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REGISTERED NUMBER: 06528820 (England and Wales)















MAGMA GLOBAL LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021






MAGMA GLOBAL LIMITED (REGISTERED NUMBER: 06528820)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 7

Balance Sheet 8

Statement of Changes in Equity 9

Cash Flow Statement 10

Notes to the Cash Flow Statement 11

Notes to the Financial Statements 12


MAGMA GLOBAL LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2021







DIRECTORS: M P W Jones
J Rounce
H Urquhart
B Mennie



SECRETARY: B Mennie



REGISTERED OFFICE: Magma House
Trafalgar Wharf
Hamilton Road
Portsmouth
Hampshire
PO6 4PX



REGISTERED NUMBER: 06528820 (England and Wales)



AUDITORS: Rothmans Audit LLP
Statutory Auditors
Chartered Accountants
Fryern House
125 Winchester Road
Chandlers Ford
Hampshire
SO53 2DR



BANKERS: National Westminster Bank Plc
52 West Street
Fareham
PO16 0JX



SOLICITORS: Shoosmiths LLP
Russell House
Solent Business Park
Whiteley
Fareham
PO15 7AG

MAGMA GLOBAL LIMITED (REGISTERED NUMBER: 06528820)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021


The directors present their strategic report for the year ended 31 December 2021.

REVIEW OF BUSINESS
The principal activity of the Company continued to be that of designing and manufacturing composite risers, jumpers, spools and intervention lines for the subsea Oil & Gas market.

On 13 October 2021, TechnipFMC plc acquired the remaining 75% of the Company's equity which it did not already own, via its subsidiary Technip-Coflexip Holdings UK Limited. From that date, the Company became a 100% wholly-owned subsidiary company of TechnipFMC plc.

In the year ended 31 December 2021, the Company's revenues were £10.2m, up 2.9% from £9.9m in the previous year. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), i.e. excluding £3.25m costs relating to the acquisition of the Company's equity by TechnipFMC plc, improved from -£179k in the previous year to +£550k. Cash balances decreased from £12.1m to £6m, following a £6m capital repayment from the share premium account, with a temporary improvement in working capital offsetting the acquisition-related costs.

During the year, the Company successfully managed the ongoing challenges faced during the Covid-19 pandemic, with manufacturing almost unaffected, so that the overall financial impact of Covid-19 was not significant. The Company continued to invest in its products, facilities and plant & machinery, and in its development and qualification activities, thereby increasing its capabilities to deliver future customer requirements.

KEY PERFORMANCE INDICATORS
The Company measures a range of financial data to monitor and manage its activities, including revenue, EBITDA and cash flow. Non-financial metrics are also monitored across the business and there is a strong focus on the safety and wellbeing of employees.

RISK MANAGEMENT
The Company's activities expose it to a number of financial and operating risks and uncertainties, which are managed and mitigated as part of the Company's ongoing management processes. The ongoing investment in the Company's longer-term design & manufacturing capabilities has adversely affected its short-term financial performance, as it endeavours to strike the right balance between short-term deliverables and longer-term capacity planning. The principal risk and uncertainty is the speed of adoption of the Company's products in the global Oil and Gas market.

FUTURE DEVELOPMENTS
The Company remains well-funded and is now an integral part of TechnipFMC plc's future growth plans.

RESEARCH & DEVELOPMENT ACTIVITIES
The Company continues to invest heavily in the development and qualification of its range of new products in the Oil & Gas market. Designs and manufacturing methods continue to be developed and improved to meet the challenges faced by the market.

ON BEHALF OF THE BOARD:





M P W Jones - Director


16 August 2022

MAGMA GLOBAL LIMITED (REGISTERED NUMBER: 06528820)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2021


The directors present their report with the financial statements of the company for the year ended 31 December 2021.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2021.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report.

M P W Jones
J Rounce

Other changes in directors holding office are as follows:

J C Mathiesen - resigned 13 October 2021
D J V Van Steenbergen - resigned 13 October 2021
M G Bryant - resigned 13 October 2021
J Jonhede - resigned 13 October 2021
M Court - resigned 13 October 2021
C A Tavner - resigned 13 October 2021
J D Landes - resigned 13 October 2021
H Urquhart - appointed 13 October 2021
A S K Gorman - appointed 13 October 2021
W Davie - appointed 13 October 2021

B Mennie was appointed as a director after 31 December 2021 but prior to the date of this report.

