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REGISTERED NUMBER: 04577893 (England and Wales)
















Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 30 November 2023

for


MAG GROUP LIMITED


MAG GROUP LIMITED (REGISTERED NUMBER: 04577893)


Contents of the Consolidated Financial Statements

for the Year Ended 30 November 2023











Page



Company Information  

1



Group Strategic Report  

2



Report of the Directors  

3



Report of the Independent Auditors  

4



Consolidated Statement of Comprehensive Income

7



Consolidated Balance Sheet  

8



Company Balance Sheet  

9



Consolidated Statement of Changes in Equity  

10



Company Statement of Changes in Equity  

11



Consolidated Cash Flow Statement  

12



Notes to the Consolidated Financial Statements

13




MAG GROUP LIMITED


Company Information

for the Year Ended 30 November 2023









DIRECTORS:

G C S Gates


T P J Gates


Mrs J M Gates


G S Cox


E G R Gates







SECRETARY:

D M Fiddy







REGISTERED OFFICE:

Vulcan Road South


Norwich


Norfolk


NR6 6AF







REGISTERED NUMBER:

04577893 (England and Wales)







AUDITORS:

Rawse, Varley & Co


Statutory Auditor


Lloyds Bank Chambers


Hustlergate


Bradford


BD1 1UQ


MAG GROUP LIMITED (REGISTERED NUMBER: 04577893)


Group Strategic Report

for the Year Ended 30 November 2023



The directors present their strategic report of the company and the group for the year ended 30 November 2023.


GROUP ACTIVITIES

The group's principal activities comprise the supply of construction goods, the manufacture, installation and sale of plaster and Jesmonite mouldings, the supply of bathroom equipment and the sale of construction and safety equipment.


BUSINESS REVIEW

The group profit after taxation attributable to members for the year amounted to £2,971,211 - 2022: £3,137,928.


The key financial performance indicators were as follows:



               2023


                  2022



                £


                  £



Group turnover


25,717,623


27,785,654



Gross profit margin


39.8%



39.1%



Operating profit


3,562,717


3,871,119



Cash generated from operations


3,685,047


4,920,306




After increases in turnover of 40% and 30% for the previous two years in the Althon construction goods business,  its turnover  fell by some 11%. This is considered to reflect a general reduction in activity in the sectors in which the business operates after  a rebound experienced last year from the Covid pandemic.  Turnover in the group's other businesses were ahead of the previous year, so that overall group turnover was 7.5% less than the previous year. Gross profit margins improved across all businesses, other than the construction goods business which recorded a slightly lower margin. Operating profit fell more or less in line with turnover, resulting mainly from lower directors' remuneration.The group's operations continued to generate cash and at the year end cash at bank stood at approximately £14.9m.


PRINCIPAL RISKS AND UNCERTAINTIES

The group's businesses operate in separate markets, so that the impact of factors affecting the long term performance of individual businesses on the group's results is mitigated. However, all group businesses are primarily construction or property related and are subject to the risks associated with a significant downturn in those sectors. To mitigate these risks, the group looks to build strong customer relationships and to constantly improve, develop and source new products to compete effectively in the ever-changing marketplace.


ON BEHALF OF THE BOARD:






G C S Gates - Director



30 August 2024


MAG GROUP LIMITED (REGISTERED NUMBER: 04577893)


Report of the Directors

for the Year Ended 30 November 2023



The directors present their report and the financial statements for the year ended 30 November 2023.


DIVIDENDS

An interim dividend totalling £600,000 was paid by credit to shareholders' accounts during the year. It is not proposed to declare a final dividend in respect of the year ended 30 November 2023.


DIRECTORS

The directors shown below have held office during the whole of the period from 1 December 2022 to the date of this report.


G C S Gates

T P J Gates

Mrs J M Gates

G S Cox

E G R Gates


STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.


AUDITORS

The auditors,  Rawse, Varley & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.


BY ORDER OF THE BOARD:




D M Fiddy - Secretary



30 August 2024


Report of the Independent Auditors to the Members of

MAG Group Limited



Opinion

We have audited the financial statements of MAG Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and 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 group's and of the parent company affairs as at 30 November 2023 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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

MAG Group Limited



Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-

the parent company 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.


