Meds UK Limited - Period Ending 2023-08-31

Meds UK Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Unaudited Financial Statements	3 to 9

Meds UK Limited

Company Information

Directors

J Authunuri A Gaali

Registered office

151 Marton Road Bridlington YO16 7DJ

Accountants

Hazlewoods LLP Staverton Court Staverton Cheltenham GL51 0UX

Meds UK Limited

(Registration number: 06998843)
Balance Sheet as at 31 August 2023

	Note	31 August 2023  £	30 April 2022  £
Fixed assets
Tangible assets	4	6,389	10,649
Current assets
Stocks		51,535	48,874
Debtors	5	390,292	1,617,695
Cash at bank and in hand		276,615	159,790
		718,442	1,826,359
Creditors: Amounts falling due within one year	6	(412,011)	(1,076,048)
Net current assets		306,431	750,311
Total assets less current liabilities		312,820	760,960
Deferred tax liabilities	8	(1,597)	(2,614)
Net assets		311,223	758,346
Capital and reserves
Called up share capital		1,000	1,000
Profit and loss account		310,223	757,346
Total equity		311,223	758,346

For the financial period ending 31 August 2023 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 accounts for the period in question in accordance with section 476; and
•	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 Board on 11 May 2024 and signed on its behalf by:
 

J Authunuri
Director

Meds UK Limited

Notes to the Unaudited Financial Statements for the Period from 1 May 2022 to 31 August 2023

1

General information

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

The address of its registered office is:
151 Marton Road
Bridlington
YO16 7DJ
England

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 Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's current forecasts and projections, together with the facilities available to the company, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Meds UK Limited

Notes to the Unaudited Financial Statements for the Period from 1 May 2022 to 31 August 2023

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge 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 income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Fixtures and fittings	15% reducing balance basis
Computer equipment	50% reducing balance basis
Motor vehicles	50% reducing balance basis

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.

Meds UK Limited

Notes to the Unaudited Financial Statements for the Period from 1 May 2022 to 31 August 2023

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. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. 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 debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

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 all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

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.

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.



Where the company transfers substantially all the risks and rewards of ownership, the arrangement is classified as a finance lease and a receivable is recognised at an amount equal to the net investrment in the lease. Recognition of finance income is based on a pattern reflecting a constant periodic rate of return on the lessor's net investment in the finance lease.

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.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Meds UK Limited

Notes to the Unaudited Financial Statements for the Period from 1 May 2022 to 31 August 2023

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.

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

3

Staff numbers

The average number of persons employed by the company (including directors) during the period, was as follows:

	1 May 2022 to 31 August 2023  No.	Year ended 30 April 2022  No.
Average number of employees	14	9

Meds UK Limited

Notes to the Unaudited Financial Statements for the Period from 1 May 2022 to 31 August 2023

4

Tangible assets

	Furniture, fittings and equipment  £	Motor vehicles  £	Total £
Cost
At 1 May 2022	41,975	9,203	51,178
Additions	845	-	845
At 31 August 2023	42,820	9,203	52,023
Depreciation
At 1 May 2022	34,045	6,484	40,529
Charge for the year	3,292	1,813	5,105
At 31 August 2023	37,337	8,297	45,634
Carrying amount
At 31 August 2023	5,483	906	6,389
At 30 April 2022	7,930	2,719	10,649

5

Debtors

	Note	31 August 2023  £	30 April 2022  £
Trade debtors		207,843	169,429
Amounts owed by related parties	10	177,439	895,468
Other debtors	10	-	549,572
Prepayments		3,924	3,226
Social security and other taxes		1,086	-
		390,292	1,617,695

6

Creditors

	Note	31 August 2023  £	30 April 2022  £
Due within one year
Loans and borrowings	7	-	638,916
Trade creditors		311,109	283,765
Amounts due to related parties	10	-	48,000
Social security and other taxes		-	1,019
Outstanding defined contribution pension costs		-	456
Other creditors		96,020	89,191
Accrued expenses		4,882	14,701
		412,011	1,076,048

A bank loan held by Tavita Limited, the company's parent, is secured by a fixed and floating charge over the assets of the company.

Meds UK Limited

Notes to the Unaudited Financial Statements for the Period from 1 May 2022 to 31 August 2023

7

Loans and borrowings

		31 August 2023 £	30 April 2022 £
Current loans and borrowings
Other borrowings	10	-	638,916

8

Deferred tax

Deferred tax assets and liabilities

31 August 2023	Liability £
Difference between accumulated depreciation and capital allowances	1,597
	1,597

30 April 2022	Liability £
Difference between accumulated depreciation and capital allowances	2,614
	2,614

9

Financial commitments, guarantees and contingencies

Operating leases

The total of future minimum lease payments is as follows:

	31 August 2023  £	30 April 2022  £
Not later than one year	16,200	15,000
Later than one year and not later than five years	64,800	60,000
Later than five years	178,200	180,000
	259,200	255,000

The amount of non-cancellable operating lease payments recognised as an expense during the period was £17,767 (2022 - £15,000).

Meds UK Limited

Notes to the Unaudited Financial Statements for the Period from 1 May 2022 to 31 August 2023

10

Related party transactions

Key management personnel

Summary of transactions with key management

Key management personnel are considered to be the directors of the company.

A the balance sheet date the directors owed the company £nil (2022 - £638,916 owed to the directors). These amounts are included in other borrowings. There are no fixed repayment terms and no interest is charged on the loan.
 

Summary of transactions with parent

Tavita Limited
 (Parent company of Meds UK Limited)
 As at the balance sheet date, the company was owed £177,439 (2022 - £895,468). There are no fixed repayment terms and no interest is charged on the outstanding amount. This is included within amounts owed by related parties.
 

Summary of transactions with other related parties

Honor Healthcare Limited
(Shares a common director with Meds UK Limited, T Masamha)
As at the balance sheet date, the company was owed £nil (2022 - £265,698) from Honor Healthcare Limited. There are no fixed repayment terms and no interest is charged on the outstanding amount. This amount is included within other debtors.

Chalta Ltd
(Shares a common director with Meds UK Limited, T Masamha)
As at the balance sheet date, the company was owed £nil (2022 - £166,430) from Chalta Ltd. There are no fixed repayment terms and no interest is charged on the outstanding amount. This amount is included within other debtors.

T.A. Burley Ltd
(Shares a common director with Meds UK Limited, T Masamha)
As at the balance sheet date, the company was owed £nil (2022 - £35) from T.A. Burley Ltd. There are no fixed repayment terms and no interest is charged on the outstanding amount. This amount is included within other debtors.

Burley Louth Ltd
(Shares a common director with Meds UK Limited, T Masamha)
As at the balance sheet date, the company was owed £nil (2022 - £117,409) from Burley Louth Ltd. There are no fixed repayment terms and no interest is charged on the outstanding amount. This amount is included within other debtors.

Engaged Consultancy Ltd
(Shares a common director with Meds UK Limited, R Masamha)
As at the balance sheet date, the company owed £nil (2022 - £48,000) to Engaged Consultancy Ltd. There are no fixed repayment terms and no interest is charged on the outstanding amount. This amount is included in amounts due to related parties.