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COMPANY REGISTRATION NUMBER: 01764041
Magnum Packaging (N.E.) Limited
Financial Statements
31 March 2024
Magnum Packaging (N.E.) Limited
Financial Statements
Year ended 31 March 2024
Contents
Page
Officers and professional advisers
1
Strategic report
2
Director's report
4
Independent auditor's report to the members
6
Profit and loss account
10
Balance sheet
11
Statement of cash flows
12
Notes to the financial statements
13
Magnum Packaging (N.E.) Limited
Officers and Professional Advisers
Director
Z H Younis
Registered office
Magnum House
Macklin Avenue
Cowpen Lane Industrial Estate
Billingham
TS23 4BY
Auditor
Chipchase Manners
Chartered accountants & statutory auditors
384 Linthorpe Road
Middlesbrough
TS5 6HA
Bankers
Lloyds Bank
83-85 Linthorpe Road
Middlesbrough
TS1 5BU
Solicitors
Jacksons Law Firm
17 Falcon Court
Preston Farm Industrial Estate
Stockton-on-Tees
TS18 3TU
Magnum Packaging (N.E.) Limited
Strategic Report
Year ended 31 March 2024
Principal activities
The principal activity of the company is that of wholesale packaging merchants.
Key performance indicators
The straightforward trade of the company allows for the use of simple key performance indicators as follows:
2024 2023
Turnover increase (%) (2) 4
Gross profit margin (%) 24 26
Net profit margin (%) (7) 2
Current ratio 1 2
Principal risks and uncertainties
The company conducts the sale of various types of packaging products from the premises at Macklin Avenue, which houses head offices and main warehouse facilities. The key business risks and uncertainties affecting the company are considered to relate to the competition in the industry, both locally and nationally. The company's directors are working to maintain the company's excellent reputation and are working to build on existing customer relationships whilst also developing new ones. The company has continued to grow in recent years despite the competition in the industry. The directors expected the growth to slow, but continue for the foreseeable future, which is evident in the current year. This growth and financial success in recent years has allowed for the expansion of the clients premises to the facility in Billingham which has allowed the company to manage higher demand for its products and continue to increase both turnover and stock levels.
Interest risk
The company finances its activities, along with other financial assets and liabilities such as trade debtors and creditors, directly from the company's operating activities. The company does not enter into interest rate swaps and does not trade in financial instruments. The company does not seek to hedge any transactions and no trading in derivative financial instruments is undertaken. The overall level of interest risk is low.
Currency risk
The company's reporting currency is GBP but it transacts in foreign currencies with a range of customers who operate with both Euros and US Dollars. Fluctuations in value between GBP, the Euro and US Dollars may affect the company's revenues and operating profits. The company does not seek to mitigate currency risks through hedging to limit foreign currency transaction exposure as this exposure is not deemed by the directors to be a significant risk. Recent results have been positive despite the uncertainty cause by the UK's ongoing Brexit negotiations having an effect on exchange rates.
Liquidity risk
The risk of financial loss due to counterpart failure to honour its obligations is principally in relation to transactions where the company provides goods and services. Company policies are aimed at minimising such losses, and require that terms are only granted to customers who demonstrate an appropriate payment history and satisfy creditworthiness procedures. Individual exposures are monitored to ensure that the company's exposure to bad debts is not significant. The company seeks to mitigate liquidity risk by managing cash generation in its operations and applying cash collection targets.
Going concern
The company's business activities together with the factors likely to affect its future development, its financial position, financial risk management objectives and its exposures to price, credit, liquidity and cash flow risk are described in the business review above. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly they continue to adopt the going concern basis in preparing the annual report and accounts.
Future developments
The directors have made the decision to create the Magnum Holdings UK Limited Group, of which Magnum Packaging (N.E) Limited is a wholly owned subsidiary. The purpose of this is to ensure the only trade of Magnum Packaging (N.E) Limited is that of wholesale packaging merchants, with the investment property management trade being performed in a separate company within the group. The properties present in the company were transferred to Magnum Investments (NE) Limited in the previous accounting period. Ultimately, the directors intend to push growth as they have done in the recent past.
Results and dividends
EBITDA for the period equated to £932,873 (2023: £1,038,491). Particulars of dividends paid are detailed in the notes to the financial statements.
This report was approved by the board of directors on 27 September 2024 and signed on behalf of the board by:
Z H Younis
Director
Registered office:
Magnum House
Macklin Avenue
Cowpen Lane Industrial Estate
Billingham
TS23 4BY
Magnum Packaging (N.E.) Limited
Director's Report
Year ended 31 March 2024
The director presents his report and the financial statements of the company for the year ended 31 March 2024 .