W Davie and A S K Gorman ceased to be directors after 31 December 2021 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

MAGMA GLOBAL LIMITED (REGISTERED NUMBER: 06528820)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2021


AUDITORS
Rothmans Audit LLP will be proposed for re-appointment at the forthcoming annual general meeting.

ON BEHALF OF THE BOARD:





M P W Jones - Director


16 August 2022

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MAGMA GLOBAL LIMITED


Opinion
We have audited the financial statements of Magma Global Limited (the 'company') for the year ended 31 December 2021 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 31 December 2021 and of its loss 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 Auditors' 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
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters 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 the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the 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 or the Report of the Directors.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MAGMA GLOBAL LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework and in relation to the company's design and manufacturing activities.

Understanding how the company is complying with those regulations by making enquiries of management and those responsible for legal and compliance procedures, including discussions on risk of litigation and known incidences of non-compliance. We corroborated our enquiries through our review of board minutes and relevant correspondence.

Discussing among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential risk areas as estimates and judgements used by management in accounting for long-term contracts and related balances. The risk was addressed by ensuring audit procedures assessed reasonableness of estimates used by obtaining corroborative evidence, as well as considering what could be non-corroborative.

Assessing the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by discussing with management susceptibility to fraud, considering performance targets and how this may influence results, and assessing the internal control environment. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included assessing the appropriateness of presentation of separately disclosed items and testing manual journals. These procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error.

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 Report of the Auditors.

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 a Report of the Auditors 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.




Robin Lloyd (Senior Statutory Auditor)
for and on behalf of Rothmans Audit LLP
Statutory Auditors
Chartered Accountants
Fryern House
125 Winchester Road
Chandlers Ford
Hampshire
SO53 2DR

16 August 2022

MAGMA GLOBAL LIMITED (REGISTERED NUMBER: 06528820)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021

2021 2020
Notes £ £

TURNOVER 3 10,217,851 9,926,670

Cost of sales 4,695,098 4,967,398
GROSS PROFIT 5,522,753 4,959,272

Administrative expenses 10,234,638 7,395,266
(4,711,885 ) (2,435,994 )

Other operating income 18,326 56,594
OPERATING LOSS 5 (4,693,559 ) (2,379,400 )

Interest receivable and similar income 872 17,117
(4,692,687 ) (2,362,283 )

Interest payable and similar expenses 6 101 -
LOSS BEFORE TAXATION (4,692,788 ) (2,362,283 )

Tax on loss 7 (220,646 ) (265,530 )
LOSS FOR THE FINANCIAL YEAR (4,472,142 ) (2,096,753 )

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

(4,472,142

)

(2,096,753

)

MAGMA GLOBAL LIMITED (REGISTERED NUMBER: 06528820)

BALANCE SHEET
31 DECEMBER 2021

2021 2020
Notes £ £ £ £
FIXED ASSETS
Intangible assets 8 525,990 566,778
Tangible assets 9 10,966,179 12,253,331
11,492,169 12,820,109

CURRENT ASSETS
Stocks 10 491,665 336,490
Debtors 11 2,758,738 3,344,483
Cash at bank and in hand 5,959,392 12,058,153
9,209,795 15,739,126
CREDITORS
Amounts falling due within one year 12 7,731,164 5,133,717
NET CURRENT ASSETS 1,478,631 10,605,409
TOTAL ASSETS LESS CURRENT
LIABILITIES

12,970,800

23,425,518

CREDITORS
Amounts falling due after more than one
year

13

17,424

-
NET ASSETS 12,953,376 23,425,518

CAPITAL AND RESERVES
Called up share capital 15 8,603,669 8,603,669
Share premium 16 48,907,323 54,907,323
Capital redemption reserve 16 139,925 139,925
Retained earnings 16 (44,697,541 ) (40,225,399 )
SHAREHOLDERS' FUNDS 12,953,376 23,425,518

