PCT Healthcare Limited 01768840 false 2018-12-01 2019-11-30 2019-11-30 The principal activity of the company is retail pharmacy. 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iso4217:GBP xbrli:pure xbrli:shares

Company registration number: 01768840

PCT Healthcare Limited

Financial Statements

for the Year Ended 30 November 2019

 

PCT Healthcare Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Profit and Loss Account and Statement of Retained Earnings

10

Balance Sheet

11

Notes to the Financial Statements

12 to 25

 

PCT Healthcare Limited

Company Information

Directors

Mr J Cattee

Mr G A Tims

Mrs A J Cattee

Mr P Cattee

Company secretary

Mrs A J Cattee

Registered office

11 Manchester Road
Walkden
Manchester
M28 3NS

Auditors

Abrams Ashton Ltd
Chartered Accountants and Statutory Auditors
7 Waterside Court
St. Helens
Merseyside
WA9 1UA

 

PCT Healthcare Limited

Strategic Report for the Year Ended 30 November 2019

The directors present their strategic report for the year ended 30 November 2019.

Principal activity

The principal activity of the company is retail pharmacy.

Fair review of the business

During the current year the company has expanded organically with consideration to the communities in which it operates. There were 5 internal group acquisitions during the year.

The company is committed to actively work in partnership with local clinical commissioning groups in the promotion of additional healthcare services.

Quantitative measures in terms of business performance and profitability are important to shareholders and provide assurances as to the continuing stability of the organisation.

Basic KPI's (key performance indicators) which the company bases financial evaluations upon 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 percentage has increased from 29.8% in 2018 to 31.9% in 2019.

Staff remain the greatest asset, but also the largest cost to the company, amounting to £23m in 2019 and £19m in 2018. Staff costs as a percentage of turnover were 20% in 2018 and 19% in 2019.

Other costs are not significant to the profitability of the company and so are not deemed sufficient KPI's.

Company shareholders will note that the company made a profit before tax of £1,288,905 (adjusted for a group company loan written off totalling £10,069,597) and earnings before interest, tax and depreciation (EBITDA) was £6,817,631. In the forthcoming year the company expects continued pressure on profitability due to the reduction in the overall level of government funding to pharmacies.

The company has maintained an adequate liquidity position as the company had a net bank surplus of £0.8m and net assets of £23.8m at the year end, whilst the group had a net bank surplus, before bank loans, of £11m.

Approved by the Board on 5 November 2020 and signed on its behalf by:

.........................................
Mr G A Tims
Director

 

PCT Healthcare Limited

Directors' Report for the Year Ended 30 November 2019

The directors present their report and the financial statements for the year ended 30 November 2019.

Directors of the company

The directors who held office during the year were as follows:

Mr J Cattee

Mr G A Tims

Mrs A J Cattee - Company secretary and director

Mr P Cattee

Financial instruments

Objectives and policies

The company's principal financial instruments comprise bank balances, bank overdrafts, trade creditors, trade debtors and loans to the company. The main purpose of these instruments is to raise funds for the company's operations and to finance them.

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.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

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 appropriate training if necessary.

Employee involvement

Information on matters of concern to employees is given through internal bulletins and a 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 expects to consolidate its trading in the following year.

Important non adjusting events after the financial period

Since the year end the country was impacted by the Covid-19 pandemic. Whilst the initial consequence was to create an unprecedented set of challenges the company responded well in adapting it's working practices and kept all but two of its branches open throughout the initial crisis with both opening again after a short period. Morale held up well as staff rose to the challenge professionally and whilst at times there has been an impact on OTC ('Over The Counter') business due to distancing the prescription business continues to track on budget. At the same time the margin reduction of early 2018-19 has been restored and the 5-year settlement has re-introduced some stability to the pharmacy sector and the company expects to have a satisfactory year despite the crisis.

