Company registration number 06993531 (England and Wales)
MAGNUM BOOK SERVICES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
MAGNUM BOOK SERVICES LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
MAGNUM BOOK SERVICES LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
3,249
6,814
Current assets
Debtors
4
1,926,706
2,347,346
Cash at bank and in hand
1,808,051
1,467,400
3,734,757
3,814,746
Creditors: amounts falling due within one year
5
(1,142,662)
(1,603,866)
Net current assets
2,592,095
2,210,880
Total assets less current liabilities
2,595,344
2,217,694
Provisions for liabilities
(112,880)
(101,196)
Net assets
2,482,464
2,116,498
Capital and reserves
Called up share capital
6
1,040
1,040
Share premium account
1,429
1,429
Profit and loss reserves
2,479,995
2,114,029
Total equity
2,482,464
2,116,498
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 16 August 2024 and are signed on its behalf by:
R. Hattrell
Director
Company Registration No. 06993531
MAGNUM BOOK SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Magnum Book Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Magnum House, 62 Leopold Road, FELIXSTOWE, IP11 7NR and the company number is 06993531.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents amounts receivable for services net of VAT and trade discounts.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
50% - 33% straight line
Fixtures, fittings & equipment
25% - 33% straight line
Computer equipment
50% - 33% straight line
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.4
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
MAGNUM BOOK SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.6
Financial instruments
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes 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 reporting end date.
Deferred tax
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
MAGNUM BOOK SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.9
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
23
24
MAGNUM BOOK SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023
110,145
Disposals
(45)
At 31 December 2023
110,100
Depreciation and impairment
At 1 January 2023
103,331
Depreciation charged in the year
3,565
Eliminated in respect of disposals
(45)
At 31 December 2023
106,851
Carrying amount
At 31 December 2023
3,249
At 31 December 2022
6,814
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,141,715
2,093,384
Amounts owed by group undertakings
1,253
Other debtors
728,612
136,444
Prepayments and accrued income
55,126
117,074
1,926,706
2,346,902
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
444
Total debtors
1,926,706
2,347,346
Included in trade debtors is £nil (2022: £1,289,800) relating to amounts outstanding on a factoring debt agreement
MAGNUM BOOK SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
3,888
107,375
Trade creditors
908,304
1,160,485
Amounts owed to group undertakings
74,947
55,254
Corporation tax
100,791
197,264
Other taxation and social security
20,703
11,364
Other creditors
15,565
Accruals and deferred income
34,029
56,559
1,142,662
1,603,866
The bank overdraft of £nil (2022: £97,917 ) is secured by an Intercompany Guarantee and a debenture over all the assets of the company.
6
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
750
750
635
750
Ordinary B shares of £1 each
125
125
125
125
Ordinary C shares of £1 each
125
125
125
125
Ordinary D shares of £1 each
10
10
125
10
Ordinary E shares of £1 each
10
10
10
10
Ordinary F shares of £1 each
10
10
10
10
Ordinary G shares of £1 each
10
10
10
10
1,040
1,040
1,040
1,040
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Roger Beaton F.C.A..
The auditor was BG Audit LLP.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
MAGNUM BOOK SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
8
Financial commitments, guarantees and contingent liabilities
An Intercompany Cross Guarantee has been provided in respect of bank borrowings for Magnum Spedition Limited, Scanwell Logistics (UK) Limited, Magnum Group Holdings Limited, Magnum Logistics Limited, Scanwell Logistics (LHR) Limited and Scanwell Logistics (FXT) Limited
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Within one year
65,326
65,326
10
Events after the reporting date
Since the year end the company has entered into a new rent lease. The term of the lease is 5 years from the 26 November 2023 and rent of £211,000 is payable per annum. There is a break date on the day preceding the 3rd anniversary of the Term Start Date.
11
Directors' transactions
At the year end the four directors were owed £nil by the company (2022: £12,000)
During the year another director received advances of £300,000.Interest of £3,784 has been charged at a rate of 2%. At the year end the director owed the company £306,784 (2022 : £3,000).
12
Parent company
The company is controlled by Magnum Group Holdings Limited, the parent company. Group accounts are available from Magnum House, Leopold Road, Felixstowe, IP11 7NR.