Report of the Independent Auditors to the Members of

MAG Group 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:


Based on our understanding of the group, the parent company and the sectors in which they operate, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK law, including laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated the extent to which non-compliance might have a material effect on the financial statements and evaluated incentives and opportunities for fraudulent manipulation, including the risk of override of controls. We determined that the principal risks were related to inappropriate or unusual journal entries outside the usual course of business and at financial year end, management bias in accounting estimates and judgmental areas of the financial statements. Audit procedures performed in response to our evaluation included:


  - reviewing the disclosures in the financial statements and testing to supporting documentation to assess

    compliance with the provisions of relevant laws and regulations, including in particular that income was fully

    recorded, appropriately recognised and correctly matched with related costs;


  - enquiring of management about existing and potential litigation and claims and known or suspected instances of

    non-compliance with laws and regulations and fraud;


  - addressing the risk of fraud through management override of controls by testing the appropriateness of journal

    entries including year end adjustments;


  - challenging assumptions and judgments made by management in determining accounting estimates;


  - evaluating the business rationale of any significant transactions that are unusual or outside the normal course of

    business.


There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud rather than error is higher, as fraud often involves intentional concealment, forgery, collusion, omission or misrepresentation.


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.





Philip Varley (Senior Statutory Auditor)

for and on behalf of Rawse, Varley & Co

Statutory Auditor

Bradford


30 August 2024


MAG GROUP LIMITED (REGISTERED NUMBER: 04577893)


Consolidated Statement of Comprehensive Income

for the Year Ended 30 November 2023



2023

2022



Notes

£   

£   

£   

£   



TURNOVER

4

25,717,623


27,785,654




Cost of sales

15,484,785


16,913,923



GROSS PROFIT

10,232,838


10,871,731




Distribution costs

827,405


802,344



Administrative expenses

5,842,716


6,198,268



6,670,121

7,000,612

OPERATING PROFIT

7

3,562,717


3,871,119




Interest receivable and similar income

310,232


30,515



3,872,949


3,901,634



Gain/loss on revaluation of investments

8,840


(11,592

)


3,881,789


3,890,042




Interest payable and similar expenses

8

6,555


3,373



PROFIT BEFORE TAXATION

3,875,234


3,886,669




Tax on profit

9

904,023


748,741



PROFIT FOR THE FINANCIAL YEAR

2,971,211


3,137,928




MAG GROUP LIMITED (REGISTERED NUMBER: 04577893)


Consolidated Balance Sheet

30 November 2023



2023

2022



Notes

£   

£   

£   

£   


FIXED ASSETS

Tangible assets

12

1,013,014


1,204,973



Investments

13

-


-



Investment property

14

440,151


-



1,453,165


1,204,973




CURRENT ASSETS

Stock

15

1,487,788


1,332,679



Debtors

16

4,377,988


4,487,449



Investments

17

97,487


88,451



Cash at bank

14,916,620


12,808,999



20,879,883


18,717,578



CREDITORS

Amounts falling due within one year

18

7,508,802


7,446,953



NET CURRENT ASSETS

13,371,081


11,270,625



TOTAL ASSETS LESS CURRENT

LIABILITIES

14,824,246


12,475,598




PROVISIONS FOR LIABILITIES

20

89,230


111,793



NET ASSETS

14,735,016


12,363,805




CAPITAL AND RESERVES

Called up share capital

21

3,000


3,000



Capital redemption reserve

22

2,000


2,000



Merger reserve

22

1,871,000


1,871,000



Other reserves

22

20,000


20,000



Retained earnings

22

12,839,016


10,467,805



SHAREHOLDERS' FUNDS

14,735,016


12,363,805




The financial statements were approved by the Board of Directors and authorised for issue on 30 August 2024 and were signed on its behalf by:






G C S Gates - Director



MAG GROUP LIMITED (REGISTERED NUMBER: 04577893)