The financial statements were approved by the Board of Directors and authorised for issue on 16 August 2022 and were signed on its behalf by:





M P W Jones - Director


MAGMA GLOBAL LIMITED (REGISTERED NUMBER: 06528820)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£ £ £ £ £

Balance at 1 January 2020 8,603,669 (38,128,646 ) 54,907,323 139,925 25,522,271

Changes in equity
Total comprehensive income - (2,096,753 ) - - (2,096,753 )
Balance at 31 December 2020 8,603,669 (40,225,399 ) 54,907,323 139,925 23,425,518

Changes in equity
Capital repayment - - (6,000,000 ) - (6,000,000 )
Total comprehensive income - (4,472,142 ) - - (4,472,142 )
Balance at 31 December 2021 8,603,669 (44,697,541 ) 48,907,323 139,925 12,953,376

MAGMA GLOBAL LIMITED (REGISTERED NUMBER: 06528820)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021

2021 2020
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 360,142 (967,702 )
Interest element of finance lease payments
paid

(101

)

-
Taxation refund 197,591 292,662
Net cash from operating activities 557,632 (675,040 )

Cash flows from investing activities
Purchase of intangible fixed assets (76,556 ) (77,935 )
Purchase of tangible fixed assets (679,124 ) (270,964 )
Sale of tangible fixed assets 100,000 -
Interest received 872 17,117
Net cash from investing activities (654,808 ) (331,782 )

Cash flows from financing activities
Capital repayments in year (1,585 ) -
Capital repayment from share premium (6,000,000 ) -
Net cash from financing activities (6,001,585 ) -

Decrease in cash and cash equivalents (6,098,761 ) (1,006,822 )
Cash and cash equivalents at beginning
of year

2

12,058,153

13,064,975

Cash and cash equivalents at end of year 2 5,959,392 12,058,153

MAGMA GLOBAL LIMITED (REGISTERED NUMBER: 06528820)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021


1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2021 2020
£ £
Loss before taxation (4,692,788 ) (2,362,283 )
Depreciation charges 1,924,495 2,087,086
Profit on disposal of fixed assets (66,779 ) -
Amortisation charges 117,342 113,591
Government grants (18,326 ) (41,432 )
Finance costs 101 -
Finance income (872 ) (17,117 )
(2,736,827 ) (220,155 )
(Increase)/decrease in stocks (155,175 ) 183,269
Decrease in trade and other debtors 608,800 1,394,800
Increase/(decrease) in trade and other creditors 2,643,344 (2,325,616 )
Cash generated from operations 360,142 (967,702 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2021
31/12/21 1/1/21
£ £
Cash and cash equivalents 5,959,392 12,058,153
Year ended 31 December 2020
31/12/20 1/1/20
£ £
Cash and cash equivalents 12,058,153 13,064,975


3. ANALYSIS OF CHANGES IN NET FUNDS

Other
non-cash
At 1/1/21 Cash flow changes At 31/12/21
£ £ £ £
Net cash
Cash at bank
and in hand 12,058,153 (6,098,761 ) 5,959,392
12,058,153 (6,098,761 ) 5,959,392
Debt
Finance leases - 1,585 (28,513 ) (26,928 )
- 1,585 (28,513 ) (26,928 )
Total 12,058,153 (6,097,176 ) (28,513 ) 5,932,464

MAGMA GLOBAL LIMITED (REGISTERED NUMBER: 06528820)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021


1. COMPANY INFORMATION

Magma Global Limited was incorporated on 10 March 2008 under the Companies Act 2006, as a private limited company and is registered in England and Wales. The principal activity of the company is designing and manufacturing composite risers, jumpers, spools and intervention lines for the subsea Oil & Gas market. The address of its head office and registered office is Magma House, Trafalgar Wharf, Hamilton Road, Portsmouth, PO6 4PX.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The presentation currency is £ sterling.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirement of paragraph 33.7.

Turnover
Turnover represents the total invoice value, excluding value added tax, of sales made during the year, plus accrued income, less deferred income, and derives from the provision of goods and services falling within the company's ordinary activities.

In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.