Directors
The directors who served the company during the year were as follows:
Z H Younis
M Younis
(Resigned 22 February 2024)
Dividends
Particulars of recommended dividends are detailed in note 11 to the financial statements.
Future developments
The directors of the company intend to promote steady growth for the foreseeable future.
Financial instruments
There have been no financial instruments considered to be non-basic in use during the year.
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period.
In preparing these financial statements, the director is required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 27 September 2024 and signed on behalf of the board by:
Z H Younis
Director
Registered office:
Magnum House
Macklin Avenue
Cowpen Lane Industrial Estate
Billingham
TS23 4BY
Magnum Packaging (N.E.) Limited
Independent Auditor's Report to the Members of Magnum Packaging (N.E.) Limited
Year ended 31 March 2024
Opinion
We have audited the financial statements of Magnum Packaging (N.E.) Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, balance sheet, statement of cash flows and the related notes, 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 FRS 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 company's affairs as at 31 March 2024 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 director's 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 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 director with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of the director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the 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 director either intends to liquidate the company or to cease operations, or has 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: The objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud or error. It is also our objective to obtain sufficient appropriate audit evidence regarding the risks we have assessed and respond as appropriate to them. Even though an audit is planned and performed in accordance with the ISAs (UK), an audit has an unavoidable risk that material misstatements in the financial statements may not be detected. In identifying and assessing the risk of material misstatement in respect of irregularities, including fraud, our audit procedures included the following: - We obtained an understanding of the legal and regulatory frameworks applicable to the company and the environment in which they operate. - We obtained an understanding of how the company ensures their compliance with the applicable legal and regulatory frameworks through inquiries to the management and those charged with ensuring such compliance within the company. We corroborated our inquiries through a review of transactions within the financial statements that were linked to compliance with laws and regulations. We also reviewed any available board minutes. - We assessed the susceptibility of the company's financial statements to material misstatement with regards to how fraud might occur. Audit procedures performed by the team included: - Identifying and assessing the effectiveness of controls the management of the company has in place to detect and prevent possible fraud; - Understanding how those involved with ensuring compliance considered and addressed the potential override of controls or undue influence over the financial reports; - Challenging any major assumptions and judgements that the management used in any significant accounting estimates; - Reviewing journal entries made with emphasis placed on those with unusual combinations and those around the accounting year end: and - Assessing the extent of compliance with applicable laws and regulations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. - Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Graeme Boagey BA FCA CTA
(Senior Statutory Auditor)
For and on behalf of
Chipchase Manners
Chartered accountants & statutory auditors
384 Linthorpe Road
Middlesbrough
TS5 6HA
27 September 2024
Magnum Packaging (N.E.) Limited
Profit and Loss Account
Year ended 31 March 2024
2024
2023
Note
£
£
Turnover
4
41,372,706
42,016,727
Cost of sales
( 31,478,364)
( 31,010,170)
-------------
-------------
Gross profit
9,894,342
11,006,557
Distribution costs
( 4,002,315)
( 5,402,397)
Administrative expenses
( 8,440,661)
( 4,683,491)
------------
-------------
Operating (loss)/profit
5
( 2,548,634)
920,669
Interest payable and similar expenses
9
( 40,686)
( 22,959)
------------
-------------
(Loss)/profit before taxation
( 2,589,320)
897,710
Tax on (loss)/profit
10
( 158,611)
( 188,617)
------------
---------
(Loss)/profit for the financial year and total comprehensive income
( 2,747,931)
709,093
------------
---------
Dividends paid and payable
11
( 3,450,000)
( 250,000)
Retained earnings at the start of the year
6,727,783
6,268,690
------------
------------
Retained earnings at the end of the year
529,852
6,727,783
------------
------------
All the activities of the company are from continuing operations.
