Acorah Software Products - Accounts Production 15.0.500 false true true 31 December 2021 1 January 2021 true No description of principal activity 1 January 2022 31 December 2022 31 December 2022 09054377 Mr William Morgan Mr Mohammed Bhatti Lord Edward Churchill Mr Craig Harrison Mr Henrik Holmark Mr Rupert Howell Mr Robert Lewis Miss Serene Sass Mr Caspar Warre iso4217:GBP iso4217:EUR iso4217:USD xbrli:shares xbrli:pure xbrli:pure 09054377 2021-12-31 09054377 2022-12-31 09054377 2022-01-01 2022-12-31 09054377 frs-core:CurrentFinancialInstruments 2022-12-31 09054377 frs-core:Non-currentFinancialInstruments 2022-12-31 09054377 frs-core:ComputerEquipment 2022-12-31 09054377 frs-core:ComputerEquipment 2022-01-01 2022-12-31 09054377 frs-core:ComputerEquipment 2021-12-31 09054377 frs-core:FurnitureFittings 2022-12-31 09054377 frs-core:FurnitureFittings 2022-01-01 2022-12-31 09054377 frs-core:FurnitureFittings 2021-12-31 09054377 frs-core:PlantMachinery 2022-01-01 2022-12-31 09054377 frs-core:SharePremium 2022-12-31 09054377 frs-core:ShareCapital 2022-12-31 09054377 frs-core:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 09054377 frs-core:RetainedEarningsAccumulatedLosses 2022-12-31 09054377 frs-bus:PrivateLimitedCompanyLtd 2022-01-01 2022-12-31 09054377 frs-bus:FullAccounts 2022-01-01 2022-12-31 09054377 frs-bus:SmallEntities 2022-01-01 2022-12-31 09054377 frs-bus:AuditExempt-NoAccountantsReport 2022-01-01 2022-12-31 09054377 frs-bus:SmallCompaniesRegimeForAccounts 2022-01-01 2022-12-31 09054377 frs-bus:SmallCompaniesRegimeForDirectorsReport 2022-01-01 2022-12-31 09054377 frs-bus:Director1 2022-01-01 2022-12-31 09054377 frs-bus:Director2 2022-01-01 2022-12-31 09054377 frs-bus:Director3 2022-01-01 2022-12-31 09054377 frs-bus:Director4 2022-01-01 2022-12-31 09054377 frs-bus:Director5 2022-01-01 2022-12-31 09054377 frs-bus:Director6 2022-01-01 2022-12-31 09054377 frs-bus:Director7 2022-01-01 2022-12-31 09054377 frs-bus:Director8 2022-01-01 2022-12-31 09054377 frs-bus:Director9 2022-01-01 2022-12-31 09054377 frs-bus:Director10 2022-01-01 2022-12-31 09054377 frs-bus:Director10 2022-12-31 09054377 frs-core:Non-currentFinancialInstruments 1 2022-12-31 09054377 frs-countries:EnglandWales 2022-01-01 2022-12-31 09054377 2020-12-31 09054377 2021-12-31 09054377 2021-01-01 2021-12-31 09054377 frs-core:CurrentFinancialInstruments 2021-12-31 09054377 frs-core:Non-currentFinancialInstruments 2021-12-31 09054377 frs-core:SharePremium 2020-12-31 09054377 frs-core:SharePremium 2021-12-31 09054377 frs-core:ShareCapital 2020-12-31 09054377 frs-core:ShareCapital 2021-12-31 09054377 frs-core:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 09054377 frs-core:RetainedEarningsAccumulatedLosses frs-core:PreviouslyStatedAmount 2020-12-31 09054377 frs-core:RetainedEarningsAccumulatedLosses 2021-12-31 09054377 frs-core:Non-currentFinancialInstruments 1 2021-12-31
Registered number: 09054377
Magic Media Works Limited
Directors' Report and
Unaudited Financial Statements
For The Year Ended 31 December 2022
Directors' Report and Unaudited Financial Statements
Contents
Page
Company Information 1
Directors' Report 2—3
Income Statement 4
Statement of Financial Position 5—6
Statement of Changes in Equity 7
Notes to the Financial Statements 8—10
Page 1
Company Information
Directors Mr William Morgan
Mr Mohammed Bhatti
Lord Edward Churchill
Mr Craig Harrison
Mr Henrik Holmark
Mr Rupert Howell
Mr Robert Lewis
Miss Serene Sass
Mr Caspar Warre
Company Number 09054377
Registered Office 167-169 Great Portland Street
5th Floor
London
W1W 5PF
Accountants Smith & Co Accountants Limited
ACCA
Unit G2
Tanfield Lea Business Centre
Stanley
Co Durham
DH9 9DB
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Directors' Report
The directors present their report and the financial statements for the year ended 31 December 2022.