Intangible fixed assets
Intangible fixed assets are initially recognised at cost and subsequently carried at cost less accumulated amortisation and accumulated impairment losses.

Amoritsation is provided to write off the cost of patents in equal annual instalments over their useful life of 10 years.

Tangible fixed assets
All fixed assets are initially recognised at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is provided at rates calculated to write off the cost less residual value of each assets over its expected useful life, as follows:

Leasehold property- Straight line over the life of the lease
Freehold property- 22 years straight line
Plant and machinery- 4-10 years straight line
Fixtures, fittings and equipment- 3-4 years straight line

The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

Fixed assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the Statement of Comprehensive Income.

MAGMA GLOBAL LIMITED (REGISTERED NUMBER: 06528820)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


2. ACCOUNTING POLICIES - continued

Stocks
Stocks are valued at the lower of cost and net realisable value. Stocks are valued at purchase price using a first in, first out method.

Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation and, where appropriate, the cost of conversion from their existing state to a finished condition. Provision is made where necessary for obsolescent, slow moving and defective stock.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current tax is recognised at the amount of tax payable using the tax rates and laws that that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Research and development
Research expenditure is written off to the Statement of Comprehensive Income in the year in which it is incurred.

Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange prevailing at the accounting date. Transactions in foreign currencies are recorded at the date of the transactions. All differences are taken to the Statement of Comprehensive Income.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over their useful lives. Obligations under such agreement are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Comprehensive Income so as to produce constant periodic rates of charge on the net obligations outstanding in each period.

Rentals payable under operating leases are charged to the statement of Comprehensive Income on a straight line basis over the lease term.

Pensions
The pension costs charged in the financial statements represent the contribution payable by the company during the year.

Financial instruments
The company only has financial assets and liabilities of the kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and debt instruments are subsequently measured at amortised cost.

Grants
Grants relating to expenditure on tangible fixed assets are credited to the Statement of Comprehensive Income at the same rate as the depreciation on the assets to which the grant relates. The deferred element of the grant is included in creditors as deferred income.

Grants of a revenue nature are credited to the Statement of Comprehensive Income in the period to which they relate in accordance with the terms of the grant. Any deferred element of the grant is included in creditors as deferred income.

MAGMA GLOBAL LIMITED (REGISTERED NUMBER: 06528820)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


2. ACCOUNTING POLICIES - continued

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date, and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Leases

A lease that does not transfer substantially all of the risks and rewards of ownership is classified as an
operating lease and is therefore not included in the statement of financial position.

Revenue recognition


Revenue is recognised in relation to the value of work carried out which is based on the project as a
whole. Judgements are made on the timing of revenue recognition based on the percentage
completion of the work, and the expected outcome of the contract.

Other key sources of estimation uncertainty

Tangible fixed assets



Tangible fixed assets are depreciated over their useful lives taking into account residual values, where
appropriate. The actual lives of the assets and residual values are assessed annually and may vary
depending on a number of factors. Residual value assessments consider issues such as market
conditions, the remaining life of the asset and projected disposal values.

Stock provision

Stock is provided against if the management consider it necessary. The stock provision is assessed
annually and may vary depending on a number of factors such as usage.

3. TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2021 2020
£ £
United Kingdom 4,165,676 3,770,062
Europe 408,012 619,872
United States of America 1,241,413 1,939,736
Rest of the world 4,402,750 3,597,000
10,217,851 9,926,670

4. EMPLOYEES AND DIRECTORS
2021 2020
£ £
Wages and salaries 6,914,805 4,377,438
Social security costs 784,750 454,448
Other pension costs 194,847 189,627
7,894,402 5,021,513

MAGMA GLOBAL LIMITED (REGISTERED NUMBER: 06528820)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2021 2020

Production 32 33
Engineering 32 33
Management, sales and administration 12 11
76 77

2021 2020
£ £
Directors' remuneration 1,413,426 435,669
Directors' pension contributions to money purchase schemes 13,962 17,702

Information regarding the highest paid director is as follows:
2021 2020
£ £
Emoluments etc 1,146,738 252,122
Pension contributions to money purchase schemes 13,962 -

5. OPERATING LOSS

The operating loss is stated after charging/(crediting):

