Company registration number 06810641 (England and Wales)
MAGNUM GROUP HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
MAGNUM GROUP HOLDINGS LIMITED
COMPANY INFORMATION
Directors
R. Hattrell
D. Haworth
R. Haworth
Company number
06810641
Registered office
Magnum House
Leopold Road
FELIXSTOWE
IP11 7NR
Auditor
BG Audit LLP
Statutory Auditors
7 Three Rivers Business Park
Felixstowe Road, Foxhall
IPSWICH
IP10 0BF
Business address
Magnum House
Leopold Road
FELIXSTOWE
IP11 7NR
MAGNUM GROUP HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Company statement of cash flows
13
Notes to the financial statements
14 - 34
MAGNUM GROUP HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Fair review of the business
Despite a fall in turnover against 2022 the gross profit margin held up and indeed improved in 2023 from 22.97% to 28.76%
Principal risks and uncertainties
We continue into turbulent times within the global economy, along with the added delays and costs involved with the Red Sea crisis adding to volatile freight rates and container space and capacity, these forced changes we believe will remain for some time.
Liquidity Risk
The Group has sufficient cash reserves to enable it to meet its obligations as they fall due.
Development and performance
During 2023 we invested and moved into our new Warehouse and Distribution centre at London Gateway and we are very much looking forward to the development and opportunities this new facility will bring.
The directors believe they are well positioned to deal with both the opportunities and challenges 2024 may bring.
Key performance indicators
The key financial highlights are as follows:
2023 2022
Gross Profit % 28.76% 22.97%
Net profit before Tax % 10.88% 14.25%
Other performance indicators
Management also monitors the levels of jobs that are undertaken for each company in order to identify areas in which expectations are being exceeded.
Position of the group at the year end
The group financial position at the year end is strong, with the reserves at £4.1 million. The group has continued to offer a range of services as it looks to gain market share within the industry.
R. Hattrell
Director
4 September 2024
MAGNUM GROUP HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activities of the Group is that of freight forwarding, transport and logistics.
The principal activity of Magnum Group holdings is that of a holding company.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
R. Hattrell
D. Haworth
R. Haworth
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £214,800. The directors do not recommend payment of a further dividend.
Post reporting date events
No significant events have occurred between 31 December 2023 and the date of authorisation of these financial statements.
Auditor
The auditor, BG Audit LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
On behalf of the board
R. Hattrell
Director
4 September 2024
MAGNUM GROUP HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors are responsible for preparing the Annual 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 group and company, 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
MAGNUM GROUP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MAGNUM GROUP HOLDINGS LIMITED
- 4 -
Opinion
We have audited the financial statements of Magnum Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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 the parent company's affairs as at 31 December 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.
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
MAGNUM GROUP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MAGNUM GROUP HOLDINGS LIMITED
- 5 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which 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 directors' responsibilities statement, 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 is 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 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 parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 an auditor's report 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the Parent company and group’s industry and activities, we identified the principal risks of non-compliance with laws and regulations, and considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that impact directly on the preparation of the financial statements including the Companies Act, and UK tax legislation.
We considered the opportunities for fraudulent adjustments to the financial statements including override of controls and determined that the principal risks were related to fraudulent transactions that would result in the manipulation of profits.
Audit procedures included:
Making enquiries of management for known or suspected instances of fraud or non-compliance with laws and regulations.
Consideration of management’s procedures for detecting and preventing fraud, including controls.