Directors
The directors who held office during the year were as follows:
Mr William Morgan
Mr Mohammed Bhatti
Lord Edward Churchill
Mr Craig Harrison
Mr Henrik Holmark
Mr Rupert Howell
Mr Robert Lewis
Miss Serene Sass
Mr Caspar Warre
Ms Carol Weatherall Resigned 04/06/2024
Statement of Directors' Responsibilities
The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements the directors are required to: 
  • select suitable accounting policies and then apply them consistently;
  • make judgments 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.
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The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Going concern 
The Company’s financial statements have been prepared on a going concern basis as at the balance sheet date, however this is dependent on the company continuing to be successful in securing further investment funds.  The company raised £4,142,901 of investment funds during the year ended 31 December 2022 and raised £4,214,161 in the 18 months post the balance sheet date.
Post the balance sheet date in 2024, the company has been in active negotiations with a consortium of strategic investors to provide significant additional investment funds into the business which would be sufficient to fund the company for in excess of 12 months and to deliver on its plans to launch in the US.  However, the lead strategic investor’s requirements unexpectedly changed in late July 2024, and as a result of this the company has engaged Begbies Traynor, a leading independent business recovery specialist, to run an Accelerated M&A and Investment process. 
For the company to continue to trade, this Accelerated M&A and Investment process will have to conclude successfully and there is no guarantee that this will be the case. As such, the going concern assumption in these accounts is subject to a successful outcome of the Accelerated M&A and Investment process, which is in itself subject to material risk and uncertainty.
Small Company Rules
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
On behalf of the board
Mr Craig Harrison
Director
Mr Robert Lewis
Director
12/08/2024
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Income Statement
2022 2021
Notes £ £
TURNOVER 920,184 1,204,590
Cost of sales (852,500 ) (1,085,369 )
GROSS PROFIT 67,684 119,221
Administrative expenses (6,354,754 ) (6,709,581 )
Other operating expenses (1,216,332 ) (2,461,803 )
OPERATING LOSS (7,503,402 ) (9,052,163 )
Other interest receivable and similar income 3,102 536
Interest payable and similar charges (372,978 ) (224,801 )
LOSS BEFORE TAXATION (7,873,278 ) (9,276,428 )
Tax on Loss - 555,334
LOSS AFTER TAXATION BEING LOSS FOR THE FINANCIAL YEAR (7,873,278 ) (8,721,094 )
The notes on pages 8 to 10 form part of these financial statements.
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Statement of Financial Position
2022 2021
Notes £ £ £ £
FIXED ASSETS
Tangible Assets 4 11,110 11,974
11,110 11,974
CURRENT ASSETS
Stocks 5 531,342 837,998
Debtors 6 2,882,543 4,938,305
Cash at bank and in hand 2,086,886 2,923,741
5,500,771 8,700,044
Creditors: Amounts Falling Due Within One Year 7 (3,787,447 ) (2,902,698 )
NET CURRENT ASSETS (LIABILITIES) 1,713,324 5,797,346
TOTAL ASSETS LESS CURRENT LIABILITIES 1,724,434 5,809,320
Creditors: Amounts Falling Due After More Than One Year 8 (17,073,307 ) (15,048,771 )
NET LIABILITIES (15,348,873 ) (9,239,451 )
CAPITAL AND RESERVES
Called up share capital 9 325,977 269,228
Share premium account 20,669,534 18,962,427
Income Statement (36,344,384 ) (28,471,106 )
SHAREHOLDERS' FUNDS (15,348,873) (9,239,451)
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For the year ending 31 December 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
On behalf of the board
Mr Craig Harrison
Director
Mr Robert Lewis
Director
12/08/2024
The notes on pages 8 to 10 form part of these financial statements.
