Caseware UK (AP4) 2022.0.179 2022.0.179 2022-09-302022-09-302The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.2022-01-01falseThe principal activity of the company is property investment and development.2truetrue 06769893 2022-01-01 2022-09-30 06769893 2021-01-01 2021-12-31 06769893 2022-09-30 06769893 2021-12-31 06769893 2021-01-01 06769893 c:Director1 2022-01-01 2022-09-30 06769893 d:PlantMachinery 2022-01-01 2022-09-30 06769893 d:PlantMachinery 2022-09-30 06769893 d:PlantMachinery 2021-12-31 06769893 d:PlantMachinery d:OwnedOrFreeholdAssets 2022-01-01 2022-09-30 06769893 d:PlantMachinery d:LeasedAssetsHeldAsLessee 2022-01-01 2022-09-30 06769893 d:MotorVehicles 2022-01-01 2022-09-30 06769893 d:MotorVehicles 2022-09-30 06769893 d:MotorVehicles 2021-12-31 06769893 d:MotorVehicles d:OwnedOrFreeholdAssets 2022-01-01 2022-09-30 06769893 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2022-01-01 2022-09-30 06769893 d:FurnitureFittings 2022-01-01 2022-09-30 06769893 d:FurnitureFittings 2022-09-30 06769893 d:FurnitureFittings 2021-12-31 06769893 d:FurnitureFittings d:OwnedOrFreeholdAssets 2022-01-01 2022-09-30 06769893 d:FurnitureFittings d:LeasedAssetsHeldAsLessee 2022-01-01 2022-09-30 06769893 d:OwnedOrFreeholdAssets 2022-01-01 2022-09-30 06769893 d:LeasedAssetsHeldAsLessee 2022-01-01 2022-09-30 06769893 d:FreeholdInvestmentProperty 2022-01-01 2022-09-30 06769893 d:FreeholdInvestmentProperty 2022-09-30 06769893 d:FreeholdInvestmentProperty 2021-12-31 06769893 d:CurrentFinancialInstruments 2022-09-30 06769893 d:CurrentFinancialInstruments 2021-12-31 06769893 d:Non-currentFinancialInstruments 2022-09-30 06769893 d:Non-currentFinancialInstruments 2021-12-31 06769893 d:CurrentFinancialInstruments d:WithinOneYear 2022-09-30 06769893 d:CurrentFinancialInstruments d:WithinOneYear 2021-12-31 06769893 d:Non-currentFinancialInstruments d:AfterOneYear 2022-09-30 06769893 d:Non-currentFinancialInstruments d:AfterOneYear 2021-12-31 06769893 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2022-09-30 06769893 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2021-12-31 06769893 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2022-09-30 06769893 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2021-12-31 06769893 d:ShareCapital 2022-09-30 06769893 d:ShareCapital 2021-12-31 06769893 d:RevaluationReserve 2022-09-30 06769893 d:RevaluationReserve 2021-12-31 06769893 d:InvestmentPropertiesRevaluationReserve 2022-01-01 2022-09-30 06769893 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-09-30 06769893 d:RetainedEarningsAccumulatedLosses 2022-09-30 06769893 d:RetainedEarningsAccumulatedLosses 2021-12-31 06769893 c:FRS102 2022-01-01 2022-09-30 06769893 c:AuditExempt-NoAccountantsReport 2022-01-01 2022-09-30 06769893 c:FullAccounts 2022-01-01 2022-09-30 06769893 c:PrivateLimitedCompanyLtd 2022-01-01 2022-09-30 06769893 d:HirePurchaseContracts d:WithinOneYear 2022-09-30 06769893 d:HirePurchaseContracts d:WithinOneYear 2021-12-31 06769893 d:HirePurchaseContracts d:BetweenOneFiveYears 2022-09-30 06769893 d:HirePurchaseContracts d:BetweenOneFiveYears 2021-12-31 06769893 2 2022-01-01 2022-09-30 06769893 6 2022-01-01 2022-09-30 06769893 d:AcceleratedTaxDepreciationDeferredTax 2022-09-30 06769893 d:AcceleratedTaxDepreciationDeferredTax 2021-12-31 06769893 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2022-09-30 06769893 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2021-12-31 06769893 d:LeasedAssetsHeldAsLessee 2022-09-30 06769893 d:LeasedAssetsHeldAsLessee 2021-12-31 iso4217:GBP xbrli:pure

