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REGISTERED NUMBER: 05878200 (England and Wales)















Financial Statements for the Year Ended 31 December 2023

for

Magnomatics Limited

Magnomatics Limited (Registered number: 05878200)






Contents of the Financial Statements
for the year ended 31 December 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4


Magnomatics Limited

Company Information
for the year ended 31 December 2023







DIRECTORS: IP2IPO Services Limited
D Latimer
I Williamson
G Rodgers





SECRETARY: D Latimer





REGISTERED OFFICE: Park House
Bernard Road
Sheffield
South Yorkshire
S2 5BQ





REGISTERED NUMBER: 05878200 (England and Wales)





ACCOUNTANTS: Atraxa Consulting Limited
Brooke's Mill
Armitage Bridge
Huddersfield
West Yorkshire
HD4 7NR

Magnomatics Limited (Registered number: 05878200)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 1,549,603 1,804,496
Tangible assets 5 97,390 63,073
1,646,993 1,867,569

CURRENT ASSETS
Stocks 157,346 161,591
Debtors 6 1,433,095 1,102,801
Cash at bank and in hand 1,061,244 664,780
2,651,685 1,929,172
CREDITORS
Amounts falling due within one year 7 1,180,202 668,168
NET CURRENT ASSETS 1,471,483 1,261,004
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,118,476

3,128,573

CREDITORS
Amounts falling due after more than one
year

8

266,589

29,923
NET ASSETS 2,851,887 3,098,650

CAPITAL AND RESERVES
Called up share capital 70,070 68,054
Share premium 148,468 6,536,214
Revaluation reserve 9 1,580,239 1,580,239
Retained earnings 1,053,110 (5,085,857 )
2,851,887 3,098,650

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

Magnomatics Limited (Registered number: 05878200)

Balance Sheet - continued
31 December 2023


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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 4 September 2024 and were signed on its behalf by:





G Rodgers - Director


Magnomatics Limited (Registered number: 05878200)

Notes to the Financial Statements
for the year ended 31 December 2023

1. STATUTORY INFORMATION

Magnomatics 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 Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis.

At 31 December 2023 the company had net assets of £2,851,887 and had a cash balance of £1,061,244.

The directors have prepared financial forecasts which cover a period of at least 12 months from the date of approval of these financial statements. Based on the assumptions within the forecasts, the directors are confident that the company will have sufficient financial resources to remain in existence and continue to be a going concern for at least 12 months.

Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The main area where judgement is applied is in the determination of revenue recognition on contracts. To determine how much revenue should be recognised in a particular accounting period for each contract, management use internal project information to determine the stage of completion of each piece of work and the extent of any remaining obligations to customers. Where work has been invoiced prior to completion of a project, management estimate the amounts which should be classified within deferred income and recognised in the profit and loss account in future accounting periods.

Magnomatics Limited (Registered number: 05878200)

Notes to the Financial Statements - continued
for the year ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Turnover
Turnover represents amounts receivable for goods, services, royalties and licences net of VAT and trade discounts. Turnover includes grants received from UK and EU Project Collaborations.

Intangible assets
Intangible assets acquired separately from a business are capitalised at cost. Intangible assets acquired as part of an acquisition of a business are capitalised separately from goodwill if the fair value can be measured reliably on initial recognition. Intangible assets acquired as part of an acquisition are not recognised where they arise from legal or other contractual rights, and where there is no history of exchange transactions.

Expenditure on research activities undertaken internally by the company is recognised as an expense in the period in which it is incurred. Development costs incurred on specific projects are capitalised when all the following criteria are satisfied:

(a) completion of the intangible asset is technically feasible so that it will be available for use or sale;

(b) the company intends to complete the intangible asset and use or sell it;

(c) the company has the ability to use or sell the intangible asset and the intangible asset will generate probable future economic benefits over and above cost;

(d) there are adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and

(e) the expenditure attributable to the intangible asset during its development can be measured reliably.

Subsequent to initial recognition, intangible assets are stated at cost less accumulated amortisation and accumulated impairment. In some circumstances, certain intangible assets may be revalued to fair value. Intangible assets are amortised on a straight-line basis over their estimated useful lives and the amortisation charge for the period is included within 'administrative expenses' in the Income Statement.

The useful economic lives of intangible assets are as follows:

Development costs - 5 to 12 years
Patents - 5 to 12 years

The carrying value of intangible assets is reviewed for impairment if events or changes in circumstances indicate the carrying value may not be recoverable.

