REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2023 |
FOR |
MAGNETIC SHIELDS LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2023 |
FOR |
MAGNETIC SHIELDS LIMITED |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH JUNE 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Income Statement | 9 |
Other Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 16 |
MAGNETIC SHIELDS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30TH JUNE 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
The Old School House |
Bridge Road |
Hunton Bridge |
Kings Langley |
Hertfordshire |
WD4 8SZ |
BANKERS: |
35 Regent Street |
Piccadilly Circus |
London |
SW1Y 4ND |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30TH JUNE 2023 |
The directors present their strategic report for the year ended 30th June 2023. |
REVIEW OF BUSINESS |
The Directors present a review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business. |
A summary of the results for the year is shown in the profit and loss account. |
Turnover has increased during the year to £10,793,626 (2022: £10,805,574). The directors consider the profit achieved on ordinary activities before taxation to be satisfactory. |
The financial position of the company at the year end is shown in the balance sheet and the directors consider that this, together with the cash flow statement and the notes to the financial statements, provide a sufficient detail for an understanding of the position and performance of the company. |
BY ORDER OF THE BOARD: |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30TH JUNE 2023 |
The directors present their report with the financial statements of the company for the year ended 30th June 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of precision sheet metal working and the manufacture of magnetic shields and associated acrylic products. |
DIVIDENDS |
No dividends will be distributed for the year ended 30th June 2023. |
DIRECTORS |
The directors during the year under review were: |
- appointed 1.7.22 |
The directors holding office at 30th June 2023 did not hold any beneficial interest in the issued share capital of the company at 1st July 2022 (or date of appointment if later) or 30th June 2023. |
TAXATION STATUS |
The close company provisions of the Income and Corporation Taxes Act 1988 apply to the company. |
DIRECTORS' RESPONSIBILITIES STATEMENT |
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. |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30TH JUNE 2023 |
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
BY ORDER OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MAGNETIC SHIELDS LIMITED |
Opinion |
We have audited the financial statements of Magnetic Shields Limited (the 'company') for the year ended 30th June 2023 which comprise the Income Statement, Other 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 30th June 2023 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MAGNETIC SHIELDS LIMITED |
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. |
Responsibilities of directors |
As explained more fully in the Directors' Responsibilities Statement 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MAGNETIC SHIELDS LIMITED |
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: |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- the nature of the industry and sector, control environment and business performance, any key drivers for directors' |
remuneration, and performance targets; |
- results of our enquiries of management and directors about their own identification and assessment of irregularities; |
- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- the internal systems established to mitigate risks related to fraud or non-compliance with laws and regulations. |
- the matters discussed among the engagement team including tax personnel, regarding where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of the above, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in management override of controls. In common with all audits under ISAs (UK), we are required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory framework in which the company operates, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements in this case, specifically in this context, Companies Act 2006 and tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. |
Audit response to risks identified |
Having performed the above, we did not identify any key audit matters related to the potential risk of fraud or |
non-compliance with laws and regulations. In addition to the above, our procedures to respond to risks identified |
included the following: |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with |
relevant laws and regulations discussed above; |
- enquiring of management, the directors and in-house management concerning actual and potential litigation and claims; |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- in addressing the risk of fraud through management override of controls, reviewing the appropriateness of journal entries and other adjustments; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MAGNETIC SHIELDS 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 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. |
for and on behalf of |
The Old School House |
Bridge Road |
Hunton Bridge |
Kings Langley |
Hertfordshire |
WD4 8SZ |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
INCOME STATEMENT |
FOR THE YEAR ENDED 30TH JUNE 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
1,031 | 60,634 |
Other operating income |
OPERATING PROFIT | 5 |
Profit/loss on sale of invest | 6 |
367,698 | 313,637 |
Interest receivable and similar income |
368,385 | 313,637 |
Interest payable and similar expenses | 7 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 8 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30TH JUNE 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME |
Actuarial gain |
Income tax relating to other comprehensive income |
( |
) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
BALANCE SHEET |
30TH JUNE 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 15 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Share premium | 21 |
Revaluation reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30TH JUNE 2023 |
Called up |
share | Retained | Share | Revaluation | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1st July 2021 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 30th June 2022 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 30th June 2023 |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30TH JUNE 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Government grants |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Sale of fixed asset investments |