2021 2020
£ £
Hire of plant and machinery 57,772 51,256
Depreciation - owned assets 1,924,496 2,087,086
Profit on disposal of fixed assets (66,779 ) -
Patents and licences amortisation 117,344 113,591
Foreign exchange differences (22,914 ) 28,216
Auditors' remuneration 7,850 7,550
Costs relating to the acquisition of the company - Staff costs 2,835,493 -
Costs relating to the acquisition of the company - Legal fees 421,318 -

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2021 2020
£ £
Hire purchase and finance
lease charges 101 -
101 -

MAGMA GLOBAL LIMITED (REGISTERED NUMBER: 06528820)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


7. TAXATION

Analysis of the tax credit
The tax credit on the loss for the year was as follows:
2021 2020
£ £
Current tax:
R&D tax credit - prior year (47,591 ) (115,530 )
R&D tax credit - current year (173,055 ) (150,000 )

Tax on loss (220,646 ) (265,530 )

UK corporation tax has been charged at 19% .

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2021 2020
£ £
Loss before tax (4,692,788 ) (2,362,283 )
Loss multiplied by the standard rate of corporation tax in the UK of 19%
(2020 - 19%)

(891,630

)

(448,834

)

Effects of:
Expenses not deductible for tax purposes 60,109 -
Adjustments to tax charge in respect of previous periods (47,591 ) (115,530 )
Difference in tax rates on Research and Development claim - 82,406
Research and Development expenditure credit adjustment 40,593 -
Current year Research and Development net expenditure credit (173,055 ) -
Movement on unprovided deferred tax asset 790,928 216,428
Total tax credit (220,646 ) (265,530 )

The company has trading losses of approximately £35.6 million which have been carried forward (2020: £32.2 million).

8. INTANGIBLE FIXED ASSETS
Patents and
licences
£
COST
At 1 January 2021 1,156,698
Additions 76,556
At 31 December 2021 1,233,254
AMORTISATION
At 1 January 2021 589,920
Amortisation for year 117,344
At 31 December 2021 707,264
NET BOOK VALUE
At 31 December 2021 525,990
At 31 December 2020 566,778

MAGMA GLOBAL LIMITED (REGISTERED NUMBER: 06528820)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


9. TANGIBLE FIXED ASSETS
Fixtures,
fittings
Leasehold Plant and and
property machinery equipment Totals
£ £ £ £
COST
At 1 January 2021 7,577,697 16,191,348 922,844 24,691,889
Additions - 618,604 51,961 670,565
Disposals - (559,822 ) - (559,822 )
At 31 December 2021 7,577,697 16,250,130 974,805 24,802,632
DEPRECIATION
At 1 January 2021 1,917,053 9,752,404 769,101 12,438,558
Charge for year 313,833 1,516,987 93,676 1,924,496
Eliminated on disposal - (526,601 ) - (526,601 )
At 31 December 2021 2,230,886 10,742,790 862,777 13,836,453
NET BOOK VALUE
At 31 December 2021 5,346,811 5,507,340 112,028 10,966,179
At 31 December 2020 5,660,644 6,438,944 153,743 12,253,331

The net book value of tangible fixed assets includes £28,513 (2020: £Nil) in respect of assets held under hire purchase contracts.

10. STOCKS
2021 2020
£ £
Raw materials 491,665 336,490

Stock recognised during the year as an expense was £2,086,185 (2020: £2,469,872).

A provision for impairment has been recognised during the year as an expense totalling £70,786 (2020: £74,400).

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£ £
Trade debtors 525,009 1,170,235
Other debtors 1,299 188,725
Corporation tax 173,055 150,000
Prepayments and accrued income 2,059,375 1,835,523
2,758,738 3,344,483

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£ £
Finance leases (see note 14) 9,504 -
Trade creditors 1,155,166 1,217,703
Social security and other taxes 208,411 131,329
Other creditors 198,621 114,358
Accruals and deferred income 6,159,462 3,670,327
7,731,164 5,133,717

MAGMA GLOBAL LIMITED (REGISTERED NUMBER: 06528820)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2021 2020
£ £
Finance leases (see note 14) 17,424 -

Obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Finance leases
2021 2020
£ £
Net obligations repayable:
Within one year 9,504 -
Between one and five years 17,424 -
26,928 -

Non-cancellable
operating leases
2021 2020
£ £
Within one year 938,337 889,923
Between one and five years 1,858,437 2,439,407
2,796,774 3,329,330

Lease payments recognised as an expense during the year were £888,923 (2020: £878,591).