Company Balance Sheet

30 November 2023



2023

2022



Notes

£   

£   

£   

£   


FIXED ASSETS

Tangible assets

12

699,729


761,269



Investments

13

980,820


780,820



Investment property

14

440,151


-



2,120,700


1,542,089




CURRENT ASSETS

Debtors

16

68,232


151,283



Investments

17

97,487


88,451



Cash at bank

9,224,004


5,442,459



9,389,723


5,682,193



CREDITORS

Amounts falling due within one year

18

5,702,765


2,410,345



NET CURRENT ASSETS

3,686,958


3,271,848



TOTAL ASSETS LESS CURRENT

LIABILITIES

5,807,658


4,813,937




PROVISIONS FOR LIABILITIES

20

48,433


45,528



NET ASSETS

5,759,225


4,768,409




CAPITAL AND RESERVES

Called up share capital

21

3,000


3,000



Capital redemption reserve

22

2,000


2,000



Retained earnings

22

5,754,225


4,763,409



SHAREHOLDERS' FUNDS

5,759,225


4,768,409




Company's profit for the financial year

1,590,816


1,629,721




The financial statements were approved by the Board of Directors and authorised for issue on 30 August 2024 and were signed on its behalf by:






G C S Gates - Director



MAG GROUP LIMITED (REGISTERED NUMBER: 04577893)


Consolidated Statement of Changes in Equity

for the Year Ended 30 November 2023



Called up


Capital


share


Retained


redemption


capital


earnings


reserve

£   

£   

£   


Balance at 1 December 2021

3,000


8,329,877


2,000




Changes in equity

Total comprehensive income

-


3,137,928


-



Dividends

-


(1,000,000

)

-



Balance at 30 November 2022

3,000


10,467,805


2,000




Changes in equity

Total comprehensive income

-


2,971,211


-



Dividends

-


(600,000

)

-



Balance at 30 November 2023

3,000


12,839,016


2,000




Merger


Other


Total


reserve


reserves


equity

£   

£   

£   


Balance at 1 December 2021

1,871,000


20,000


10,225,877




Changes in equity

Total comprehensive income

-


-


3,137,928



Dividends

-


-


(1,000,000

)


Balance at 30 November 2022

1,871,000


20,000


12,363,805




Changes in equity

Total comprehensive income

-


-


2,971,211



Dividends

-


-


(600,000

)


Balance at 30 November 2023

1,871,000


20,000


14,735,016




MAG GROUP LIMITED (REGISTERED NUMBER: 04577893)


Company Statement of Changes in Equity

for the Year Ended 30 November 2023



Called up


Capital



share


Retained


redemption


Total


capital


earnings


reserve


equity

£   

£   

£   

£   


Balance at 1 December 2021

3,000


4,133,688


2,000


4,138,688




Changes in equity

Dividends

-


(1,000,000

)

-


(1,000,000

)


Total comprehensive income

-


1,629,721


-


1,629,721



Balance at 30 November 2022

3,000


4,763,409


2,000


4,768,409




Changes in equity

Dividends

-


(600,000

)

-


(600,000

)


Total comprehensive income

-


1,590,816


-


1,590,816



Balance at 30 November 2023

3,000


5,754,225


2,000


5,759,225




MAG GROUP LIMITED (REGISTERED NUMBER: 04577893)


Consolidated Cash Flow Statement

for the Year Ended 30 November 2023



2023


2022


Notes

£   

£   


Cash flows from operating activities

Cash generated from operations

27

3,685,047


4,920,306



Interest paid

(6,555

)

(3,373

)


Tax paid

(313,679

)

(1,016,645

)


Net cash from operating activities

3,364,813


3,900,288




Cash flows from investing activities

Purchase of tangible fixed assets

(142,827

)

(361,486

)


Purchase of investment property

(440,151

)

-



Sale of tangible fixed assets

15,750


94,000



Interest received

310,036


30,472



Net cash from investing activities

(257,192

)

(237,014

)



Cash flows from financing activities

Purchase of current asset investment

-


(100,000

)


Shareholders' dividend accounts paid

(1,000,000

)

-



Net cash from financing activities

(1,000,000

)

(100,000

)



Increase in cash and cash equivalents

2,107,621


3,563,274



Cash and cash equivalents at beginning of

year

28

12,808,999


9,245,725




Cash and cash equivalents at end of year

28

14,916,620


12,808,999




MAG GROUP LIMITED (REGISTERED NUMBER: 04577893)


Notes to the Consolidated Financial Statements

for the Year Ended 30 November 2023



1.

STATUTORY INFORMATION



MAG Group Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.


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.  



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, modified as disclosed below in respect of investment property and current asset investments.