Tax repaid |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Increase in hire purchase | ( |
) |
Increase in loans and overdrafts |
Net cash from financing activities |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
1,524,106 |
Cash and cash equivalents at end of year | 2 | 1,106,681 | 1,262,215 |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30TH JUNE 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Profit on disposal of Investments | (69,999 | ) | - |
Government grants | ( |
) | ( |
) |
Finance costs | 155,504 | 58,155 |
Finance income | (687 | ) | - |
1,029,225 | 1,052,793 |
(Increase)/decrease in stocks | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations | ( |
) |
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 30th June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 1,106,681 | 1,262,215 |
Year ended 30th June 2022 |
30.6.22 | 1.7.21 |
£ | £ |
Cash and cash equivalents | 1,262,215 | 1,524,106 |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30TH JUNE 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.7.22 | Cash flow | At 30.6.23 |
£ | £ | £ |
Net cash |
Cash at bank | 1,262,215 | (155,534 | ) | 1,106,681 |
1,262,215 | ( |
) | 1,106,681 |
Debt |
Finance leases | (1,613,215 | ) | 450,466 | (1,162,749 | ) |
Debts falling due within 1 year | (676,579 | ) | 353,912 | (322,667 | ) |
Debts falling due after 1 year | (480,754 | ) | (1,520,894 | ) | (2,001,648 | ) |
(2,770,548 | ) | (716,516 | ) | (3,487,064 | ) |
Total | (1,508,333 | ) | (872,050 | ) | (2,380,383 | ) |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH JUNE 2023 |
1. | STATUTORY INFORMATION |
Magnetic Shields Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover represents the amounts derived from the provision of goods which fall within the company’s ordinary activities, excluding Value Added Tax. |
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Depreciation is provided to write off the cost of assets over their estimated useful lives or, if held under a finance lease, over the lease term, whichever is the shorter. Depreciation is charged in the accounts at the following rates: |
Freehold property | 2% on cost |
Computer equipment | 25% on cost |
Plant and machinery | 25% on cost |
Fixtures and fittings | 25% on cost |
Motor vehicles | 20% on cost |
Some items have been fully depreciated. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Stocks and work in progress |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete slow moving items. Bought in components are valued at latest invoice cost, which approximates to the first in first out basis of valuation. Work in progress is valued at actual cost of material allocated and actual labour at standard rates. Finished goods are valued at the latest invoice cost of materials on the standard cost card and the standard cost of labour on the standard cost card. |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred taxation |
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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to the profit and loss account on a straight line basis over the period of the lease term. |
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2023 |
2. | ACCOUNTING POLICIES - continued |
Pensions |
The company operates a defined contribution money purchase pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The scheme also has defined benefit characteristics. |
The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of scheme assets, together with adjustments for unrecognised actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by independent actuaries using the attained age method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows. Unrealised gains and losses are recognised in the Statement of Recognised Gains and Losses. |
Amounts paid to defined contribution schemes are recognised in the profit and loss account when the payments fall due. |
The company also makes contributions to a director's personal pension scheme. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
In the opinion of the directors, the disclosure of the geographical analysis of turnover would be detrimental to the company's business. |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Employees |
Pension costs |
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Total contributions payable by the company amounted to £123,385 (2022: £124,918). The number of directors accruing benefits under defined contribution pension schemes amounted to 2 (2022: 1). |
Highest paid directors' remuneration £102,250 |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2023 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) |
Patents and licences amortisation |
6. | EXCEPTIONAL ITEMS |
2023 | 2022 |
£ | £ |
Profit/loss on sale of invest |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest and charges |
Hire purchase interest and charges |
8. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
Overprovision prior years | 209 | - |
Corporation Tax repayments | (69,000 | ) | (186,800 | ) |
Total current tax | ( |
) | ( |
) |
Deferred tax |
Tax on profit | ( |
) |
UK corporation tax has been charged at 19% (2022 - 19%). |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2023 |
8. | TAXATION - continued |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Utilisation of tax losses |
Adjustments to tax charge in respect of previous periods |
RDEC | (53,000 | ) | (143,700 | ) |
Research and development relief | - | (106,383 | ) |
Deferred tax movement | 67,552 | 199,989 |
R&D tax credit | (16,000 | ) | (43,100 | ) |
Total tax (credit)/charge | (1,239 | ) | 13,189 |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 30th June 2023. |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Actuarial gain | (10,393 | ) | 44,307 |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2023 |
9. | INTANGIBLE FIXED ASSETS |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1st July 2022 |
Additions |
At 30th June 2023 |
AMORTISATION |
At 1st July 2022 |
Amortisation for year |
At 30th June 2023 |
NET BOOK VALUE |
At 30th June 2023 |
At 30th June 2022 |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST OR VALUATION |
At 1st July 2022 |
Additions |
Disposals | ( |
) |
At 30th June 2023 |
DEPRECIATION |
At 1st July 2022 |
Charge for year |
Eliminated on disposal | ( |
) |
At 30th June 2023 |
NET BOOK VALUE |
