Registration number:
PCT Healthcare (Holdings) Limited
for the Year Ended 30 November 2020
PCT Healthcare (Holdings) Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
PCT Healthcare (Holdings) Limited
Company Information
Directors |
Mr P Cattee Mr G A Tims Mrs A J Cattee |
Company secretary |
Mrs A J Cattee |
Registered office |
|
Auditors |
|
PCT Healthcare (Holdings) Limited
Strategic Report for the Year Ended 30 November 2020
The directors present their strategic report for the year ended 30 November 2020.
Principal activity and business review
The principal activity of the company is a holding company.
The principal activities of the group during the year were those of retail pharmacy, pharmaceutical wholesale and property rental.
In the current year the company has sought to expand organically and with consideration to the communities in which it operates.
The pharmacy branch network covers the South Yorkshire, Derbyshire, Milton Keynes, Lancashire, Merseyside, Greater Manchester and Midlands areas.
The company is committed to actively work in partnership with local clinical commissioning groups in the promotion of additional healthcare services.
Qualitative measures relating to "improvements in service" are important measures of performance to the company and community, however these are difficult to measure. Quantitative measures in terms of business performance and profitability are important to shareholders and provide assurances as to the continuing stability of the organisation.
Financial key performance indicators
Basic KPI's (Key Performance Indicators) on which the company bases financial evaluations are gross profit, net profit and staff cost based. There is a direct link between profitability and branch staffing levels, which is reflected in the budgeting process.
Gross profit has decreased slightly from 31.6% in 2019 to 30.4% in 2020.
Staffing remains the greatest asset, but also the largest cost to the company, amounting to £25.3m in 2019 and £25.1m in 2020.Staff costs as a percentage of turnover were 18% in 2019 and 17% in 2020 and as a percentage of gross profit 56% in 2019 and 2020.
Other costs are not significant to the profitability of the company, and so are not deemed sufficient KPI's.
Net profit before tax is considered a KPI. PBIT cover (being Profit before interest, depreciation, exceptional items and tax over net interest costs) was 8 in 2019 and 9 in 2020. Company shareholders will note that the net profit before depreciation, exceptional items and tax as a percentage of turnover has increased from 9% in 2019 to 10% in 2020. In the forthcoming year the company expects profitability to be maintained.
The company has a strong balance sheet with net assets of £14.9m and bank balances of £25.8m at the year end.
PCT Healthcare (Holdings) Limited
Strategic Report for the Year Ended 30 November 2020
Funding
During the 2017-18 year, due to the complex reimbursement system causing large swings in payment between 2017-18 & 2018-19 the Group breached certain financial loan covenants set out within its banking facility. Accordingly, the associated borrowings are presented in these financial statements as falling due within one year, as the terms of the facility reserves the right of the finance provider to request payment.
At the time of approval of the financial statements, the directors are in advanced negotiations with the Group's banker to agree the terms of a new Revolving Credit Facility (RCF) and they have no reason to believe that a satisfactory outcome will not be achieved. The directors, therefore, expect that the Group will have adequate resources to continue in operational existence for the foreseeable future and continue to adopt the going concern basis of accounting in preparing these financial statements.
Covid
The second half of the year was dominated by the impact of the Covid-19 pandemic which impacted every aspect of the business.
Whilst services to patients were maintained there was a significant extra cost to doing so, it is hoped that during the next year some Government provision will be made to offset this.
Section 172(1) statement
Our planning is designed to have a long-term beneficial impact on the group and contribute to its future success through improving quality, operating within budgetary controls and in line with our regulatory targets. This requires us to consider the long-term in all our strategic decisions at board level.
Our employees are fundamental to the success of our group. We aim to be a responsible employer in our approach to the pay and benefits our employees receive. The health, safety and well-being of our employees is one of our primary considerations in how we operate.
We aim to act responsibly and fairly in how we engage with suppliers. The group has oversight of the procurement processes and receives regular updates on any matter of significance. The group is very much focused on its customers, and the directors commit considerable time, effort and resources into understanding and responding to the needs of customers. The directors also seek to build strong relationships with other stakeholders in the areas where we operate.