 

PCT Healthcare Limited

Directors' Report for the Year Ended 30 November 2019

Disclosure of information to the auditors

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 auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are 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 Board on 5 November 2020 and signed on its behalf by:

.........................................
Mr G A Tims
Director

 

PCT Healthcare 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 Limited

Independent Auditor's Report to the Members of PCT Healthcare Limited

Opinion

We have audited the financial statements of PCT Healthcare Limited (the 'company') for the year ended 30 November 2019, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, 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 company's affairs as at 30 November 2019 and of its 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 company 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 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.

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.

 

PCT Healthcare Limited

Independent Auditor's Report to the Members of PCT Healthcare Limited

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 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, or returns adequate for our audit have not been received from branches not visited by us; or

the 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], 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 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 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.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

 

PCT Healthcare Limited

Independent Auditor's Report to the Members of PCT Healthcare Limited

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

PCT Healthcare Limited

Independent Auditor's Report to the Members of PCT Healthcare Limited

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.

......................................
Darren Leigh FCCA (Senior Statutory Auditor)
For and on behalf of Abrams Ashton Ltd, Statutory Auditor

7 Waterside Court
St. Helens
Merseyside
WA9 1UA

5 November 2020

 

PCT Healthcare Limited

Profit and Loss Account and Statement of Retained Earnings for the Year Ended 30 November 2019

Note

2019
£

2018
£

Turnover

3

119,904,257

94,662,727

Cost of sales

 

(81,791,447)

(66,432,959)

Gross profit

 

38,112,810

28,229,768

Administrative expenses

 

(26,909,802)

(30,440,332)

Other operating income

54,480

52,080

Operating profit/(loss)

4

11,257,488

(2,158,484)

Income from shares in group undertakings

 

100,000

130,000

Other interest receivable and similar income

5

1,014

5,235

Interest payable and similar charges

6

-

(3,665)

 

101,014

131,570

Profit/(loss) before tax

 

11,358,502

(2,026,914)

Taxation

10

(734,468)

(510,852)

Profit/(loss) for the financial year

 

10,624,034

(2,537,766)

Retained earnings brought forward

 

12,922,299

15,460,065

Retained earnings carried forward

 

23,546,333

12,922,299

 

PCT Healthcare Limited

(Registration number: 01768840)
Balance Sheet as at 30 November 2019

Note

2019
£

2018
£

Fixed assets

 

Intangible assets

11

25,177,179

28,429,780

Tangible assets

12

6,406,814

6,157,433

Investments

13

1,579,222

1,579,222

Other financial assets

14

891,710

891,710

 

34,054,925

37,058,145

Current assets

 

Stocks

15

7,193,455

6,467,139

Debtors

16

27,856,070

28,048,071

Cash at bank and in hand

17

3,068,911

202,615

 

38,118,436

34,717,825

Creditors: Amounts falling due within one year

18

(48,065,720)

(58,236,944)

Net current liabilities

 

(9,947,284)

(23,519,119)

Total assets less current liabilities

 

24,107,641

13,539,026

Provisions for liabilities

19

(298,302)

(353,721)

Net assets

 

23,809,339

13,185,305

Capital and reserves

 

Called up share capital

21

263,006

263,006

Profit and loss account

22

23,546,333

12,922,299

Shareholders' funds

 

23,809,339

13,185,305

Approved and authorised by the Board on 5 November 2020 and signed on its behalf by:
 

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

Mr G A Tims
Director

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2019

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:
11 Manchester Road
Walkden
Manchester
M28 3NS
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 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.

The financial statements are prepared in sterling as this is the base currency of the company.

Summary of disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of 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 this company
(c) Disclosures in respect of financial instruments have not been presented
(d) Disclosures in respect of share based payments have not been presented
(e) No disclosure has been given for the aggregate remuneration of key management personnel.

Exemption from preparing group accounts

The financial statements contain information about PCT Healthcare Limited as an individual company and do not contain consolidated financial information as the parent of a group.
The company is exempt under section 400 of the Companies Act 2006 from the requirement to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, PCT Healthcare (Holdings) Limited, a company incorporated in England.