Group turnover


Group turnover represents the sales value of goods and services supplied for the year including revenue recognised as earned on incomplete contracts, less returns and excluding value added tax and sales between companies in the group.



Consolidation

The group financial statements combine the financial statements of MAG Group Limited and its subsidiaries made up to 30 November each year.

Goodwill arising on consolidation, which represents the excess of the cost of shares in subsidiaries over the fair value of net assets acquired, is capitalised and amortised over its estimated useful economic life of 20 years. Such goodwill is now fully amortised. Goodwill arising on past acquisitions by subsidiaries has been eliminated against reserves.


Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation.

Depreciation is calculated to write off the assets over their expected useful lives at the following annual rates:

Short leasehold improvements 10% - 25% of cost
Plant, equipment and fittings 15%, 20% or 50% of cost
Motor vehicles 25% of cost


Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.


Stock


Stock is stated at the lower of cost and net realisable value. Cost of goods purchased for resale and raw materials is determined using the first in, first out (FIFO) principle. In the case of finished manufactured stock, cost includes an appropriate proportion of manufacturing overheads.



Current asset investments

Investments are stated at fair value. Unquoted fund investments are valued by reference to daily prices advised by fund managers.

Changes in the valuation of investments are taken to profit and loss in the income statement.


MAG GROUP LIMITED (REGISTERED NUMBER: 04577893)


Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 November 2023



2.

ACCOUNTING POLICIES - continued


Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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 denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at rates of exchange that approximate those ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.


Pension contributions

Contributions payable to defined contribution pension schemes are charged to profit and loss account when incurred.


Contract revenue recognition


Revenue relating to contracts is recognised as earned when and to the extent that the company obtains the right to consideration in exchange for the supply of goods and performance of services under contracts with customers. Revenue is generally recognised as contract activity progresses, such that for incomplete contracts it reflects the partial performance of contractual obligations.



The amount of profit recognised on incomplete contracts is the lower of profit earned to date and the appropriate proportion of profit expected at completion. Full provision is made for known or expected losses at completion immediately such losses are identified.



The amount by which revenue recognised on incomplete contracts exceeds payments received on account is classified in the balance sheet as "Amounts recoverable on contracts".



Investment in subsidiaries


Investments in subsidiaries are stated in the company's balance sheet at cost less provisions for impairment assessed on an annual basis.


MAG GROUP LIMITED (REGISTERED NUMBER: 04577893)


Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 November 2023



3.

CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY



In the application of the group's accounting policies, the directors are required to make judgments, estimates and assumptions about the carrying amount of assets and liabilities. Estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. They are reviewed on a regular basis and revisions are made, where appropriate. Significant estimates and assumptions affecting the financial statements include the following:



The estimated useful lives of plant and machinery used in the accounting policy for depreciation of  tangible fixed assets take into account the potential for future changes in design and technological development of the company's products and obsolescence of equipment.



In applying the accounting policy for stock, realisable value has been estimated based on the assumptions that there will be no significant change in market conditions in the foreseeable future and that sales will be made in the normal course of the company's business, unless there is cause to assume otherwise.



The recognition of contract revenue as contract activity progresses requires estimates to be made of the stage of completion of each contract in progress at the year end. In addition, contract profit expected at completion is estimated, based on known or expected factors affecting the final outcome of contracts.


4.

TURNOVER



The turnover and profit before taxation are attributable to the principal activities of the group.



An analysis of turnover by class of business is given below:



2023


2022

£   

£   



Bathroom fittings

3,155,159


3,073,907




Plaster and Jesmonite moulding

5,549,916


5,478,475




Construction and safety goods

17,012,548


19,233,272



25,717,623


27,785,654





Group companies operate principally in the UK market and overseas sales, including one-off contracts undertaken in various countries, do not form a significant proportion of group turnover.


5.

EMPLOYEES AND DIRECTORS


2023


2022

£   

£   



Wages and salaries

4,736,423


5,044,969




Social security costs

594,954


674,639




Other pension costs

60,258


58,017



5,391,635


5,777,625




MAG GROUP LIMITED (REGISTERED NUMBER: 04577893)


Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 November 2023



5.

EMPLOYEES AND DIRECTORS - continued



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


2023


2022



Group administration

11


14




Bathroom fittings

7


6




Plaster and Jesmonite mouldings

33


34




Construction goods and equipment

9


9



60


63




6.