As an independent pharmacy chain, the directors understand the impact of the group's operations on the communities it serves and the environment, and attribute to behaving as a responsible business.
The director's intention is to behave responsibly and ensure that management operates in a responsible manner, operating within the high standards of conduct and good governance required for a business in our sector. All of our people are expected to act within the regulatory framework dictated by our sector. Our reputation is important and the reputational impact of decisions made by the directors are always considered.
As a group, our intention is to behave responsibly toward our shareholders and to treat them fairly and equally, so they too may benefit from the group's success.
PCT Healthcare (Holdings) Limited
Strategic Report for the Year Ended 30 November 2020
Section 172 (1) of the Companies Act 2006 requires the directors of the group to act in a way which they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole and in doing so have regard to the interest of the stakeholders, including customers, suppliers and the wider community in which it operates. In doing this, section 172 requires each director to have regard to all of the above matters.
Engagement with employees
The group places considerable value on the involvement of its employees and has continued its previous practice of keeping them informed on matters affecting them as employees and on the various factors affecting the performance of the company. This is achieved through formal and informal meetings, internal bulletins and the company website. Employees are consulted regularly on a wide range of matters likely to affect their interests.
Engagement with suppliers, customers and other relationships
The group aims to act responsibly and fairly in how it engages with suppliers and customers and has policies in place for entering and maintaining relationships to ensure that it treats all suppliers and customers fairly.
Approved by the
.........................................
Director
PCT Healthcare (Holdings) Limited
Directors' Report for the Year Ended 30 November 2020
The directors present their report and the for the year ended 30 November 2020.
Directors of the group
The directors who held office during the year were as follows:
Financial instruments
Business risks
The main risks to the business are namely the reliance on the government and NHS which provide both the majority of business and control of the drug tariff prices paid, and activities of the major competitors within the locality.
The aim is to mitigate the risks of the business as much as possible through active involvement in policy making processes, and by ensuring good relations with the doctors' surgeries, proximity to the doctors' surgeries, developing and maintaining good customer relations and by monitoring purchasing costs constantly.
Financial risks
The company's principal financial instruments comprise bank balances, bank loans and overdrafts, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for the company's operations.
Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.
In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest.
In respect of loans these comprised loans from the directors and loans from financial institutions. The interest rate on the loans from financial institutions was variable but the repayments were fixed. The company managed the liquidity risk by ensuring there were sufficient funds to meet the payments. No interest is currently being charged by the directors on their loan accounts.
The majority of trade debtors represent amounts owed by the NHS. Other trade debtors are managed closely in respect of credit and cash flow risk.
Trade creditor liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
PCT Healthcare (Holdings) Limited
Directors' Report for the Year Ended 30 November 2020
Employment of disabled persons
The company's employment policies are fair and equitable and consistent with the skills and abilities of the employees and the needs of the company's business. If any employee becomes disabled, the objective is the continued provision of suitable employment either in the same or an alternative position with alternative training if necessary.
Employee involvement
Information on matters of concern to employees is given through internal bulletins and website which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance. arrangements exist to consult and discuss with employees on matters likely to affect their interests.
Future developments
The company will continue to adopt measures to ensure that the Group remains profitable and financially stable despite the pharmacy market being a difficult sector to operate in.
Important non adjusting events after the financial period
Since the year end the company has acquired a subsidiary undertaking in a share for share exchange and cash consideration of £3m, acquired three new pharmacy branches for £2m and sold an investment property for £3m.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
The auditors Abrams Ashton Ltd are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved by the
.........................................