Magnum Packaging (N.E.) Limited
Balance Sheet
31 March 2024
2024
2023
Note
£
£
£
Fixed assets
Tangible assets
12
708,282
532,212
Current assets
Stocks
13
6,312,590
4,276,836
Debtors
14
5,908,166
9,891,799
Cash at bank and in hand
2,129,589
3,049,153
-------------
-------------
14,350,345
17,217,788
Creditors: amounts falling due within one year
15
( 14,119,362)
( 10,590,750)
-------------
-------------
Net current assets
230,983
6,627,038
---------
------------
Total assets less current liabilities
939,265
7,159,250
Creditors: amounts falling due after more than one year
16
( 353,737)
( 352,023)
Provisions
Taxation including deferred tax
18
( 55,576)
( 79,344)
---------
------------
Net assets
529,952
6,727,883
---------
------------
Capital and reserves
Called up share capital
22
100
100
Profit and loss account
23
529,852
6,727,783
---------
------------
Shareholders funds
529,952
6,727,883
---------
------------
These financial statements were approved by the board of directors and authorised for issue on 27 September 2024 , and are signed on behalf of the board by:
Z H Younis
Director
Company registration number: 01764041
Magnum Packaging (N.E.) Limited
Statement of Cash Flows
Year ended 31 March 2024
2024
2023
£
£
Cash flows from operating activities
(Loss)/profit for the financial year
( 2,747,931)
709,093
Adjustments for:
Depreciation of tangible assets
193,209
117,822
Interest payable and similar expenses
40,686
22,959
Loss on disposal of tangible assets
3,777
Tax on (loss)/profit
158,611
188,617
Accrued expenses
4,783
2,000
Changes in:
Stocks
( 2,035,754)
971,293
Trade and other debtors
3,983,633
( 229,326)
Trade and other creditors
6,868,921
( 1,523,455)
------------
------------
Cash generated from operations
6,466,158
262,780
Interest paid
( 40,686)
( 22,959)
Tax paid
( 185,738)
( 229,232)
------------
---------
Net cash from operating activities
6,239,734
10,589
------------
---------
Cash flows from investing activities
Purchase of tangible assets
( 369,279)
( 254,966)
Proceeds from sale of tangible assets
3,600
------------
---------
Net cash used in investing activities
( 369,279)
( 251,366)
------------
---------
Cash flows from financing activities
Proceeds from borrowings
( 6,585,775)
271,972
Proceeds from loans from group undertakings
3,100,000
150,000
Payments of finance lease liabilities
145,756
119,836
Dividends paid
( 3,450,000)
( 250,000)
------------
---------
Net cash (used in)/from financing activities
( 6,790,019)
291,808
------------
---------
Net (decrease)/increase in cash and cash equivalents
( 919,564)
51,031
Cash and cash equivalents at beginning of year
3,049,153
2,998,122
------------
------------
Cash and cash equivalents at end of year
2,129,589
3,049,153
------------
------------
Magnum Packaging (N.E.) Limited
Notes to the Financial Statements
Year ended 31 March 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Magnum House, Macklin Avenue, Cowpen Lane Industrial Estate, Billingham, TS23 4BY.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: Disclosures in respect of financial instruments have not been presented as there were none used that were non-basic in the year. No disclosure has been given for the aggregate remuneration of key management personnel as they are the same individuals as the directors.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery
-
25% reducing balance
Fixtures and fittings
-
25% reducing balance
Motor vehicles
-
25% reducing balance
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the balance sheet as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the balance sheet and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
4. Turnover
Turnover arises from:
2024
2023
£
£
Sale of goods
41,372,706
42,016,727
-------------
-------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2024
2023
£
£
United Kingdom
39,617,423
39,932,208
Overseas
1,755,283
2,084,519
-------------
-------------
41,372,706
42,016,727
-------------
-------------
5. Operating profit
Operating profit or loss is stated after charging:
2024
2023
£
£
Depreciation of tangible assets
193,209
117,822
Loss on disposal of tangible assets
3,777
Impairment of trade debtors
6,847
7,097
---------
---------
6. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
16,000
14,000
--------
--------
7. Staff costs
The average number of persons employed by the company during the year, including the director, amounted to:
2024
2023
No.
No.
Management staff
2
2
Other employees
97
88
----
----
99
90
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
2,367,257
2,221,632
Social security costs
204,487
194,361
Other pension costs
49,882
24,073
------------
------------
2,621,626
2,440,066
------------
------------
8. Director's remuneration
The director's aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
152,500
285,426
---------
---------
Remuneration of the highest paid director in respect of qualifying services:
2024
2023
£
£
Aggregate remuneration
152,500
150,213
---------
---------
9. Interest payable and similar expenses
2024
2023
£
£
Interest on banks loans and overdrafts
23,178
20,109
Interest on obligations under finance leases and hire purchase contracts
17,508
2,850
--------
--------
40,686
22,959
--------
--------
10. Tax on (loss)/profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
182,379
185,738
Deferred tax:
Origination and reversal of timing differences
( 23,768)
2,879
---------
---------
Tax on (loss)/profit
158,611
188,617
---------
---------
Reconciliation of tax expense
The tax assessed on the (loss)/profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 19 %).