If there are indicators that the residual value or useful life of an intangible asset has changed since the most recent annual reporting period, previous estimates shall be reviewed and, if current expectations differ, the residual value, amortisation method or useful life will be amended. Changes in the expected useful life or the expected pattern of consumption of benefit shall be accounted for as a change in accounting estimate.

An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are largely independent cash flows (cash-generating units). Prior impairments of non-financial assets (other than goodwill) are reviewed for possible reversal at each reporting date.

Magnomatics Limited (Registered number: 05878200)

Notes to the Financial Statements - continued
for the year ended 31 December 2023

2. ACCOUNTING POLICIES - continued

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:

Leasehold property improvements - Over term of lease
Plant and machinery - 25% straight-line
Fixtures, fittings and equipment - 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.

Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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).

Stocks
Stocks are stated at the lower of cost and estimated selling price.

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 tax
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.

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 lease s asset are consumed.

Magnomatics Limited (Registered number: 05878200)

Notes to the Financial Statements - continued
for the year ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.

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.

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.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs, and thereafter are assessed for indicators of impairment at each reporting end date.

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 trade and other payables, 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 receipts discounted at a market rate of interest.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Compound instruments
The component parts of compound instruments issued by the company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangement. At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for a similar non-convertible instrument. This amount is recorded as a liability on an amortised cost basis using the effective interest method until extinguished upon conversion or at the instrument's maturity date. The equity component is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognised and included in equity net of income tax effects and is not subsequently remeasured.

Share capital
Share capital issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 31 (2022 - 26 ) .

Magnomatics Limited (Registered number: 05878200)

Notes to the Financial Statements - continued
for the year ended 31 December 2023

4. INTANGIBLE FIXED ASSETS
Other
intangible
assets
£   
COST
At 1 January 2023
and 31 December 2023 3,103,711
AMORTISATION
At 1 January 2023 1,299,215
Charge for year 254,893
At 31 December 2023 1,554,108
NET BOOK VALUE
At 31 December 2023 1,549,603
At 31 December 2022 1,804,496

The intellectual property is held at a revalued amount following a revaluation in 2018. The carrying amount reflects the expected future economic benefits and was performed by the directors based on the present value of the expected future economic benefits.

If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

20232022
£   £   

Cost394,731394,731
Accumulated amortisation(199,618)(170,473)
Carrying value195,113224,758


Magnomatics Limited (Registered number: 05878200)

Notes to the Financial Statements - continued
for the year ended 31 December 2023

5. TANGIBLE FIXED ASSETS
Leasehold Plant and
improvements machinery Totals
£    £    £   
COST
At 1 January 2023 292,789 549,763 842,552
Additions 38,735 33,155 71,890
At 31 December 2023 331,524 582,918 914,442
DEPRECIATION
At 1 January 2023 292,789 486,690 779,479
Charge for year 6,575 30,998 37,573
At 31 December 2023 299,364 517,688 817,052
NET BOOK VALUE
At 31 December 2023 32,160 65,230 97,390
At 31 December 2022 - 63,073 63,073

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,216,479 734,307
Other debtors 216,616 368,494
1,433,095 1,102,801

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts 10,015 9,768
Trade creditors 205,013 262,201
Taxation and social security 82,365 29,086
Other creditors 882,809 367,113
1,180,202 668,168

The company has a loan amounting to £29,923 of which £10,015 is due within one year (2022: £9,768) and the remainder is due between 1 and 2 years (and is shown within Creditors: amounts due after more than one year in note 9 below). The loan is unsecured and has an interest rate of 2.5%. The loan is expected to be fully repaid by November 2026.

Included within other creditors is £839,980 (2022: £320,874) of deferred income which is expected to be recognised within sales revenue during the financial year ending 31 December 2024.

Magnomatics Limited (Registered number: 05878200)

Notes to the Financial Statements - continued
for the year ended 31 December 2023

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans 19,908 29,923
Other creditors 246,681 -
266,589 29,923

Included within creditors due after more than one year is the long term portion of the loan, further details of which are set out in note 8 above.

Also included above is deferred income of £246,681 (2022: £nil) which is expected to be recognised within revenue during the financial year ending 31 December 2025.

9. RESERVES

On 2 August 2023 the company passed a special resolution that the company's share capital be reduced by £6,565,640 by the cancellation of all of the company's share premium account on that date and the amount by which the share capital is so reduced be credited to retained earnings.