Related party transactions

Transactions with the director

2021	At 1 July 2020 £	Advances to directors £	At 30 June 2021 £
Mr P A Williams
Loan	18,580	15,481	34,060

2020	At 1 July 2019 £	Repayments by director £	At 30 June 2020 £
Mr P A Williams
Loan	63,330	(44,750)	18,580

Peter Williams (Withnell Pharmacy) Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2021

Directors' remuneration

The director's remuneration for the year was as follows:

	2021 £	2020 £
Remuneration	80,160	43,324
Contributions paid to money purchase schemes	1,315	-
	81,475	43,324