Registered number: 06769893










MAGIC LIVING LIMITED








UNAUDITED

FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE PERIOD ENDED 30 SEPTEMBER 2022

 
MAGIC LIVING LIMITED
REGISTERED NUMBER: 06769893

BALANCE SHEET
AS AT 30 SEPTEMBER 2022

30 September
31 December
2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 4 
52,057
84,947

Investments
 5 
-
2

Investment property
 6 
60,202,674
51,438,346

  
60,254,731
51,523,295

Current assets
  

Stocks
 7 
5,419,220
3,094,025

Debtors: amounts falling due within one year
 8 
2,816,384
2,651,535

Cash at bank and in hand
  
188,533
526,081

  
8,424,137
6,271,641

Creditors: amounts falling due within one year
 9 
(45,424,082)
(33,644,655)

Net current liabilities
  
 
 
(36,999,945)
 
 
(27,373,014)

Creditors: amounts falling due after more than one year
 10 
(13,127,669)
(13,503,684)

Provisions for liabilities
  

Deferred tax
 13 
(2,050,000)
(2,050,000)

Deferred tax
  
 
 
(2,050,000)
 
 
(2,050,000)

Net assets
  
8,077,117
8,596,597


Capital and reserves
  

Called up share capital 
  
30
30

Revaluation reserve
 14 
7,112,851
7,112,851

Profit and loss account
 14 
964,236
1,483,716

  
8,077,117
8,596,597


Page 1

 
MAGIC LIVING LIMITED
REGISTERED NUMBER: 06769893
    
BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2022

The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the period in question in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




M Michael
Director

Date: 9 October 2023

The notes on pages 3 to 11 form part of these financial statements.

Page 2

 
MAGIC LIVING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2022

1.


General information

Magic Living Limited is a limited liability company incorporated in England and Wales, company number 06769893. The registered office is Magic House, 5-11 Green Lanes, London, N13 4TN.
The financial statements are presented in pound sterling which is the functional currency of the Company
and rounded to the nearest pound.
The comparatives are for the twelve months ended 31 December 2021. 
The significant accounting policies applied in the preparation of these financial statements are set out
below. These policies have been consistently applied to all years presented unless otherwise stated.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue from rental income is recognised to the extent that it is probable that the economic benefits
will flow to the Company and the revenue can be reliably measured. Revenue is measured as the
fair value of the consideration received or receivable.
Rental income is recognised when the amounts fall due in accordance with rental or lease agreements. Income from the sale of properties is recognised on unconditional exchange of contracts.
Revenue from the sale of properties held for development is recognised on unconditional exchange of contracts.

 
2.3

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.4

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 3

 
MAGIC LIVING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2022

2.Accounting policies (continued)

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the period in which they are incurred.

 
2.7

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 4

 
MAGIC LIVING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2022

2.Accounting policies (continued)


2.8
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
33.3% straight line
Motor vehicles
-
25% reducing balance
Fixtures, fittings and equipment
-
33.3% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.9

Investment properties

Investment properties are carried at fair value determined annually by the directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Comprehensive Income.

 
2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 5

 
MAGIC LIVING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2022

2.Accounting policies (continued)

 
2.15

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company 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 profit or loss in the year that the Company 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.

 
2.16

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.


3.


Employees

The average monthly number of employees, including directors, during the period was 2 (2021 - 2).

Page 6

 
MAGIC LIVING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2022

4.