Revenue recognition

Turnover comprises the fair value of the sale of goods and services. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue either at the point of sale or when the company has delivered the goods to the customer.

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2019

Deferred tax

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequent stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation 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, fittings and equipment

10% and 25% straight line

Motor vehicles

25% reducing balance

Improvements to property

10% straight line

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.

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

Stocks

Stocks are stated at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items.

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.

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2019

Defined contribution pension obligation

The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2019

3

Revenue

The analysis of the company's revenue for the year from continuing operations is as follows:

2019
 £

2018
 £

Sale of goods

119,904,257

94,662,727

The analysis of the company's turnover for the year by class of business is as follows:

2019
 £

2018
 £

Pharmacy

119,904,257

94,662,727

4

Operating profit/(loss)

Arrived at after charging/(crediting)

2019
 £

2018
 £

Depreciation expense

961,794

971,048

Amortisation expense

4,659,542

3,653,484

Loss on disposal of property, plant and equipment

8,404

3,340

Group company loan written off

(10,069,597)

-

5

Other interest receivable and similar income

2019
 £

2018
 £

Interest income on bank deposits

1,014

4,597

Other finance income

-

638

1,014

5,235

6

Interest payable and similar expenses

2019
 £

2018
 £

Interest on bank overdrafts and borrowings

-

3,665

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2019

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2019
 £

2018
 £

Wages and salaries

21,221,192

17,444,960

Social security costs

1,564,775

1,318,833

Pension costs, defined contribution scheme

369,967

266,002

23,155,934

19,029,795

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

2019
No.

2018
No.

Pharmacists, counter staff and drivers

1,100

994

Administrative staff

39

39

Management staff

4

4

1,143

1,037

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2019
 £

2018
 £

Remuneration

432,665

432,138

In respect of the highest paid director:

2019
 £

2018
 £

Remuneration

150,522

150,522

9

Auditors' remuneration

2019
 £

2018
 £

Audit of the financial statements

42,000

42,000


 

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2019

10

Taxation

Tax charged/(credited) in the income statement

2019
 £

2018
 £

Current taxation

UK corporation tax

789,887

401,845

UK corporation tax adjustment to prior periods

-

(22,071)

789,887

379,774

Deferred taxation

Arising from origination and reversal of timing differences

(55,419)

131,078

Tax expense in the income statement

734,468

510,852

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2018 - the same as the standard rate of corporation tax in the UK) of 19% (2018 - 19%).

The differences are reconciled below:

2019
£

2018
£

Profit/(loss) before tax

11,358,502

(2,026,914)

Corporation tax at standard rate

2,158,115

(385,114)

Effect of expense not deductible in determining taxable profit (tax loss)

(1,041,552)

667,885

Acquisition of fixed assets from group company

(99,897)

183,564

Capital gains on disposal of pharmacy shops

-

359,674

Decrease in UK and foreign current tax from adjustment for prior periods

-

(22,071)

Tax decrease arising from group relief

(282,198)

(293,086)

Total tax charge

734,468

510,852

Deferred tax

Deferred tax assets and liabilities

2019

Liability
£

Accelerated capital allowances

298,302

   

2018

Liability
£

Accelerated capital allowances

353,721

   
 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2019

11

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 December 2018

72,499,118

72,499,118

Transfers

1,406,941

1,406,941

At 30 November 2019

73,906,059

73,906,059

Amortisation

At 1 December 2018

44,069,338

44,069,338

Amortisation charge

4,659,542

4,659,542

At 30 November 2019

48,728,880

48,728,880

Carrying amount

At 30 November 2019

25,177,179

25,177,179

At 30 November 2018

28,429,780

28,429,780

12

Tangible assets

Short leasehold property
£

Fixtures, fittings & equipment
£

Improvements to property
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 December 2018

5,286,034

10,092,347

1,834,250

272,176

17,484,807

Additions

-

599,299

-

-

599,299

Transfers

-

439,742

257,109

-

696,851

Disposals

-

(68,471)