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Statement of Changes in Equity
Share Capital Share Premium Income Statement Total
£ £ £ £
As at 1 January 2021 269,228 18,962,427 (19,750,012 ) (518,357)
Loss for the year and total comprehensive income - - (8,721,094 ) (8,721,094)
As at 31 December 2021 and 1 January 2022 269,228 18,962,427 (28,471,106 ) (9,239,451)
Loss for the year and total comprehensive income - - (7,873,278 ) (7,873,278)
Arising on shares issued during the period 56,749 1,707,107 - 1,763,856
As at 31 December 2022 325,977 20,669,534 (36,344,384 ) (15,348,873)
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Notes to the Financial Statements
1. General Information
Magic Media Works Limited is a private company, limited by shares, incorporated in England & Wales, registered number 09054377 . The registered office is 167-169 Great Portland Street, 5th Floor, London, W1W 5PF.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
2.2. Going Concern Disclosure
The Company’s financial statements have been prepared on a going concern basis as at the balance sheet date, however this is dependent on the company continuing to be successful in securing further investment funds.  The company raised £4,142,901 of investment funds during the year ended 31 December 2022 and raised £4,214,161 in the 18 months post the balance sheet date.
Post the balance sheet date in 2024, the company has been in active negotiations with a consortium of strategic investors to provide significant additional investment funds into the business which would be sufficient to fund the company for in excess of 12 months and to deliver on its plans to launch in the US.  However, the lead strategic investor’s requirements unexpectedly changed in late July 2024, and as a result of this the company has engaged Begbies Traynor, a leading independent business recovery specialist, to run an Accelerated M&A and Investment process. 
For the company to continue to trade, this Accelerated M&A and Investment process will have to conclude successfully and there is no guarantee that this will be the case. As such, the going concern assumption in these accounts is subject to a successful outcome of the Accelerated M&A and Investment process, which is in itself subject to material risk and uncertainty.
2.3. Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
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.
2.4. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Plant & Machinery 50% Straight line
Fixtures & Fittings 33% Straight line
Computer Equipment 50% Straight line
2.5. Stocks and Work in Progress
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. 
2.6. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
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2.7. Taxation
Income tax expense represents the sum of the tax currently payable.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Current tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current tax is also recognised in other comprehensive income or directly in equity respectively.
3. Average Number of Employees
Average number of employees, including directors, during the year was: 35 (2021: 35)
35 35
4. Tangible Assets
Fixtures & Fittings Computer Equipment Total
£ £ £
Cost
As at 1 January 2022 3,790 138,909 142,699
Additions - 10,096 10,096
As at 31 December 2022 3,790 149,005 152,795
Depreciation
As at 1 January 2022 3,790 126,935 130,725
Provided during the period - 10,960 10,960
As at 31 December 2022 3,790 137,895 141,685
Net Book Value
As at 31 December 2022 - 11,110 11,110
As at 1 January 2022 - 11,974 11,974
5. Stocks
2022 2021
£ £
Finished goods 531,342 837,998
6. Debtors
2022 2021
£ £
Due within one year
Trade debtors 14,544 95,820
Prepayments and accrued income 47,144 172,522
Other debtors 2,820,855 3,440,613
2,882,543 3,708,955
Due after more than one year
Other debtors - 1,229,350
- 1,229,350
2,882,543 4,938,305
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7. Creditors: Amounts Falling Due Within One Year
2022 2021
£ £
Trade creditors 741,153 482,419
Bank loans and overdrafts 10,000 10,000
Other taxes and social security 157,450 101,999
Other creditors 2,878,844 2,308,280
3,787,447 2,902,698
8. Creditors: Amounts Falling Due After More Than One Year
2022 2021
£ £
Bank loans 28,136 38,305
Other creditors 5,961,072 6,708,860
Other creditors -shareholder loan notes 11,084,099 8,301,606
17,073,307 15,048,771
9. Share Capital
2022 2021
£ £
Allotted, Called up and fully paid 325,977 269,228
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