Director
PCT Healthcare (Holdings) Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
PCT Healthcare (Holdings) Limited
Independent Auditor's Report to the Members of PCT Healthcare (Holdings) Limited
Opinion
We have audited the financial statements of PCT Healthcare (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2020, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• |
give a true and fair view of the state of the group's and the parent company's affairs as at 30 November 2020 and of the group's profit for the year then ended; |
• |
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• |
have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
• |
the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
• |
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s or the parent company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
PCT Healthcare (Holdings) Limited
Independent Auditor's Report to the Members of PCT Healthcare (Holdings) Limited
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• |
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• |
the parent company financial statements are not in agreement with the accounting records and returns; or |
• |
certain disclosures of directors’ remuneration specified by law are not made; or |
• |
we have not received all the information and explanations we require for our audit. |
PCT Healthcare (Holdings) Limited
Independent Auditor's Report to the Members of PCT Healthcare (Holdings) Limited
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 7], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
7 Waterside Court
Merseyside
WA9 1UA
PCT Healthcare (Holdings) Limited
Consolidated Profit and Loss Account for the Year Ended 30 November 2020
Note |
2020 |
2019 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
(1,274,354) |
(1,592,398) |
||
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
The group has no recognised gains or losses for the year other than the results above.
PCT Healthcare (Holdings) Limited
(Registration number: 06399469)
Consolidated Balance Sheet as at 30 November 2020
Note |
2020 |
2019 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investment property |
|
|
|
Other financial assets |
891,710 |
891,710 |
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
- |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
3,875 |
3,875 |
|
Capital redemption reserve |
114,287 |
114,287 |
|
Profit and loss account |
14,805,548 |
10,410,186 |
|
Total equity |
14,923,710 |
10,528,348 |
Approved and authorised by the
.........................................
Director
PCT Healthcare (Holdings) Limited
(Registration number: 06399469)
Balance Sheet as at 30 November 2020
Note |
2020 |
2019 |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
3,875 |
3,875 |
|
Capital redemption reserve |
114,287 |
114,287 |
|
Profit and loss account |
10,636,204 |
11,797,355 |
|
Shareholders' funds |
10,754,366 |
11,915,517 |
The company made a loss after tax for the financial year of £1,161,151 (2019 - loss of £1,485,252).
Approved and authorised by the
.........................................
Director
PCT Healthcare (Holdings) Limited
Consolidated Statement of Changes in Equity for the Year Ended 30 November 2020
Equity attributable to the parent company
Share capital |
Capital redemption reserve |
Profit and loss account |
Total equity |
|
At 1 December 2019 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Total comprehensive income |
- |
- |
|
|
At 30 November 2020 |
|
|
|
|
Share capital |
Capital redemption reserve |
Profit and loss account |
Total equity |
|
At 1 December 2018 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Total comprehensive income |
- |
- |
|
|
At 30 November 2019 |
|
|
|
|
PCT Healthcare (Holdings) Limited
Statement of Changes in Equity for the Year Ended 30 November 2020
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 December 2019 |
|
|
|
|
Loss for the year |
- |
- |
( |
( |
Total comprehensive income |
- |
- |
( |
( |
At 30 November 2020 |
|
|
|
|
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 December 2018 |
|
|
|
|
Loss for the year |
- |
- |
( |
( |
Total comprehensive income |
- |
- |
( |
( |
At 30 November 2019 |
|
|
|
|
PCT Healthcare (Holdings) Limited
Consolidated Statement of Cash Flows for the Year Ended 30 November 2020
Note |
2020 |
2019 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Changes in fair value of investment property |
( |
( |
|
(Profit)/loss on disposal of tangible assets |
( |
|
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Decrease/(increase) in stocks |
|
( |
|
Decrease in trade debtors |
|
|
|
Increase/(decrease) in trade creditors |
|
( |
|
Increase in provisions |
|
- |
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Acquisition of intangible assets |
( |
- |
|
Acquisition of investment properties |
( |
- |
|
Proceeds from sale of investment properties |
|
|
|
Net cash flows from investing activities |
( |
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of bank borrowing |
( |
( |
|
Interest on preference shares |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
Cash and cash equivalents at 1 December |
|
|
PCT Healthcare (Holdings) Limited
Consolidated Statement of Cash Flows for the Year Ended 30 November 2020
Note |
2020 |
2019 |
|
Cash and cash equivalents at 30 November |
25,810,560 |
11,644,442 |
PCT Healthcare (Holdings) Limited
Notes to the Financial Statements for the Year Ended 30 November 2020
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
United Kingdom
These financial statements were authorised for issue by the
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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
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 prepared in sterling, which is the functional currency of the entity.