Reviewing journal entries to identify material or unusual transactions
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
MAGNUM GROUP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MAGNUM GROUP HOLDINGS LIMITED
- 6 -
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the Parent 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 Parent 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 Parent company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Roger Beaton F.C.A. (Senior Statutory Auditor)
For and on behalf of BG Audit LLP
4 September 2024
Statutory Auditor
7 Three Rivers Business Park
Felixstowe Road, Foxhall
IPSWICH
IP10 0BF
MAGNUM GROUP HOLDINGS LIMITED
GROUP STATEMENT OF TOTAL COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
11,616,204
18,542,693
Cost of sales
(8,275,790)
(14,284,036)
Gross profit
3,340,414
4,258,657
Administrative expenses
(2,448,226)
(2,176,446)
Other operating income
142,506
156,920
Operating profit
5
1,034,694
2,239,131
Share of results of associates and joint ventures
114,342
304,828
Interest receivable and similar income
8
128,578
103,415
Interest payable and similar expenses
9
(13,045)
(5,007)
Profit before taxation
1,264,569
2,642,367
Taxation
10
(261,352)
(433,545)
Profit for the financial year
1,003,217
2,208,822
Profit for the financial year is attributable to:
- Owners of the parent company
675,007
1,544,085
- Non-controlling interests
328,210
664,737
1,003,217
2,208,822
Total comprehensive income for the year is attributable to:
- Owners of the parent company
675,007
1,544,085
- Non-controlling interests
328,210
664,737
1,003,217
2,208,822
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MAGNUM GROUP HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
60,343
62,164
Investments
14
953,203
838,861
1,013,546
901,025
Current assets
Debtors falling due after more than one year
18
14,000
444
Debtors falling due within one year
18
3,291,368
3,769,978
Cash at bank and in hand
2,951,204
2,681,312
6,256,572
6,451,734
Creditors: amounts falling due within one year
19
(1,882,842)
(2,533,714)
Net current assets
4,373,730
3,918,020
Total assets less current liabilities
5,387,276
4,819,045
Creditors: amounts falling due after more than one year
20
(16,500)
(27,500)
Provisions for liabilities
22
(125,395)
(112,835)
Net assets
5,245,381
4,678,710
Capital and reserves
Called up share capital
25
2,140
2,140
Share premium account
189,203
189,203
Profit and loss reserves
4,167,805
3,707,598
Equity attributable to owners of the parent company
4,359,148
3,898,941
Non-controlling interests
886,233
779,769
5,245,381
4,678,710
The financial statements were approved by the board of directors and authorised for issue on 4 September 2024 and are signed on its behalf by:
04 September 2024
R. Hattrell
Director
MAGNUM GROUP HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
42,781
53,019
Investments
14
2,135
2,135
44,916
55,154
Current assets
Debtors
18
652,969
717,827
Cash at bank and in hand
875,698
641,355
1,528,667
1,359,182
Creditors: amounts falling due within one year
19
(266,634)
(174,393)
Net current assets
1,262,033
1,184,789
Total assets less current liabilities
1,306,949
1,239,943
Creditors: amounts falling due after more than one year
20
(16,500)
Provisions for liabilities
23
(8,937)
(11,057)
Net assets
1,281,512
1,228,886
Capital and reserves
Called up share capital
25
2,140
2,140
Share premium account
189,203
189,203
Profit and loss reserves
1,090,169
1,037,543
Total equity
1,281,512
1,228,886
The financial statements were approved by the board of directors and authorised for issue on 4 September 2024 and are signed on its behalf by:
04 September 2024
R. Hattrell
Director
Company Registration No. 016810641
MAGNUM GROUP HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2022
2,140
189,203
2,327,393
2,518,736
350,122
2,868,858
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
1,544,085
1,544,085
664,737
2,208,822
Dividends
11
-
-
(163,880)
(163,880)
(235,090)
(398,970)
Balance at 31 December 2022
2,140
189,203
3,707,598
3,898,941
779,769
4,678,710
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
675,007
675,007
328,210
1,003,217
Dividends
11
-
-
(214,800)
(214,800)
(221,746)
(436,546)
Balance at 31 December 2023
2,140
189,203
4,167,805
4,359,148
886,233
5,245,381
MAGNUM GROUP HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
2,140
189,203
1,041,435
1,232,778
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
159,988
159,988
Dividends
11
-
-
(163,880)
(163,880)
Balance at 31 December 2022
2,140
189,203
1,037,543
1,228,886
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
267,426
267,426
Dividends
11
-
-
(214,800)
(214,800)
Balance at 31 December 2023
2,140
189,203
1,090,169
1,281,512
MAGNUM GROUP HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
1,478,720
1,735,697
Interest paid
(13,045)
(5,007)
Income taxes paid
(338,362)
(465,716)
Net cash inflow from operating activities
1,127,313
1,264,974
Investing activities
Purchase of tangible fixed assets
(22,476)
(114,346)
Proceeds from disposal of tangible fixed assets
1,500
111,000
Repayment of loans
(424,875)
(35,772)
Interest received
54,578
4,415
Dividends received
74,000
99,000
Net cash (used in)/generated from investing activities
(317,273)
64,297
Financing activities
Repayment of bank loans
(11,000)
(11,000)
Dividends paid to equity shareholders
(214,800)
(163,880)
Dividends paid to non-controlling interests
(221,746)
(235,090)
Net cash used in financing activities
(447,546)
(409,970)
Net increase in cash and cash equivalents
362,494
919,301
Cash and cash equivalents at beginning of year
2,573,937
1,654,636
Cash and cash equivalents at end of year
2,936,431
2,573,937
Relating to:
Cash at bank and in hand
2,951,204
2,681,312
Bank overdrafts included in creditors payable within one year
(14,773)
(107,375)
MAGNUM GROUP HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
32
306,813
(288,871)
Interest paid
(3,569)
Income taxes paid
(13,655)
(45,051)
Net cash inflow/(outflow) from operating activities
293,158
(337,491)
Investing activities
Purchase of tangible fixed assets
(5,088)
(108,925)
Proceeds on disposal of tangible fixed assets
111,000
Loans made
(5,349)
Proceeds from other investments and loans
-
(23,796)
Interest received
28,115
1,336
Dividends received
110,807
142,000
Net cash generated from investing activities
128,485
121,615
Financing activities
Repayment of bank loans
27,500
-
Dividends paid to equity shareholders
(214,800)
(163,880)
Net cash used in financing activities
(187,300)
(163,880)
Net increase/(decrease) in cash and cash equivalents
234,343
(379,756)
Cash and cash equivalents at beginning of year
641,355
1,021,111
Cash and cash equivalents at end of year
875,698
641,355
MAGNUM GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information
Magnum Group Holdings Limited (“the company”) is a limited company domiciled and incorporated in England and Wales. The registered office is Magnum House, Leopold Road, Felixstowe, IP11 7NR. The company number is 06810641.