At 30th June 2023 |
At 30th June 2022 |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1st July 2022 |
Additions |
Disposals | ( |
) |
At 30th June 2023 |
DEPRECIATION |
At 1st July 2022 |
Charge for year |
Eliminated on disposal | ( |
) |
At 30th June 2023 |
NET BOOK VALUE |
At 30th June 2023 |
At 30th June 2022 |
Included in cost or valuation of land and buildings is freehold land of £ 120,000 (2022 - £ 120,000 ) which is not depreciated. |
Cost or valuation at 30th June 2023 is represented by: |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
Valuation in 1990 | 493,173 | - | - |
Valuation in 1995 | (100,000 | ) | - | - |
Valuation in 2015 | 464,000 | - | - |
Cost | 1,936,299 | 7,472,884 | 264,398 |
2,793,472 | 7,472,884 | 264,398 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
Valuation in 1990 | - | - | 493,173 |
Valuation in 1995 | - | - | (100,000 | ) |
Valuation in 2015 | - | - | 464,000 |
Cost | 292,828 | 365,377 | 10,331,786 |
292,828 | 365,377 | 11,188,959 |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
If the freehold property had not been revalued it would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 322,827 | 322,827 |
The freehold property was valued on an open market basis on 12th March 2015 by the directors . |
The company has taken advantage of the provisions of FRS 102 to allow it to use this revaluation, upon transition to FRS 102, as deemed cost without any further requirement for regular revaluations. |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1st July 2022 |
and 30th June 2023 |
DEPRECIATION |
At 1st July 2022 |
Charge for year |
At 30th June 2023 |
NET BOOK VALUE |
At 30th June 2023 |
At 30th June 2022 |
11. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1st July 2022 |
Disposals | ( |
) |
At 30th June 2023 |
NET BOOK VALUE |
At 30th June 2023 |
At 30th June 2022 |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: Magnetic Shields, Headcorn Road, Staplehurst, Kent, UK, TN12 0DS |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Headcorn Road, Staplehurst, Tonbridge, Kent, UK, TN12 0DS |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
12. | STOCKS |
2023 | 2022 |
£ | £ |
Stocks |
Work-in-progress |
13. | DEBTORS |
2023 | 2022 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Advance payment to suppliers | 157,601 | 185,786 |
Amounts owed by group undertakings |
Other debtors |
VAT | 124,641 | 90,169 |
Tax |
Prepayments and accrued income |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2023 |
13. | DEBTORS - continued |
2023 | 2022 |
£ | £ |
Amounts falling due after more than one year: |
Amounts owed by group undertakings |
Amounts owed by associates |
Aggregate amounts |
Security in respect of the bank overdraft is held over the trade debtors. |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Hire purchase contracts (see note 17) |
Trade creditors |
Social security and other taxes |
Other creditors |
Payments received on account | 2,377,405 | 2,187,260 |
Accruals and deferred income |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 16) |
Hire purchase contracts (see note 17) |
Amounts owed to subsidiary undertakings | 510 | 510 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans and overdrafts | 322,667 | 676,579 |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2023 |
16. | LOANS - continued |
2023 | 2022 |
£ | £ |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
17. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
Hire purchase contracts | 1,162,749 | 1,613,215 |
The bank borrowings are secured by fixed and floating charges all assets and undertakings of the company along with a legal first charge over the freehold property of the company. Obligations under hire purchase and finance lease agreements are secured on the assets which they finance. |
19. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 309,789 | 242,237 |
Deferred |
tax |
£ |
Balance at 1st July 2022 |
Movement in the year | 67,552 |
Balance at 30th June 2023 |
The movement in the year of £67,552 (2022: £199,989 credited) has been credited to the profit and loss account. |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2023 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary shares | £1 | 2,286 | 2,286 |
21. | RESERVES |
Retained | Share | Revaluation |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1st July 2022 | 4,306,395 |
Profit for the year | - | - |
At 30th June 2023 | 4,520,515 |
22. | EMPLOYEE BENEFIT OBLIGATIONS |
In the most recent actuarial valuation of 5th April 2021 the fair value of the scheme's assets and the present value of the scheme liabilities were as follows: |
2023 | 2022 |
£ | £ |
Deferred defined benefits - deferred pensions | 557,800 | 557,800 |
Value of scheme's assets (excluding money purchase accounts) | (589,700 | ) | (589,700 | ) |
(Surplus)/Deficit | (31,900 | ) | (31,900 | ) |
Since the most recent Actuarial Valuation shows a surplus, no provision is required in the accounts for the year. |
23. | ULTIMATE PARENT COMPANY |
The company is a wholly owned subsidiary of BKT Group Holdings Limited which is incorporated in England and Wales. The accounts of the holding company can be obtained from Companies House, Cardiff. |
Colsur Materials Limited owns 79.38% of BKT Group Holdings Limited. Colsur Materials Limited is therefore considered to be the ultimate parent company. |
MAGNETIC SHIELDS LIMITED (REGISTERED NUMBER: 00581158) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2023 |
24. | RELATED PARTY DISCLOSURES |
At 30th June 2023 the company was owed £146,859 (2022: £145,861) by BKT Group Holdings Limited. No formal agreement in respect of the intercompany borrowing exists. However, it is not anticipated that repayment will be made within one year of the balance sheet date. |
At 30th June 2023 the company owed £9,109 (2022: £9,029) to the Magnetic Shields Limited Retirement Benefit Scheme. |
At 30th June 2023 the company was owed £25,604 (2022: £93,787) by MSL Heat Treatment Limited. |
At 30th June 2023 the company was owed £116,357 (2022: £363,392) by Colsur Materials Limited, the ultimate parent company. |
At 30th June 2023 the company owed £510 (2022: £510) to MSL Precision Limited. |
25. | ULTIMATE CONTROLLING PARTY |
Magnetic Shields Limited is controlled by C L Woolger. |
26. | GUARANTEES AND CHARGES |
The company has given a composite guarantee in respect of borrowings by the holding companies BKT Group Holdings Limited and Colsur Materials Limited. These companies have given a cross guarantee in respect of the company's borrowings. |