During the 2017-18 year the Group breached certain financial covenants set out within its banking facility which was due to expire in February 2021 and has since been extended. Accordingly, the associated borrowings are presented in these financial statements as falling due within less than one year, as the terms of the facility reserves the right of the finance provider to request payment.
At the time of approval of these financial statements, the directors continue to be in advanced negotiations with the Group's banker to agree the terms of a new Revolving Credit Facility (RCF) and they have no reason to believe that a satisfactory outcome will not be achieved. The directors, therefore, expect that the Group will continue to adopt the going concern basis of accounting in preparing these financial statements.
Summary of disclosure exemptions
The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such advantage has been taken of the following reduced disclosures available under FRS 102:
(a) Disclosures in respect of each class of share capital have not been presented.
(b) No cash flow statement has been presented for the company.
(c) Disclosures in respect of financial instruments have not been presented.
(d) No disclosure has been given for the aggregate remuneration of key management personnel.
PCT Healthcare (Holdings) Limited
Notes to the Financial Statements for the Year Ended 30 November 2020
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 November 2020.
No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a loss after tax for the financial year of £1,161,151 (2019 - loss of £1,485,252).
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Revenue recognition
Revenue comprises the fair value of the sale of goods and services net of value added tax, rebates and discounts. Sales of goods are recognised either at the point of sale or when the company has delivered the goods to the customer.
Tax
The tax expense for the period comprises current 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.
PCT Healthcare (Holdings) Limited
Notes to the Financial Statements for the Year Ended 30 November 2020
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 group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated 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 any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Short leasehold property |
Straight line over the lease |
Fixtures & equipment |
10% & 25% straight line |
Motor vehicles |
25% reducing balance |
Improvements to property |
10% straight line |
Investment property
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’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.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
10% straight line |
PCT Healthcare (Holdings) Limited
Notes to the Financial Statements for the Year Ended 30 November 2020
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
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.
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 group will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are measured at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
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 group 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 group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
PCT Healthcare (Holdings) Limited
Notes to the Financial Statements for the Year Ended 30 November 2020
Provisions for liabilities
Provisions are made where an event has taken place that gives the group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the profit and loss account in the year that the group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the balance sheet.
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.
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 pension scheme. The pension costs charged in the financial statements represents the contributions payable by the company during the year.
Revenue |
The analysis of the group's revenue for the year from continuing operations is as follows:
2020 |
2019 |
|
Sale of goods |
|
|
The analysis of the group's turnover for the year by class of business is as follows:
2020 |
2019 |
|
Pharmacy |
|
|
The analysis of the group's turnover for the year by market is as follows:
2020 |
2019 |
|
UK |
|
|
PCT Healthcare (Holdings) Limited
Notes to the Financial Statements for the Year Ended 30 November 2020
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2020 |
2019 |
|
Government grants receivable |
|
- |
Rental income and management charges |
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
2020 |
2019 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
(Profit)/loss on disposal of property, plant and equipment |
( |
|
Investment properties fair value adjustments |
(260,081) |
(306,920) |
Other interest receivable and similar income |
2020 |
2019 |
|
Interest income on bank deposits |
|
|
Interest payable and similar expenses |
2020 |
2019 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on preference shares |
|
|
Interest expense on other finance liabilities |