2024
2023
£
£
(Loss)/profit on ordinary activities before taxation
( 2,589,320)
897,710
------------
---------
(Loss)/profit on ordinary activities by rate of tax
( 647,330)
170,565
Effect of expenses not deductible for tax purposes
491
718
Effect of capital allowances and depreciation
23,767
14,455
Utilisation of tax losses
( 16,624)
Deferred tax movement
(23,768)
2,879
Effect of intercompany balance written off not deductible
822,075
------------
---------
Tax on (loss)/profit
158,611
188,617
------------
---------
11. Dividends
2024
2023
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
3,450,000
250,000
------------
---------
12. Tangible assets
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
653,117
482,023
331,926
1,467,066
Additions
63,119
306,160
369,279
---------
---------
---------
------------
At 31 March 2024
716,236
482,023
638,086
1,836,345
---------
---------
---------
------------
Depreciation
At 1 April 2023
509,398
367,488
57,968
934,854
Charge for the year
39,348
28,633
125,228
193,209
---------
---------
---------
------------
At 31 March 2024
548,746
396,121
183,196
1,128,063
---------
---------
---------
------------
Carrying amount
At 31 March 2024
167,490
85,902
454,890
708,282
---------
---------
---------
------------
At 31 March 2023
143,719
114,535
273,958
532,212
---------
---------
---------
------------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Motor vehicles
£
At 31 March 2024
214,267
---------
At 31 March 2023
214,267
---------
13. Stocks
2024
2023
£
£
Finished goods and goods for resale
6,312,590
4,276,836
------------
------------
14. Debtors
2024
2023
£
£
Trade debtors
5,889,406
6,547,083
Amounts owed by group undertakings
3,288,298
Prepayments and accrued income
15,206
53,862
Other debtors
3,554
2,556
------------
------------
5,908,166
9,891,799
------------
------------
15. Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
100,000
100,000
Trade creditors
1,026,212
1,199,989
Amounts owed to group undertakings
3,333,400
233,400
Accruals and deferred income
18,783
14,000
Corporation tax
182,379
185,738
Social security and other taxes
1,631,111
1,048,651
Obligations under finance leases and hire purchase contracts
78,522
26,146
Director loan accounts
6,494,109
Other creditors
7,748,955
1,288,717
-------------
-------------
14,119,362
10,590,750
-------------
-------------
16. Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
166,667
258,333
Obligations under finance leases and hire purchase contracts
187,070
93,690
---------
---------
353,737
352,023
---------
---------
17. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2024
2023
£
£
Not later than 1 year
78,522
26,146
Later than 1 year and not later than 5 years
187,070
93,690
---------
---------
265,592
119,836
---------
---------
18. Provisions
Deferred tax (note 19)
£
At 1 April 2023
79,344
Unused amounts reversed
( 23,768)
--------
At 31 March 2024
55,576
--------
19. Deferred tax
The deferred tax included in the balance sheet is as follows:
2024
2023
£
£
Included in provisions (note 18)
55,576
79,344
--------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
55,576
79,344
--------
--------
20. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 49,882 (2023: £ 24,073 ).
21. Financial instruments
The company has not used any non-basic financial instruments in the year.
22. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
100
100
100
100
----
----
----
----
23. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
24. Analysis of changes in net debt
At 1 Apr 2023
Cash flows
At 31 Mar 2024
£
£
£
Cash at bank and in hand
3,049,153
(919,564)
2,129,589
Debt due within one year
(6,853,655)
3,341,733
(3,511,922)
Debt due after one year
(352,023)
(1,714)
(353,737)
------------
------------
------------
( 4,156,525)
2,420,455
( 1,736,070)
------------
------------
------------
25. Contingent liabilities
On 15 July 2024, HMRC issued an assessment against the company in respect of Plastic Packaging Tax (PPT) which covered a period inclusive of the year ended 31 March 2024. The director has appealed the assessment. Given the uncertainty over the amount (if any) and timing of any possible tax liabilities, no provision has been made in the accounts for the year ended 31 March 2024.
26. Director's advances, credits and guarantees
There have been no directors' advances, credits or guarantees in the year.
27. Related party transactions
During the year the company had purchases from Magnum Investments (NE) Limited totalling £600,000 (2023: £480,000). These were for the rental of properties. At the year end the company was due nil (2023: £3,288,297) from Magnum Investments (NE) Limited. During the year, the intercompany balance of £3,288,297 was written off in full. During the year the company proposed a dividend of £3,450,000 (2023: £250,000) to Magnum Holdings UK Limited, the parent company. At the year end the company owed £3,333,400 (2023: £233,400) to Magnum Holdings UK Limited. All transactions between the companies in the Magnum Holdings UK Limited (ultimate parent company) group are undertaken on an arms-length basis and under normal commercial terms. Loans to shareholders totalling £7,740,700 (2023: £1,279,085) are represented in Other Creditors on the financial statements.
Magnum Packaging (N.E.) Limited
Notes to the Financial Statements (continued)
Year ended 31 March 2024
28. Controlling party
At the year end, there overall controlling party was Mr Z H Younis by virtue of his majority shareholding in the parent company Magnum Holdings UK Limited.