The group consists of Magnum Group Holdings Limited and all of its subsidiaries.
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.
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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £267,426 (2022 - £159,988)
1.2
Basis of consolidation
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
The consolidated financial statements incorporate those of Magnum Group Holdings Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
MAGNUM GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover for freight forwarding, transport and logistics is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Acquired goodwill is written off in equal instalments over its estimated useful economic life.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.6
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 improvements
Over the period of the lease
Plant and equipment
25% straight line
Fixtures and fittings
25% straight line
Computers
33% straight line
Motor vehicles
33% - 20% Straight line
MAGNUM GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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 recognised in the profit and loss account.
1.7
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Impairment of fixed assets
At each reporting period end date, the group 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). 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
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 GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.10
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group after deducting all of its liabilities.
MAGNUM GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the group 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 group.
1.12
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
MAGNUM GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group 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.
1.14
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
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 leased asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
MAGNUM GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.17
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.18
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
Judgements and key sources of estimation uncertainty
In the application of the group’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.
3
Turnover and other revenue
An analysis of the group's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Transport, freight forwarding and logistics
11,422,728
18,431,152
Management fees receivable
108,981
111,541
Group recharges
84,495
-
11,616,204
18,542,693
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
5,894,192
11,152,176
Rest of the World
5,722,012
7,390,517
11,616,204
18,542,693
MAGNUM GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 21 -
2023
2022
£
£
Other revenue
Interest income
54,578
4,415
Dividends received
74,000
99,000
Grants received
15,061
31,336
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
6,000
5,000
Audit of the financial statements of the company's subsidiaries
17,280
13,000
23,280
18,000
5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(26,395)
(52,408)
Government grants
(15,061)
(31,336)
Depreciation of owned tangible fixed assets
24,297
47,106
Profit on disposal of tangible fixed assets
(1,500)
(2,075)
Operating lease charges
225,620
192,172
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Admin
34
36
3
4
Director
3
3
3
3
Total
37
39
6
7
MAGNUM GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 22 -
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
894,776
807,024
90,403
43,018
Social security costs
78,858
67,170
12,146
6,175
Pension costs
368,226
149,002
167,021
103,040
1,341,860
1,023,196
269,570
152,233
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
40,405
28,502
Company pension contributions to defined contribution schemes
153,650
90,800
194,055
119,302
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
24,634
Other interest income
29,944
4,415
Total interest revenue
54,578
4,415
Income from fixed asset investments
Income from shares in group undertakings
74,000
99,000
Total income
128,578
103,415
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
24,634
-
MAGNUM GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
10,342
1,438
Other finance costs:
Interest on finance leases and hire purchase contracts
-
3,569
Other interest
2,703
-
Total finance costs
13,045
5,007
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
261,292
433,731
Deferred tax
Origination and reversal of timing differences
60
(186)
Total tax charge
261,352
433,545
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
1,264,569
2,642,367
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
297,427
502,050
Tax effect of expenses that are not deductible in determining taxable profit
7,894
2,621
Tax effect of utilisation of tax losses not previously recognised
(1,312)
Effect of change in corporation tax rate
48
3,081
Depreciation on assets not qualifying for tax allowances
308
4,538
Dividend income
(17,405)
(18,810)
Capital allowances at enhanced rate
(27)
(706)
Income not subject to tax
(26,893)
(57,917)
Taxation charge
261,352
433,545
Income not subject to tax represents the share of profits from associates, accounted for net of tax in the group statement of total comprehensive income.