|
- |
|
|
PCT Healthcare (Holdings) Limited
Notes to the Financial Statements for the Year Ended 30 November 2020
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2020 |
2019 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2020 |
2019 |
|
Management staff |
|
|
Administrative staff |
|
|
Other staff |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2020 |
2019 |
|
Remuneration |
|
|
In respect of the highest paid director:
2020 |
2019 |
|
Remuneration |
|
|
Auditors' remuneration |
2020 |
2019 |
|
Audit of these financial statements |
56,200 |
73,700 |
Other fees to auditors |
||
All other assurance services |
|
|
PCT Healthcare (Holdings) Limited
Notes to the Financial Statements for the Year Ended 30 November 2020
Taxation |
Tax charged/(credited) in the income statement
2020 |
2019 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
( |
2,477,558 |
1,870,367 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
( |
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2019 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2020 |
2019 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Adjustments to tax charge in respect of prior periods |
( |
( |
Total tax charge |
|
|
PCT Healthcare (Holdings) Limited
Notes to the Financial Statements for the Year Ended 30 November 2020
Intangible assets |
Group
Goodwill |
Trademarks, patents and licenses |
Total |
|
Cost or valuation |
|||
At 1 December 2019 |
|
|
|
Additions acquired separately |
|
- |
|
Disposals |
- |
( |
( |
At 30 November 2020 |
|
- |
|
Amortisation |
|||
At 1 December 2019 |
|
- |
|
Amortisation charge |
|
- |
|
At 30 November 2020 |
|
- |
|
Carrying amount |
|||
At 30 November 2020 |
|
- |
|
At 30 November 2019 |
|
|
|
PCT Healthcare (Holdings) Limited
Notes to the Financial Statements for the Year Ended 30 November 2020
Tangible assets |
Group
Properties |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
Cost or valuation |
||||
At 1 December 2019 |
|
|
|
|
Additions |
- |
|
|
|
Disposals |
- |
- |
( |
( |
At 30 November 2020 |
|
|
|
|
Depreciation |
||||
At 1 December 2019 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
At 30 November 2020 |
|
|
|
|
Carrying amount |
||||
At 30 November 2020 |
|
|
|
|
At 30 November 2019 |
|
|
|
|
Investment properties |
Group
2020 |
|
At 1 December |
|
Additions |
|
Disposals |
( |
Fair value adjustments |
|
At 30 November |
|
Investment properties have been valued by W T Gunson Chartered Surveyors at their fair values based on market valuations as at 30 November 2020.
PCT Healthcare (Holdings) Limited
Notes to the Financial Statements for the Year Ended 30 November 2020
Investments |
Company
2020 |
2019 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 December 2019 |
|
Provision |
|
At 1 December 2019 |
|
Carrying amount |
|
At 30 November 2020 |
|
At 30 November 2019 |
|
PCT Healthcare (Holdings) Limited
Notes to the Financial Statements for the Year Ended 30 November 2020
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Holding |
Proportion of voting rights and shares held |
|||||
2020 |
2019 |
||||||
Subsidiary undertakings |
|||||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
PCT Healthcare (Holdings) Limited
Notes to the Financial Statements for the Year Ended 30 November 2020
Other financial assets |
Group
Financial assets at cost less impairment |
Total |
|
Non-current financial assets |
||
Cost or valuation |
||
At 1 December 2019 |
891,710 |
891,710 |
At 30 November 2020 |
891,710 |
891,710 |
Impairment |
||
Carrying amount |
||
At 30 November 2020 |
|
891,710 |
Stocks |
Group |
Company |
|||
2020 |
2019 |
2020 |
2019 |
|
Finished goods and goods for resale |
|
|
- |
- |
Debtors |
Group |
Company |
||||
Note |
2020 |
2019 |
2020 |
2019 |
|
Trade debtors |
|
|
- |
- |
|
Amounts owed by group undertakings |
- |
- |
|
|
|
Other debtors |
|
|
- |
- |
|
Prepayments and accrued income |
|
|
- |
- |
|
Deferred tax assets |
|
|
- |
- |
|
|
|
|
|
PCT Healthcare (Holdings) Limited
Notes to the Financial Statements for the Year Ended 30 November 2020
Cash and cash equivalents |
Group |
Company |
|||
2020 |
2019 |
2020 |
2019 |
|
Cash on hand |
|
|
- |
- |
Cash at bank |
|
|
- |
- |
|
|
- |
- |
Creditors |
Group |
Company |
||||
Note |
2020 |
2019 |
2020 |
2019 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
|
|
|
Trade creditors |
|
|
- |
- |
|
Amounts owed to group undertakings |
- |
- |
|
|
|
Social security and other taxes |
|
|
- |
- |
|
Other creditors |
|
|
- |
- |
|
Accruals and deferred income |
|
|
|
|
|
Corporation tax |
467,789 |
1,440,765 |
- |
- |
|
Directors current accounts |
|
|
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Other non-current financial liabilities |
|
|
|
|
Provisions for liabilities |
Group
NHS reimbursement |
Total |
|
Additional provisions |
|
|
At 30 November 2020 |
|
|
PCT Healthcare (Holdings) Limited
Notes to the Financial Statements for the Year Ended 30 November 2020
The NHS reimbursement provision is to cover clawback of potential over-reimbursement received in the current financial year.