MAGMA GLOBAL LIMITED (REGISTERED NUMBER: 06528820)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal value: 2021 2020
£ £
270,315 Ordinary 1p 2,703 2,703
809,280 A Ordinary £1 809,280 809,280
195,118 B Ordinary £1 195,118 195,118
3,050,004 C Ordinary £1 3,050,004 3,050,004
273,206 B1 Ordinary £1 273,206 273,206
143,350 B2 Ordinary £1 143,350 143,350
16,686 D Ordinary 1p 167 167
1,606,629 E Ordinary £1 1,606,629 1,606,629
38,526 E1 Ordinary 1p 385 385
83,102 B3 Ordinary £12.65 1,051,240 1,051,240
56,818 B4 Ordinary £25.90 1,471,586 1,471,586
8,603,669 8,603,669


Rights and restrictions attached to shares

Prescribed particulars attached to all classes of share (other than D, E and E1 Ordinary shares):

- Each share has attached full voting rights.

- Every dividend shall be distributed pro rata according to the number of shares held.

- Participation in a distribution (including on a winding up) applies firstly to the holders of B2 Ordinary
shares an amount equal to their respective subscription price per share less any amount previously
paid to them as a dividend. Participation in a distribution then applies to B Ordinary, B1 Ordinary, B3
Ordinary and B4 Ordinary in this order, an amount equal to their respective subscription price per
share, less any amount previously paid to them as a dividend. In the event of a shortfall such amounts
will be paid in proportion to the numbers of the B Ordinary and B3 Ordinary, or the B1 Ordinary and
B4 Ordinary shares held. Participation in a distribution then applies to the holders of C Ordinary and A
Ordinary shares in this order, an amount equal to their respective subscription price per share, less
any amount previously paid to them as a dividend. In the event of a shortfall such amounts will be paid
in proportion to the numbers of shares held. Any surplus will be distributed equally amongst the
holders of A Ordinary, B Ordinary, B1 Ordinary, B2 Ordinary, B3 Ordinary, B4 Ordinary and Ordinary
shares up to the hurdle value. If the surplus assets exceed the hurdle value, any final surplus will be
distributed equally amongst the holders of A Ordinary, B Ordinary, B1 Ordinary, B2 Ordinary, B3
Ordinary, B4 Ordinary, D Ordinary and Ordinary shares.

- Shares are not redeemable.

Prescribed particulars attached to D Ordinary shares:

- No voting rights.

- No right to a dividend.


MAGMA GLOBAL LIMITED (REGISTERED NUMBER: 06528820)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021

- Participation in a distribution (including on a winding up) applies firstly to the holders of B2 Ordinary
shares an amount equal to their respective subscription price per share less any amount previously
paid to them as a dividend. Participation in a distribution then applies to B Ordinary, B1 Ordinary, B3
Ordinary, B4 Ordinary shares in this order, an amount equal to their respective subscription price per
share, less any amount previously paid to them as a dividend. In the event of a shortfall such amounts
will be paid in proportion to the numbers of B Ordinary and B3 Ordinary, or B1 Ordinary and B4
Ordinary shares held. Participation in a distribution then applies to the holders of C Ordinary and A
Ordinary shares in that order, an amount equal to their respective subscription price per share less
any amount previously paid as dividend. Any surplus will be distributed equally amongst the holders of
A Ordinary, B Ordinary, B1 Ordinary, B2 Ordinary, B3 Ordinary, B4 Ordinary and Ordinary shares up
to the hurdle value. If the surplus assets exceed the hurdle value, any final surplus will be distributed
equally amongst the holders of A Ordinary, B Ordinary, B1 Ordinary, B2 Ordinary, B3 Ordinary, B4
Ordinary, D Ordinary and Ordinary shares.