Tangible fixed assets







Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 January 2022
207,414
52,779
26,353
286,546


Additions
-
54,622
-
54,622


Disposals
-
(52,779)
-
(52,779)



At 30 September 2022

207,414
54,622
26,353
288,389



Depreciation


At 1 January 2022
162,051
13,195
26,353
201,599


Charge for the period on owned assets
43,376
-
-
43,376


Charge for the period on financed assets
-
4,552
-
4,552


Disposals
-
(13,195)
-
(13,195)



At 30 September 2022

205,427
4,552
26,353
236,332



Net book value



At 30 September 2022
1,987
50,070
-
52,057



At 31 December 2021
45,363
39,584
-
84,947

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


30 September
31 December
2022
2021
£
£



Motor vehicles
50,070
39,584

50,070
39,584

Page 7

 
MAGIC LIVING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2022

5.


Fixed asset investments








Investments in subsidiary companies

£



Cost 


At 1 January 2022
2


Amounts written off
(2)



At 30 September 2022
-





6.


Investment properties





Freehold investment properties

£



Valuation


At 1 January 2022
51,438,346


Additions at cost
8,764,328



At 30 September 2022
60,202,674

The 2022 valuations were made by the directors on an open market value for existing use basis.

The historical cost of freehold investment properties at 30 September 2022 was £51,672,845  (31 December 2021 - £42,822,459).





7.


Stocks

30 September
31 December
2022
2021
£
£

Land and buildings held for development and sale
5,419,220
3,094,025

5,419,220
3,094,025


Page 8

 
MAGIC LIVING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2022

8.


Debtors

30 September
31 December
2022
2021
£
£


Trade debtors
37,023
37,806

Other debtors
2,704,525
2,567,342

Prepayments and accrued income
74,836
46,387

2,816,384
2,651,535



9.


Creditors: Amounts falling due within one year

30 September
31 December
2022
2021
£
£

Bank loans
23,142,475
15,687,638

Trade creditors
167,202
138,765

Other taxation and social security
3,459
3,237

Obligations under finance lease and hire purchase contracts
8,538
8,474

Other creditors
21,896,595
17,603,664

Accruals and deferred income
205,813
202,877

45,424,082
33,644,655


The bank loans are secured by a legal charge over the relevant properties. The directors and a related party, Magic Homes Limited, have provided guarantees for some of the bank loans. 


10.


Creditors: Amounts falling due after more than one year

30 September
31 December
2022
2021
£
£

Bank loans
13,010,485
13,477,159

Obligations under finance lease and hire purchase contracts
14,231
12,068

Other creditors
102,953
14,457

13,127,669
13,503,684


The bank loans are secured by a legal charge over the relevant properties. The directors and a related party, Magic Homes Limited, have provided guarantees for some of the bank loans. 

Page 9

 
MAGIC LIVING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2022

11.


Loans


Analysis of the maturity of loans is given below:


30 September
31 December
2022
2021
£
£

Amounts falling due within one year

Bank loans
23,142,475
15,687,638


23,142,475
15,687,638

Amounts falling due 1-2 years

Bank loans
72,000
72,000


72,000
72,000

Amounts falling due 2-5 years

Bank loans
12,938,485
13,405,159


12,938,485
13,405,159


36,152,960
29,164,797



12.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

30 September
31 December
2022
2021
£
£


Within one year
8,538
8,474

More than one and less than five years
14,231
12,068

22,769
20,542

Page 10

 
MAGIC LIVING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2022

13.


Deferred taxation






30 September 2022
31 December 2021


£

£






At 1 January 2022
2,050,000
2,050,000



At 30 September 2022
2,050,000
2,050,000

The provision for deferred taxation is made up as follows:

30 September
31 December
2022
2021
£
£


Revaluation of investment properties
2,050,000
2,050,000

2,050,000
2,050,000


14.


Reserves

Non-distributable reserve

The non-distributable reserve is the accumulated reserve on revaluation of the investment properties held by the company net of related deferred taxation.

Profit and loss account

The profit and loss accounts represents the accumulation of retained profits which are in the form of distributable reserves. 


15.


Controlling party

There is no controlling party in either year.

 
Page 11