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to
£
Share capital |
Allotted, called up and fully paid shares
2020 |
2019 |
|||
No. |
£ |
No. |
£ |
|
|
|
2,750.00 |
|
2,750.00 |
|
|
1,125.00 |
|
1,125.00 |
|
|
1,352,000 |
|
1,352,000 |
|
|
17,571,350 |
|
17,571,350 |
|
|
|
|
Rights, preferences and restrictions
Preference A have the following rights, preferences and restrictions: |
Preference C shares have the following rights, preferences and restrictions: |
PCT Healthcare (Holdings) Limited
Notes to the Financial Statements for the Year Ended 30 November 2020
Reserves |
The Group and Company's other reserves are as follows:
Profit and loss account
This reserve records retained earnings and accumulated losses.
Capital redemption reserve
This reserve records the nominal value of shares repurchased by the company.
Loans and borrowings |
Group |
Company |
|||
2020 |
2019 |
2020 |
2019 |
|
Current loans and borrowings |
||||
Bank borrowings |
|
|
|
|
Group
Bank borrowings
Bank borrowings are secured by fixed charges over the investments and book debts together with a floating charge over the other assets of the company.
The company has a bank loan facility with a term of 5 years from February 2016 with interest payable at 2.15% above LIBOR and this facility has been extended whilst the company finalises a Revolving Credit Facility with the company's bankers.
PCT Healthcare (Holdings) Limited
Notes to the Financial Statements for the Year Ended 30 November 2020
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
2020 |
2019 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Analysis of changes in net debt |
Group
At 1 December 2019 |
Financing cash flows |
At 30 November 2020 |
|
Cash and cash equivalents |
|||
Cash |
11,644,442 |
14,166,118 |
25,810,560 |
Borrowings |
|||
Short term borrowings |
(45,461,733) |
6,000,000 |
(39,461,733) |
( |
|
( |
Company
At 1 December 2019 |
Financing cash flows |
At 30 November 2020 |
|
Borrowings |
|||
Short term borrowings |
(45,461,733) |
6,000,000 |
(39,461,733) |
( |
|
( |
|
PCT Healthcare (Holdings) Limited
Notes to the Financial Statements for the Year Ended 30 November 2020
Related party transactions |
Group
Transactions with directors |
2020 |
At 1 December 2019 |
Repayments by director |
At 30 November 2020 |
Mr P Cattee |
|||
Loan |
|
( |
|
Mr G A Tims |
|||
Loan |
|
( |
|
2019 |
At 1 December 2018 |
Repayments by director |
At 30 November 2019 |
Mr P Cattee |
|||
Loan |
|
- |
|
Mr G A Tims |
|||
Loan |
|
( |
|
Dividends paid to directors
|
2020 |
2019 |
|||
Mrs A J Cattee |
||||
Preference A shares |
28,080 |
28,080 |
||
Mr P Cattee |
||||
Preference A shares |
28,080 |
28,080 |
||
Other transactions with directors |
The company is under the control of Mr P Cattee and members of his close family.
The group occupied three properties owned by Mr P and Mrs A J Cattee and one property owned by the P & A J Cattee (Directors) Pension Scheme. Rent paid in respect of these properties amounted to £43,950 and £27,000, respectively (2019 £43,950 and £27,000).
PCT Healthcare (Holdings) Limited
Notes to the Financial Statements for the Year Ended 30 November 2020
Non adjusting events after the financial period |
|