MAGNUM GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
214,800
163,880
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
7,361
Amortisation and impairment
At 1 January 2023 and 31 December 2023
7,361
Carrying amount
At 31 December 2023
At 31 December 2022
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
MAGNUM GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
13
Tangible fixed assets
Group
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2023
66,400
87,474
90,536
160,692
120,619
122,171
647,892
Additions
5,088
17,388
22,476
Disposals
(45)
(1,725)
(1,770)
At 31 December 2023
66,400
87,474
90,536
160,647
125,707
137,834
668,598
Depreciation and impairment
At 1 January 2023
66,400
43,788
89,036
149,005
118,080
119,419
585,728
Depreciation charged in the year
11,353
5,664
2,683
4,597
24,297
Eliminated in respect of disposals
(45)
(1,725)
(1,770)
At 31 December 2023
66,400
55,141
89,036
154,624
120,763
122,291
608,255
Carrying amount
At 31 December 2023
32,333
1,500
6,023
4,944
15,543
60,343
At 31 December 2022
43,686
1,500
11,687
2,539
2,752
62,164
MAGNUM GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
Company
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2023
87,474
16,151
98,903
202,528
Additions
5,088
5,088
At 31 December 2023
87,474
16,151
103,991
207,616
Depreciation and impairment
At 1 January 2023
43,788
7,618
98,103
149,509
Depreciation charged in the year
11,353
3,030
943
15,326
At 31 December 2023
55,141
10,648
99,046
164,835
Carrying amount
At 31 December 2023
32,333
5,503
4,945
42,781
At 31 December 2022
43,686
8,533
800
53,019
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
75
75
1,635
1,635
Investments in joint ventures
16
953,128
838,786
500
500
953,203
838,861
2,135
2,135
Movements in fixed asset investments
Group
Shares in subsidiaries and joint ventures
£
Cost or valuation
At 1 January 2023
838,861
Additions
114,342
At 31 December 2023
953,203
Carrying amount
At 31 December 2023
953,203
At 31 December 2022
838,861
MAGNUM GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries and joint ventures
£
Cost or valuation
At 1 January 2023 and 31 December 2023
2,135
Carrying amount
At 31 December 2023
2,135
At 31 December 2022
2,135
15
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Magnum Book Services Limited
England and Wales
Ordinary
75.00
Magnum Spedition Limited
England and Wales
Ordinary
75.00
Scanwell (LHR) Limited
England and Wales
Ordinary
75.00
Scanwell (UK) Limited
England and Wales
Ordinary
75.00
Scanwell Logistics (FXT) Limited
England and Wales
Ordinary
60.00
The results for the subsidiary company Scanwell logistics (UK) Limited have been excluded from the consolidation accounts. The company is in liquidation and no further accounts have been prepared since the year ended 31st December 2020. The investment is stated at cost.
16
Joint ventures
Details of joint ventures at 31 December 2023 are as follows:
Name of undertaking
Registered office
Interest
% Held
held
Direct
Magnum Logistics Limited
England and Wales
Ordinary
50.00
17
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
3,165,917
3,539,731
645,801
695,634
Carrying amount of financial liabilities
Measured at amortised cost
1,637,526
2,165,807
211,918
81,333
MAGNUM GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,746,066
2,935,580
13,482
23,562
Corporation tax recoverable
2,204
7,570
Amounts owed by group undertakings
-
-
156,560
265,006
Amounts owed by undertakings in which the company has a participating interest
158,424
54,151
158,424
54,151
Other debtors
1,278,139
573,668
303,335
352,915
Prepayments and accrued income
106,535
199,009
7,168
22,193
3,291,368
3,769,978
638,969
717,827
Amounts falling due after more than one year:
Other debtors
14,000
444
14,000
Total debtors
3,305,368
3,770,422
652,969
717,827
Included in trade debtors is £nil (2022: £1,321,290) relating to amounts outstanding on a factoring debt agreement.
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
25,773
118,375
11,000
Trade creditors
1,407,006
1,813,102
158,729
22,604
Amounts owed to group undertakings
3,773
1,817
199
85
Corporation tax payable
205,198
287,634
51,456
13,655
Other taxation and social security
56,618
107,773
19,760
79,405
Other creditors
64,106
108,742
11,437
42,011
Accruals and deferred income
120,368
96,271
14,053
16,633
1,882,842
2,533,714
266,634
174,393
20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
16,500
27,500
16,500
MAGNUM GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
21
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
27,500
38,500
27,500
Bank overdrafts
14,773
107,375
42,273
145,875
27,500
-
Payable within one year
25,773
118,375
11,000
Payable after one year
16,500
27,500
16,500
Bank loans and overdrafts are secured by fixed and floating charges over the group assets and cross guarantee with other group companies.
