Pharmaco Partnership Limited - Period Ending 2018-04-30

Registration number: 10474227

Pharmaco Partnership Limited

Annual Report and Unaudited Financial Statements

for the Period from 1 December 2017 to 30 April 2018

Flemmings Chartered Accountants
76 Canterbury Road
Croydon
Surrey
CR0 3HA

Pharmaco Partnership Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 6

Pharmaco Partnership Limited

Company Information

Directors

Mr AA Prendergast Mr H H Patel Dr M Watson Mr M H Patel

Registered office

205 Plumstead Road Norwich Norfolk NR1 4AB

Accountants

Flemmings Chartered Accountants 76 Canterbury Road Croydon Surrey CR0 3HA

Page 1

Pharmaco Partnership Limited

(Registration number: 10474227)
Balance Sheet as at 30 April 2018

	Note	2018 £	2017 £
Fixed assets
Investments	4	1,778,941	1,778,941
Current assets
Cash at bank and in hand		138	104,410
Creditors: Amounts falling due within one year	5	(976,240)	(1,027,721)
Net current liabilities		(976,102)	(923,311)
Total assets less current liabilities		802,839	855,630
Creditors: Amounts falling due after more than one year	5	(832,000)	(875,333)
Net liabilities		(29,161)	(19,703)
Capital and reserves
Called up share capital		1,000	1,000
Profit and loss account		(30,161)	(20,703)
Total equity		(29,161)	(19,703)

For the financial period ending 30 April 2018 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 16 October 2018 and signed on its behalf by:
 

.........................................

Mr H H Patel
Director

The notes on pages 3 to 6 form an integral part of these financial statements.

Page 2

Pharmaco Partnership Limited

Notes to the Financial Statements for the Period from 1 December 2017 to 30 April 2018

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:
205 Plumstead Road
Norwich
Norfolk
NR1 4AB
United Kingdom

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 - '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 except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in Pound Sterling, which is the functional currency of the company.

Exemption from preparing group accounts

The company is part of a small group. The company has taken advantage of the exemption provided by Section 398 of the Companies Act 2006 and has not prepared group accounts.

Disclosure of long or short period

This set of accounts prepared spans a period of less than one year to align the accounting reference date with its subsidiary company, Kirkley Pharmacy Limited. The comparative amounts presented in the financial statements (including the related notes) are therefore not entirely comparable.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Page 3

Pharmaco Partnership Limited

Notes to the Financial Statements for the Period from 1 December 2017 to 30 April 2018

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.

3	Staff numbers

The average number of persons employed by the company (including directors) during the period, was 4 (2017 - 4).

4	Investments

	2018 £	2017 £
Investments in subsidiaries	1,778,941	1,778,941

Subsidiaries	£
Cost or valuation
At 1 December 2017	1,778,941
Carrying amount
At 30 April 2018	1,778,941
At 30 November 2017	1,778,941

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Registered office	Holding	Proportion of voting rights and shares held
			2018	2017

Subsidiary undertakings
Kirkley Pharmacy Limited	Eastpoint Pharmacy, Arvor House, Clifton Road, Lowestoft, Suffolk, NR33 0HF	Ordinary shares	100%	100%
	England and Wales

The principal activity of Kirkley Pharmacy Limited is supply of medicines and other goods as a pharmacy.

The profit for the financial period ended 30 April 2018 of Kirkley Pharmacy Limited was £132,990 and the aggregate amount of capital and reserves at the end of the period was £(348,778).

Page 4

Pharmaco Partnership Limited

Notes to the Financial Statements for the Period from 1 December 2017 to 30 April 2018

5

Creditors

Creditors: amounts falling due within one year

	Note	2018 £	2017 £
Due within one year
Bank loans and overdrafts	6	104,000	104,000
Directors' current accounts	7	663,740	663,741
Amounts owed to group undertakings and undertakings in which the company has a participating interest	7	7,500	-
Other creditors		201,000	258,980
Accruals and deferred income		-	1,000
		976,240	1,027,721
Due after one year
Loans and borrowings	6	832,000	875,333

The deferred consideration owed to Mr A Prendergast and Dr M Watson for the purchase of their shareholding in Kirkley Pharmacy Limited by the company amounted to £200,000. This amount is included within other creditors above and is repayable on or before 3 May 2019 and is interest free.

Creditors: amounts falling due after more than one year

	Note	2018 £	2017 £
Due after one year
Loans and borrowings	6	832,000	875,333

6	Loans and borrowings

	2018 £	2017 £
Non-current loans and borrowings
Bank borrowings	832,000	875,333

	2018 £	2017 £
Current loans and borrowings
Bank borrowings	104,000	104,000

Page 5

Pharmaco Partnership Limited

Notes to the Financial Statements for the Period from 1 December 2017 to 30 April 2018

Bank borrowings

The carrying amount of at period end is £936,000 . The bank borrowing is secured as follows: 1) A debenture created on 3 May 2017. 2) Personal guarantee and indemnity from the directors of the company limited to £520,000. 3) A cross guarantee from the company and wholly owned subsidiary Kirkley Pharmacy Limited, supported by a debenture created on 3 May 2017 and a legal charge over the leasehold property the subsidiary trades from. 3) A cross guarantee from the companies Medsio Holdings Limited and Medsio Limited, where some of the directors of the company are also directors of Medsio Holdings Limited and Medsio Limited.

7	Related party transactions

Other transactions with directors

Mr H H Patel, Mr M H Patel, Mr A Prendergast and Dr M Watson
(Directors and shareholders)

The above directors have given a personal guarantee and indemnity limited to £520,000 towards the company's bank borrowings.

At the balance sheet date the amount due to the above directors were £663,740 (2017 - £663,740). The loan is interest free and repayable on demand.

In addition to the above deferred consideration owed to Mr A Prendergast and Dr M Watson for the purchase of their shareholding in Kirkley Pharmacy Limited by the company amounted to £200,000 as at the balance sheet date. This amount is repayable on or before 3 May 2019 and is interest free.

Summary of transactions with subsidiaries

Kirkley Pharmacy Limited
(100% subsidiary undertaking of Pharmaco Partnership Limited)
 
Kirkley Pharmacy Limited has provided security towards the company's borrowings by way of a debenture over its assets and undertakings, and also a cross company guarantee including a first legal charge over the leasehold properties its occupies.

At the balance sheet date the amount due to Kirkley Pharmacy Limited was £7,500 (2017 - £Nil). The loan is interest fee and repayable on demand.
 

Summary of transactions with other related parties

Medsio Holdings Limited and Medsio Limited
(Companies associated with the directors)

Medsio Limited is fully owned subsidiary of Medsio Holdings Limited.

Mr H H Patel, Mr M H Patel and Mr A Prendergast are directors in Medsio Limited and also directors and shareholders in Medsio Holdings Limited.

Medsio Holdings Limited and Medsio Limited has provided a cross guarantee towards the company's bank borrowings.
 

Page 6