- Shares are not redeemable.

Prescribed particulars attached to E Ordinary and E1 Ordinary shares:

- Holders of E Ordinary and E1 Ordinary are entitled to 25% of the votes of the total issued share capital.

- Every dividend shall be distributed pro rata according to the number of shares held.













-
Participation in a distribution (including on a winding up) applies firstly to the holders of B2 Ordinary
shares an amount equal to their respective subscription price per share less any amount previously
paid to them as a dividend. Participation in a distribution then applies to B Ordinary, B1 Ordinary, B3
Ordinary, B4 Ordinary shares in this order, an amount equal to their respective subscription price per
share, less any amount previously paid to them as a dividend. In the event of a shortfall such amounts
will be paid in proportion to the numbers of B Ordinary and B3 Ordinary, or B1 Ordinary and B4
Ordinary shares held. Participation in a distribution then applies to C Ordinary and A Ordinary in that
order, an amount equal to their respective subscription price per share less any amount previously paid
as dividend. Any surplus will be distributed equally amongst the holders of A Ordinary, B Ordinary, B1
Ordinary, B2 Ordinary, B3 Ordinary, B4 Ordinary and Ordinary shares up to the hurdle value. If the
surplus assets exceed the hurdle value, any final surplus will be distributed equally amongst the holders
of A Ordinary, B Ordinary, B1 Ordinary, B2 Ordinary, B3 Ordinary, B4 Ordinary, D Ordinary and
Ordinary shares.

- Shares are not redeemable.


-
In respect of any E Ordinary shares that are subject to an option under the option agreement, from
completion of such option they shall have no voting, no dividend or distribution rights.

16. RESERVES
Capital
Retained Share redemption
earnings premium reserve Totals
£ £ £ £

At 1 January 2021 (40,225,399 ) 54,907,323 139,925 14,821,849
Deficit for the year (4,472,142 ) (4,472,142 )
Capital repayment - (6,000,000 ) - (6,000,000 )
At 31 December 2021 (44,697,541 ) 48,907,323 139,925 4,349,707

Retained earnings includes all current and prior period retained profits and losses.

The share premium account includes any premiums received on issue of share capital, net of any transaction costs associated with the issuing of the shares.

The capital redemption reserve includes amounts transferred following the redemption or purchase of the company's own shares.

MAGMA GLOBAL LIMITED (REGISTERED NUMBER: 06528820)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


17. PENSION COMMITMENTS

The company operates a defined contribution scheme in respect of the directors and employees. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the company and amounted to £194,848 (2020: £189,627).

18. CAPITAL COMMITMENTS
2021 2020
£ £
Contracted but not provided for in the
financial statements 12,128 211,091

19. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

During the year sales of £54,025 (2020: £84,780) were made to M-Flow Technologies Limited a company of which the directors Mr M G Bryant, Mr M P W Jones and Mr J Jonhede are also directors. The balance due to Magma Global Limited at the year end was £Nil (2020: £Nil).

During the year sales of £4,481 and purchases of £804,883 (2020 sales: £5,271 and 2020 purchases: £918,541) were made to and from Victrex Manufacturing Limited a company of which Mr M Court is also a director. The balance due from Victrex Manufacturing Limited at the year end was £Nil (2020: £4,481) and the balance due to Victrex Manufacturing Limited at the year end was £219,041 (2020: £72,894).

During the year sales of £6,936 and purchases of £90,028 (2020 sales: £Nil and 2020 purchases: £Nil) were made to and from Enoflex Limited a company of which Mr M Court, Mr M G Bryant, Mr J Jonhede, Mr C Tavner & Mr D J V Steenbergen are also directors. The balance due to Enoflex Limited at the year end was £83,092 (2020: £Nil).

20. ULTIMATE CONTROLLING PARTY

Up until 13 October 2021, the directors considered there to be no single controlling party.

From 13 October 2021, the immediate parent company is Technip-Coflexip UK Holdings Limited. The ultimate parent company from this date is Technip FMC PLC.

The largest group in which the results of the company are consolidated is that headed by Technip FMC PLC. Copies of the publicly available consolidated financial statements can be obtained from the Registrar of Companies.