DIRECTORS' EMOLUMENTS


2023


2022

£   

£   



Directors' remuneration

2,312,149


2,778,039




Directors' pension contributions to money purchase schemes  

3,120


3,120





The number of directors to whom retirement benefits were accruing was as follows:



Money purchase schemes

3


3





Information regarding the highest paid director is as follows:


2023


2022

£   

£   



Emoluments etc

1,029,342


1,615,028




Pension contributions to money purchase schemes

1,560


1,560




7.

OPERATING PROFIT



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



2023


2022

£   

£   



Depreciation - owned assets

334,786


357,384




Profit on disposal of fixed assets

(15,750

)

(22,077

)



Goodwill amortisation

-


14,512




Auditors' remuneration

60,294


52,064




Foreign exchange differences

45


472




Operating lease charges - land and buildings  

128,933


128,933




Operating lease charges - equipment and vehicles  

35,376


27,944




Hire of plant and equipment  

78,722


76,968




8.

INTEREST PAYABLE AND SIMILAR EXPENSES



2023


2022

£   

£   



Sundry interest payable

6,555


3,373




MAG GROUP LIMITED (REGISTERED NUMBER: 04577893)


Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 November 2023



9.

TAXATION



Analysis of the tax charge


The tax charge on the profit for the year was as follows:


2023


2022

£   

£   



Current tax:


UK corporation tax

926,586


737,810





Deferred tax:


Origination and reversal of


timing differences

(22,915

)

10,931




Change in rate of tax

352


-




Total deferred tax

(22,563

)

10,931




Tax on profit

904,023


748,741





Reconciliation of total tax 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

3,875,234


3,886,669




Profit multiplied by the standard rate of corporation tax in the UK of 25 %

(2022 - 19 %)  

968,809


738,467





Effects of:


Expenses not deductible for tax purposes

14,567


13,900




Income not taxable for tax purposes

(48

)

(8

)



Non-reversing capital allowances  

(16

)

(7,712

)



Tax at lower rates  

(80,417

)

-




Tax at higher rates  

1,128


4,094




Total tax charge

904,023


748,741





The rate of corporation tax increased from 19% to 25% with effect from 1 April 2023.


10.

INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME



As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.



11.

DIVIDENDS


2023


2022

£   

£   



Ordinary shares of 1 each


Interim

600,000


1,000,000




MAG GROUP LIMITED (REGISTERED NUMBER: 04577893)


Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 November 2023



12.

TANGIBLE FIXED ASSETS



Group


Plant,



Short


equipment



leasehold


and


Motor



improvements


fittings


vehicles


Totals

£   

£   

£   

£   



COST


At 1 December 2022

1,075,456


2,775,412


610,748


4,461,616




Additions

22,361


68,962


51,504


142,827




Disposals

-


(26,062

)

(28,347

)

(54,409

)



At 30 November 2023

1,097,817


2,818,312


633,905


4,550,034




DEPRECIATION


At 1 December 2022

775,842


2,318,418


162,383


3,256,643




Charge for year

110,159


156,782


67,845


334,786




Eliminated on disposal

-


(26,062

)

(28,347

)

(54,409

)



At 30 November 2023

886,001


2,449,138


201,881


3,537,020




NET BOOK VALUE


At 30 November 2023

211,816


369,174


432,024


1,013,014




At 30 November 2022

299,614


456,994


448,365


1,204,973





Company


Plant,



Short


equipment



leasehold


and


Motor



improvements


fittings


vehicles


Totals

£   

£   

£   

£   



COST


At 1 December 2022

1,075,456


238,849


506,561


1,820,866




Additions

22,361


29,608


51,504


103,473




Disposals

-


-


(28,347

)

(28,347

)



At 30 November 2023

1,097,817


268,457


529,718


1,895,992




DEPRECIATION


At 1 December 2022

775,842


163,276


120,479


1,059,597




Charge for year

110,159


8,373


46,481


165,013




Eliminated on disposal

-


-


(28,347

)

(28,347

)



At 30 November 2023

886,001


171,649


138,613


1,196,263




NET BOOK VALUE


At 30 November 2023

211,816


96,808


391,105


699,729




At 30 November 2022

299,614


75,573


386,082


761,269




MAG GROUP LIMITED (REGISTERED NUMBER: 04577893)


Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 November 2023



13.