-

(104,501)

(172,972)

At 30 November 2019

5,286,034

11,062,917

2,091,359

167,675

18,607,985

Depreciation

At 1 December 2018

2,511,206

7,160,326

1,451,344

204,498

11,327,374

Charge for the year

201,336

697,476

50,845

12,137

961,794

Eliminated on disposal

-

-

-

(87,997)

(87,997)

At 30 November 2019

2,712,542

7,857,802

1,502,189

128,638

12,201,171

Carrying amount

At 30 November 2019

2,573,492

3,205,115

589,170

39,037

6,406,814

At 30 November 2018

2,774,828

2,932,021

382,906

67,678

6,157,433

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2019

13

Investments in subsidiaries, joint ventures and associates

2019
 £

2018
 £

Investments in subsidiaries

1,579,222

1,579,222

Subsidiaries

£

Cost or valuation

At 1 December 2018

1,579,222

Provision

Carrying amount

At 30 November 2019

1,579,222

At 30 November 2018

1,579,222

Subsidiaries

£

Fair value

At 1 December 2018

1,579,222

At 30 November 2019

1,579,222

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

     

2019

2018

Subsidiary undertakings

Grasmere Leigh Ltd

Ordinary

100%

100%

 

     

TV Pharmacy Ltd

Ordinary

100%

100%

 

     

Television Pharmacy Ltd

Ordinary

100%

100%

 

     

Telepharm Ltd

Ordinary

100%

100%

 

     

Freephone Pharmacy Ltd

Ordinary

100%

100%

 

     

Roy Lamb Ltd

Ordinary

100%

100%

 

     

The Concourse Pharmacy Ltd

Ordinary

100%

100%

 

     

Andersons Investments Ltd

Ordinary

100%

100%

 

     

St Pauls (HCC) Ltd

Ordinary

100%

100%

 

     

R H Swinn Ltd

Ordinary

100%

100%

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2019

 

     

Richard G Hardy Ltd

Ordinary

100%

100%

 

     

Jayne A Hibbard Ltd

Ordinary

100%

100%

 

     

Swift Chemists Ltd

Ordinary

100%

100%

 

     

Medex Health Ltd

Ordinary

100%

100%

 

     

K M Brennan (Chemist) Ltd

Ordinary

100%

100%

 

     


 

The principal activity of Grasmere Leigh Ltd and Jayne A Hibbard Ltd is retail pharmacy. All other companies are dormant.

14

Other financial assets (current and non-current)

Financial assets at cost less impairment
£

Total
£

Non-current financial assets

Cost or valuation

At 1 December 2018

891,710

891,710

At 30 November 2019

891,710

891,710

Impairment

Carrying amount

At 30 November 2019

891,710

891,710

15

Stocks

2019
 £

2018
 £

Finished goods and goods for resale

7,193,455

6,467,139

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2019

16

Debtors

2019
 £

2018
 £

Trade debtors

9,455,901

8,900,628

Amounts owed by group undertakings

14,714,189

13,852,933

Other debtors

3,160,803

3,412,659

Prepayments and accrued income

525,177

1,474,279

Corporation tax repayable

-

407,572

27,856,070

28,048,071

17

Cash and cash equivalents

2019
 £

2018
 £

Cash on hand

31,478

30,196

Cash at bank

3,037,433

172,419

3,068,911

202,615

Bank overdrafts

(2,243,381)

(61,642)

825,530

140,973

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2019

18

Creditors

2019
 £

2018
 £

Due within one year

 

Loans and borrowings

23

2,243,381

61,642

Trade creditors

 

13,286,368

16,274,779

Amounts owed to group undertakings

 

13,089,040

22,633,727

Social security and other taxes

 

467,373

482,741

Other creditors

 

144,928

22,898

Accruals and deferred income

 

267,013

294,321

Income tax liability

 

359,768

-

Directors loan accounts

 

18,207,849

18,466,836

 

48,065,720

58,236,944

19

Provisions for liabilities

Deferred tax
£

Total
£

At 1 December 2018

353,721

353,721

Increase (decrease) in existing provisions

(55,419)

(55,419)

At 30 November 2019

298,302

298,302

20

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £ 369,967 (2018 - £ 266,002 ).