22
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Dilapidations
112,500
100,000
-
-
Deferred tax liabilities
23
12,895
12,835
8,937
11,057
125,395
112,835
8,937
11,057
Movements on provisions:
Dilapidations
Group
£
At 1 January 2023
100,000
Additional provisions in the year
12,500
At 31 December 2023
112,500
MAGNUM GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
23
Deferred taxation
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
12,895
12,835
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
8,937
11,057
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
12,835
11,057
Charge/(credit) to profit or loss
60
(2,120)
Liability at 31 December 2023
12,895
8,937
The net deferred tax liability expected to reverse in the year ended 31st December 2024 is £5,954. This primarily relates to the reversal of timing differences on acquired tangible assets and capital allowances through depreciation, offset by expected tax deductions when payments are made to utilise provisions.
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
368,226
149,002
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
MAGNUM GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
1,584
1,584
1,584
1,584
Ordinary C shares of £1 each
342
342
342
342
Ordinary D shares of £1 each
107
107
107
107
Ordinary E shares of £1 each
107
107
107
107
2,140
2,140
2,140
2,140
There are four classes of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.
MAGNUM GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
26
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
86,058
167,134
5,250
21,000
Between two and five years
121,212
207,270
-
5,250
207,270
374,404
5,250
26,250
27
Events after the reporting date
Since the year end the a subsidiary company has entered into a new 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.
Since the year end the parent company has entered into a new lease. The term of the lease is 5 years from the 29 March 2024 and rent of £27,150 is payable per annum.
28
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2023
2022
£
£
Aggregate compensation
479,225
233,511
Other information
MAGNUM GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
28
Related party transactions
(Continued)
- 33 -
Dividends totalling £214,800 (2022: £163,880) were paid in the year in respect of shares held by the directors of the company and their spouses.
Dividends totalling £221,746 (2022: £235,090) were paid in the year in respect of shares held by the directors of the subsidiary companies and their spouses.
Included in the accounts are amounts totalling £479,599 (2022: £54,723) owed from the directors and shareholders of the group companies as at 31 December 2023.
During the year the following transactions took place with companies in which R S Hattrell is a shareholder:
Sales of £584,894 (2022: £419,751)
Purchases of £346,273 (2021: £211,815)
Overheads recharged of £125,644 (2022: £164,724)
At the year end one company was owed £149,919 by the group (2022: £44,196). At the year end another company owed £108,324 (2022: £157,351) to the group.
At the year end £3,773 (2022: £1.817) was owed by the group to a subsidiary company not included in the consolidation.
29
Directors' transactions
During the year advances of £526,035 were made to directors of the group companies and repayments of £109,447 were made, Interest of £8,288 was charged at a rate of 2.5%. At the year end the directors owed the group £479,599 (2022: £54,723).
30
Controlling party
During the year the company was controlled by R. S. Hattrell, the Director and majority shareholder.
31
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,003,217
2,208,822
Adjustments for:
Share of results of associates and joint ventures
(114,342)
(304,828)
Taxation charged
261,352
433,545
Finance costs
13,045
5,007
Investment income
(128,578)
(103,415)
Gain on disposal of tangible fixed assets
(1,500)
(2,075)
Depreciation and impairment of tangible fixed assets
24,297
47,106
Increase in provisions
12,500
100,000
Movements in working capital:
Decrease in debtors
884,563
308,473
Decrease in creditors
(475,834)
(956,938)
Cash generated from operations
1,478,720
1,735,697
MAGNUM GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
32
Cash generated from/(absorbed by) operations - company
2023
2022
£
£
Profit for the year after tax
267,426
159,988
Adjustments for:
Taxation charged
49,336
13,268
Finance costs
3,569
Investment income
(138,922)
(143,336)
Gain on disposal of tangible fixed assets
-
(2,075)
Depreciation and impairment of tangible fixed assets
15,326
40,368
Movements in working capital:
Decrease/(increase) in debtors
70,207
(411,948)
Increase in creditors
43,440
51,295
Cash generated from/(absorbed by) operations
306,813
(288,871)
33
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
2,681,312
269,892
2,951,204
Bank overdrafts
(107,375)
92,602
(14,773)
2,573,937
362,494
2,936,431
Borrowings excluding overdrafts
(38,500)
11,000
(27,500)
2,535,437
373,494
2,908,931
34
Analysis of changes in net funds - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
641,355
234,343
875,698
Borrowings excluding overdrafts
-
(27,500)
(27,500)
641,355
206,843
848,198
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