FIXED ASSET INVESTMENTS



Company


Shares in


group


undertakings

£   



COST


At 1 December 2022

780,820




Reversal of impairments

200,000




At 30 November 2023

980,820




NET BOOK VALUE


At 30 November 2023

980,820




At 30 November 2022

780,820






Investment in subsidiaries comprises:



                                                                                                             Principal activity



Althon Limited                                                                                     Sale of construction goods



Stevensons of Norwich Limited                                                           Manufacture and sale of plaster and


                                                                                                                 Jesmonite mouldings



Stevensons (1982) Limited                                                                  Support services and asset holding


                                                                                                                 company



Healey & Lord Ltd                                                                               Sale of bathroom fittings, construction


                                                                                                                 and safety goods



MAG KB Limited                                                                                Sale of bathroom fittings and group


                                                                                                                  support services



Fermor Limited                                                                                    Group support services




All subsidiary companies are wholly owned and registered at the address given on page 1.


14.

INVESTMENT PROPERTY



Group


Total

£   



FAIR VALUE


Additions

440,151




At 30 November 2023

440,151




NET BOOK VALUE


At 30 November 2023

440,151




MAG GROUP LIMITED (REGISTERED NUMBER: 04577893)


Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 November 2023



14.

INVESTMENT PROPERTY - continued



Company


Total

£   



FAIR VALUE


Additions

440,151




At 30 November 2023

440,151




NET BOOK VALUE


At 30 November 2023

440,151




The fair value of the property is estimated to be cost incurred during the year.

15.

STOCK



Group


2023

2022


£   

£   



Goods purchased for resale

1,301,678


1,192,264




Raw materials

90,159


79,452




Finished goods

95,951


60,963



1,487,788


1,332,679




16.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR




Group


Company


2023

2022

2023

2022


£   

£   

£   

£   



Trade debtors

4,200,865


4,317,734


-


-




Amounts owed by group undertakings

-


-


-


105,000




Amounts recoverable on contracts

10,795


18,027


-


-




Other debtors

23,229


20,986


12,795


10,308




Prepayments and accrued income

143,099


130,702


55,437


35,975



4,377,988


4,487,449


68,232


151,283




17.

CURRENT ASSET INVESTMENTS



Group


Company


2023

2022

2023

2022


£   

£   

£   

£   



Unlisted investments

97,487


88,451


97,487


88,451




MAG GROUP LIMITED (REGISTERED NUMBER: 04577893)


Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 November 2023



18.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR




Group


Company


2023

2022

2023

2022


£   

£   

£   

£   



Contract payments on account

148,586


256,429


-


-




Trade creditors

3,287,281


3,386,103


3,455


3,192




Amounts owed to group undertakings

-


-


3,660,778


-




Corporation tax

926,586


313,679


430,269


140,709




Social security and other taxes

721,408


647,729


154,617


148,611




Other creditors

630,276


1,000,000


630,276


1,000,000




Accruals and deferred income

1,794,665


1,843,013


823,370


1,117,833



7,508,802


7,446,953


5,702,765


2,410,345




19.

LEASING AGREEMENTS



Minimum lease payments fall due as follows:



Group


Non-cancellable operating

leases


2023

2022


£   

£   



Within one year

234,118


157,128




Between one and five years

824,808


558,555




In more than five years

792,000


773,598



1,850,926


1,489,281





Company


Non-cancellable operating

leases


2023

2022


£   

£   



Within one year

198,000


128,933




Between one and five years

792,000


515,732




In more than five years

792,000


773,598



1,782,000


1,418,263




20.

PROVISIONS FOR LIABILITIES



Group


Company


2023

2022

2023

2022


£   

£   

£   

£   



Deferred tax


Accelerated capital allowances

91,213


117,108


49,121


49,676




Other timing differences

(1,983

)

(5,315

)

(688

)

(4,148

)


89,230


111,793


48,433


45,528




MAG GROUP LIMITED (REGISTERED NUMBER: 04577893)


Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 November 2023



20.