21

Share capital

Allotted, called up and fully paid shares

 

2019

2018

 

No.

£

No.

£

Ordinary share of £ 1 each

263,006

263,006

263,006

263,006

         
 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2019

22

Reserves

Profit and loss account

This reserve records retained earnings and accumulated losses

23

Loans and borrowings

2019
 £

2018
 £

Current loans and borrowings

Bank overdrafts

2,243,381

61,642

24

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2019
£

2018
£

Not later than one year

1,901,976

1,852,972

Later than one year and not later than five years

6,801,712

6,726,727

Later than five years

7,974,827

7,857,561

16,678,515

16,437,260

The amount of non-cancellable operating lease payments recognised as an expense during the year was £ 2,231,304 (2018 - £ 1,889,236 ).

25

Contingent liabilities

The company is party to a cross guarantee arrangement. The company is potentially liable for £45,461,733. The directors do not consider it likely that this guarantee will be called upon.

The company is party to a debenture including fixed charge over all present freehold leasehold property: first fixed charge over book and other debtors, chattels, goodwill and uncalled capital, both present and future, and first floating charge over all assets and undertakings both present and future.

26

Related party transactions

The company is controlled by Mr P Cattee and members of his close family.

The company does not disclose details of transactions with other group companies on the grounds that consolidated accounts are publicly available.

The amounts due to Mr G A Tims and Mr P Cattee at the balance sheet date were £2,875,231 and £15,332,618, respectively (2018 £3,134,218 and £15,332,618). The loans are interest free.

The company occupied premises owned by Mr P and Mrs A J Cattee. rent paid during the year in respect of these properties amounted to £18,250 (2018 £18,250).

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2019

Loans to related parties

2019

Parent
£

Subsidiary
£

Total
£

At start of period

-

13,852,933

13,852,933

Advanced

3,424,876

-

3,424,876

Repaid

-

(2,563,621)

(2,563,621)

At end of period

3,424,876

11,289,312

14,714,188

2018

Subsidiary
£

Total
£

At start of period

19,265,888

19,265,888

Repaid

(5,412,955)

(5,412,955)

At end of period

13,852,933

13,852,933

Loans from related parties

2019

Parent
£

Subsidiary
£

Total
£

At start of period

3,717,123

18,916,604

22,633,727

Advanced

-

4,260,032

4,260,032

Repaid

(3,717,123)

-

(3,717,123)

Written off

-

(10,087,597)

(10,087,597)

At end of period

-

13,089,039

13,089,039

2018

Parent
£

Subsidiary
£

Total
£

At start of period

13,037,798

14,542,202

27,580,000

Advanced

-

4,374,402

4,374,402

Repaid

(9,320,675)

-

(9,320,675)

At end of period

3,717,123

18,916,604

22,633,727

Terms of loans from related parties

The loans are interest free and repayable on demand.
 

27

Parent and ultimate parent undertaking

The company's immediate parent is PCT Healthcare (Holdings) Limited, incorporated in England and Wales.

 

 

PCT Healthcare Limited

Notes to the Financial Statements for the Year Ended 30 November 2019

28

Non adjusting events after the financial period

Since the year end the country was impacted by the Covid-19 pandemic. Whilst the initial consequence was to create an unprecedented set of challenges the company responded well in adapting it's working practices and kept all but two of its branches open throughout the initial crisis with both opening again after a short period. Morale held up well as staff rose to the challenge professionally and whilst at times there has been an impact on OTC ('Over The Counter') business due to distancing the prescription business continues to track on budget. At the same time the margin reduction of early 2018-19 has been restored and the 5-year settlement has re-introduced some stability to the pharmacy sector and the company expects to have a satisfactory year despite the crisis.