PROVISIONS FOR LIABILITIES - continued



Group


Deferred



tax


£   



Balance at 1 December 2022

111,793




Credit to Statement of Comprehensive Income during year

(22,563

)



Balance at 30 November 2023

89,230





Company


Deferred



tax


£   



Balance at 1 December 2022

45,528




Charge to Income Statement during year

2,905




Balance at 30 November 2023

48,433




21.

CALLED UP SHARE CAPITAL



Allotted, issued and fully paid:


Number:

Class:

Nominal

2023

2022



value:

£   

£   



3,000

Ordinary

1

3,000


3,000




22.

RESERVES



Group


Capital



Retained


redemption


Merger


Other



earnings


reserve


reserve


reserves


Totals

£   

£   

£   

£   

£   




At 1 December 2022

10,467,805


2,000


1,871,000


20,000


12,360,805




Profit for the year

2,971,211


-


-


-


2,971,211




Dividends

(600,000

)

-


-


-


(600,000

)



At 30 November 2023

12,839,016


2,000


1,871,000


20,000


14,732,016





Company


Capital



Retained


redemption



earnings


reserve


Totals

£   

£   

£   




At 1 December 2022

4,763,409


2,000


4,765,409




Profit for the year

1,590,816


1,590,816




Dividends

(600,000

)

(600,000

)



At 30 November 2023

5,754,225


2,000


5,756,225




MAG GROUP LIMITED (REGISTERED NUMBER: 04577893)


Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 November 2023



22.

RESERVES - continued



The merger reserve in the group balance sheet represents the difference between the nominal value and the fair value of the shares issued as consideration for the acquisition of MAG KB Limited. Goodwill of £290,373 arising on the acquisition of MAG KB Limited has been fully amortised. In addition goodwill of £3,508 on past acquisitions by MAG KB Limited has been eliminated against reserves.


23.

PENSION COMMITMENTS



The group operates defined contribution pension schemes for the directors and staff. The schemes' funds are administered by trustees and are independent of the company's finances. The group's contributions as employers are disclosed in note 5 as "Other pension costs".


24.

CONTINGENT LIABILITIES



The company is party to an unlimited composite cross guarantee to its bankers securing the borrowings of subsidiary companies. There were no such borrowings at 30 November 2023 - 2022: none.



Overall the group's net cash at bank amounted to £14,915,249 - 2022: £12,806,960.



The company is contingently liable under a group registration scheme for VAT liabilities of subsidiary companies. At 30 November 2023 such liabilities amounted to £482,935 - 2022: £425,236.


25.

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', from disclosing related party transactions with wholly owned subsidiaries within the group.



Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.



The company paid rent to a company pension scheme for the year amounting to £128,933 - 2022: £128,933.


26.

CONTROLLING PARTY



The company is controlled by Mr G C S Gates.


27.

RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM

OPERATIONS


2023


2022

£   

£   



Profit before taxation

3,875,234


3,886,669




Depreciation charges

334,786


371,896




Profit on disposal of fixed assets

(15,750

)

(22,077

)



(Gain)/loss on revaluation of investment

(8,840

)

11,592




Finance costs

6,555


3,373




Finance income

(310,232

)

(30,515

)


3,881,753


4,220,938




Increase in stock

(155,109

)

(261,250

)



Decrease in trade and other debtors

109,461


286,185




(Decrease)/increase in trade and other creditors

(151,058

)

674,433




Cash generated from operations

3,685,047


4,920,306




MAG GROUP LIMITED (REGISTERED NUMBER: 04577893)


Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 November 2023



28.

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 30 November 2023


30.11.23


1.12.22

£   

£   



Cash and cash equivalents

14,916,620


12,808,999




Year ended 30 November 2022


30.11.22


1.12.21

£   

£   



Cash and cash equivalents

12,808,999


9,245,725





29.

ANALYSIS OF CHANGES IN NET FUNDS



Other



non-cash



At 1.12.22

Cash flow

changes

At 30.11.23

£   

£   

£   

£   



Net cash



Cash at bank

12,808,999


2,107,621


14,916,620



12,808,999


2,107,621


14,916,620





Liquid resources



Current asset


investments

88,451


-


9,036


97,487



88,451


-


9,036


97,487




Total

12,897,450


2,107,621


9,036


15,014,107




30.

BANK SECURITY



Group bank borrowings are secured by a legal mortgage and fixed and floating charges over group assets. There were no group borrowings at 30 November 2023 - 2022: none.